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
- Proposes investment linked tax benefit for manufacture of products like lithium batteries and solar chargers
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
- To bring ETFs in line with equity-linked savings schemes of mutual funds to encourage retail investors
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
- One-time six-month partial credit guarantee to be given to PSU banks for purchase of high-rated pooled assets of financially sound NBFCs amounting to Rs 1 lakh crore in FY20
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
- Startups who provide details in returns will have no scrutiny in respect of valuation of share premium
- Period of exemption from capital gains from sale of startups extended
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
