BUDGET 2019 Key Highlights from Finance Minister’s Speech

BUDGET 2019 Key Highlights from Finance Minister’s Speech

Transportation

* 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

Taxes:

* 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

Economy:

* 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.

Women empowerment:

* 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

Banking reform:

* 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

Divestment:

* 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

Railways:

* 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.

MSME:

* 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

Affordable housing:

* Rental laws to be reformed. Modern tenancy law will be shared with states to promote house renting.

Education:

* 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

Tourism:

*17 iconic world-class tourist sites to be developed

FDI:

* Local sourcing norms will be relaxed for the Single brand retail sector

* Govt of open FDI in aviation, insurance, animation AVGC and media

Investment:

* 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

Auto sector:

* 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

Agri:

* 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

Space:

*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

Sports:

* 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