BUDGET 2019 Key Highlights from Finance Minister’s Speech
* Inter-operable One Nation One transport card: National transport card for universal travel which can used on various modes of transport (road, railways etc). The card can also be used as a ATM card for withdrawing money.
* 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,it will also decongest roads and railways.
* Affordable housing: Govt will provide additional income tax deduction of Rs 1.5 lakh on the interest paid on the loans taken to purchase EVs
* No change in personal income tax rates
*Petrol, diesel to get pricier: Govt hike custom duty on fuel, gold and precious items
* Increase in surcharge on super rich: 3% surcharge for Rs 2 crore income; 7% on Rs 5 crore and above
* Annual turnover limit for 25% Corporate tax raised to Rs 400 crore from Rs 250 crore
* Taxpayers with annual turnover of less than Rs 5 crore to have to file only quarterly
* Direct tax revenue has increased by 78%
* Additional Rs 1.5 lakh deduction on home loans
* Interchangeability of PAN and Aadhaar for ITR who don’t have PAN cards
* 2% TDS on withdrawals of Rs 1 crore in a year from bank accounts for business payments
* Govt waives MDR changes on cashless payment
* Fiscal deficit in FY19 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.
Ease of living:
*Rs 3,000 pension per month for informal sector workers
* Aadhaar card under 180 days for NRIs on arrival in India
* Govt to open embassies in countries where India doesn’t have a resident diplomatic mission as yet.
* 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
* 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 FY20
* A new PPP model will usher the new dawn of Indian railway.
* Railways to be encouraged to invest more in suburban rail network via SPVs
* Railway infrastructure will need an investment of Rs 50 lakh crore between 2018 and 2030.
* Propose easing angel tax for startups
*Angel tax: Wont require scrutiny from Income Tax department for startup
* 2% interest subvention for GST-registered MSME on fresh or incremental loans.
* ‘Stand Up India’ Scheme to continue till 2025
* Propose to commence television channel for start-ups
* To extend pension benefit to retail traders with annual turnover less than Rs 1.5 crore
* New payment platform for MSMEs to be created
* Rental laws to be reformed. Modern tenancy law will be shared with states to promote house renting.
* 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 FY20 .
* To unveil new education policy.
* National research foundation to fund, coordinate and to promote research in the country.
* New Higher Education Commison with focus on higher autonomy
* New national education policy to propose changes in school, higher education
*17 iconic world-class tourist sites to be developed
* Local sourcing norms will be relaxed for the Single brand retail sector
* Govt of 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 organisations
* 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 collaterals.
* 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 by 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 FY20
* 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 0 Budget farming.
* 10,000 new farmer producer organisations.
* 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 recovery of 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 inaugurated at raj ghat on Oct 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