Budget 2019: The long and short of the first budget of Modi Sarkar 2

Finance Minister Nirmala Sitharaman on Friday commenced the first budget of the second Narendra Modi-led government. The speech lasted for over two hours. The FM has lowered the fiscal deficit target to 3.3 per cent for the current fiscal from the earlier estimate of 3.4 per cent of the GDP. Immense importance is given to Infrastructure, education, rural growth amongst other sectors under focus. 

PM Modi commented, “This budget has ensured easy tax collection and improved infrastructure and education. This is a green budget. The country has given up its negative sentiments and is moving towards an aspirational future.” 

On the contrary, Congress leader Adhir Ranjan Chowdhary said, “This is old wine in a new bottle. They have walked back on all their old promises. People's misery is only going to increase. There is nothing new in this budget.”

Below are the highlights of the budget session:

·         The Indian economy is to reach $3 Trillion in the present fiscal year while the plan of the ruling government is to reach $5 trillion over the next few years. The economy has reached US$2.7 trillion from US$1.85 trillion since 2014.

·         Govt sets Rs 1.05 lakh crore divestment target for FY20.

·         Govt will start raising part of borrowing in foreign currency.

·         Sagar Mala & Bharat Mala schemes will improve India's Infrastructure. Support for MSMEs, Rs 350 crore.

·         Same schemes coupled with UDAN are bridging the rural and urban divide, improving the country's transport infrastructure.

·         Comprehensive restructuring of National Highways Programme to be done, to ensure creation of National Highways Grid of desirable capacity.

·         95 crore houses to be constructed under PMAY from FY20-22.

·         64 crore toilets constructed under Swatch Bharat since 2014.

·         95% cities in India have become Open-defecation free.

·         95 crore houses to be constructed under PMAY from FY20-22.

·         64 crore toilets constructed under Swatch Bharat since 2014.

·         Govt proposes Rs 100 lakh crore investment for infrastructure over 5 years.

·         To invest Rs 80,250 crore for upgradation of roads under PM Gram Sadak Yojana.

·         25 lakh km of roads to be upgraded under PM Gram Sadak Yojana.

·         By 2022, every single rural family except those who are unwilling to take the connection will have electricity and a clean cooking facility.

·         Swachh Bharat Mission 2.0 to focus on rural solid waste management.

·         Govt will set up 10,000 new farmer producer organization.

·         Going back to 'Zero Budget Farming'.

·         Will set up Higher Education Commission with focus on greater autonomy.

·         Government will bring in new education policy

·         Allocate Rs 400 crore for World-class higher education institutions in FY20.

·         Govt proposes to launch railway station modernisation programme in FY20.

·         Railways to be encouraged to invest more in suburban rail network via SPVs.

·         Railways will require investment of Rs 50 lakh crore from 2018-30.

·         Propose changes to kick start domestic & foreign investment.

·         To hike statutory limits for Foreign investments in some Companies.

·         Eligibility of AA bonds for repo a positive step for debt markets and liquidity.

·         Relaxation of KYC norms will better harness FPI investments.

·         Asked SEBI to mull min Public shareholding to 35% from 25%.

·         Govt will examine opening up FDI further in Aviation, Insurance and Media.

·         100% FDI will be permitted for insurance intermediary.

·         CPSE ETF to come in ELSS variant.

·         Govt allocates Rs 70,000 crore for PSU bank recapitalization.

·         NPAs down by Rs 1 lakh crore over last 1 year.

·         6 PSU banks have come out of prompt corrective action.

·         Fundamentally sound NBFCs to keep getting funding from banks.

·         Non-performing asset (NPA) stress to be separated from PFRDA.

·         Govt will look to allow NBFCs to directly participate in TReDs.

·         Govt to modify present policy of retaining 51% stake in PSUs.

·         Pension benefits will be offered to 3 crore shop owners with annual turnover of less than Rs 1.5 crore under new scheme called Pradhan Mantri Man dhan Scheme.

·         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.

·         95% cities in India have become Open-defecation free.

·         17 million tonne and 132 million tonne additional steel and cement demand in 3 years due to step-up in PMGAY.

·         BharatNet targeting internet availability in every panchayat.

·         Govt to expand women self-help group interest subvention programme to all districts.

·         National Sports Education Board for development of sportspersons to be set up under Khelo India.

·         New integrated water ministry to make sure ‘Har Ghar Jal’ by 2024.

·         To issues Aadhaar Cards to NRIs holdings an Indian passport.

·         Strategic divestment of Air India to be re-initiated.

·         New coins with denominations of Rs 1, 5, 10 & 20 to be available for public use soon.

·         Govt allocates Rs 10,000 crore for electric vehicles scheme.

·         No scrutiny w.r.t valuation of securities of Start-ups.

·         Will create blueprint for gas, water grids & regional airports.