Budget 2019-20: No changes in I-T slabs; PM calls it 'green budget' | Key Takeaways

Want to improve urban living, says Sitharaman in post-Budget media briefing

Finance Minister Nirmala Sitharaman is addressing the media

"The Budget will open opportunities for the youth. It will fulfil the dream of $5 TN economy," PM Modi says.

He adds: "The Budget has filled India with hope. It will help build a New India."

"This is a Green Budget."

No changes have been introduced to the income tax slabs

Import duty on gold and other precious metals up by 2.5%

Customs duty on Gold hiked by 12.5%

Re 1 increase in cess on petrol and diesel

3% surcharge on incomes over Rs 2 crore

7% surcharge on incomes over Rs 5 crore

TDS of 2% on withdrawal of cash more than Rs 1 crore in a year

If no PAN card, taxes can be filed using Aadhar card

Additional deduction of Rs 1.5 lakh on housing loans. The total deduction now is Rs 3.5 lakh

No tax scrutiny of funds raised by start-ups

Propose easing of angel tax on start-ups

1.5 lakh reduction on loans to purchase e-vehicles

Before announcing the changes in tax slabs, Sitharaman quotes a Tamil couplet.

While it is raining sops for different sectors in the Parliament, Indra Dev is mighty happy too.

Monsoon has finally touched upon Delhi-NCR. And it's raining cats and dogs...

Rain, rain, be here!

4 lakh recovered through IBC
1 lakh crore drop in non performing assets
Rs 100 lakh crore in infrastructure in next five years
Rs 70,000 crore capital infusion to PSBs
RBI to now regulate housing loans

Aadhar cards for NRIs proposed

Govt to propose greater role for women in public life

Over 2 crore Indians have become digitally literate, says FM 

National Sports Education Board soon
Allocate Rs 400 crore for world-class higher education

"9.6 crore toilets have been constructed since October 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 sold waste management in every village," Sitharaman says.

Targetting internet availability in every village

"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 (NSIL) has been incorporated to tap benefits of ISRO," Sitharaman says.

Potable water to every household by the year 2024

• 1.95 crore houses to be built for rural India
• Cooking gas for all families

NRI investment in Indian capital market is less. I propose to merge the NRI portfolio investment scheme route with FPI route, says Sitharaman

Nirmala Sitharaman quotes an Urdu couplet -- "Yakeen ho to koi raasta nikalta hai, hawa ki ot bhi lekar chiraag jalta hai" -- amid thumping of desks 

• Loan up to Rs 1 crore to MSMEs
• FIIs can invest in debt security issued by the NBFCs
• 100% FDI in insurance intermediaries
• To set up stock exchange for social enterprises under SEBI
• Will examine opening up FDI in media and aviation

Sitharaman proposes a public-private partnership in Railways.

"Looking to implement one nation, one grid in power sector. I propose to implement a blueprint for gas, water grids and airports," Sitharaman says.

Rs 50 lakh crore investment needed for Railways, says Sitharaman

Sitharaman says, "The recent election was charged with brimming home and desire for a bright and stable ‘New India’. Gone are the days of policy paralysis. India's job creators are our wealth creator."

It took us over 55 years to reach $1 trillion dollar economy. But when the hearts were filled with hope, trust and aspiration, we in just five years, added $1 trillion, says Sitharaman.

She adds: "The Indian economy will grow to become a 3 trillion dollar economy this year itself. The common man was served even as major transformational reforms were brought about."

"Mazboot desh, mazboot naagrik is our focus. Our goal is to cut red tape and ease business," Sitharaman adds.

Nirmala Sitharaman says, "Reform, perform and transform can succeed. Our goal is national security and economic growth."

Finance Minister Nirmala Sitharaman begins delivering her maiden Budget speech.

The meeting of the Cabinet ministers has begun.

Finance Minister Nirmala Sitharaman has reached the Parliament.

Nirmala Sitharaman is only the second woman finance minister to present the Union Budget and it is, by all means, a litmus test for the senior Bharatiya Janata Party (BJP) warrior today, as she makes her way to the Lok Sabha to present Budget 2019-20.

And as expected, the Sitharaman touch (read: no less than the Midas touch) has manifested itself at the start of the Budget proceedings.

Sitharaman posed for the shutterbugs with a red fabric briefcase -- a diversion from the age-old practice of carrying a regular maroonish briefcase.

READ THE FULL STORY HERE

Finance Minister Nirmala Sitharaman arrives at the Ministry of Finance. She will present Budget 2019 at 11 am in the Lok Sabha.

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 (PM-KISAN) 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.

Besides, monsoon has been erratic with a 33 per cent deficit rainfall in June, which has slowed Kharif crop sowing.

In an economy that is losing growth momentum, all this bring the tightrope walk of balancing growth with fiscal prudence to the fore. 

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 (NBFCs), 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.

Some believe Nirmala Sitharaman 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.