Finance minister Nirmala Sitharaman presented the Union Budget 2019 in the Parliament on 5th July 2019. The first Budget of Narendra Modi government’s second tenure is the maiden one for Sitharaman, who is the second woman finance minister of India after Indira Gandhi. Here are the key highlights of the 2019 Budget. Instead of carrying Brown budget briefcase, she came by holding budget papers with a key hole on the emblem was absolute traditional way of presentation.
Among key announcements, Sitharaman said that digital payments will get cheaper, government will launch an ATM-like One Nation One Card for Pan India travel and new model rental laws will be unveiled to boost affordable housing.
- No change in personal income tax rates.
- Custom duty hike on fuel by 1 rupee, gold and precious items; Petrol & diesel to get costlier.
- 3% surcharge on an income of Rs 2 crore; 7% on Rs 5 crore and above.
- Corporate tax with turnover of upto Rs 400 crore slashed to 25 percent from a current rate of 30 percent.
- Interchangeability of PAN and Aadhaar for ITR for those who don’t have PAN cards.
- Advises GST Council to reduce tax rate on EVs from 12 per cent to 5 per cent.
- Duty has been raised on: tiles, cashew kernels, vinyl flooring, auto parts, some synthetic rubber, digital and video recorder and CCTV camera.
- Rental laws to be reformed. Modern tenancy laws will be shared with states to promote house renting.
- Additional Rs 1.5 lakh tax relief on home loan for purchase of a house up to Rs 45 lakh.
To promote digital payments:
- 2% TDS on withdrawals of Rs 1 crore in a year from your bank account for business payments.
- No charge on digital payments: MDR charges waived on cashless payment.
Ease of living:
- Aadhaar card for NRIs on arrival in India.
- Rs 3,000 pension per month for workers from the informal sector.
- Inter-operable One Nation One transport card: ATM-like Transport card for universal travel on various modes of transport (metro, road, railways etc).
- Govt plans to create MRO (Manufacturing, Repair and Operate) industry.
- PPP to be used to unleash faster development and the delivery of passenger freight services.
- Comprehensive restructuring of National Highways Programme for creation of National Highways Grid.
- Government envisions using rivers for cargo transport to decongest roads and railway
- Fiscal deficit in FY 19 at 3.3% of the GDP.
- Govt will start raising part of borrowing in foreign currency.
- Govt external debt to GDP is among the lowest in the world.
- Nari tu Narayani: Women SHG Interest Subvention Programme to be expanded to all districts in India.
- Rs 1 lakh loan to be provided for SHG women members under Mudra Scheme.
- Every verified woman SHG member having a Jan Dhan account can avail Rs 5,000 rupees overdraft facility.
- On purchase of high-rate pooled assets of NBFC amounting of Rs 1 lakh core in this FY, govt will provide one-time 6 month credit guarantee.
- Propose to provide Rs 70,000 crore capital for PSU Banks.
- Regulation of HFCs (Housing Finance Cos) to move to RBI from National Housing Bank.
- Govt to modify present policy of retaining 51% stake in PSUs.
- Govt to continue with strategic divestment of select CPSEs.
- Divestment target of Rs 1.05 lakh crore for FY 20.
- Strategic disinvestment of Air India proposed to be re-initiated.
- Budgetary allocation of Rs 65,837 crore and the highest ever outlay for capital expenditure amounting to Rs 1.60 lakh crore for railways.
- A new PPP model will usher in the a new dawn of Indian railways.
- Government to complete the dedicated freight corridor project by 2022.
- Railways to be encouraged to invest more in suburban rail network via SPVs.
- Railway infrastructure will need an iinvestment of Rs 50 lakh crore between 2018 and 2030.
- Massive programme for modernisation of railway stations to be launched in 2019.
- Propose easing angel tax for startups.
- Angel tax: Wont require scrutiny from I-T department for startup.
- E-verification mechanism for establishing investor identity and source of funds for startups.
- 2% interest subvention for GST-registered MSME on fresh or incremental loans.
- Stand Up India’ Scheme to continue till 2025.
- New television channel for start-ups.
- Pension benefit extended to retail traders with annual turnover less than Rs 1.5 crore.
- New payment platform for MSMEs to be created.
- Govt to launch ‘Study in India’ programme to attract foreign students in higher education.
- Allocate Rs 400 crore for world-class higher education institutions in FY 20 .
- To unveil a new education policy.
- National research foundation to fund, coordinate and to promote research in the country.
- New Higher Education Commission with focus on higher autonomy.
- New national education policy to propose changes in school, higher education.
- To make the Indian youth ready to take up jobs in foreign countries, more emphasis on new-age skills like Artificial Intelligence, Internet of Things, Big Data, etc.
Source: The Economic Time
- 17 iconic world-class tourist sites to be developed.
- Local sourcing norms will be relaxed for the single-brand retail sector.
- Govt to open FDI in aviation, insurance, animation AVGC and media.
- Existing KYC norms for FPIs to be rationalized and simplified to make it more investor-friendly.
- Long-term bonds for market.
- To allow FIIs & FPIs investment in debt securities issued by NBFCs.
- Credit Guarantee Enhancement Corporation to be set up long-term bonds with specific focus on infra sector
- Propose Social Stock Exchange under SEBI for listing social enterprises & voluntary organizations.
- To merge NRI portfolio route with FPI route.
- To hike statutory limit for foreign investment in some companies.
- To set up a credit guarantee enhancement corporation.
- Govt will take up measures to make RBI & SEBI depositories inter-operable.
- SEBI to mull increasing minimum public shareholding to 35% from 25%.
- User friendliness of trading platforms for corporate bonds will be reviewed, including issues arising out of capping of International Securities Identification Number.
- To deepen corporate tri-party repo market in corporate debt securities. Plan to enable stock exchanges to allow AA rated bonds as collateral.
- Annual Global Investors’ Meet for attracting global players to come and invest in India.
- To allow FPIs to subscribe to listed debt papers of REITs.
- FAME II scheme aims to encourage faster adoption of electric vehicles through the right incentives and charging infrastructure.
For Rural India:
- Gaon, Garib and Kisan are the focus of our government.
- New Jal Shakti ministry will work with states to ensure Har Ghar Jal for all rural houses by 2024.
- Pradhan Mantri Gram Sadak Yojana phase 3 is envisaged to upgrade 1,25,000 km of road length over the next 5 years.
- Govt will set up 100 new clusters for 50,000 artisans in FY 20.
- To invest Rs 80,250 cr for upgradation of roads under PM Gram Sadak Yojana
- Every single rural family, except those unwilling, to have electricity by 2022.
- Govt to promote innovative zero Budget farming.
- 10,000 new farm produce organizations.
- 80 Livelihood business incubators and 20 technology business incubators to be set up in 2019-20 under ASPIRE to develop 75,000 skilled entrepreneurs in agro-rural industries.
- India has emerged as a major space power. It is time to harness our ability commercially.
- A public sector enterprise, New Space India Limited (NSIL) has been incorporated to tap benefits of ISRO.
- To popularise sports at all levels, National Sports Education Board for development of sportspersons to be set up under ‘Khelo India.’
State of the economy:
- Railways will require investment of Rs 50 lakh crore from 2018-30.
- Schemes such as BharatMala, Sagarmala and UDAN are bridging rural urban divide and improving our transport infrastructure.
- ‘Gandhipedia’ is being developed to sensitize the youth about positive Gandhian values.
- The unambiguous mandate by the people in the recent election has set the ball rolling for the New India.
- NPAs recover Rs 4 lakh crore over the last four years, NPAs down by Rs 1 lakh crore in the last one year.
- Rashtriya Swachhta Kendra to be iinaugurated at Rajghat on October 2.
- The people of India have validated their two goals for our country’s future: National security and Economic growth.
- Yakeen ho to koi raasta niklata hai, hawa ki awt(protection) bhi le kar chiragh jalta hai’
- It took us over 55 years to reach $1 trillion dollar economy, but we added $1 trillion in just 5 years.
- We can very well reach $5 trillion in the next few years.
- Last mile delivery stood out, citizens in every nook and corner of the country felt the difference; our objective was and continues to be Mazbooth Desh Ke Liye Mazbooth Nagarik.
- Government lays out 10-point vision for the New India.
- India will become $3 trillion economy this year. We need to continue to take many structural reforms to achieve $5 trillion economic goal.
- Connectivity is the lifeline of the economy.
Sources: Times of India