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All Eyes are on the Finance Minister, Nirmala SitharamanUpdate – 5th July, 2019
1:07 PM – Custom Duty to come down on E-Vehicles. Gold and other precious metals to become expensive. There are some amendments proposed to Customs Act. Old litigation from pre-GST regime to come under Legacy Litigation Scheme and be resolved quickly.
1:05 PM – GST is being simplified. An Electronic Invoice System is being introduced, E-Way Bill to be eliminated. Make In India is a cherished goal and basic custom duty is being raised to motivate and encourage manufacturing. Imported books to have 5% Custom Duty.
1:00 PM – Enhanced surcharge for those with incomes between Rs 2 Crores and Rs 5 Crores and beyond 5 Crores increased significantly. GST has worked magically and reduced harassment and time at each stage.
12:55 PM – Interchangeability of Aadhaar and Pan Card to be implemented. Prefilled Tax Returns would be brought about to reduce the time taken to fill return and increase accuracy. Faceless assessment in electronic mode is being launched in a phased manner. Central Cell would be the single window between Taxpayer and Government. Digital Payments to be encouraged to discourage business payments in cash a TDS of 2% on withdrawal of 1 Crore from one account. India moves to less cash economy.
12:50 PM – Angel tax issue needs to be resolved by eliminating scrutiny. E-verification would replace man to man scrutiny and remove income-tax department from framework of start-ups. Lot of proposals to encourage Startups. Tax Holiday for developers of Affordable Housing has been streamlined. Affordable House Value Ceiling is Rs 45,00,000/-. Tax Deductions to substantially benefit Middle Class.
12:45 PM – 99.3% of all the companies would have to pay 25% tax. A new scheme to setup Mega Manufacturing Facilities for international businesses and provide direct and indirect tax benefits. India to be a global hub of Manufacturing for Electric Vehicles. Rate to be lowered from 12% to 5% and income tax deduction on interest paid on loans taken to purchase electric vesicles.
12:40 PM – Thank you Taxpayers for making Government deliver. And here comes Tamil connect, a long Tamil verse. A few mounds of rice could be sufficient for an elephant, but if an elephant has to trample in the field and destroy far more. Direct Tax Collection has improved and is growing at double digit growth.
12:35 PM – India’s Sovereign Debt to GDP ratio is the lowest among major economies. A new series of coins Rs1, Rs 5, Rs10, Rs 20 coins would be mass circulated. We have a duty towards India and we do have our rights. We must participate for India’s progress.
12:30 PM – Policy of Disinvestment would continue and Air India is a priority. Rs 1,05,000/- Crores of divestment target has been kept.
12:25 PM – NPAs have reduced by 1,00,000 Crore over last year. Bank clean-up is in place. Reduction of 8 public sector banks has helped in consolidation. Public Sector Banks to get Rs 70,000 Crore to boost the economy. Better integration of public sector banks is on agenda. Well managed NBFC would get financial support.
12:20 PM – 18 New Embassies have been sanction in Africa. India everywhere looks to be a great initiative. Economic Cooperation across sectors would help move India ahead. IDEAS scheme would grow India. Iconic Tourism sites are planned. These destinations would attract national and international tourists. These destinations would also include tribes and invisible Indians.
12:15 PM – India’s soft power is now more visible. International Yoga Day is celebrated in 192 countries. NRIs who come to India to get Aadhaar card immediately (proposal). Artisans to be encouraged. Traditional artisans get to benefit by integration with national and international markets.
12:10 PM – Women is central to India’s growth. Women participation is core to India. Nari tu Narain is core to Modi 2.0
12:05 PM – Big Data, AI and Robotics have a place of priority for wellness of society. Multiple labor laws need to be streamlined. A platform for promoting start-ups and mentoring them would be setup. Inclusion of SC and STs is important and is happening under Standup India Scheme. Standup India Scheme would be expanded and linked to 15th Finance Commission.
12:00 PM – National New Education Policy would transform India. National Research Foundation would ensure that, overall, research systems live up to current times. India needs a research framework better than the rest of the world. To give better education, you need better teachers. To get better teachers, you need better researchers. India has to have a defined roadmap for research. Now India has 3 institutions in the Top 200 Educational Institutes in the world. India wants to be hub of Higher Education. Study in India to be the mantra to get international students to India scene. Khelo India Scheme would be expanded to include all citizens and all sports.
11:55 AM – Urban Rural Divide 80,00,000 houses planned under Awas Yojana, over 20 lakh delivered. 95% cities are ODF Open Defecation Cities. Ideals of Mahatama again show-up, by 2nd of October India would be ODF. Gandhipedia is being developed by the government to make more and more people know what Gandhi stood far. Transit hubs need to be created to make trade, commerce and commute better.
11:50 AM – The FM keeps on displaying her Hindi skills in between an English speech. Har Ghar Jal – to all rural households under Jal Jiwan Mission by 2022. Management of water across the country is a major priority. 9.6 Crore rural toilets constructed. More than 5,00,000 villages are open defecation free. Our 2 Crore Rural Indians have been digitally included into India’s digital economy.
11:45 AM – 1,00,000 KM of roads would be updated at 80250 Crores. Villagers would get cluster based development to rekindle traditional crafts. Clusters of Bamboo, Honey and Khadi clusters would include 50,000 villagers.
11:40 AM – Gaon, Garib and Kissan – are core focus of this government. Clean cooking gas, toilets, electricity has all happened. By 2022 every single rural family those who are unwilling to take a connection would have clean cooking facility. Gramin Awas Yojana 1.95 Crore houses are proposed to eligible beneficiaries. Fisheries Management Framework from water to fork is planned to be rolled out under a PM scheme. All weather connectivity to 97% habitation. PM Gram Sarak Yojana has made 135 KM of roads per day.
11:35 AM – Aviation and Media must get more investment and priority. Moves to space – India’s space power needs to be harnessed commercially. ISRO has made headway let us make this headway also contribute to delivering 5 Trillion Dollar economy.
11:30 AM – 100% FDI for Insurance intermediaries. Single Brand retail sector gets an edge.
11:25 AM – MSME’s would get an edge… Government of India would give pension to Traders with less than 1.5 Crore turnover. PM Karam Yogi Scheme. It is estimated India needs Rs 20,00,000 Crore every year. FIIs and NBFC get an edge to invest in infra funds. PM
11:20 AM – Transport holds the key and moves the nation. Reform, Perform and Transform is the Mantra of Modi 2.0
11:15 AM – 210 KM Metro Life Line Added in 2018-2019 adding new opportunities to millions. Om Birla Ji, the speaker is smiling while presiding over his budget speech. Electric Vehicles would have an edge.
11:10 AM – Electricity and Dignity and common man holds the key and continue. So here comes job creation… 55 years to 1 Trillion and next 5 years added 1 Trillion Dollars
11:02 AM – Performing Government and what achieved holds the key to what is in store. Niiti Ayog gets a congratulatory nod. Amit Shah and Nitin Gadkari agree. Number of Patents as a key starting point, interesting thought.
11:01 AM – Budget telecast has started and suspense is going to be over. Where we are from where to go. Nirmala Sitharaman gets going. She starts with New India
11:00 AM – We are looking forward to a set of new names and a few new schemes. We can expect a couple of schemes named to senior rightist and BJP leaders and also some statements on increase in welfare spending. It is important to monitor what was planned where and going where. Would India happen today? Are we in to announce a budget which resets news stories in leading dailies around the world. Deep Data, Artificial Intelligence and bold moves hold the key. It is 11:00 over to the Finance Minister…
10:55 AM – This is the best chance for a positive and optimistic budget to be presented. Indians are showcasing tomorrow to the world from the US, this is the time to let India showcase new age businesses to the world.
10:50 AM – Banks are dying and the more risk averse they become the sooner they die. A bank has to do banking and leave a positive impact on society. There are no skeletons in this government’s budget, they have a clean slate and a huge mandate to encash.
10:45 AM – India needs a break, we need to bring an end to “shrinking” of Indian economy. Private sector is in doldrums and banks are sleeping and so is common man with no work to do.
It’s Friday, July 5, 2019, and all eyes are on the newly appointed first woman Finance Minister of India, Nirmala Sitharaman, who will be presenting the first budget of Modi 2.0 government. Modi has announced the goal of making India a US$5 trillion economy by 2025, and this budget is expected to provide a roadmap for achieving that target. Every sector in the economy has its own wish list, and the FM will have to do a tight ropewalk to make sure the expectations of the electorate that brought back the Modi government with such resounding majority, are at least fulfilled in part.
- More money in the hands of taxpayers translates into more consumption and more demand. This was sought to be partially achieved in the interim budget by increasing the minimum income slab threshold for income tax to Rs 5 lakhs. However, those breaching the threshold by even one rupee were made liable to pay tax even on their income below 5 lakhs. The FM is expected to correct this anomaly, and put more money in the hands of citizens.
Rural India is a big driver of demand for FMCG products and consumer durables. However, a large part of India is currently witnessing a dry season and rainfall deficit, which may dampen demand. The FM is expected to allocate more money to rural-centric schemes to make sure that rural India is not left behind in the race to US$ 5 trillion.
Some market watchers expect announcement of another tranche of tax-free bonds to let the government borrow from the market in order to invest in infrastructure development.
The slowdown in demand has affected not only the big corporate but also the MSME sector. Hence, small entrepreneurs are expecting Rs 25-50 lakh loans on easy terms to tide over the difficult period and continue production and job creation.
Gems and jewellery sector, which is a big forex earner and provides employment to a substantial number of people, has suffered a setback in the last few years due to industrialists like Nirav Modi and Mehul Choksi committing bank frauds and fleeing abroad abandoning their business. The FM is expected to announce some incentives to rejuvenate more production and export activity in this sector
- Automobile sector in India dominated by diesel and petrol vehicles has also been hit by slowing of demand. On the other hand, the world is switching towards electric vehicles and tighter pollution norms. Hence, the FM is expected to announce new incentives for production of electric vehicles.
In the end, the FM may be guided by the BJP manifesto and the priorities of Modi 2.0. That said, India, and the world, will be keenly watching as she steps into the parliament to present her maiden budget today. Keep watching this space for more updates.