Finance Minister Nirmala Sitharaman unveiled the Union Budget for the second term of Narendra Modi government. The budget aimed at promoting infrastructure and foreign investment. It has been presented with a 10-year dream in mind. It has a plan of action to change the agriculture sector of the country. Completely mechanized GST Refund module shall be executed; numerous tax ledgers to be substituted by one; invoice details to be seized in a central arrangement. Import of defence equipment not manufactured in India is being exempted from basic customs duty. The government of India increased customs duty on gold. It suggests increasing special extra excise duty on road and infrastructure. The income tax slab rates remained unchanged but announced a heap of new income tax proposals.
To discourage the practice of making business payments in cash, the government proposes to levy TDS of 2 percent on cash withdrawal surpassing 1 crore in a year from a bank account.-Public sector banks to be provided 70,000 crore rupees to promote capital and enhance credit. The Finance Minister stated that mega programmes and services started and delivered during the past 5 years will now be accelerated and genuine efforts will be made to further facilitate procedures, improve performance, reduce red-tape and make the best use of technology to achieve the desired objects. The Finance Minister explained that the Indian economy will rise to become a 3 trillion dollar economy in the present year and will reach the dream of Prime Minister to become 5 trillion dollar economy in the next five years. Phase-II of FAME Scheme 2019, following approval of the Cabinet with an expenditure of Rs.10, 000 crore for a period of 3 years, has started from 1st April, 2019. The primary aim of the Scheme is to boost quicker acceptation of Electric vehicles by way of offering honest incentive on purchase of Electric vehicles and also by establishing the necessary charging infrastructure for electric vehicles. Railway Infrastructure would need an investment of Rs. 50 lakh crores between 2018-2030. In this context it is accordingly proposed to use Public-Private Partnership to release quicker development and completion of tracks, rolling stock manufacturer and delivery of passenger freight services. The Finance Minister claimed that the Government of India has decided to extend the pension gain to about three crore retail traders and small shopkeepers whose annual turnover is less than Rs.1.5 crore under a new Scheme. Acknowledging that investment- motivated growth requires access to low cost capital, India requires investments about Rs. 20 lakh crores every year. A Credit Guarantee Enhancement Corporation, for which regulations have been briefed by the RBI, will be set up in 2019-20.
An action plan to intensify the market for long term bonds comprised for accelerating markets for corporate bond repos, credit default swaps etc., with special concentration on infrastructure sector, will be in place. Government will scrutinize e suggestions of further opening up of FDI in aviation, media and insurance sectors in consultation with all stakeholders .100% Foreign Direct Investment (FDI) will be permitted for insurance intermediaries. On an identical issue, the Finance Minister informed that even though India is the world’s top remittance recipient, NRI investment in Indian capital markets is relatively less. With a view to provide NRIs with approach to Indian equities, she proposed to combine the NRI-Portfolio Investment Scheme Route with the Foreign Portfolio Investment Route. All villages and approximately 100 percent households across the country have been provided with electricity. She informed that by 2022, the 75th year of India’s independence, every single rural family, except those who are unwilling to take the connection will have electricity and a pure cooking facility.
A sum of 1.54 crore rural homes have been completed in the last five years. In the second stage of PMAY-G, during 2019-20 to 2021-22, 1.95 crore houses are suggested to be provided to the lawful benefiting ones. These houses are also being submitted with amenities like toilets, electricity and LPG connections. The average number of days for finishing of houses has lessened from 314 days in 2015-16 to 114 days in 2017-18.The Department of Fisheries will build a sound fisheries management structure. They will solve crucial cracks in advancing the value chain, comprising infrastructure, upgrading, production, quality, after harvest management, and quality assurance. Finance Minister claimed that safe guarding India’s water security and providing approach to safe and sufficient drinking water to all Indians is a precedence of the government. The Finance Minister stated that the government will bring in a New National Education Policy to transform India’s higher education system to one of the world best education systems. On tourism front, the Finance Minister clearly affirmed that the government is developing 17 symbolic Tourism Sites into world class tourist places and to serve as an exemplar for other tourism sites. India will bring out a policy structure for making India a global centre of aircraft financing and leasing activities. The concept is to boost new industries to come up, handling India’s existing abilities that will augment more quality jobs. India has appeared as a major space power. To exploit India’s space ability commercially, a public sector enterprise, New Space India Limited (NSIL) has been included to harness the gains of ISRO, Indian economy will grow to become a $3 trillion economy in the present year itself. It is now the sixth largest in the world. 5 years past it was at the 11th position. Average amount spent on food security per year twiced during 2014-19 compared to previous five years.
Sitharaman Budget strikes rich most. The Budget hiked the surcharge on individuals having taxable income from 2 crore to 5 crore and 5 crore and above. Sitharaman also hit another stroke, accelerating duties on petrol and diesel in a move that is obliged to be seen as biting consumers. She moreover declared a raise in the customs duty on gold and other precious metals from 10 percent to 12.5 percent.