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Friday, 5 July 2019

Budget 2019 Key takeaways from FM Nirmala Sitharaman's maiden Budget so far


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Finance Minister Nirmala Sitharaman presents her maiden Budget in Parliament today. Here are the key takeaways from the Budget speech.
Finance Minister Nirmala Sitharaman presents her maiden Budget in Parliament today. Here are the key takeaways from the Budget speech.
For economy
- Targets to become a $3 trillion economy in FY20, $5 trillion in a few years
- Proposes changes to kick-start domestic and foreign investment
- Will create blueprint for gas, water grids and regional airports
- Govt proposes to expand Swachch Bharat to include solid
  waste management in every village
- Setting up enhanced disinvestment target of Rs 1,05,000 crore in FY20 as       
  against Rs 90,000 crore set in the Interim Budget
- A new series of coins of Re 1, 2, 5, 10 and 20 easily to be made available for public use shortly
Labour reforms
- Govt to streamline multiple labour laws into a set of four labour codes
- To focus on training new age skills like AI, robotics, 3D printing

To boost investment
- To liberalise FDI in aviation, media, animation and insurance intermediaries
- To implement enabling measures to boost International Financial Service     
   Centres (IFSCs)
- To set up a Credit Guarantee Enhancement Corporation
- To initiate steps for electronic fund raising programme for listing of social   enterprises, voluntary organisations
- Considering whether govt holding can go below 51 percent in certain CPSEs     on  case-to-case basis
- To hike statutory limits for foreign investments in some companies
- Expert committee to be set up to make recommendations on
  infrastructure finance

Market reforms:
- Asks SEBI to evaluate hiking minimum public shareholding to 25 percent from   35 percent
Government will work with exchanges to allow AA bonds to be used as   collateral
- Proposes rationalising and streamlining of KYC (know your customer) norms   for Foreign Portfolio Investors (FPIs) to make it investor-friendly
- NRI portfolio route to be merged with FPI for seamless investment in stock   markets
- Credit Guarantee Enhancement Corporation will be set up in 2019-20, action   plan to deepen markets for long-term bonds with specific focus on infra sector   to be put in place
- Will take up measures to make RBI and SEBI depositories inter-operable
-To allow FPIs/NRIs to subscribe to listed debt papers of REITs and InvITs

Banks
- State-run banks to get Rs 70,000 crore capital to boost credit
- To bring out a remedy against cash being deposited without knowledge of   bank account holders

NBFCs
- Fundamentally sound NBFCs to keep getting funding from banks and mutual   funds
-To allow FIIs and FPIs investment in debt securities issued by NBFCs
-Requirement of Debenture Reservation Reserve to be done away with for   NBFCs

Agriculture/fisheries
- Govt to invest widely in agriculture infrastructure
- Support private entrepreneurship in value addition in agriculture
-Proposes Pradhan Mantri Matsya Sampada Yojana to address critical infrastructure gap in fisheries sector

Transportation
-To carry out comprehensive restructuring of National Highway programme
-Cargo volume on Ganges to increase four times over the next four years
-In second phase of Bharat Mala project, states will be helped to develop   roadways
-1,25,000 km of roads will be upgraded under Pradhan Gram
 Sadak Yojana under Phase III at estimated cost of Rs 80,250 crore

Aviation
-Time right for India to enter into aircraft financing and leasing
-Will create congenial atmosphere for development of MRO services
-To harness India's space ability commercially, New Space India (NSIL) has   been incorporated to tap the benefits of ISRO
- Will re-initiate privatisation of Air India

Power
- Package for power sector tariff and structural reforms to be unveiled soon

Retail

- Local sourcing norms to be eased for single-brand retail FDI
Insurance


Proposes to reduce net owned fund requirements to Rs 1,000 crore for onshoring of international insurance companies
Real estate
RBI to get regulation authority of housing finance sector
- Will finalise a model tenancy law and circulate to states; and propose steps for rental housing


- Govt proposes setting up 1.95 crore houses under Pradhan Mantari Awas Yojna (Rural)
Small businesses/MSMEs
- To extend pension benefit to three crore retail traders with an annual turnover less than Rs 1.5 crore under Pradhan Mantri Karam Yogi Man Dan Scheme
- Centre will create a payment platform for MSMEs for payment of bills
- 100 new clusters will be set up in 2019-20 to enable 50,000 artisans to come into the economic value chain
- To launch mission to integrate traditional artisans and creative persons with global market; to obtain GI/patents for them
- Will set up 10,000 new farmer producer organisations
- To start television programme exclusively for startups


- Proposes to expand self-help groups to all districts; one woman in every SHG to get a loan up to Rs 1 lakh under Mudra Yojana
Railways
- Railways to be encouraged to invest more in suburban rail network via special purpose vehicles (SPVs) and enhance metro rail network through public-private partnerships


- Railway station modernisation programme will be launched this year
Education
-Will bring in new education policy to propose changes in school, higher   education
-Propose to set up a national research foundation to fund, coordinate and to   promote research in the country
-National Research Foundation will assimilate research grants by ministries
-A Gandhi-pedia is being developed to sensitise youth about Mahatma Gandhi's   ideas
-A draft legislation for higher education commission of
 India to be presented
-Proposes Study in India programme to attract foreign students
-National Sports Education Board to be set up under Khelo
 India scheme
-Allocate Rs 400 crore for world-class higher education institutions in FY20
 
For NRIs

-Aadhaar cards to be issued to non-residents Indians with Indian passports after arrival in India without waiting for 180 days

Personal finance
-NPS Trust will be separated from Pension Fund Regulatory and Development   Authority (PFRDA)

Tourism
-To build 17 iconic sites to encourage arrival of tourists in India


Taxation
-Lower 25 percent corporate tax will apply on companies with up to Rs 400   crore turnover, covering 99.3 percent  of corporate India

Source: https://www. moneycontrol.com/news/india/indian-union-budget-key-takeaways-nirmala-sitharaman-speech-4172661.html


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