Centre allocates Rs 75,000 cr for PM-KISAN to cover 145 million farmers

Nirmala Sitharaman has allocated Rs 12,000 crore less in the Budget for financial year 2019-20 towards the government’s flagship income support scheme — PM-Kisan– that has been extended to cover all

Nirmala Sitharaman has allotted Rs 12,000 crore less in the Budget for budgetary year 2019-20 towards the administration’s leader pay bolster conspire, PM-Kisan, which has been stretched out to cover all ranchers now.

The Budget has given Rs 75,000 crore to the plan, where as the Cabinet had endorsed the development of the plan with an expected consumption of Rs 87,000 crore for 2019-20 on May 1, 2019. Rs 75,000 crore was the assessed consumption if just little and negligible ranchers (who possessed under two hectares of land) were to be secured, as was proposed in the meantime Budget exhibited by Piyush Goyal. After that the Cabinet had stretched out the plan to all ranchers in accordance with what was guaranteed by the BJP in its race pronouncement.

Indeed, a commentary in the full Budget for 2019-20 likewise says that the whole is intended to give pay backing to ‘all’ rancher families the nation over. It likewise says around 145 million rancher families are relied upon to be canvassed under the plan in 2019-20, which is the all out number of rancher family units in the nation.

Another record – The Output-Outcome structure (began from 2017-18), demonstrates that the administration means to target 100 million rancher families through PM-KISAN in 2019-20. Most specialists said that legislature can generally give the additional Rs 12,000 crore expected to cover all ranchers under PM-KISAN through beneficial interest for awards later in the year.

Govt likely to set October deadline for cash-strapped Air India sale

The Centre is planning to liberalise the terms and conditions for the sale of Air India

The development to Air India privatization has taken off going full bore with the Union Budget reporting it as the focal point of divestment this year. The administration is focusing on October as the due date for reporting the arrangement.

Not leaving anything to risk after a bombed endeavor before, the legislature has shortlisted the potential bidders, with the Tata bunch on top for its enthusiasm for aeronautics. Sources aware of everything said the administration would start converses with organizations, including Tatas, in no time for stripping its stake in the national transporter.

Also like : Budget 2019: Air India sale on cards, govt hikes divestment target for FY20

The proposed exchange with potential purchasers will harmonize with the administration method of issuing offer records for articulation of intrigue at some point this month. “Since the money clergyman has submitted in the Budget, we will begin moving toward imminent bidders,” said a source near the advancement. While calling attention to that the Tatas will be moved toward first, he stated, “They have a history with flight and they realize how to run a carrier.”

“In perspective on the current macroeconomic parameters, the legislature would not just reinitiate the procedure of key disinvestment of Air India, yet would offer increasingly focal open area undertakings for key investment by the private segment,” Finance Minister Nirmala Sitharaman had said in her Budget discourse on Friday. The administration will before long reconstitute the Air India Specific Alternative Mechanism (AISAM), following which another offer record will be issued. The AISAM is accused of giving endorsements at each progression of the Air India divestment process, with just the sweeping endorsement given by the Union Cabinet.

Budget2019: Key takeaways of Nirmala Sitharaman’s lady spending discourse

Account Minister Nirmala Sitharaman on Friday said that the nation is well inside its ability to turn into a $5 dollar economy in the following five years.

Budget 2019 features: Here are the key takeaways from money serve Nirmala Sitharaman’s lady Budget discourse:

• From $1.85 trillion out of 2014, the economy has come to $2.7 trillion
• We are well inside our ability to reach $5 trillion in the following couple of years
• Economy will develop to turn into a $3 trillion economy in the present year itself
• Somewhere in the range of 2014 and 2019, we gave a revived focus state elements, helpful federalism, GST gathering and strident promise to financial control
• A few changes would be attempted to advance rental lodging, current rental laws are age-old as they don’t address lessor-renter connections reasonably
• Forthright motivations on buy of electric vehicles, more prominent accentuation on moderate and eco-accommodating open vehicle
• Private players to assume a critical job in railroads
• One Nation One Grid for moderate power, propose to have gas and water frameworks too
• Posting social undertakings and intentional association a need so they can raise capital
• Bharat Mala 2.0 to concentrate on states to construct their street systems
• Town, poor and ranchers are at the focal point of the majority of this current govt’s projects
• Govt will welcome proposals for further opening up of FDI in aeronautics part, media, movement AVGC and protection segments in meeting with all partners. 100 percent FDI will be allowed for protection go-betweens
• Railroad infra would require a speculation of 50 trillion somewhere in the range of 2018 and 2030; PPP to be utilized to release quicker advancement and conveyance of traveler cargo administrations
• Neighborhood sourcing standards for FDI to be facilitated for single-brand retailing part
• Electronic Fundraising Platform, a social stock trade, to be set up to rundown social undertakings and deliberate associations working for social welfare targets
• FM Nirmala Sitharaman says Sebi has been asked to condier expanding least open shareholding foundation from 25 percent to 35 percent
• By 2022, each and every rustic family with the exception of the individuals who are reluctant to take the association, will have a power and a perfect cooking office..

Read Full Source: Union Budget 2019

Budget 2019: Govt to sell first global bond to fund infra and spur growth

The fiscal deficit goal for the year that began on April 1 was lowered to 3.3% of gross domestic product from 3.4% set in February’s interim plan, Finance Minister Nirmala Sitharaman said.

Government plans to narrow its budget deficit target and sell its first global bond to raise funding for infrastructure spending to spur economic growth. Bonds rallied. The fiscal deficit goal for the year that began on April 1 was lowered to 3.3% of gross domestic product from 3.4% set in February’s interim plan, Finance Minister Nirmala Sitharaman said in her maiden budget in Parliament in New Delhi on Friday. That plan will in part be funded by increasing taxes on the wealthy and selling stakes in state-run companies.

“Those in the highest income brackets need to contribute more to the nation’s development,” Sitharaman said. She aims to raise Rs 1.05 trillion ($15 billion) from asset sales, compared with Rs 900 billion targeted previously.

Prime Minister Narendra Modi, who returned to office in May following a landslide election victory, is under pressure to revive consumption and investment after latest data showed growth slipping to a five-year low 5.8% in the three months to March. Sitharaman said the nation needs Rs 20 trillion annual investment on infrastructure, and the government will be tapping the overseas bond market for funds.

India’s benchmark 10-year bonds dropped 12 bps to 6.63% while the rupee pared losses. GDP growth is forecast to rebound to 7% in the current fiscal year from 6.8% last year, the Finance Ministry said in a report on Thursday, mirroring a projection from the Reserve Bank of India. The central bank has cut interest rates three times this year to spur growth.

hese are some of the highlights from the Union Budget 2019  speech:

• Net market borrowing for 2020 fiscal year set at Rs 7.1 trillion
• Customs duty on gold increased to 12.5% from 10%; proposes adding excise duty of Re 1 per liter each on diesel and gasoline
• Government proposes Rs 700 billion of capital support to state-run banks versus Rs 1.06 trillion last year
• Seeks to bring non-banking finance companies under RBI rules, also allow the central bank to regulate housing finance companies
• Tax proposals: 25% tax rate for companies with revenue of up to 4 billion per year; owering GST rate on electric vehicles to 5%
• Government will allow 100% FDI in insurance intermediaries; rules for investment in media to be eased
• Limits on foreign portfolio investment to be raised to be on par with foreign direct investment

Budget makes petrol, diesel costlier, raises tax on super-rich, gold import

Corporate tax on companies with turnover of up to Rs 400 crore has been slashed to 25 per cent from current 30 per cent

Account Minister Nirmala Sitharaman Friday climbed charge on petroleum and diesel, raised import obligation on gold, collected extra additional charge on excessively rich and expedited an expense high worth money withdrawals as she looked to goad development with decrease in corporate assessment and sops to lodging segment, new companies and electric vehicles. 

Introducing the lady spending plan of Modi 2.0 government in Lok Sabha, Sitharaman, the main full-time lady Finance Minister, proposed measures to ease liquidity emergency confronting shadow banking division (NBFCs) and giving Rs 70,000 crore money to open segment banks while trying to raise extra assets through privatization of some PSUs. 

In help to citizens, she accommodated an extra derivation of Rs 1.5 lakh on intrigue paid on credits acquired up to March 31, 2020 on buy of a house up to Rs 45 lakh. Corporate assessment on organizations with turnover of up to Rs 400 crore has been cut to 25 percent from current 30 percent. Directly, the lower assessment rate is pertinent on organizations having a turnover of up to Rs 250 crore. 

Sitharaman said the diminished expense rate would cover 99.3 percent of corporates in the nation. To lift utilization of electric vehicles, an extra personal duty finding of Rs 1.5 lakh on intrigue paid on credits taken to buy EVs has been proposed.  Additionally the legislature has requested that the GST Council diminish assessment rate on EVs from 12 percent to 5 percent. Traditions obligation on specific pieces of EVs has been diminished. 

Tending to the holy messenger assessment issue looked by new businesses, she said new businesses and financial specialists who document essential revelations won't be exposed to any sort of examination in regard of valuation of offer premium.  A component of e-confirmation will be set up and with this, the assets raised by new businesses won't require any expense examination. 

She raised unique extra extract obligation and street cess on oil and diesel by Re 1 for every liter each, saying lower unrefined petroleum costs furnish her with a chance to audit imposes on the segment.  Likewise, traditions obligation on gold and valuable metals was raised from 10 percent to 12.5 percent to activate assets. Fundamental traditions obligation was raised on a variety of items including tiles, cashew pieces, vinyl flooring, vehicle parts, some manufactured elastic, advanced and video recorder and CCTV camera. Extract obligation of Rs 5 for each 1000 has been forced on cigarettes of length surpassing 65 mm, while 0.5 percent obligation has been collected on biting tobacco, zarda and tobacco concentrates and embodiment.

Read Full Story : Union Budget 2019 

Budget 2019 : I-T slabs unchanged, surcharged on Rs 2cr+ annual income

Union Budget 2019 updates: Nirmala Sitharaman will deliver Budget speech at 11 am. From raising retirement age to addressing farmers’ woes, here’s what to expect from Budget 2019

On Thursday, the government tabled the Economic Survey 2018-19. It projected the country’s GDP growth for 2019-20 at 7 per cent, up from five-year low of 6.8 per cent, on the back of anticipated pickup in investment and consumption. The survey retained the fiscal deficit projection at 3.4 per cent of GDP for the current financial year, the same as in the revised estimate of Interim Budget 2019-20. The Survey also said that the country would need to grow at eight per cent annually to be able to achieve its target of becoming a $5-trillion economy by 2024-25.

Here are the key takeaways from Budget 2019 speech

— From $1.85 trillion in 2014, the economy has reached $ 2.7 trillion
— We are well within our capacity to reach $ 5 trillion in the next few years
— Economy will grow to become a $3 trillion economy in the current year itself
— Reform, perform, transform
— India Inc is India’s job creators
— Between 2014 and 2019, we provided a rejuvenated centre-state dynamics, cooperative federalism, GST council and strident commitment to fiscal discipline.
— Bharat Mala 2.0 to focus on states to build their road networks
— Village, poor and farmers are at the centre of all of this govt’s programmes
— 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 per cent FDI will be permitted for insurance intermediaries
— Railway infra would need an investment of 50 trillion between 2018 and 2030; PPP to be used to unleash faster development and delivery of passenger freight services
— Local sourcing norms for FDI to be eased for single-brand retailing sector
— Electronic Fundraising Platform, a social stock exchange, to be set up to list social enterprises and voluntary organizations working for social welfare objectives

Budget 2019 updates: Cabinet meeting underway, Budget speech at 11 am

Union Budget 2019 LIVE updates: Nirmala Sitharaman will deliver Budget speech at 11 am. From raising retirement age to addressing farmers’ woes, here’s what to expect from Budget 2019

Budget 2019 updates: Finance Minister Nirmala Sitharaman will show her first Union spending plan in Parliament today at 11 am. This is likewise the main Budget of the Narendra Modi-drove NDA government in its subsequent term. It will be definitely viewed on the two sides of the walkway in Parliament, and furthermore by financial specialists, both residential and outside, other than different intrigue gatherings like ranchers and the on edge white collar class.

Spending limit 2019 is relied upon to set out the Modi 2.0 government’s guide for the economy and the country for the following five years. It may hope to lift spending at the expense of momentary slippage in monetary shortage targets.

The economy has recently been affected by moderating exchange, rising protectionism, exchange strife between the United States and China, Brexit, US endorses on Russia, Iran and Venezuela affected the household economy. The ongoing drowsiness in the economy has prompted desires that the Union Budget 2019 would contain further upgrade measures to support development through new arrangement activities and proceeded with changes to accomplish quickened development and increment in work.

On Thursday, the legislature postponed the Economic Survey 2018-19. It anticipated the nation’s GDP development for 2019-20 at 7 percent, up from five-year low of 6.8 percent, on the back of foreseen pickup in venture and utilization. The study held the monetary shortage projection at 3.4 percent of GDP for the current money related year, equivalent to in the reconsidered gauge of Interim Budget 2019-20. The Survey likewise said that the nation would need to develop at eight percent every year to have the option to accomplish its objective of turning into a $5-trillion economy by 2024-25.

Here’s what Modi promised in BJP manifesto ahead of Lok Sabha elections 2019:

• Piped water to all citizens of the country
• Affordable healthcare with new pharma pricing policy, and a new list for medical devices
• Easy collateral-free credit of up to Rs 50 lakh for youth
• Interest-free short-term crop loans for farmers
• Model law for conclusive land titling
• Storage and marketing infra for farm and aqua food produce
• Accident insurance for traders registered under GST
• Merchant credit card for trader

Tax officials may ask for 6% reduction in collection target in Budget 2019

The new finance minister, Nirmala Sitharaman, has already expressed concern over revenue collection at interactions with officials

Expense authorities are probably going to request a decrease up to 6 percent in their gathering focus in the full Union Budget for 2019-20, contrasted with what was given then Budget. That 6 percent would convert into a decrease of Rs 1.5 trillion. The new fund serve, Nirmala Sitharaman, has effectively communicated worry over income gathering at associations with authorities.

The cuts are being looked for by both the immediate and aberrant assessment divisions. Direct duty authorities will request a cut in their accumulation focus by Rs 60,000-70,000 crore or 4.3-5.1 percent of the figure in the meantime Budget for 2019-20, for generally yearly development of 15 percent. Whenever affirmed, the immediate expense accumulation target would be amended at near Rs 13 trillion, from Rs 13.8 trillion then Budget.

With respect to roundabout assessments, the focal merchandise and ventures charge (CGST) development target may be cut by Rs 70,000-80,000 crore in the full Budget or 11.5-13 percent of the break Budget on the off chance that one expect a sensible development of 17-20 percent against the earlier year’s genuine gathering. The development will be 35 percent if the objective isn’t changed. The CGST target accumulation for 2018-19 was additionally brought down by Rs 1 trillion in the meantime Budget introduction this year (when that money related year was as yet not finished).

In any case, despite everything it missed the mark by over Rs 40,000 crore. The gross real aggregate (direct in addition to circuitous) charge gathering in 2018-19 missed the mark by Rs 1.7 trillion or 7.5 percent of the Revised Estimates for the year, given in the meantime Budget. That, combined with the slip in financial development, makes the objective for 2019-20 given in the meantime Budget exceedingly unreasonable, battle authorities. As far as net accumulations (after devolution to states) the deficiency was Rs 1.6 trillion or 11 percent of the modified evaluations for FY’19…

Click Here: Budget 2019 

Explainer: What is an interim budget? What FM Jaitley can and cannot do

This will be the last Budget of the current BJP-led NDA government before the 2019 General Elections

Interim Budget 2019: With just a few months left before the Narendra Modi government formally completes its tenure, Finance Minister Arun Jaitley will present NDA regime’s first interim budget on February 1, 2019.

As this will be the ruling BJP government’s last budget before the upcoming Lok Sabha elections, here’s an explanation of what an interim budget actually means.

What is an interim budget?

An interim budget is presented by a government which is going through a transition period or is in its last year in office ahead of the general elections. Traditionally, an incumbent government cannot present a full-fledged Union Budget in the election year. Instead, the Finance Minister presents an interim budget during the joint sitting of Rajya Sabha and Lok Sabha in the Parliament, the livemint reported.

With an interim budget, the incumbent government seeks a vote of approval from the Parliament to draw money from the Consolidated Fund of India to meet its budget expenses before the end of the financial year, i.e; March 31st, 2019. It is a traditional practice which takes place in the run-up to every general election, according to an India Today report.

The full-fledged Union Budget is presented by the newly-elected government after Lok Sabha polls. In recent times, interim budgets have been instrumental for the incumbent governments to list out their achievements to draw voters’ support.

What can be done?

An interim budget is similar to a Union Budget. In interim-budget, the ruling government tables estimate of its expenditure, revenue, fiscal deficit and financial performance and projections for the upcoming financial year. The ruling government at the end of its tenure, presents an interim budget for three to four months so as to keep the country running unhampered. The likely focus of the incumbent government in the interim budget can be to outline its economic vision for the next five years if it may remain in power, said the livemint article…

Contain By: Business Standard

Interim Budget 2019: Will Jaitley double I-T exemption limit to Rs 5 lakh?

The Union Budget will precede the unveiling of the Direct Tax Code Report on February 28

Interim Budget 2019: The 2019 interim budget on February 1 is likely to bring some good news for taxpayers. Ahead of 2019 Lok Sabha elections, Finance Minister Arun Jaitley may double the income tax (I-T) exemption threshold for the salaried taxpayers from the present Rs 250,000 to Rs 500,000, according to an IANS report.

With financial apathy on the rise after demonetisation drive, this pre-poll sop tactic by the PM Narendra Modi-led government is expected to benefit the middle-class segment of the society. FM Jaitley may also reinstate a tax-free status for medical expenses and transport allowance.

The demand to double the I-T exemption limit to Rs 500,000 was made by the Confederation of Indian Industry (CII) as one of its pre-Budget recommendations. The industry has also sought an increase in the deduction under Section 80C to Rs 250,000 to incentivise savings.

As the ruling BJP government is trying to outline its economic policy vision to remain in power, it would be interesting to see how these major changes could be made in the interim budget or vote-on-account budget, considering that not too many policy changes should be made….

Contain Source: Business Standard or BS

To bridge fiscal deficit, RBI likely to pay govt $5.8 bn interim dividend

The dividend could help Prime Minister Narendra Modi’s administration bridge a widening budget deficit following a drop in tax collections

Interim Budget 2019: The Reserve Bank of India (RBI), having changed management last month following a clash with the government, is likely to transfer an interim dividend of Rs 300-400 billion ($4.32 billion-$5.8 billion) to the government by March, according to three sources with direct knowledge of the matter.

The dividend could help Prime Minister Narendra Modi’s administration bridge a widening budget deficit following a drop in tax collections, and would come after the government pushed the RBI for the additional funds ahead of a national election due by May.

Read Source: Business Standard or BS

Former finance ministry official Shaktikanta Das was appointed as the new governor of the Reserve Bank of India (RBI), following resignation of Urjit Patel last month amid tensions over the dividend payout and other issues.The government and RBI have now appointed a panel to look into the issue around the sharing of the RBI’s reserves.

“We are absolutely sure that an interim dividend of more than 300 billion rupees would be paid before March end,” one of the sources told Reuters.The RBI did not respond to an email seeking comment, while the Finance Ministry declined to comment.

Keep Reading : Budget 2019