The interim Budget 2019-20 was the last budget of the Modi government ahead of the general polls. Finance Minister Piyush Goyal presented the interim budget in the Parliament. It is pertinent to mention that Goyal was given additional charge of the Finance Ministry in the absence of Arun Jaitley, who is in US for medical treatment.
12:46 PM: Union Minister Piyush Goyal concluded his Budget speech
12:34 PM: Individual taxpayers having annual income up to Rs 5 lakh will get full tax rebate, said Goyal, adding that individuals with gross income up to Rs 6.5 lakh will not need to pay any tax if they make investments in provident funds and prescribed equities
12:30 PM: Rs 1 crore loan can be obtained under 59 minutes, said Goyal while presenting the interim Budget.
12:07 PM: Within nearly two years, almost all assessment and verification of IT returns will be done electronically by an anonymized tax system without any intervention by officials, said the Finance Minister
12:00 PM: Piyush Goyal announced that a single window clearance for filmmaking will be made available to filmmakers. Anti-camcording provision will also be introduced to Cinematography Act to fight piracy
11:56 AM: Rs 35,000 crore disbursed for soldiers under 'One Rank One Pension'. There has been substantial hike in military service pay, said Goyal in budget speech.
11:49 AM: A pension scheme, Pradhan Mantri Shram Yogi Mandhan announced for workers in unorganized sector. Under the scheme, assured monthly pension of Rs 3,000 per month, with the contribution of Rs 100 per month, for the workers after 60 years of age, said Goyal in Budget speech.
11:35 AM: Over 6 crore free cooking gas connections have been provided under the government's Ujjwala Yojana scheme aimed at providing LPG to poor households: Goyal
11:30 AM: Under the Pradhan Mantri Kisan Samman Nidhi, Rs 6,000 per year for each farmer will be credited in three instalments. The amount will be transferred directly to bank accounts of farmers with less than 2 hectares landholding. As many as 12 crore small and marginal farmers will be benefited with the scheme.
11:20 AM: Current account deficit is seen at 2.5% this year, said Goyal.
11: 14 AM: Inflation in December 2018 was 2.1% and fiscal deficit has been brought down to 3.4% in the revised estimate of 2018-19, said Goyal in interim budget speech
11:08 AM: "I can confidently say, India is solidly back on track and marching towards growth and prosperity," said Goyal.
11:03 AM: Finance Minister Piyush Goyal began his Budget 2019 speech.
10:52 AM: Union Cabinet approved the interim Budget 2019-20.
10: 40 AM: Wearing black dress MPs of Telugu Desam Party (TDP) protested against the central government in Parliament premises ahead of the presentation of the interim Budget 2019. They demanded special category status for Andhra Pradesh.
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10:06 AM: "I believe investment in Railways will certainly be increased," said Manoj Sinha, Minister of State for Railways while speaking to ANI
9:55 AM: Finance Minister Piyush Goyal arrived at the Parliament with the Budget briefcase. He will present the interim Budget 2019-20 at 11 am following the Cabinet meeting.
Here are other highlights of the Interim Budget for 2019-20:
1. Within 2 years, tax assessment will be done electronically
2. IT returns processing in just 24 hours
3. Minimum 14% revenue of GST to states by Central government
4. Custom duty abolished from 36 Capital Goods
5. Recommendations to GST Council for reducing GST rates for home buyers
6. Full rebate up to Rs 5 lakh annual income after all deductions
7. Standard deduction increased from Rs 40,000 to Rs 50,000
8. Exemption on tax on second self-occupied house
9. Ceiling Limit of TDS u/s 194A increased from Rs 10,000 to Rs 40,000 for women
10. Ceiling Limit of TDS u/s 194I increasedd from Rs 180,000 to Rs 240,000
11. Capital tax Benefit u/s 54 increased from investment in one residential house to two residential houses.
12. Benefit u/s 80IB increased to one more year i.e. 2020
13. Benefit given to unsold inventory increased from one year to two years
Other Areas
14. State share increased to 42%
15. PCA restriction abolished from 3 major banks
16. 2 lakh seats will increase for the reservation of 10%
17. Rs 60,000 crore for MGNREGA
18. Rs 1.7 lakh crore to ensure food for all
19. 22nd AIIMS to open in Haryana
20. Approval has to be given to PM Kisan Yojana
21. Rs 6,000 per annum to be given to every farmer having up to 2 hectare land. Applicable from September 2018. Amount will be transferred in 3 installments
22. National 'kamdhenu ayog' for cows. Rs 750 crore for National Gokul Mission
23. 2% interest subvention for farmers pursuing animal husbandry. Creation of separate department for fisheries.
24. 2% interest subvention for farmers affected by natural calamities and additional 3% interest subvention for timely payment.
25. free gratuity limit increased to Rs 20 lakh from Rs 10 lakh
26. Bonus will be applicable for workers earning Rs 21,000 monthly
27. Pradhan Mantri Shram Yogi Mandhan will provide assured monthly pension of Rs 3,000 with contribution of Rs 100 per month for workers in unorganized sector after 60 years of age.
28. Our government delivered 6 crore free LPG connections under Ujjawala scheme
29. 2% interest relief for MSME GST registered person
30. 26 weeks of Maternity Leave to empower the women
31. More than Rs 3 lakh crore for defence
32. One lakh digital villages in next 5 years
33. Single window for approval of Indian filmmakers.
"The budget proposals will be not implemented... New government will present the budget. This government's expiry date will be over in one month. What will they implement in one month?" she told reporters here, in an obvious allusion to the coming Lok Sabha polls.
There is "no future" of the Interim Budget ahead of the elections, she said.
"Nobody knows the financial situation of this country now. If we interpret correctly, it is obvious that economic emergency is going in our country. Our apprehension is where the money will come from? How the money will be managed," she said.
"They are telling lies and cheating people...this budget is a farce and (election) manifesto of the Bharatiya Janata Party (BJP) to cheat people," Banerjee said
She said the Central budget does not provide extra funds for MGNREGA and there is "no increase in allocation" for rural development programmes, which would be effectively less if inflation is factored in".
She also said Swachh Bharat Mission received 25 per cent less allocation and the fund allotted for skill development scheme is less.
"SC/ST allocation was also decreased by about 29 per cent," she said.
According to her, non-performing assets (NPA) increased to over Rs 10 lakh, up five times during the term of the incumbent National Democratic Alliance (NDA) government.
The government has "no moral authority or responsibility for presenting a full year's budget, when it won't be in power after elections", she said.
When asked about Centre's announcement of Pradhan Mantri Kisan Samman Nidhi scheme providing Rs 6,000 direct cash transfer to small farmers per year, she said: "This is absolutely value less. They are so desperate politically. Why didn't they announce this budget earlier and why they did not announce single agenda for farmers?"
"India is now leading the world in the consumption of mobile data. Monthly consumption of mobile data increased by over 50 times in the last five years," said Goyal while presenting the Interim Budget for 2019-20 in the Lok Sabha.
"The cost of data and voice calls in India is now possibly the lowest in the world," he added.
According to experts, Reliance Jio with 28 crore users has led this stupendous growth in data consumption with its ultra-cheap data plans.
For Jio, average data consumption per user per month is now 10.8GB and average voice consumption has been recorded at 794 minutes per user per month.
Video consumption drove most of the usage, increasing to 460 crore hours per month.
"Data consumption has been driven by decline in data pricing and maturing smartphone ecosystem which includes devices, content and other services," Tarun Pathak, Associate Director at Counterpoint, told IANS.
"The short format content is engaging users to consume more data," he added.
According to a latest survey by global digital content delivery platform Limelight Networks, Indian viewers are now watching online video content for an average of eight hours 28 minutes each week, more than the time they spend viewing TV every week.
The amount of time Indian viewers spend watching online videos is far higher than the global average of six hours and 45 minutes each week in 2018 which itself marks a 58 per cent rise from the 2016 figure.
"Two words that are missing from the Budget speech are education and jobs. In the 10 point vision document presented by Finance Minister (Piyush Goyal), there is nothing about education, nothing about jobs.
"There is nothing about jobs because if they say anything about jobs the youth will dismiss it as 'pakodanomics'.
"The only thing this government knows about jobs is 'pakodanomics'," said Chidambaram, referring to the term coined after Prime Minister Narendra Modi remarked that street vendors selling 'pakodas' should also be considered as employed.
The Congress veteran also dismissed the NITI Aayog's defence of the government "suppressing" a report that showed the unemployment rate at a 45-year high.
"The NSSO (National Sample Survey Organisation) report has revealed that unemployment for 2017-18 stood at 6.1 per cent which is highest in 45 years.
"The NSSO data is never approved by the Prime Minister or the cabinet.
"The CSO (Central Statistics Office) is an autonomous body which collects statistics and releases its reports.
"But the Niti Aayog Vice Chairman suddenly comes up with this theory that NSSO data must be approved by the government before it is released.
"The data shows unemployment to be highest in 45 years and the government doesn't have a word about jobs in the budget speech. The government doesn't have a word on what it intends to do about reforming education both quantitative and qualitative."
He questioned Goyal for using Hindi and English simultaneously in his budget speech.
"I am a strong supporter of the use of Hindi and English as official languages, but no one intended that the two languages should be used alternately or simultaneously.
"Those who knew only Hindi did not understand one half of the Budget Speech and those who knew only English did not understand the other half.
"Perhaps that was the real intention of the government: leave the people confused at least for a day. The mist that wraps this Budget will lift by tomorrow and the people will see the desperation and recklessness of the government," he added.
"This is not budget but surgical strike. The first used bullets to neutralise the country's external enemies. The second surgical strike will use ballots to decimate our rivals," the Lok Janshakti Party president told reporters, referring to the attack on terror launch pads across the border in Kashmir.
He also claimed that Prime Minister Narendra Modi will come back to power with the National Democratic Alliance (NDA) winning more than 400 seats in the coming Lok Sabha election.
Hailing the prime minister, he said the budget has provided relief to farmers, income taxpayers and significantly enhanced expenditure for scheduled castes, tribes and the poor.
"There cannot be a better budget than this. Our rivals will be left speechless," he said.
The total allocation contains all budgetary heads including projects, electrification, passenger amenities, workshops, track, staff amenities etc, informed sources. Under the budget, Rs 2,630 crore has been allotted for new lines, which is 67 percent more than last year. The allotment for passenger amenities is Rs 181 crore while it was Rs 82 crore last year.
The Union government has sanctioned a new line of 14.5 km-length between Talcher and Angul which is estimated to cost Rs 278 crores. Similarly, Rs 250 crore has been allocated for Angul-Sukinda line (98.7 km), Rs 400 crore for Haridaspur-Paradeep line (82 km) and Rs 350 crore for Khurda-Bolangir line.
The new lines which have received grant are Talcher-Bimlagarh line (154 km), which has been allocated Rs 150 crore, Jeypore Malkangiri (127 km) line-Rs 70 crore and Jeypore-Nabarangpur (38 km) line-Rs 10 crore.
For doubling and further lining of the tracks, the central government has also made provisions to the tune of Rs 249 crore for Sambalpur-Talcher (174.11 km), Rs 170 crore for Sambalpur-Titlagarh (182.11 km), Rs 85 crore for Bansapani-Daitari-Tomka-Jakhapura line (180 km) and Rs 86 crore for Bhadrak-Nergundi third line (80km).
Similarly, Rs 350 crore for Vizianagaram-Sambalpur third line, Rs 120 crore for Jarapada-Budhapanka 3rd and 4th line, Rs 210 crore for Budhapanka-Salegaon 3rd and 4th line, Rs 205 crore for Koraput-Singapur line, Rs 40 crore for Manoharpur-Bondamunda 3rd line, Rs 150 crore for Rourkela-Jharsuguda 3rd line and Rs 20 crore for Bondamunda-Rourkela 4th line.
"Individual taxpayers having taxable annual income up to Rs 5 lakh will get full tax rebate and therefore will not be required to pay any income tax. As a result, even persons having gross income up to Rs 6.5 lakh may not be required to pay any income tax if they make investments in provident funds, specified savings, insurance, among others," Goyal said.
This has come as a big relief for the middle income group now as the Finance Minister increased the rebate under Section 87A of the Income Tax Act from Rs 2,500 to Rs 12,500 - the equivalent of 5 per cent tax on Rs 2.5 lakh to Rs 5 lakh slab - and also raised the eligibility criterion for claiming the rebate to Rs 5 lakh from Rs 3.5 lakh earlier. This effectively reduces the tax liability of those with net taxable income upto Rs 5 lakh to nil.
However, tax liability for those with net income above Rs 5 lakh would still start from Rs 2.5 lakh as earlier. The Interim Budget neither changed the existing tax rates or the slabs.
The Finance Minister proposed extending the benefit of rebate under Section 87A of the Income Tax Act to those with income is up to Rs 5 lakh. This provision currently allows a rebate of Rs 2,500 for those with net taxable income up to Rs 3.5 lakh.
Goyal increased this rebate to Rs 12,500 -- the equivalent of 5 per cent tax on Rs 2.5 lakh to Rs 5 lakh slab- and raised the eligibility criterion for claiming the rebate to Rs 5 lakh from Rs 3.5 lakh.
"In fact, with additional deductions such as interest on home loan up to Rs 2 lakh, interest on education loans, National Pension Scheme contributions, medical insurance, medical expenditure on senior citizens etc., persons having even higher income will not have to pay any tax," he added.
Meanwhile, income tax announcements of the Narendra Modi-led government are seen as a boon for Indian Railways and Coal India Limited employees.
Sources informed that more than 5.5 lakh railway employees who are earning less than Rs 5 lakh will be benefited from this move, while around 38000 employees of Coal India Limited would breathe a sigh of relief with the tax rebate announcement.
Not only this, Piyush Goyal also made it clear that "even persons having gross income up to Rs 6.5 lakh may not be required to pay any income tax if they make investments in provident funds, specified savings, insurance."
Therefore, the move will also benefit further 2.6 lakh employees working with the Indian Railways, taking the total number of benefited employees to over 8 lakh, sources added.
Meanwhile, it is pertinent to note here that the CG employees are currently getting a minimum pay of Rs 18,000. They are demanding an increase in the fitment factor by 3.68 times from the existing 2.57 times. With the hike in the fitment factor, the salary of the employees will be increased to Rs 26,000. A decision in this regard is also likely to come soon.
Munde and some other opposition members raised the issue in the Council and disrupted the budget presentation by Minister of State for Finance Deepak Kesarkar in the House.
Since Maharashtra Legislature comprises the Assembly and the Council, the state budget is presented simultaneously by a cabinet minister and a junior minister in the Lower and Upper House, respectively.
When Kesarkar tried to present the budget in the Upper House, Munde waved his mobile phone and then read out from it some budget details, which he claimed were posted on the official Twitter account of Mungantiwar.
Munde said even before Mungantiwar read out the first part of the budget in the Assembly, his twitter account already put out the information.
Following ruckus over the issue, Legislative Council Chairman Ramraje Naik Nimbalkar adjourned the House for 10 minutes.
When the House resumed, BJP member and state revenue minister Chandrakant Patil said he would move a no-confidence motion against Nimbalkar.
"We have come to the conclusion that the House chairman cannot protect our rights. We will move a no- confidence motion against you," said Patil, who is leader of the House.
Those earning Rs 5 lakh per annum will, however, be required to file tax returns even if they have zero tax liability.
There is a huge expectation from the new Finance Minister of an increase in the basic exemption limit from Rs 2.50 lakh to Rs 5 lakh.
Though there is an expectation among salaried class that the Modi 2.0 government would reward them for voting it to power, officials here have earlier said that increasing the basic exemption limit to Rs 5 lakh will defeat the purpose of the interim budget announcement.
According to them, increasing the basic exemption limit will not require many people to file income tax and it could result in a dip in tax filing, and would even defeat the purpose of expanding the tax base.
Tax experts have suggested to the Finance Minister in their pre-Budget meeting that raising the basic income tax exemption level would not prove to be a wise move since the Narendra Modi-led government's focus has been on increasing the country's taxpayer base.
There is also little possibility that the government would tweak the existing tax slabs in a way that a 10 per cent tax rate applies to those earning up to Rs 10 lakh, instead of the existing 20 per cent.
Sources said there could be some additional tax-saving measures for salaried individuals.
Income tax collections have been lower than expected which also does not support any possibility of raising the exemption limit.
Sources also said that there is no possibility of the threshold for the highest 30 per cent tax rate being raised to apply to incomes above Rs 15 lakh in the upcoming Budget but could happen in future years.
The Finance Ministry is not only looking to increase the taxpayer base but also wants to increase revenue from taxes as it needs to invest aggressively to revive growth and consumption. Therefore, there are minimum chances that the government would tinker with income tax rules in the upcoming budget.
BY ANJANA DAS
"The tentative dates for discussion and voting on demands-for-grants for 2O19-20 are expected between July 11-17. The general discussion on Budget is tentatively scheduled on July 8," a communication from the Finance Ministry's Budget division said.
Finance Minister Nirmala Sitharaman faces an uphill task. She has to rescue Asia's third-largest economy from the brink of a major slowdown. In May, India lost its spot as the fastest-growing major economy in the world though government said it still is the fastest growing.
India's GDP slipped to a 5.8 per cent growth in the last quarter of FY19, down from 6.6 per cent in the previous quarter, and lower than the 6.4 per cent growth registered by China. The consumtion demand and investment cycles are the lowest pressing for higher government spending in a year when revenues are on the downside. Job creation is missing with unemployment at the highest 6.1 per cent.
Sitharaman also has to meet a tough disinvestment target in a slowing economy and tough market to expand the government kitty in a year when tax revenue are almost certain to be lower. The government is looking to garner Rs 90,000 crore from disinvestment, up from Rs 85,000 crore it got last year. The bulk of last year's earnings, however, came from the central public sector enterprise (CPSE) exchange-traded fund (ETF), a pool of PSU shares, as against the government's desire to sell strategic stake in government-owned companies.
This fiscal government will milk the current ETFs and launch new ETFs like financial sector ETF and debt ETF. So far the government raised Rs 2,350 crore in the first two months of the current fiscal. To kickstart the disinvestment process, Niti Aayog, a think-tank of the government has suggested 35 PSEs where the government is likely to sell its stake. Recently government said Air India will be attempted to be sold. Last year too, the government had tried to sell Air India, but it didn't find any takers.
Both Direct and Indirect Tax revenues are also not matching the huge agricultural package the government is giving like the recent Rs 87,000 crore expense, up from Rs 75,000 crore for the Direct Income Scheme for the poor and marginal land farmers. With a slowdown gripping the economy, the non-tax revenues like CPSE profits and dividends are also not on higher trajectory.
Besides laying the roadmap, the Finance Minister's challenge will be a tightrope walk between containing the fiscal slippage and handling growth slowdown. The latter, due to slowdown in consumption, exports and gross domestic capital formation, calls for an economic stimulus package which is at odds with the objective of fiscal consolidation.
Fiscal deficit at 3.4 per cent will be difficult to maintain, but credit rating agencies warn of downgrade for India should it fall, making raising capital for Indian companies costly. It will also raise the interest costs of the government while FIIs will shy away.
But at the same time she will have to fulfil the common man's aspirations as it is the common man which has voted her party back to power for the second time with as the largest party.
The 30-share index was trading 114.67 points, or 0.29 per cent, higher at 40,022.73 at 0930 hours. Similarly, the broader Nifty was quoting 31.85 points, or 0.27 per cent, up at 11,978.60.
"The market is eagerly looking forward to the budget proposals, especially for those things that matter for speedy recovery or revival in growth and employment," said K Joseph Thomas - Head of Research, Emkay Wealth Management.
Response from the market would depend to a large extent on the measures to enhance agrarian employment and productivity, and thereby demand, he said, adding that the fiscal deficit level and the glide path are also important as the markets have a dislike for major deviation from the direction set.
Top gainers in the Sensex pack in early trade included IndusInd Bank, L&T, HUL, Kotak Bank, HDFC, Asian Paints, Bajaj Auto and RIL, rising up to 1.14 per cent.
On the other hand, Yes Bank, ONGC, Vedanta, NTPC, Tata Motors, Hero MotoCorp, ITC, Bharti Airtel and TCS were among the losers, shedding up to 1.82 per cent.
In the previous session, the BSE gauge settled 68.81 points, or 0.17 per cent, higher at 39,908.06, while the Nifty climbed 30 points, or 0.25 per cent, to 11,946.75.
On a net basis, foreign institutional investors sold equities worth Rs 28.95 crore, while domestic institutional investors purchased shares to the tune of Rs 58.59 crore, provisional data available with stock exchanges showed Thursday.
On the currency front, the Indian rupee depreciated 16 paise to 68.66 against the US dollar.
Elsewhere in Asia, Shanghai Composite Index, Hang Seng, Nikkei and Kospi were rangebound in their respective early sessions.
Meanwhile, the global oil benchmark Brent crude futures were trading 0.05 per cent lower at 63.27 per barrel.
Deductions in loans for affordable housing. Rs 1.5 lakh discount on purchase of house worth Rs 45 lakh. Govt proposes additional deduction of Rs 1.5 lakh (total deduction, Rs 3.5 lakh) on interest on home loans taken up to March 2020: FM Sitharaman.
Basic customs duty increased on cashew kernels, metal fittings, auto parts, tiles, marble slabs, CCTV cameras, digital video recorder: FM Nirmala Sitharaman.
Propose to increase special additional duty and road and infrastructure cess on diesel and petrol by Re 1/litre and increase customs duty on gold and other precious metals from 10 to 12.5%: FM Nirmala Sitharaman.
Those in highest income bracket need to contribute more to national development. Propose to enhance surcharge on individual income of Rs 2.5 crore and over Rs 5 crore by 3% and 7% respectively: Nirmala Sitharaman.
All companies having annual turnover of 400 crores, will now be under the bracket of 25%. This will cover 99.3% of all the companies: FM Sitharaman.
To resolve the so-called Angel Tax issue, the startups and their investors who file requisite declarations and provide information in their returns will not be subjected to any kind of scrutiny in respect of valuations of share premiums: FM
To discourage the practice of making business payments in cash I propose to levy TDS of 2% on cash withdrawal exceeding Rs 1 crore in a year from a bank account: Finance Minister Nirmala Sitharaman.
Union Finance Minister Nirmala Sitharaman praises the tax payers and says direct tax collection increased by 78%. Here are the highlights.
#Budget2019| Union Finance Minister Nirmala Sitharaman praises the tax payers in #Budget2019; says direct tax collection increased by 78% pic.twitter.com/xAKUU73QDr
— OTV (@otvnews) July 5, 2019
With over 120 crore people having Aadhar cards, to file IT return, Aadhar card and PAN card will be interchangeable; those who cannot quote PAN can now use Aadhar to file tax return: FM Nirmala Sitharaman.
Govt has already moved GST council to lower the GST rate on electric vehicles(EV) from 12% to 5%. Also to make EVs affordable for consumers our Govt will provide additional income tax deduction of Rs 1.5 lakh on the interest paid on the loans taken to purchase EVs: FM
No income tax for income less than Rs 5 lakh per year. To resolve angle tax issue, start-ups who file declarations will not be scrutiny in valuation: Finance Minister Nirmala Sitharaman.
Some key announcements made by Finance Minister Nirmala Sitharaman during presentation of Union Budget 2019.
Union Finance Minister Nirmala Sitharaman presents #UnionBudget2019: Here are some key announcements... pic.twitter.com/4bDtk2YPPJ
— OTV (@otvnews) July 5, 2019
#Budget2019: Reforms to strengthen governance in public sector banks: FM Nirmala Sitharaman #UnionBudget2019 pic.twitter.com/kedCNyh7pZ
— OTV (@otvnews) July 5, 2019
This govt has gone beyond having women-centric policies to women-led initiatives.; every verified women SHG member can avail overdraft of Rs 5000 through Jan Dhan Bank Account; 1 in every SHG will be able to avail loan up to Rs 1 lakh under Mudra Scheme: FM
Education:
2 IITs & IISc Bangalore enlisted among top 200 institutions of the world; Rs 400 crore to be provided under head 'World Class Institutions' in 2019-20 which is 3 times more than the revised estimates of previous years. Launch of 'Study in India' scheme which will focus on bringing foreign students to India for higher education: FM Sitharaman
Creation of National Research Foundation to promote research and innovation in School & Higher Education; It will assimmilate research grants by various ministries & be adequately supplemented by other govt funds: FM
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To popularise sports at all levels, National Sports Education Board for development of sportspersons to be set up under Khelo India: Finance Minister Nirmala Sitharaman
Jal Shakti Mantralaya will work with states to ensure 'Har Ghar Jal' for all rural houses by 2024, under Jal Jeevan Mission, says FM Sitharaman
#Budget2019: India will be made Open Defecation Free on October 2nd, 2019: FM Nirmala Sitharaman #UnionBudget2019 pic.twitter.com/YTDACvdMiC
— OTV (@otvnews) July 5, 2019
100 new clusters to be set up in 2019-20 under SFURTI, which will enable 50,000 artisans to join the economic value chain: FM Sitharaman
One woman in every SHG will be eligible to get Rs 1 lakh loan under the Mudra scheme: FM
Pradhan Mantri Gram Sadak Yojana: Phase 3 envisaged to upgrade 1.25 lakh km of road length at an estimated cost of 80,250 crore rupees : FM Sitharaman
Finance Minister Nirmala Sitharaman: With the changing economic scenario it's important to upgrade roads connecting villages to rural markets. For this Pradhan Mantri Gram Sadak Yojana phase 3 is envisaged to upgrade 1,25,000 km of road length over the next 5 years.
#Budget2019 | 1.5 cr houses have been built in the last 5 years & under the PM Awas Yojana, the government aims to achieve housing for all by 2022. 1.95 crore houses are proposed to be built for the poor & eligible beneficiaries by 2022: FM Nirmala Sitharaman
#Budget2019: 30,000 km of roads built by green tech, 1,25,000 km of road length to be upgraded in next 5 years under Pradhan Mantri Gram Sadak Yojana at Rs 80,000 crore : FM Nirmala Sitharaman #UnionBudget2019 #UnionBudget pic.twitter.com/2gMLb7kr1N
— OTV (@otvnews) July 5, 2019
I propose to consider issuing Aadhaar cards for NRIs with Indian passports after their arrival in India without waiting for the mandatory 180 days: Finance Minister Nirmala Sitharaman
Zero budget farming - we need to replicate this innovative model. We'll invest widely in agri infrastructure & support pvt entrepreneurship in driving value addition to farmers produce & those from allied activities too, like bamboo, timber & for generating renewable energy: FM
Railway infra would need an investment of 50 lakh crores between 2018 and 2030; PPP to be used to unleash faster development and delivery of passenger freight services : Sitharaman
#Budget2019 | Pension benefit to be extended to around 3 crore retail traders and shopkeepers with an annual turnover of less than 1.5 crores under Pradhan Mantri Karam Yogi Man Dhan Scheme: Finance Minister Nirmala Sitharaman
Govt will invite suggestions for further opening up of FDI in aviation sector, media, animation AVGC and insurance sectors in consultation with all stakeholders. 100% FDI will be permitted for insurance intermediaries: Sitharaman
Rs 350 crore allocated for 2 per cent interest subvention for all GST-registered MSMEs on fresh or incremental loans : FM
"We set the ball rolling for creating a 'New India", said Finance Minister while presenting the budget in Parliament.
The Indian economy will grow to become a $3 trillion economy in the current year itself. It is now the sixth largest in the world. 5 years ago it was at the 11th position. It took us over 55 years to reach $1 trillion dollar economy. But when the hearts are filled with hope, trust & aspiration, we in just 5 years, added $1 trillion, said Sitharaman.
Finance Minister Nirmala Sitharaman further said schemes such as 'Bharatmala', 'Sagarmala' and UDAN are bridging the rural and urban divide, improving our transport infrastructure.
Ahead of her Budget 2019 speech, Sitharaman met President Ram Nath Kovind at Rashtrapati Bhavan. The highlight was that Sitharaman carried the budget documents wrapped in a red cloth (traditional bahi khata) instead of the customary briefcase.
#UnionBudget2019: Union Finance Minister Nirmala Sitharaman breaks briefcase tradition, carries budget documents wrapped in a red cloth. pic.twitter.com/HGmwyuufLY
— OTV (@otvnews) July 5, 2019
Ahead of the Union Budget presentation, domestic equity benchmark BSE Sensex Friday reclaimed the 40,000 mark and the NSE Nifty inched closer to 12,000 level mark.
Earlier in February, Piyush Goyal presented NDA government’s Interim Budget before the Lok Sabha elections.
The people of Kendrapara pinned hopes on the Union Budget and expect a considerable allocation for the completion of much-awaited railway project.
Ahead of the #UnionBudget2019, #LISTEN to what people say on their expectations over allocation for the completion of the much-awaited Paradip-Haridaspur railway project through #Kendrapara #Odisha pic.twitter.com/v9Pt1mRAa1
— OTV (@otvnews) July 5, 2019
Chief Economic Advisor K. Subramanian said that it was a departure from "slavery of western tradition". The red cloth symbolises the 'bahi khaata' traditionally used in every Indian business set-up to maintain accounts.
Sitharaman was seen carrying the red cloth wrapped budget papers that was neatly bound with the auspicious yellow and red ribbon. The Lion Capital shone brightly on top of the bahi khaata, as the first-time Finance Minister walked out of the North Block.
Until now all former Finance Ministers have carried their Budget Document in a hardbound leather briefcase that takes after the parallel British custom -- much like many of India's laws and Parliamentary practices.
Even Piyush Goyal, who presented the Interim Budget in February had carried a briefcase of colour and size of his choice and posed for the iconic photograph outside Finance Ministry and then Parliament building.
She will be present the first budget of Modi 2.0 at 11 am today.
She also said that many structural changes are needed for the country to become a $5 trillion economy, adding the target is eminently achievable.
The Economic Survey for 2018-19 released on Thursday also set out a vision for the country to reach the landmark level of $5 trillion economy by the year 2024-25.
It said that to achieve that target India will have to grow at the rate of 8 per cent per year.
Presenting her maiden Union Budget, the Minister said that the exchange would help social and voluntary organisations which work for social causes to raise capital as equity, debt or a unit of mutual fund.
Presenting the Budget for 2019-20 in the Lok Sabha, Sitharaman said allocation of Rs 80,250 crore had been made for the plan.
Presenting the Union Budget in Parliament, Sitharaman said: "It is estimated that railway infrastructure would need an investment of Rs 50 lakh crore between 2018 to 2030.
"Given that the capital expenditure outlays of railways is between Rs 1.5 to 1.6 lakh crore per annum, completing even all sanctioned projects would take decades.
"It is therefore proposed to use public private partnership to unleash faster development and completion of tracks and rolling stock manufacture and also delivery of passenger freight services," she said.
"We would ensure creating skill sets for technologies like Artificial Intelligence (AI) Internet of Things (IOT), data analytics, 3D printing, Virtual Reality and robotics," said Sitharaman while presenting her first Union Budget.
Stressting that India is now a hub for startups, she said that the government would introduce a special TV programme to exclusively cater to the Indian startups, also helping them connect with venture capitalists (VCs).
She also said that the government will come out with new tariff policy for the power sector.
Presenting her first Union Budget, she said that the Centre is going to work with the state governments to remove the barriers in the implementation of the UDAY scheme for the turnaround of power distribution companies.
The scheme was launched in 2015 and has faced criticism from several counters over rising debt and overdues of power discoms.
NSIL's primary aim will be to scale up industry participation in Indian space programmes.
"India has emerged as a major space power. Time has come to harness this ability commercially," the Finance Minister said while presenting her first Union Budget.
"The company will spearhead commercialisation of various space products," she added.
NSIL was incorporated on March 6 under the administrative control of Department of Space (DOS) to commercially exploit the research and development work of ISRO centres and constituent units of DOS.
NSIL functions involve, among other things, transferring small satellite technology to industry, wherein NSIL will obtain license from DOS/ISRO and sub-license it to industries and manufacturing Small Satellite Launch Vehicle (SSLV) in collaboration with the private sector.
It will also be involved in marketing spin-off technologies and products/services, both in India and abroad, and in any other subject which the government deems fit.
The initiative is expected to enable Indian industries to scale up high-technology manufacturing and production base for meeting the growing needs of Indian space programmes and would further spur the growth of Indian industries in the space sector.
Presenting the Budget for 2019-20 in the Lok Sabha, Sitharaman said fishing and fishermen were closely aligned with farming and were crucial to rural India.
"Through the focussed Pradhan Mantri Matsya Sampada Yojana, the Department of Fishery Management will establish robust fishery management framework," she said.
"This will address critical gaps in value chain including infrastructure modernization, traceability, production, productivity, post-harvest and quality control."
Referring to several measures taken in the past to alleviate the tax burden on small and medium income earners, the Minister said, “Those having annual income upto Rs. 5 lakh are not required to pay any income tax”. This includes self-employed as well as small traders, salary earners, and senior citizens, she added.
Tax Revenue Up
Due to slew of efforts taken by the Government, the direct tax revenue has significantly increased by over 78 percent from Rs. 6.38 lakh crore in Financial Year 2013-14 to around Rs. 11.37 lakh crore in Financial Year 2018-19. The Minister stated that the increase has been significant in last couple of years. The Direct Tax revenue grew by 19.13 percent to Rs. 10, 02, 741 crore in 2017-18 (Rs. 8, 41, 713 crore in 2016-17) and by 13.46 percent in 2018-19. The number of taxpayers also increased by approximately 48 percent over the period 2013-14 to 2017-18, from 5.71 crore taxpayers to 8.4 crore taxpayers, due to various initiatives and taxpayer outreach programmes undertaken by the Government.
Relief in Levy of Securities Transaction Tax (STT)
In her speech, the Finance Minister proposed to give relief in levy of Securities Transaction Tax by restricting it only to the difference between settlement and strike price in case of exercise of options.
Additional Deduction of Interest for Affordable Housing
In order to provide a further impetus to affordable housing, the Minister proposed to allow an additional deduction of up to Rs.1,50,000/- for interest paid on loans borrowed up to 31st March, 2020 for purchase of an affordable house valued up to Rs. 45 lakh. Therefore, a person purchasing an affordable house will now get an enhanced interest deduction up to Rs. 3.5 lakh. This will translate into a benefit of around Rs.7 lakh to the middle class home-buyers over their loan period of 15 years.
For realisation of the goal of ‘Housing for All’ and affordable housing, a tax holiday has already been provided on the profits earned by developers of affordable housing. Also, interest paid on housing loans is allowed as a deduction to the extent of Rs. 2 lakh in respect of self-occupied property.
Promoting Electric Vehicles
To make Electric Vehicles affordable to consumers, the Minister said that the Government will provide additional income tax deduction of Rs. 1.5 lakh on the interest paid on loans taken to purchase electric vehicles. This amounts to a benefit of around Rs. 2.5 lakh over the loan period to the taxpayers who take loans to purchase electric vehicle. Considering India’s large consumer base, the she stated, “We aim to leapfrog and envision India as a global hub of manufacturing of Electric Vehicles. Inclusion of Solar storage batteries and charging infrastructure in the above scheme will boost our efforts”. The Government has already moved GST council to lower the GST rate on electric vehicles from 12% to 5%, she added.
Level Playing Field for Non Banking Financial Companies (NBFCs)
Recognising the increasingly important role of NBFCs in India’s financial system and to provide level playing field, the Finance Minister has proposed to tax the interest on bad or doubtful debts in the year in which it is actually received. Presently this is allowed for scheduled banks, public financial institutions, state financial corporations, state industrial investment corporations, cooperative banks and certain public companies like housing finance companies.
Measures to promote the International Financial Services Centre (IFSC)
To promote IFSC in GIFT City, the Finance Minister proposed to further provide several direct tax incentives to an IFSC including 100 percent profit-linked deduction under section 80-LA in any ten-year block within a fifteen-year period, exemption from dividend distribution tax from current and accumulated income to companies and mutual funds, exemptions on capital gain to Category-III AIF and interest payment on loan taken from non-residents.
Compulsory Filing of Return
The General Budget 2019-20 proposes to make return filing compulsory for persons, who have deposited more than Rs. 1 crore in a current account in a year, or who have expended more than Rs. 2 lakh on foreign travel or more than Rs. 1 lakh on electricity consumption in a year or who fulfils the prescribed conditions, in order to ensure that persons who enter into high value transactions also furnish return of income. It is also proposes to provide that a person whose income becomes lower than maximum amount not chargeable to tax due to claim of rollover benefit of capital gains shall also be required to furnish the return.
An amount of Rs. 400 crore has been provided for FY 2019-20 to create “World Class Institutions” in the field of education which is more than three times the revised estimates for the previous year, said Union Finance Minister Nirmala Sitharaman while presenting the Union Budget today.
Sitharaman also announced setting up of a National Research Foundation (NRF) to fund, coordinate and promote research in the country. NRF will ensure that the overall research eco-system in the country is strengthened with focus on identified thrust areas relevant to our national priorities and towards basic science without duplication of effort and expenditure.
The programme ‘Study in India’ will focus on bringing foreign students to study in our higher educational institutions. The Finance Minister disclosed that a draft legislation for setting up Higher Education Commission of India (HECI) would be presented in the year ahead. This will help to comprehensively reform the regulatory system of higher education to promote greater autonomy and focus on better academic outcomes.
Besides, the Khelo India Scheme will be expanded to provide all necessary financial support and a National Sports Education Board for Development of Sportspersons would be set up under Khelo India Scheme to popularize sports at all levels.
Highlighting the recent achievements, Sitharaman said that while there was not a single Indian institution in the top 200 in the world university rankings five years back, there are three institutions now – two IITs and IISc Bangalore – in the top 200 bracket. This has been achieved due to concerted efforts by the institutions to boost their standards and also project their credentials better.
(With Inputs from PIB)
The Finance Minister further said that we recognize that investment-driven growth requires access to low cost capital. It is estimated that India requires investments averaging Rs. 20 lakh crore every year (USD 300 billion a year).
The Finance Minister further added that a number of measures are proposed to enhance the sources of capital for infrastructure financing, which are as follows;
A Credit Guarantee Enhancement Corporation for which regulations have been notified by the RBI, will be set up in 2019-20.
An action plan to deepen the market for long term bonds including for deepening markets for corporate bond repos, credit default swaps etc., with specific focus on infrastructure sector, will be put in place.
To permit investments made by FIIs/FPIs in debt securities issued by IDF-NBFCs to be transferred/sold to any domestic investor within the specified lock-in period.
Sitharaman raised excise duty and road and infrastructure cess on the auto fuels by Rs 2 per litre each to raise over Rs 28,000 crore.
Post local sales tax or value added tax (VAT), which is charged after adding central excise duty on base price, the increase in petrol price would be over Rs 2.5 per litre and that on diesel would be Rs 2.3.
A litre of petrol costs Rs 70.51 in Delhi and Rs 76.15 in Mumbai. Diesel is priced at Rs 64.33 a litre in Delhi and Rs 67.40 per litre in Mumbai.
Also, the finance minister has levied Re 1 per ton customs or import duty on crude oil. India imports more than 220 million tonnes of crude oil and the duty will give the government Rs 22 crore additionally.
At present, the government does not levy any customs duty on crude oil. Only a Rs 50 per ton national calamity contingent duty (NCCD) is charged.
Petrol currently attracts a total excise duty of Rs 17.98 per litre (Rs 2.98 basic excise duty, Rs 7 special additional excise duty and Rs 8 road and infrastructure cess).
On diesel, a total of Rs 13.83 per litre excise duty is charged (Rs 4.83 basic excise duty, Re 1 special additional excise duty and Rs 8 road and infrastructure cess).
On top of these, VAT is charged which varies from state to state. In Delhi, VAT is levied at the rate of 27 per cent on petrol and 16.75 per cent on diesel. In Mumbai, VAT on petrol is 26 per cent plus Rs 7.12 a litre additional tax while diesel attracts 24 per cent sales tax.
Import of petrol and diesel attracts customs duty equivalent to the total levy of excise. But the government has, with effect from July 6, removed Rs 9 a litre import duty equivalent to road and infrastructure cess.
The BJP-government at the Centre had raised excise duty n petrol by Rs 11.77 a litre and that on diesel by Rs 13.47 a litre in nine installments between November 2014 and January 2016 to shore up finances as global oil prices fell.
Hindustan Petroleum Corporation, Bharat Petroleum Corporation shares were down after imposition of special additional excise duty on petrol and diesel.
IOC closed 2.84 per cent lower at Rs 152.10, HPCL fell 0.71 per cent at Rs 286.60 and BPCL shed 2.80 per cent to Rs 369.35 on the NSE.
Replying after a general discussion on the Union Budget 2019-20 in the Rajya Sabha, the minister said, "Comprehensive steps" have been envisaged for the next 10 years.
Sitharaman said the mid-term target of the government is to make India a USD 5 trillion economy.
The target of putting India in the USD 5 trillion club is not "without a plan", she said and listed out measures proposed in the Budget.
To boost investment, she said FDI norms would be further liberalised, extension of lower corporate tax to companies with Rs 400 crore turnover, incentives for boosting use of electric vehicles in the country.
She further said the government has expressed intention to invest Rs 100 lakh crore in the infrastructure sector over the next five years.
Also, the Budget reflects firm commitment to boost investment in the country.
In the Budget presented by Sitharaman in the Lok Sabha on July 5, the government said it aims to mop up Rs 16.49 lakh crore in net taxes during 2019-20, up 11.13 per cent over previous year.
She maintained that every projection of revenue and expense in Budget 2019-20 is realistic and has been adequately provided for.
Pujari said this in the Assembly while replying a question of BJD member Ashwini Kumar Patra. He said though the 14th Finance Commission had recommended that the sharing pattern between the Centre and the state will be 90:10 ratio while sanctioning funds under State Disaster Response Fund (SDRF), but the Centre has not being following the guideline.
As a result Odisha has received Rs 266 crore less under the SDRF as the Centre adopted 75:25 ratio instead of 14th FC's recommendation of 90:10 share ratio, he said.
"We have strongly protested this act of the Centre and demanded sanction of remaining Rs 266 crore to the state," Pujari said.
The Odisha Finance minister said though the 14th FC said that the share between the Centre and states will be 90:10 ratio, the Centre in its explanatory memorandum said that the previous sharing pattern of 75:25 ratio will continue till implementation of Goods and Service Tax (GST).
The Centre will follow the 14th FC's recommendation only after implementation of the GST, the memorandum said.
"Meanwhile, the GST has been implemented since July 2017. Therefore, the Centre sanctioned the funds under SDRF at the sharing pattern of 90:10 for the 2018-19 fiscal. However, later they (Centre) deducted the amount after making a calculation on the sharing pattern of 75:25 ratio," Pujari said, claiming that the state has lost Rs 266 crore.
The state government drew attention of the Centre and wanted to know the reason behind making calculation on 75:25 ratio even after implementation of the GST, Pujari said.
"The Ministry of Finance in a reply letter dated July 11, 2018 said that the 75:25 ratio will continue till GST is stabilised," he said.
However, Pujari pointed out that there was no mention of "GST stabilisation" in the FC's recommendation which was presented in the Parliament. "There was no mention of GST stabilisation in the FC's recommendation. However, it was said that the 90:10 ratio will be given after implementation of the GST," he said.
Pujari said the state government has raised this issue in different forums like Inter-State Council, NITI Aayog and the Central government's pre-budget discussion.
Meanwhile, the Odisha Finance minister said the state has also received less Central assistance of Rs 17,299 crore than the approved amount during the last four fiscal from 2015-16 to 2018-19 towards state's share in the central taxes.
The finance minister said the 14th Finance Commission had recommended Rs 1,84,070crore to Odisha as its share from the central tax between 2015-16 and 2019-20. The state's share was Rs 1,35,820crore in four fiscal from 2015-16 to 2018-19.
"However, we have so far received only Rs 1,18,521crore, which is Rs 17,299 crore less," Pujari said.
He further pointed out that though it has been recommended to sanction Rs 48,250 crore as the state's share in the Central taxes in 2019-20 fiscal, the Centre in its budget has estimated only Rs 37,560 crore, which is again less by Rs 10,690 crore than the recommended amount.