13:51 Middle class will progress, says Modi: The middle class will progress with this Budget, development work will expedite even more. The tax structure will simply and infrastructure will modernise, says Prime Minister Narendra Modi in his reaction to Finance Minister Nirmala Sitharaman’s maiden Budget presented in the Lok Sabha today.
13:32 Income tax surcharge on super-rich hiked: Surcharge on individuals having taxable income from Rs 2 crore to Rs 5 crore and Rs 5 crore and above to be enhanced, so that the effective tax rate will increase by around 3% and 7% respectively, says Sitharaman.
13:29 Tax exemption raised on home loan interest: To provide further impetus to affordable housing, an additional deduction of Rs 1.5 lakh on interest paid on loans borrowed up to March 31, 2020, for purchase of house up to Rs 45 lakhs has been provided, says Sitharaman.
13:16 Re 1 infra cess levied on petrol: I propose to increase special additional excise duty and road and infrastructure cess each one by 1 rupee a litre on petrol and diesel, says Sitharaman.
The FM also levied 5% customs duty on imported books.
13:08 Angel tax on start-ups resolved?: To resolve the so-called Angel Tax issue, the startups and their investors who file requisite declarations&provide information in their returns will not be subjected to any kind of scrutiny in respect of valuations of share premiums, says Sitharaman.
13:06 income tax surcharge on super-rich hiked: Income tax surcharge hiked from 2 to 7% on taxable income of Rs 2-5 crores, announces Sitharaman.
12:59 2% TDS on Rs 1 crore cash withdrawal a year: To discourage making business payments in cash, 2% TDS on payments exceeding Rs 1 crore in a year, says Sitharaman
12:53 Aadhaar card can replace PAN card: Aadhaar can be used instead of PAN card, announces Sitharaman.
12:51 IT deduction raised on loans to buy electric vehicles: Additional income tax deduction of Rs 1.5 lakh on interest paid on loans taken to buy electric vehicles. This leads to a benefit of Rs 2.5 lakh crore over the tax period of the loan for the loan payer, says Sitharaman.
12:50 Exemption raised on home loan interest: Tax exemption on interest paid on home loans raised from Rs 2 lakh to Rs 3.5 lakh, says Sitharaman.
12:47 ETFs brought in line with ELSS : Government to bring exchanged traded funds in line with equity linked savings schemes of mutual funds to encourage retail investors, says Sitharaman.
12:44 25% corp tax on Rs 400cr turnover firms: Corporate tax rate of 25% extended to all companies having annual turnover up to Rs 400 crore, announces Sitharaman.
12:38 Aadhar card for NRIs on arrival: I propose to consider issuing Aadhaar cards for Non Resident Indians with Indian passports after their arrival in India without waiting for the mandatory 180 days, says Sitharaman.
12:34 Gandhipedia to be developed to propagate Bapu’s values: ‘Gandhipedia’ is being developed to sensitize the youth about positive Gandhian values, says Sitharaman.
12:28 Interest subvention for women SHGs to cover all districts: To further encourage women entrepreneurship, women SHG interest subvention programme to be expanded to all districts in India, says Sitharaman.
12:26 Aadhar card for NRis on arrival: I propose to consider issuing Aadhaar cards for Non Resident Indians with Indian passports after their arrival in India without waiting for the mandatory 180 days, says Sitharaman.
12:24 TV channel for startups announced: Exclusive TV programme exclusively for startups to be started, channel will be designed and executed by startups themselves, says Sitharaman.
12:22 National Sports Education Board to be set up: To popularise sports at all levels, a National Sports Education Board for development of sportspersons to be set up under Khelo India, says Sitharaman.
12:22 Embassies in nations without diplomatic mission: To give further impetus to India’s growing influence and leadership in the international community, the government has decided to open Indian embassies and high commissions in countries where India doesn’t have a resident diplomatic mission as yet, says Sitharaman.
12:20 Focus on training in AI, robotics, 3D printing: Major economies to face labour shortage. India to focus on training new age skills like AI, robotics, 3D printing, says Sitharaman.
12:18 ‘Naari tu Naraayani’. Govt to push greater women’s participation: ‘I draw attention to the women of India, ‘Naari tu Naraayani’. This government believes that we can progress, with greater women participation,’ says Sitharaman.
12:17 81 lakh homes sanctioned under PMAY (urban): Under PMAY (Urban), over 81 lakh houses with investment of about Rs 4.83 lakh cr have been sanctioned of which construction has started in about 47 Lakh houses. Over 26 Lakh houses have been completed of which nearly 24 Lakh houses have been delivered, to beneficiaries, says Sitharaman.
12:15 New education policy, national research body announced: New National Educational Policy to be brought in to transform Indian educational system; major changes in higher as well as school system to be brought in.
A National Research Foundation to be set up to strengthen overall research ecosystem in the country; funds available under all ministries to be integrated with NRF, says Sitharaman.
12:12 4 labour codes to replace multiple laws: Government to streamline multiple labour laws into a set of four labour codes, says Sitharaman.
12:09 125,000 km of rural roads to be upgraded in 5 years: 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, says Sitharaman.
12:07 Net connectivity in every panchayat gets boost: Under Pradhan Mantri Grameen Digital Saksharata Abhiyan, BharatNet is targeting internet connectivity in local bodies in every panchayat in the country; this will be speeded up under the Universal Service Obligation Fund, says Sitharaman.
12:05 After self-sufficiency in pulses, govt eyes oilseeds: Sitharaman praises farmers for making India self-sufficient in pulses, hopes for success in oilseeds as well.
12:01 Water for all rural homes by 2024: The Jal Shakti ministry will work with states to ensure Har Ghar Jal for all rural houses by 2024, under the Jal Jeevan Mission, says Sitharaman.
12:00 Renewable energy from farm produce: We will invest widely in agricultural infrastructure. We will support private entrepreneurship in driving value addition to farmers produce and those from allied activities too, like bamboo, timber and also for generating renewable energy. Annadaata ko kyun oorja daata bana nahi sakte?, says Sitharaman.
11:57 After Swachh Bharat, focus on solid waste: 9.6 crore toilets have been constructed since Oct 2, 2014. More than 5.6 lakh villages have become open defecation free.We have to build on this success. I propose to expand the Swachh Bharat mission to undertake sustainable solid waste management in every village, says Sitharaman.
11:55 New body set up for commercialise space ability: India has emerged as a major space power. It is time to harness our ability commercially. To harness India’s space ability commercially, a public sector enterprise, New Space India Limited has been incorporated to tap benefits of the Indian Space Research Organisation, says Sitharaman.
11:54 1.95 cr houses to be provided under PMAY-Gramin: Time for completion of houses under PMAY reduced from 314 days in 2015-16 to 114 days in 2017-18, enabling the scale of achievement in PMAY. In second phase of PMAY-Gramin, 1.95 crore houses to be provided to eligible beneficiaries, during 2019-20 to 2021-22; they will have amenities such as LPG, electricity and toilets, says Sitharaman.
11:45 Seamless transfer of T-bills: Interoperability of RBI depositories and SEBI depositories necessary for seamlesss transfer of treasury bills; govt. will take necessary measures in this regard in consultation with RBI and SEBI, announces Sitharaman.
11:43 Local sourcing norms eased for FDI in single brand retail: Local sourcing norms for FDI to be eased for single-brand retailing sector, says Sitharaman.
11:41 AA rated bonds as collateral for stock exchanges: To deepen corporate tri-party repo market in corporate debt securities, government will work with regulators RBI & SEBI to enable stock exchanges to allow AA rated bonds as collaterals, says Sitharaman.
11:40 More FDI in aviation, media, insurance: 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, says Sitharaman.
11:37 KYC norms for FPIs to be simplified: Existing Know Your Customer norms for Foreign Portfolio Investors to be rationalised and simplified, to make it more investor-friendly, says Sitharaman.
11:36 Focus on long term bonds for infra sector: A Credit Guarantee Enhancement Corporation will be set up in 2019-20, with an action plan to deepen markets for long-term bonds with specific focus on infra sector to be put in place, announces Sitharaman.
11:33 Pension benefit for 3 cr retail traders: Pension benefit to be extended to around 3 crore retail traders and shopkeepers with an annual turnover less than Rs 1.5 crores under the Pradhan Mantri Karam Yogi Man Dhan Scheme, says Sitharaman.
11:31 ‘Rs 350 cr for fresh loans for GST-registered MSMEs’: Rs 350 crore allocated for 2% interest subvention for all GST-registered MSMEs on fresh or incremental loans, announces Sitharaman.
11:28 ‘Rental laws archaic’: Several reforms would be undertaken to promote rental housing, current rental laws are archaic as they do not address lessor-lessee relationships fairly, says Sitharaman.
11:27 Affordable housing to get boost: In her housing for all pitch in the Lok Sabha, Nirmala Sitharaman said the government will focus on affordable housing.
She added that for Pradhan Mantri Karam Yogi Maang Dal scheme, one will require only Aadhaar and bank account.
11:26 ‘Passenger freight services to see public-private partnership’: Railway infra would need an investment of Rs 50 lakh crores between 2018 and 2030; PPP to be used to unleash faster development and delivery of passenger freight services, says Sitharaman.
11:29 AM IST Union Budget 2019 LIVE: Several reforms would be undertaken to promote rental housing, current rental laws are archaic as they do not address lessor-lessee relationships fairly, says FM
11:28 AM IST Union Budget 2019 LIVE: Plans to reach 5 trillion USD economy :- Heavy investment in infrastructure, Digital Economy, Job creation. “Hearts of citizen filled with hope,trust and aspirations”, says FM
11:27 AM IST Union Budget 2019 LIVE: 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, says Sitharaman
11:25 AM IST Union Budget 2019 LIVE Interim budget focused on 10-point vision to boost economy. We need to invest in infra, digital economy and job creation in small and medium enterprises, says FM.
11:23 AM IST Union Budget 2019 LIVE: Vision for the decade – From 1.85 trillion dollars in 2014, the economy has reached 2.7 trillion US dollars in five years; it is well within our capacity to reach 5 trillion dollars in the next few years, claims FM.
11:22 AM IST Union Budget 2019 LIVE: For providing an enabling ecosystem for Maintenance, Repair and Overhaul, suitable policy interventions will be adopted, says FM
11:18 AM IST Union Budget 2019 LIVE: Schemes such as BharatMala, Sagarmala and UDAN are bridging rural urban divide and improving our transport infrastructure, said FM
11:15 AM IST Union Budget 2019 LIVE: When we aspire to reach 5 trillion dollars, many wonder whether it is possible; the target is eminently achievable, given our citizens’ desire and the leadership of the Government. India Inc, our job creators, are the nation’s wealth creators; together, we can prosper. I wish to propose no. of reforms to kickstart virtuous cycle of growth, says FM
11:14 AM IST Union Budget 2019 LIVE: The Indian economy will grow to become a 3 trillion dollar economy this year itself, claims FM
11:13 AM IST Union Budget 2019 LIVE: From 1.85 trillion dollars in 2014, the economy has reached 2.7 trillion US dollars; we can very well reach 5 trillion dollars in the next few years, said FM
11:10 AM IST Union Budget 2019 LIVE: Last mile delivery stood out, citizens in every nook and corner of the country felt the difference; our objective was and continues to be Mazbooth Desh Ke Liye Mazbooth Nagarik, said FM while presenting Budget 2019-20.
11:09 AM IST Union Budget 2019 LIVE: Between 2014 and 2019, we provided rejuvenated centre-state dynamic, cooperative federalism, GST Council and a strident commitment to fiscal discipline; set the ball rolling for New India. Average amount spent on food security per year approx doubled during 2014-19 compared to preceding five years, said Sitharaman.
11:07 AM IST Union Budget 2019 LIVE: “The people of India have validated their two goals for our country’s future: national security and economic growth,” FM said referring to NDA’s win in LS polls.
11:07 AM IST Union Budget 2019 LIVE: Referring to NDA’s thumping victory in 2019 Lok Sabha elections, Sitharaman said,”The recent election was charged with brimming home and desire for a bright and stable New India.Voter turnout was highest; every section came to stamp their approval for a performing Government.”
11:03 AM IST Union Budget 2019 LIVE: Finance Minister Sitharaman begins her maiden Budget speech
A mini-stimulus to take the economy out of five-year low alongside giving some tax relief to common man may be on the cards, as Finance Minister Nirmala Sitharaman does a tightrope walk balancing the needs of the economy and fiscal constraints in her maiden budget.
The budget to be presented today is expected to boost spending at the cost of short-term slippage in fiscal deficit targets as she lays down the Modi 2.0 government’s road map for the economy and the nation in the next five years.
Some believe she may give relief to the common man by raising personal income tax threshold for certain categories while at the same time, upping spending on agriculture, healthcare and social sectors.
Also, there is expected to be a big push for infrastructure spending including on roads and railways to drive growth which had slowed to a five-year low of 5.8 per cent in the first three months of 2019 — well below China’s 6.4 per cent. The slowdown is also reflected in high-frequency numbers such as IIP and automobile sales numbers.
The economy has also been impacted by slowing trade, rising protectionism, trade conflict between the United States and China, Brexit, US sanctions on Russia, Iran and Venezuela impacted the domestic economy.
The sluggishness in the economy has led to expectations of the budget containing further stimulus measures to boost the growth through new policy initiatives and continued reforms to achieve accelerated growth and increase in employment.
This may be in the form of a combination of capital infusion in the public sector banks, removing the roadblocks that have crept into the Insolvency and Bankruptcy Code process, providing liquidity to non-bank financial companies, address the agrarian crisis and step up allocations for infrastructure and social sectors.
But, the combined effect of all these would be that the budget deficit may widen to 3.5 per cent of gross domestic product (GDP) in 2019-20 that began on April 1, instead of 3.4 per cent target.
For Sitharaman, the biggest constraining factor is lower-than-expected growth in tax revenues, particularly those of the goods and services tax (GST), something she may look to bridge through aggressive stake sale in PSUs, higher dividend from the RBI, rollover of some FY20 expenditure to FY21, cut back in plan expenditure and increase in off-balance sheet expenditure with portion of subsidies being transferred to state-owned enterprise balance sheet.
The scope of the Pradhan Mantri Kisan Samman Nidhi was also recently expanded to cover all farmers which would lead to an increase in outlays from the earlier budgeted Rs 75,000 crore to Rs 90,000 crore along with a new pension scheme. At the same time, she has to live up to the relief promised to small taxpayers in the interim budget in February.