2019 Budget Impact Analysis: What experts across sectors say about Nirmala Sitharamans first Budget
LIVE: Union Budget 2019 Finance Minister Nirmala Sitharaman presents Union Budget 2019 in Lok Sabha. Get Aam Budget 2019 Speech Live Updates on Zeebiz.com
Welcome to Zee Business Budget 2019 Live Blog. Finance minister Nirmala Sitharaman presented her maiden Budget on Friday. She broke a British-era tradition and came to Parliament with the Budget 2019 documents wrapped in red cloth instead of a briefcase. Chief Economic Advisor Krishnamurthy Subramanian said this is a break from the past, this is 'bahi khata' ((ledger). Sitharaman made several big announcements for rural as well as urban India, India's space mission and the roadmap for making India a USD 5 trillion economy in five years. Read more Budget 2019 LIVE UPDATES below:
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Budget Impact 2019 Analysis: Deval Seth, Managing Director, Giesecke & Devrient MS India, says: "Budget 2019 under the regime of Modi 2.0 is a promising agenda bracing some of the key economic challenges while accelerating the growth path for the economy. Building India into a $3 trillion economy this year may seem ambitious but is still not a farfetched dream with the kind of results India has shown on the economic front in the recent years. Technology, digitisation, and modernization will have a great role in pulling up India to a $3 trillion economy this year. For instance, as more devices get connected, the market for eSIMs is set to explode in India in areas such as connected cars, manufacturing and consumer durables. The government’s move to lower the GST rate on electric vehicles(EV) from 12% to 5% and to make EVs affordable for consumers with additional income tax deduction will bring connectivity to the vehicles and G&D sees India strongly moving forward on the eSim journey which has been adopted globally.
"On the digitisation front, the National Common Mobility Card launched by PM Modi in March and the levying TDS of 2% on cash withdrawal exceeding 1 crore are critical initiatives which will help bring a behavioral shift among people and will go a long way in fostering the digitisation agenda.
"G&D strongly believes India is at an inflection point and when we are talking about growth, we are talking connectivity and technology, however the budget did not showcase enough of key sectors like telecom and technologies like 5G. While the government showed interest in emerging technologies like AI, robotics and big data, we need to understand that India will need 5G to harness the full potential of the latter. Having said that we are very confident that the government will speed up the ground work in embracing 5G."
Budget Impact Analysis: Tarun Chugh, Managing Director & CEO, Bajaj Allianz Life, says: "The Union Budget 2019 has come across as all-inclusive, seeking to boost infrastructure and foreign investment, and at the same time giving impetus to a digital economy. The government has announced no fee on merchants on card transaction in order to encourage all merchants to accept card payments. Further 2% TDS has been proposed on cash withdrawals of above 1 cr. This move will boost digital transactions in the country. For the insurance sector, the government proposed a100% FDI for insurance intermediaries, thereby making India a more attractive destination for FDI. This is a positive move for the industry, and may help better penetration of insurance products."
Budget Impact Analysis: Garima Kapoor, Economist, Elara Capital, says: “Modi’s first full budget after being voted back to power tries to strike a healthy balance between ‘welfare for the poor’ and ‘growth’ by throwing some novel ideas to attract capital while continuing to spend for the lower strata of the economy. If the measures announced in the Budget in form of divestment of government stake below 51%, foreign currency government borrowing, liberalization of FDI in select sectors among others are indeed executed, it has the potential to unleash significant capital for funding growth towards $ 5tn.
The Budget provides a fresh narrative by recognizing that the cost and availability of capital are key constraints for India’s growth.”
Budget Impact Analysis 2019: Umesh Revankar, MD and CEO - Shriram Transport Finance Ltd, says: "Modi Government`s 2.0 budget has given thrust in Public banking sector by infusing Rs.70,000 crore. The fundamentally sound NBFCs gets fresh line of liquidity as government provides credit guarantee to PSUs funding the NBFCs. This step will provide necessary comfort to the banks. Also, the exemption of Debt Redemption Reserve (DRR) of public issues is a positive step thereby increasing the liquidity in the system. Government’s continuous focus on infrastructure with the announcement of investing Rs.100 lakh crore over the next five years will boost the transport sector. According to us, the only dampener is the increase in diesel and petrol prices.”
Budget Analysis: Mandar Agashe,Founder and Vice chairman Sarvatra Technologies, shares:
"One of the main aspects of the NDA government has been the long-term focus on financial inclusion, and digital literacy is one of the main pillars of this goal. Only through the proliferation of digitisation across regions, gender and social strata will India will able to achieve wholesome progress. More than one crore people have been made digitally literate already through several government schemes and educational programs – which is a commendable feat, but the Digital India agenda can further be driven to instill confidence within customers in payment systems to leverage the full potential of digital investments and propagate a less-cash economy.
"Moreover, the concrete implementation of the National Common Mobility Card launched by the Prime Minister will strengthen digitization by enabling people to pay multiple transport charges across various mediums like bus travel, toll taxes, parking charges and retail shopping. This endorses the cash-in cash-out points proposed by the Nandan Nikelani committee and is a brilliant step in boosting the digital infrastructure in the country. Deploying this across the country will deeply amplify the digital economy agenda.
"Lastly, the initiative of empowering women through various schemes such as MUDRA, Stand UP India and the Self Help Group (SHG) movement is a great step by the government. Every verified women’s in self-help group having a Jan Dhan Bank Account will be allowed an overdraft of 5,000 rupees as an incentive to activate their debit card or account along with one woman in every SHG made eligible for a loan up to 1 lakh which will further inculcate a sense of financial independence through their various local modes of earning a living. This is an ingenious move to penetrate the rural markets and kick start the process of digitization, especially through the women who are very active participants in the economy in these areas creating a generational paradigm shift towards digital payments.
"This budget will elevate the role of women and their entrepreneur spirit further encouraging them to participate in India’s growth story."
Budget Analysis: Gaurav Chopra, Founder & CEO, IndiaLends says the maiden Budget presented by Finance Minister Nirmala Sitharaman holds great promise for the Indian start-up Inc.
Chopra is enthused by Government’s following decisions:
Measures to revive the NBFC sector:
Allowing Foreign Institutional and Portfolio Investors to invest in debt securities offered by non-banking financial companies (NBFC).
The decisions for provisioning a one-time six-month partial credit guarantee to PSBs for first loss up to 10% for the purchase of high-rated pooled assets of financially sound NBFCs amounting to a total of Rs 1 Lakh crore and enabling liquidity access to fundamentally sound NBFCs by ensuring funding from banks and mutual funds. These steps will help ease the liquidity in the market and will aid the smaller and mid-size NBFCs to get the much-needed credit support.Announcement to setup a dedicated TV programme on DD exclusively for the Start-ups:
This move is welcomed by the overall start-up Inc as this dedicated programme will provide a medium to the emerging start-ups to connect directly with venture capitalists and will help understand and work on solving the issues faced by the start-ups in the country. Government’s intent and dedication to promote start-ups is clear through this move.
Providing Public Sector Banks Rs. 70,000 crore to boost capital and improve credit:
Indian banking sector has been affected with bad loans that have risen off late. This move will give banks some breathing room and help improve confidence in the market. Infusing fresh capital in PSBs is imperative for the overall growth of the NBFC ecosystem, as NBFCs depend on banks for their capital needs. This move will help get lending back on track while stimulating growth across sectors.
Budget Analysis: Tarun Chugh, Managing Director & CEO, Bajaj Allianz Life, says, "The Union Budget 2019 has come across as all-inclusive, seeking to boost infrastructure and foreign investment, and at the same time giving impetus to a digital economy. The government has announced no fee on merchants on card transaction in order to encourage all merchants to accept card payments. Further 2% TDS has been proposed on cash withdrawals of above 1 cr. This move will boost digital transactions in the country. For the insurance sector, the government proposed a100% FDI for insurance intermediaries, thereby making India a more attractive destination for FDI. This is a positive move for the industry, and may help better penetration of insurance products."
Budget Analysis: Vikas Dawra, Joint MD & CEO, Yes Securities says, “The overwhelmingly strong political mandate also ensures policy continuity, removes ambiguity, and boosts sentiment in the economy. The FY20 Union Budget by the new government is a testament to all of these. The measures announced will play a positive role in attracting more global investment, and much needed foreign direct investment (FDI) boost for key sectors. This, in turn, will translate into all-round growth of the economy and create a encouraging ecosystem for investors.
"The FY20 Union Budget continues to signal government’s commitment towards the revised fiscal glide path by pegging the headline deficit target at 3.3% of GDP, lower than the FY19 deficit of 3.4%. In the backdrop of slowing domestic growth momentum, the FY20 Union Budget furthers the ethos of reviving the twin growth drivers of investment and private consumption with job creation and inclusion as the common underlying theme. Through these comprehensive steps, the Finance Minister aims to take the Indian economy to a level of USD 5 trillion in the next five years from an estimated size of USD 3 trillion in FY20.”
Budget Analysis: Anik Jain, Co-founder & CEO, Symbo Insurance, said: “The insurance industry had quite a few expectations from the 2019 budget. Although Finance Minister, Nirmal Sitharaman kept silent on GST in insurance and tax incentives for insurance purchase, she made an important announcement on FDI in the insurance industry. 100% FDI ownership for insurance intermediaries is going be a game-changer as high-quality global capital and expertise flows into the Indian insurance industry. Such inflow of capital will endorse the centre’s expectations of accelerated growth of the insurance industry.
"The impact of this FDI decision will see an increase in insurance protection only if it is complemented by tax breaks both at the individual level as well at the GST level. Hopefully, the government comes up with such support in the next few months.”
Budget Analysis: Gaurav Jalan Founder & CEO, mPokket, said, "The budget announcements made regarding start-ups and popularizing digital transactions are steps in the right direction. The potential resolution of the Angel Tax issue is a big relief as with requisite declarations both start-ups and individual angel investors will be spared from scrutiny on valuation and share premium. Moreover, by levying 2% TDS on cash withdrawals exceeding Rs. 1cr in a year from a bank account, the budget has taken concrete steps towards discouraging cash transactions and enabling widespread adoption of digital payments. We believe the government has taken meaningful steps to bolster growth of the startup ecosystem as well as promoting a cashless economy, and we are looking forward to the Indian economy growing rapidly in the next 5 years!"
Budget Analysis: Sameer Aggarwal, Founder & CEO, RevFin, said:
NBFC sector is pivotal in fulfilling the credit demand of the country. Credit provided by NBFCs drives growth in consumption and hence the GDP. Liquidity in the NBFC sector has been constrained for several months now. The Finance Minister has tried to resolve this through three key announcements.
The first is recapitalization of banks to the tune of Rs. 70,000 crores. As banks are a major source of funding for NBFCs, the capita infusion in banks will provide much-needed liquidity to NBFCs.
Second, the government would provide partial loan guarantees on 10% of losses up to Rs. 1lakh crores on high-rated pooled assets. This guarantee will provide banks the required safety net to infuse liquidity into the NBFC sector.
Third, RBI will be given further authority to regulate the NBFC sector. This is crucial to make regulation more consistent and current. This will also assign clear responsibility to RBI.
Budget Analysis: Dilip Asbe, MD & CEO, National Payments Corporation of India (NPCI), said, “The Budget confirms the government’s continuous focus on digital payments and will aid to create a robust payment infrastructure in the country. Adoption of RuPay National Common Mobility card (NCMC) shall trigger the consumer behaviour change for all the transit use cases. The budget facilitates the transformation of Indian economy from Cash driven to less-cash. We believe, with all the efforts from the government and RBI, India could emerge as world leader and innovation hub for digital payments in next 5 years.”
Budget Analysis: Zarin Daruwala, India CEO, Standard Chartered on Union Budget 2019, says -
“The Budget lays down a vision for the next five years while staying rightly focussed on completion of the already initiated policy changes. It also signals the government’s commitment towards fiscal consolidation. The steps to shore up the financial sector via PSU bank recapitalisation, partial credit support to financially sound NBFCs and change in regulator for HFCs are key positives, in my view. The measures to serve the interest of various sectors - MSMEs, affordable housing and underprivileged segments like retail traders - are much needed and welcome. The announcements like further liberalisation of the foreign investment regime, issuance of sovereign Dollar bonds, deepening of long-term bond markets, rationalisation of labour laws, focus on infrastructure investment are steps in the right direction. On balance, the Budget would help boost the medium-term growth potential of the economy.”
Budget Analysis: George Alexander Muthoot, MD, Muthoot Finance, says:
“Presenting the maiden budget of Modi 2.0 government, Ms. Nirmala Sethuraman has highlighted the government`s thrust to infuse liquidity in the NBFC sector. In line with our expectations, the Debt Redemption Reserve (DRR) for public issues has been exempted. Also, the credit guarantee provided by the government will further open up the liquidity line for fundamentally sound NBFCs.
We welcome the government`s focus on Affordable Housing. The interest deduction on home loans raised by Rs 1.5 lakh to Rs 3.5 lakh and also the housing cost being fixed at Rs. 45 Lakh and below. With RBI now being the regulatory authority for Housing Finance as well, it will lead to easy regulation as all financing sectors would fall under one authority.
In order to accelerate the goal of ‘Housing for All’, the tax holiday provided to developers will boost affordable housing sector.”
Budget 2019 Reactions: 'Body blow to HNIs', says Amar Ambani of Yes Securities. Following are his analysis:
Increase in Public shareholding proposed from 25% to 35% potential negative for MNC and companies with high promoters holding. In many mid and small caps, it is better to have more promoter skin in the game, since India's capital market in developing phase.
Many MNCs listed on Indian bourses may consider delisting, if increase public shareholding implemented.
An overhaul of education material is much needed. It’s also a positive measure for companies in publishing space.
If increased public shareholding norm implemented, supply of paper in the market will increase. This will mean that money will be sucked out of secondary market and valuations will remain under check.
As expected, capital infusion in public sector banks has come through. Infusion of Rs. 70000 crore is a positive for PSU Banks.
High disinvestment target of Rs. 1.05 lakh crore and increase in public shareholding to squeeze liquidity from secondary market.
Excellent move to levy 2% tax on cash withdrawal of over one crore rupees in a year. Will help in a more transparent digital economy.
Cost of ownership of vehicles further go up with implementation of special duty on fuel. Negative for auto majors.
Body blow to HNIs by levying high surcharge on the rich. Effective tax rate on biggest bracket goes to 42%!
The big surcharge tax on the high income group and possible liquidity squeezing of secondary market liquidity due to disinvestment and increased public shareholding is causing the stock market to fall today.
Budget 2019 Reactions: Sampath Reddy, CIO, Bajaj Allianz Life, says -
Overall, the budget has tried to reach out to various sections of the society and has been a balanced and forward-looking one—promoting ease of living. It has focused on segments like digital economy and infrastructure. Also there has been a focus on promoting Electric Vehicles with large benefits.
For infrastructure, the government intends to provide Rs. 100 lakh crore over the next 5 years, which may help to revive the investment cycle. For the financial sector, PSU bank recap of Rs. 70,000 crore has been provided (which is above expectations), and also announced various measures for the NBFC sector, which may reduce the stress in the sector in the near term. For the digital economy, the government wants to promote digital transactions and cash-less economy, by imposing 2% TDS on cash withdrawals above Rs 1 crore per year from a bank account, no transaction costs or merchant discount rate on various digital modes of payment; and finally also using the digital medium to increase tax compliance.
From a markets perspective, the government’s proposal to increase the minimum free float (public shareholding) limit from 25% to 35%, can lead to an increase in supply of equity paper in the markets. On the positive side, the government has maintained fiscal discipline (announced fiscal deficit target of 3.3% for FY20 vs 3.4% earlier, and plans to reduce it to 3.0% by FY22), announced intent for foreign sovereign government borrowings, which has benefited the bond markets.
On the taxation front, the government has extended lower corporate tax rate of 25% for companies having annual turnover up to Rs. 400 crore (compared to Rs. 250 crore before), and this was along expected lines. However, the increase in effective tax rate on high net worth individuals (those earnings more than Rs. 2 crore annually), and especially for the super-rich (those earning Rs. 5 crore and above annually)—where effective tax rate has been increased by 7%, has been a surprise move.
Budget 2019 Petrol, Diesel prices: Confusion cleared. Petrol, Diesel prices are set to rise by Rs 2 each. In her budget speech today, FM Sitharaman proposed to increase the Special Additional Excise duty and Road and Infrastructure Cess each by one rupee a litre on petrol and diesel. This means you will pay an additional Rs 1 each as Special Additional Excise duty and Infrastructure Cess respectively.
Budget reaction 2019: Now, TDS levy of 2% on cash withdrawal of more than INR 1 Crore from a bank account per financial year. Tarun Garg, Manager, DHS, "In order to discourage the cash transactions and for moving towards a less cash economy, the Government has proposed to insert a new Section 194N which provides for a levy of TDS at the rate of two per cent on cash payments in excess of one crore rupees in total made during the year, by a banking company or cooperative bank or post office, to any person from an account maintained by the recipient."
Budget Impact on Infrastructure: “The budget testifies Government's commitment to boost spending on infrastructure and connectivity in the country by spending Rs. 100 lakh crore in infrastructure over the next five years. Integrating rural connectivity into the very fabric of this initiative is a welcome measure. Announcements like Rs 80,000 cr provision for 1.25 lakh km new rural roads under PMGSY in next 5 years, INR 50 Lakh crore for Railways till 2030, reforming infrastructure debt financing market, and boosting private sector participation have the potential to accelerate India's growth trajectory. Success of these initiatives will largely depend on creating sector-wise programs to leverage on capital from private sector/international funds“ Amit Gupta, Director, Deloitte Touche Tohmatsu India LLP.
Budget Impact on Affordable Housing: "In order to provide an impetus to the ‘Housing for all’ objective of the Government and to enable the home buyer to have low-cost funds at his disposal, additional deduction of INR 1.5 lakh will be available for interest on loan taken until 31 March 2020. The stamp duty value of house property should not exceed INR 45 lakhs and individual must not own any residential house property on the date of sanction of loan," says Tarun Garg, Manager, DHS
Budget 2019 Impact on Education - Kanak Gupta, Director, Seth M.R. Jaipuria Schools, says, "Budget 2019 is a positive step in the right direction to focus on the education sector. As India marches towards being a $3 Trillion economy, as the Hon’ble FM said in the Parliament, important to bring the education ecosystem up to and beyond global levels. The status of education is often a healthy predictor of the country’s overall development and well-being. I’m excited about the proposed setup of the National Research Foundation; this could be the game-changer. Research is sacrosanct. I’m also hopeful that the National Education Policy will focus on upskilling of both teachers and learners to meet global levels, and ensuring we don’t send our brains abroad, nor do we spend millions of dollars in tuition and living costs. Study in India, Stock exchange for Social Enterprises will be a boost for the Tier 2/Tier 3 educational institutes as well. A TV channel dedicated to start-ups will be a win-win with Institutes and students on higher-ed as well. Overall, the Hon’ble Minister’s focus on improving education with the target towards the future, sustainable growth is commendable."
Budget 2019: PM Narendra Modi reacts on Budget 2019. This budget will make the country capable, empower the poor and provide a better tomorrow to the poor. PM further says that the middle class will progress with this budget development work will expedite even more. The tax structure will simply and infrastructure will modernize. PM Modi says the budget for a New India has a roadmap to transform the agriculture sector of the country, this budget is one of hope.
Budget 2019 Highlights:
- Union FM Nirmala Sitharaman proposes Aadhaar card for NRIs with Indian passports to be issued after their arrival in India, without waiting for the mandatory 180 days.
- Sitharaman says government has alreadyGST Council to reduce tax rate from 12% to 5%; additional income tax deduction of 1.5 lakh rupees on interest paid on loans taken to purhase electric vehicles to be allowed. "We envision India to become the global manufacturing hub of electric vehicles."
- All companies having annual turnover of 400 crores, will now be under the bracket of 25%. This will cover 99.3% of all the companies.
- Scheme to be launched to invite global companies to transparent competitive bidding, to set up mega manufacturing plants in sunrise and advanced tech areas such as solar electric charging infra and computer servers.
- Strategic disinvestment of select Central Public Sector Enterprises will continue to be a priority; strategic disinvestment of Airi India will re-initiate; 1 lakh 5000 rupees is disinvestment target for 2019-20.
Budget announcement: Nirmala Sitharaman says: "A new series of coins of denominations 1 rupee 2 rupee 5 rupee 10 rupee & 20 rupee will be made available for public shortly."
Budget for taxpayers:
For those having taxable income from Rs 2-5 crore and above Rs 5 crore: Budget enhances surcharge.
On Corporate Tax: FM says, All companies having annual turnover of 400 crores, will now be under the bracket of 25%. This will cover 99.3% of all the companies."
Big Budge announcements for taxpayers: Sitharaman says for the ease and convenience of taxpayers, PAN and Aadhaar will now be interchangeable for filing ITR.
Budget Highlights 2019:
- Government considering to go below 51% to an appropriate level of ownership stake in non-financial public sector undertakings on case by case basis.
- For purchase of high-rated pooled assets of financially sound Non Banking Finance Companies amounting to 1 lakh crore rupees during 2019-20, one-time six-month partial credit guarantee to be given to PSBs.
- Net owned fund requirements to be reduced from 5000 crore to 1000 crore rupees, to facilitate onshoring of international insurance transactions and enable opening of branches by foreign reinsurers.
- Rs 100 lakh crore to be invested in infrastructure sector over next five years, Expert Committee to be set up to recommend structure and flow of funds through development finance institutions.
- Regulation authority over housing finance sector to be returned from National Housing Bank to RBI.
- Proposals for strengthening regulatory authority of RBI over NBFCs have been made.
Big Budget announcements:
- One woman in every SHG shall be made eligible for a loan of 1 lakh rupees under MUDRA scheme.
- Indian Developmental Assistance Scheme to be revamped during current financial year.
- Every verified woman SHG (Self Help Group) member having a Jan Dhan account, an overdraft of 5000 rupees will be allowed.
- Four new embassies to be opened in 2019-20, to improve footprint of India's overseas presence and to provide better public services to local Indian communities.
Budget announcement: ETF investment on the line of ELSS soon, says Sitharaman.
Good news for Pensioners: Nirmala Sitharaman's Budget speech says steps to be taken to separate NPS Trust from PFRDA. This will help save pensioners' interest.
Aadhaar For NRIs: Nirmala Sitharaman announces Aadhaar for NRIs with Indian Passport. They won't have to wait for mandatory 180 days anymore!
Big Budget announcements for women empowerment:
- Socio-economic Committee to form to evaluate and suggest action for moving forward to improve the participation of women.
- To encourage women participation, women SHG scheme to be expanded to all districts.
- Every woman SHG member with Jan Dhan account to get Rs 5000 overdraft facility.
- One woman of every SHG to get loan up to Rs 1 lakh.
LIVE Budget 2019 announcements: Massive programme of railway station modernisation to be launched this year, says FM.
LIVE Budget 2019 announcements:
- 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 under Universal Service Obligation Fund.
- Electronic Fundraising Platform, a SOCIAL STOCK EXCHANGE to be set up to list social enterprises and voluntary organizations working for social welfare objectives.
- Swachh Bharat Mission to undertake solid waste management in every village. "Swachh Bharat to be expanded to undertake sustainable solid waste management in every village, harnessing latest technology," says Sitharaman.
- Jal Shakti Mantralaya will work with states to ensure "Har Ghar Jal" for all rural houses by 2024, under "Jal Jeevan Mission".
LIVE Budget 2019 announcements:
- 80 Livelihood business incubators and 20 technology business incubators to be set up in 2019-20 under ASPIRE to develop 75,000 skilled entrepreneurs in agro-rural industries.
- To harness India's space ability commercially, a public sector enterprise, New Space India Limited (NSIL) has been incorporated to tap the benefits of ISRO.
- On FDI in single brand retail: Local sourcing norms for FDI to be eased for single-brand retailing sector.
- 100 new clusters to be set up in 2019-20 under SFURTI, which will enable 50,000 artisans to join the economic value chain.
Budget 2019 speech: Sithraman stresses on Need to replicate #ZeroBudgetFarming, to go back to basics, which will help in doubling farmers' income.
Budget announcement: Nirmala Sitharaman calls for return to Zero Budget Farming, harnessing space tech commercially
Union Budget 2019 LIVE: Amit Gupta, Director, Deloitte Touche Tohmatsu India LLP tells Zee Business Online - “The Budget speech has emphasized on providing a massive push to all kinds of physical connectivity by taking forward programs across various key sub-sectors such as roads, rail, inland waterways, air connectivity. While details would need to be studied, a number of measures for enhancing the flow of money for infrastructure sector such as setting up of Credit Guarantee Enhancement Corporation to deepen markets for long-term bonds with specific focus on infra sector, leveraging Public Private Partnerships to unleash progress on infrastructure creation in Railways, permitting FDI in securities issued by InVits, enhancing FDI in aviation are all welcome measures, which can propel infrastructure development in the country.”
Budget announcement: Big news for NRIs. Sitharaman says, "To provide NRIs seamless to Indian equities, NRI portfolio investment route to be merged with foreign portfolio investment route."
Budget speech 2019: Sitharaman says Government keeps Gaon, Garib and Kisan at the centre of everything we do, of every programme.
To harness India's space ability commercially, a public sector enterprise, New Space India Limited (NSIL) has been incorporated to tap the benefits of ISRO. India has emerged as a major space power. Time has come to harness our ability commercially.
Budget Speech 2019: Local sourcing norms for FDI to be eased for single-brand retailing sector.
Further opening up of FDI in aviation, media, animation AVGC and insurance to be examined, in consultation with stakeholders; 100% FDI to be permitted for insurance intermediaries.
Interoperability of RBI depositories and SEBI depositories necessary for seamlesss transfer of treasury bills; government will take necessary measures in this regard in consultation with RBI and SEBI.
Railway Budget 2019: 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 FM.
Budget Announcement: Annual Global Investors' Meet to be organized in India, using NIIF as the anchor to get key sets of global players to come and invest in India, says Nirmala Sitharaman.
Sitharaman says the government has given a massive push to all forms of physical connectivity via :-
1. PMGSY
2.Industrial corridors
3. Dedicated freight corridors
4. Bharatmala
5. Sagarmala
6. Jal Marg vikas
7. UDAN schemesSocial Stock Exchange -,Big Budget Announcement: Electronic Fundraising Platform, a social stock exchange, to be set up to list social enterprises and voluntary organizations working for social welfare objectives, says Nirmala Sitharaman.
New India Budget Announcement: 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, says FM.
Big Budget Announcement: Pension benefit to be extended to around 3 crore retail traders and shopkeepers with an annual turnover less than 1.5 crores under Pradhan Mantri Karam Yogi Man Dhan Scheme
Budget speech 2019: By 2024, every single rural family, except those who are unwilling to take the connection, will have the electricity connection and clean cooking facility.
LIVE Budget Speech 2019: Modi government's future plan - Existing Know Your Customer norms for Foreign Portfolio Investors to be rationalized and simplified, to make it more investor-friendly.
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.
Budget 2019: Several reforms would be undertaken to promote rental housing, current rental laws are archaic as they do not address lessor-lessee relationships fairly
Budget Speech: Future plan - 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 FM.
Budget speech: India's first indigenous payment ecosystem for transport based on National Common Mobility Card was launched PM in March 2019, enabling people to pay multiple types of transport charges, says FM
Mission USD 5 trillion: 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, says finance minister.
Sitharaman says it took us over 55 years to reach $1 trillion dollar economy. But when the hearts are filled with hope, trust and aspiration, we in just 5 years, added $1 trillion.
Sitharaman says, "We have shown by our deeds that the principles 'perform, reform, transform' can indeed succeed. Have set the ball rolling for a 'New India"
Budget speech: Finance Minister says 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 performing Government...The first term of PM Narendra Modi led NDA government stood out as a performing government. Between 2014-2019 he provided a rejuvenated centre-state dynamics, cooperative federalism, GST council and strident commitment to fiscal discipline.
Nirmala Sitharaman starts budget speech.
Budget document reaches Parliament.
Railway Budget 2019: Finance Minister Nirmala Sitharaman is all set to present the first Railway Budget 2019 of the second term of Modi government as part of Union Budget 2019 shortly. Infrastructure has been one of Modi government's top priority ever since it came to power. The government is also set to introduce India's first bullet train in the coming years and the Railway Budget 2019 will give a clear picture on the things to expect in future. READ MORE
Why no budget brief case: Chief Economic Advisor Krishnamurthy Subramanian says it is in Indian tradition. It symbolizes our departure from slavery of Western thought. It is not a budget but a 'bahi khata'(ledger).
In Pics: Nirmala Sitharaman meets President Ram Nath Kovind.
Pre-Budget expectations for Infrastructure sector: Amit Gupta, Director, Deloitte Touche Tohmatsu India LLP, says:
Logistics
1. Setting up and empowering of an independent department/ nodal agency for Logistics and Trade/ Freight Facilitation and providing approvals for all kind of terminal infrastructure, including MMLPs, ICDs, CFSs, PFTs and logistics parks.
2. Incentives to boost private sector participation in logistics infrastructure creation such as common user terminals
Overall Infrastructure Sector
· Government should focus on not only allocation of funds, but also on setting up a road map for clearly outlining the private and government sectors’ role in infrastructure creation and operations over the next few years
Pre-Budget expectations for Infrastructure sector: Amit Gupta, Director, Deloitte Touche Tohmatsu India LLP, says:
Railways
1. Introduction of semi high-speed trains (such as Train 18 and Talgo) on more routes as well as fast-tracking station redevelopment programme for key metro cities would go a long way in meeting passenger’s needs as well as aspirations.
2. Improving network capacity through signalling projects, upgrading loop line infrastructure to enable running of longer trains (2x-4x of current size) and completing ongoing line expansion projects on time to improve average speed of freight trains and increase rail share for freight movement
Aviation
1. Bringing aviation turbine fuel (ATF) and other related fuels (used for commercial scheduled/non-scheduled operations and training purposes) under GST – a long-standing demand of airlines industry
2. Incentives/budgetary support in terms of promoting use of smaller aircrafts under the scheme, providing additional funds for VGF support under the scheme, and developing airport and seaport infrastructure in Tier-II and Tier-III cities of the country, to promote UDAN Scheme
Bonanza for PM Kisan scheme beneficiaries expected? Watch this
Budget Expectations 2019-2020 of Prabhudas Lilladher:
As MODI 2.0 sets out to present its first budget, the task seems to be cut out due to 1) deep agrarian distress 2) slowdown in Automobiles and consumer demand 3) NBFC crisis and rising pressures in real estate and housing 4) need to provide tax relief to middle class and 4) required push for revival of capex cycle in the economy. We believe that shortfall in direct tax and GST collections post an incremental challenge to balance the fiscal math.
We expect slippage in fiscal deficit target from earlier estimates of 3.4% (Interim budget) given social agenda and need to pump prime the economy given slowdown in demand
Disinvestment target for FY19 of Rs.800bn was achieved with considerable support from sales within PSU's. Interim budget had proposed a disinvestment target of Rs.900bn which we believe might be increased to Rs.1000bn
With sustained focus on social-economic factor, expenditure on health, education likely to increase with extension of MGNREGA to remaining rural areas and its introduction in urban areas
No major initiative is likely on labor reforms or sale of PSU's
Increased outlay for rural India - road/infrastructure and employment generation
We expect sustained thrust on roads, ports, sanitation, irrigation to revive the capex cycle
We expect thrust on improving drinking water availability and river linking
We expect imposition of tax on buyback of shares and tax relief to middle class under basic tax exemption or higher limit in 80CC
Tax free bonds may be reintroduced to fund long term infrastructure projects
Scrappage policy for commercial vehicles and incentives for creating EV charging infrastructure
PSB recapitalization, MSME funding and NBFC liquidity improvement measures
Increase in basic custom duty on steel and Aluminum
Key Budget Picks: L&T, Ashok Leyland, M&M, HDFC Life, Titan Company, Crompton Consumer
Budget Expectations: Suramya Nevatia, CEO, Hind Rectifiers Ltd.
“Rail connectivity is an important element to ensure seamless transport to boost country’s trade; development of smart, efficient and inter-linked transport network will play a vital role in developing the sector also it will help in making government initiatives like “Make in India” a success. Boosting it through supportive infrastructure and adequate connectivity to handle the increasing traffic volumes will help it grow and thrive. In the Interim Budget, railways got the highest-ever allocation for the year 2019-20. Despite having the third largest network in the world, Indian Railway is yet to expand to welcome more passengers aboard. Several areas of the country still don't have easy access to trains and in some places where they do, the existing infrastructure is not large enough to accommodate them. We look forward to strategic announcements on increased investment in infrastructure that will help boost Indian Railways as a whole.”
Budget surprise: FM Nirmala Sitharaman leaves for Rashtrapati Bhavan. No Budget briefcase this time; Budget documents wrapped in red cloth.
Budget impact! Sensex crosses 40,000! Two hours still left for Budget presentations.
Budget Expectations of B Gopkumar, ED & CEO, Reliance Securities
Easing liquidity crisis & creating jobs should be FMs top priority: It will be Modi 2.0 government’s first budget, but all eyes will be on Nirmala Sitharaman’s first budget speech as the finance minister. While the Dalal street welcomed the Modi government, it isn’t a smooth ride for the government. Multiple micro-macro factors have come into play in FY20 including geopolitical tensions, global trade wars and volatile crude prices. All of which has a huge impact on global as well as domestic growth. Everyone expects the FM to distribute sweet savoury. However, the key challenges ahead of FM that will need immediate action would be to arrest the dwindling GDP growth, addressing the agrarian distress and fixing the financial sector woes. A clear five-year road map on tax reforms, especially corporate tax rates, and measures to bring the stuck capital back into the production process by fast tacking the resolution of non-performing assets of the banking sector will go a long way in reviving the incremental private capex and growth of the economy.
However, elevated banking sector NPAs and now the defaults on debt repayment in the non-banking finance sector (NBFC) has created a crisis in the financial sector. Infusing more capital into the public sector banks, removing the roadblocks for the speedy resolution of IBC cases and incentivising banks to buy good quality NBFC assets may ease the financial sector woes. Similarly focusing on shadow banking and housing finance companies by creating a liquidity pool would act as a catalyst for growth. Any announcement to this effect would be a welcome step. While everyone expects the government to be spending to revive growth, FM will have to exercise fiscal prudence.
Meanwhile withdrawal of long-term capital gains tax would be cheers by the market. This would lead to higher equity participation by companies and help in channelizing household savings into the economy.
Sectorwise expectation:
Automobiles
Scrap Scheme: Incentivise replacement of old vehicles (>15 Years).
Concessions for hybrid/electric vehicles.
Increase in agricultural support/credit to spur rural demand.BFSI
Measures to improve deposits in the banking system by way of taxation
Digitization initiatives and incentives to push digitization across a broader platform.
Higher refinance support from NHB to HFCs/banksCement
Impetus to improve rural economy by way of higher MSPs, income transfer or farm loan waivers may drive cement consumption further
Further increase in infrastructure investment allocation to aid sector
Emphasis on rural infrastructure including rural roadsCapital Goods
Increase Capex of Railways and defence, higher allocation to smart cities and rural electrification schemes
Finance Minister Nirmala Sitharaman arrives at Ministry of Finance office at North Block.
These shares may have a strong showing on Budget Day 2019.
Read Zee Business Managing Editor Anil Singhvi's market strategy for Budget Day 2019
The Indian equities are likely to be cautious today, July 5, 2019, the day when the Union Budget will be presented by the Finance Minister Nirmala Sitharaman. But, the real movement of the market, either positive or negative, can be seen after the budget presentation comes to an end. READ FULL STRATEGY
Stocks in Focus on July 5: Ahead of the presentation of the Union Budget 2019, the domestic markets closed on a positive note on Thursday, July 4, 2019. But, there were certain stocks that made news after the markets were closed for trading and can impact the market after they reopen for trading purposes on Friday, July 5, 2019. Check full list of stocks in focus today here
Budget may allocate 2-3 times more funds for healthcare sector.
Top 5 shares to buy before Nirmala Sitharaman tables Modi 2.0's 1st budget: As per the Karvy Stock Broking stock market, investors can think of the following stocks — Larsen & Toubro, Mahindra and Mahindra, KRBL, KEC International and MOIL. READ MORE
Income Tax changes in Union Budget LIVE: Will Modi government change slabs, increase 80C limit? Finance Minister Nirmala Sitharaman is all set to present first Budget of the NDA 2.0 government, on July 5, 2019. The taxpayers would be glued to their seats to know about the changes government will bring in the Income Tax regime. The individual taxpayers are expecting to have tax relief to have more disposable or income to invest. Zee Business Online had also learnt that the government might increase the Section 80C limit from Rs 1.5 lakh to Rs 2 lakh. READ MORE
Budget Stock that you can buy
As per Vivek Ranjan Misra, Head of Fundamental Research at Karvy Stock Broking Larsen & Toubro is the first budget stock that he recommends for the stock market investors. The reason for his recommendations is as follows:
Larsen & Toubro: We believe Infrastructure will be a major push for the government, which should benefit capital goods stocks, this is a bellwether stock for the sector. The order book in Mar 2019 stood at Rs 2934 Bn spread across sectors. While the domestic private sector witnessed a pickup, public sector orders constituted mainly state government orders. Going forward we expect new orders to pick up with a broad-based recovery in the economy. It has gained a majority stake in Mindtree which should help add significant scale to its hi-tech, CPG, retail and travel verticals. Also, we believe that its excellent execution capabilities and its balance sheet strength place it in a strong position for a capex cycle rebound.
Stock Market Live on Budget 2019: Today is Budget 2019 presentation day and the stock markets are keenly poised for an upward move on the cues thrown up by the Finance Minister Nirmala Sitharaman - she will present Modi 2.0 Government's maiden budget. Market experts are bullish that the market would break the psychological levels which it has been testing for the last two trading sessions. As per their opinion, the Nifty index may soar to 12,100 to 12,300 levels before Nirmala Sitharaman begins her budget speech, while Sensex may break the 40,000 levels. READ Stock Market Updates
Budget expectations: Privatisation-bound national carrier Air India might not get financial support from the full Budget 2019-20. According to highly-placed sources, the airline, which got a meagre Rs 100,000 as extra budgetary support in the interim budget, might not even land a spot in the expenditure document this time. READ MORE
Budget expectations: Sources said that giving incentives to agriculture exports, launching of national vegetable oil mission, improving flagship crop insurance scheme, massive promotion of Israeli drip irrigation technique and directing major chunk of MNREGA spending on water-related projects are some of the other proposals the government is likely to announce in the Budget 2019.
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