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Friday, July 05, 2019

Highlights of Budget 2019

Highlights of the Union Budget for 2019-20 (Apr-Mar), presented

by Finance Minister Nirmala Sitharaman in Lok Sabha today:



DIRECT TAX

* Increasing surcharge on income over 20 mln rupees/year

* Faceless tax scrutiny case selection to be on random basis

* Propose 2% TDS on 10 mln rupee/yr cash withdrawal from banks

* Propose to take slew of measures to boost digital payments

* Launching automated, faceless assessment of tax

* To make pre-filled tax return forms available

* To make Aadhaar, PAN interchangeable to file tax returns

* Tax proposals aim to stimulate growth, housing

* Direct tax mop up 11.37 trln rupees FY19 vs 6.38 trln FY14
* Seeing double-digit growth in direct tax revenue annually

* Corporate tax now 25% for cos with 4 bln rupees/yr revenue

* Corporate tax cut to cover 99.3% of all cos



INDIRECT TAX

* To raise road, infra cess on petrol, diesel by 1 rupee/ltr

* To up special additional excise on diesel by 1 rupee/ltr

* To up special additional excise on petrol by 1 rupee/ltr

* Proposing certain amendments to Customs Act

* Raising customs duty on precious metals to 12.5%

* Raising customs duty on gold

* Customs duty being exempted on some parts of e-vehicles

* 5% customs duty being imposed on imported books

* To implement fully-automated GST refund module

* GST led to lower rates on almost all commodities

* Tax deduction of 150,000 rupees on e-vehicle loan interest

* Extra 150,000-rupee tax deduction on some small home loans

* RBI, banks to absorb merchant discount rate at small shops

* No merchant discount rate on e-transaction at small shops



10 POINTS OF VISION

* Building social infrastructure among 10 points of vision

* Building pollution-free environment among 10 points of vision

* Digital India in every sector among 10 points of vision

* Make in India with stress on MSME in 10 points of vision

* Water management, clean rivers among 10 points of vision

* Export of food grain in 10 points of vision

* Ayushman Bharat, clean India among 10 points of vision

* Space programmes, safety of citizen in 10 points of vision



GROWTH, INFLATION
* Well within capacity to reach $5-trln economy in few years

* India to become $3-trln economy in FY20

* India now 6th largest economy vs 11th five years ago



REFORMS
* Need to continue undertaking structural reforms

* Need to continue structural reforms to reach $5-trln aim

* Need to invest in job creation in MSMEs

* Need to invest heavily in digital India, job creation

* $5-trln economy target is imminently achievable

* "Gone are the days of policy paralysis"

* Wish to propose many initiatives to kick-start growth

* Reforms needed in power tariffs

* To soon announce policy package for power tariffs

* Model tenancy law to soon be finalised

* Propose several reform measures for rental housing

* PPP to fast develop track, rolling stock, freight svcs

* To have blueprint for water grids, gas grids, airways

* Examining performance of UDAY scheme

* One nation, one grid to ensure power connectivity

* 2 more terminals at Sahibganj, Haldia to be functional soon

* Movement of cargo in river Ganga to rise 4 times in 4 yrs



FINANCIAL SECTOR, MARKETS

* STT to be limited to gap between settlement, strike price

* Propose some leeway in Securities Transactions Tax

* Propose to implement steps to make tax compliance easier

* Bad loan tax norms for most NBFCs at par with banks

* Need for greater parity in tax treatment of NBFCs vs banks

* CBDT to make provisions for pending assessment of startups

* Start-ups not to face scrutiny in terms of share premium

* Taking steps to resolve angel tax issue for startups

* To start scheme for foreign cos in advanced technology sector

* To start scheme to invite foreign cos in sunrise sectors

 To give PSU banks 700 bln rupees capital

* Banks' NPAs reduced by more than 1 trln rupees last year

* Domestic credit growth risen to 13.8%

* To let all NBFC to participate in trade receivable platform

* Propose to return regulation over housing fin cos to RBI

* Propose more power to RBI over NBFCs in Finance Bill

* One-time, six-month guarantee to PSU banks to buy some NBFC loans

* Fundamentally sound NBFCs should get funding from banks, MFs

* To undertake steps to improve governance in PSU banks

* Provision coverage ratio of banks highest in 7 years

* Six PSU banks enabled to come out of prompt corrective action

* To start raising part of borrowing from external market in FX

* To boost retail participation in CPSE ETFs

* India's sovereign external debt to GDP ratio less than 5%

* To offer ETF participation via ELSS-like system

* Setting divestment target of 1.05 trln rupees for FY20

* Govt to reinitiate process of Air India divestment

* Onshore insurers' net owned funds need cut to 10 bln rupees

* Strategic divestment of PSUs to remain a priority

* Mulling below 51% stake in PSUs on case-to-case basis

* To raise cap on foreign shareholding in some PSUs

* Steps to separate NPS Trust from PFRDA

* Financial gains from cleaning banking sector now visible

* FDI inflows remain robust despite global headwinds

* Important to increase retail invest in T-bills

* Propose to create platform for listing social enterprises

* To work with regulators for AA bonds as collateral for repo

* Asked SEBI to mull hiking minimum public shareholding to 35%

* Propose to rationalise existing KYC norms for FPIs

* India needs 20-trln-rupee estimated investment every year

* To put in place action plan to deepen long-term bond mkt

* Action plan to deepen market for long-term bonds

* Invest driven growth requires access to low-cost capital

* To create payment platform for MSMEs

* Large infrastructure can be built on land owned by CPSEs

* To allow FPIs to subscribe to listed debt papers of REITs

* Propose to merge NRI, FPI investment scheme routes

* To mull hiking FDI limit in media, insurance, animation cos

* Contemplating an annual global investors meet in India

* Propose 100% FDI in insurance intermediaries

* To examine suggestions to further open up FDI in aviation

* FDI flows rose 6% to $64.37 bln in FY19

* Propose to make India a more attractive FDI destination

* To take steps for RBI, SEBI depositories' inter-operability

* To allow FPIs to subscribe to listed debt papers of REITs

* Propose to merge NRI, FPI investment scheme routes

* To mull hiking FDI limit in media, insurance, animation cos

* Contemplating an annual global investors meet in India

* Propose 100% FDI in insurance intermediaries

* To examine suggestions to further open up FDI in aviation

* FDI flows rose 6% to $64.37 bln in FY19

* Propose to make India a more attractive FDI destination

* To take steps for RBI, SEBI depositories' inter-operability

* To allow FPI invest in listed debt securities of InvITs

* Will take steps to meet 25% public holding in listed PSUs

* Need to encourage continued growth of startups



INFRASTRUCTURE, INDUSTRY

* To invest 100 trln rupees in infrastructure over next 5 years

* To set up panel on long-term funding for infrastructure

 Need to invest heavily in infrastructure

* Rail infra may need investment of 50 trln rupees 2018-2030

* 2nd stage of Bharatmala to help develop state roads

* To incentivise advanced vehicle battery manufacturing

* Need to develop inland waterways for cargo movement

* To comprehensively restructure national highway programme

* To comprehensively restructure national highway programme

* 210 km of new metro lines operationalised in 2019

* Launching national common mobility card

* To leverage engineering skill for project maintenance work

* Public infra, affordable housing to be taken up in FY20

* To aid cluster-based development of traditional industries

* To use more PPP mode for metro rail network

* Railways to be encouraged to use SPVs for suburban projects

* To use USOF, PPP mode for speeding up BharatNet

* To deal with tax issues of start-ups later in speech

* To start TV programme exclusively for startups



FARM SECTOR
* Every rural family to have gas, power connectivity by 2022

* All rural families to have electricity connection by 2022

* Govt keeps Antyodaya at core of all its policies

* Villages, poor, farmers at centre of every govt plan

* Gaon, garib, kisan at centre of every govt plan

* To invest widely in agriculture infrastructure

* Bamboo, khadi, honey to be focus for cluster development

* To invest 802.5 bln rupees to upgrade rural roads in 5 years

* To upgrade 125,000 km of rural roads in 5 years

* 30,000 km roads under PM Sadak Yojana built with green technology

* All-weather roads provided to 97% of habitation

* To have robust framework for fisheries mgmt network

* 19.5 mln homes to be given till 2022 in PM rural house plan

* 15 mln homes completed under PM rural house plan

* APMCs shouldn't hamper farmers from getting fair price

* Zero-budget farming to be promoted

* Hope to form 10,000 farmer producer organisations

* Aiming oilseed self sufficiency, to help cut import bill

* Ease of doing business, living should apply to farmers too

* To create infrastructure for cattle feed manufacturing

* Will support private companies to add value for farm producers

* Zero-budget farming can help double farmers' income



SOCIAL SECTOR, EDUCATION

* See rapid urbanisation as an opportunity, not challenge

* Constructed 96 mln toilets since Oct 2, 2014

* To expand Swachh Bharat plan to undertake solid waste mgmt

* India to be open-defecation-free by Oct 2

* Over 95% cities have become open-defecation free

 Identified 1,592 blocks for Jal Shakti Abhiyan

* To use CAMPA funds for Jal Shakti plan

* Aim water connection to every household by 2024

* To set up national research foundation to assimilate all grants

* To bring new national education policy

* Will bring in new national educational policy

* 3 mln workers joined govt pension plan so far

* Banks to provide assistance under Stand-Up India scheme

* Stand-Up India scheme to continue till 2025

* Expect less labour disputes as laws get streamlined

* Propose to develop 17 iconic tourism sites

* Propose digital repository for tribal heritage

* Propose to revamp India Development Assistance Scheme

* Opened 5 new embassies in Africa FY19, to open 4 more

* Propose to launch mission to integrate traditional artisans



MISCELLANEOUS

* Election 2019 mandate was full of hope for new India

* Voters stamped their approval on a performing government

* People of India voted for national security, economic growth

* Have set the ball rolling for new India

* Govt provided fiscal discipline during 2014-2019

* Average food security amount almost doubled during 2014-19

* Our last-mile delivery stood out, reached everywhere

* Will further simplify procedure, reduce red tape

* Mega programmes initiated in 1st term will continue

* We don't look down upon legitimate profit-earning

* To take step for virtuous cycle of domestic, foreign investment

* Time right for India to enter aircraft financing, leasing

* Launched co to tap ISRO's capabilities commercially

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