Budget 2019 Live: Petrol, diesel, gold get costlier; EV components to become cheaper

Ranjit Barthakur, Chairman, FICCI North East Advisory Council said, “The budget has taken forward the plan that was set in motion in the interim budget.”

The budget maintained its focus on infrastructure development.

The vision ‘One Nation One Grid’ for electricity and a similar plan for gas grids, water grids, i-ways and regional airports is indeed ambitious and would be transformational in its impact.

Barthakur also welcomed the decision to reduce corporate tax to 25% for companies with turnover up to Rs 400 crore. Read more here.

7:00 PM | Budget proposals for infrastructure development, MSMEs to spur growth: AP chamber

The Budget presented by Finance Minister Nirmala Sitaraman will stimulate economic growth as it lays stress on the development of infrastructure and confers several benefits on MSMEs, according to G. Sambasiva Rao, the president of the AP Chambers of Commerce and Industry Federation

Welcoming the Budget, he said the proposal to improve railway infrastructure through the public-private partnership model was well advised, as Rs 50 lakh crore of investment would be required over the years for the purpose. Bharatmala, with an investment of Rs 80,250 crore to build 1,25,000 km of village roads was also a good initiative. The development and maintenance of transport infrastructure to reduce congestion and improve access to rural markets would have a positive ripple effect on the agricultural sector.

The credit boost to MSMEs through a Rs 350-crore interest subvention and 2 per cent interest subvention for GST-registered MSME on fresh or incremental loans would help businesses and boost the waning economy, he added. Also, introduction of Rs 1 crore loan for MSMEs would be a great relief to small businesses, making easier accessibility and processing of loans through a single portal.

5.31 PM | Disinvestment: The lure of the tax break

The Centre has increased its target of raising funds by disinvestment to Rs 1,05,000 crore in the Budget of 2019-20, up from Rs 90,000 crore in the interim budget in February.

In her Budget speech, Nirmala Sitharaman has proposed a further consolidation of the Centre’s holdings in PSUs, both in the financial and non-financial sectors. She has also proposed bringing down the government’s stake in CPSEs below 51 per cent on a case-by-case basis.

5.21 PM | For every rupee in govt kitty, 68 paise come from taxes

For every rupee in the government coffer, 68 paise will come from direct and indirect taxes while states’ share of taxes and duties is the single-largest expense head accounting for 23 per cent of total spending, budget documents showed.

According to the Budget for 2019-20 presented in Parliament by Finance Minister Nirmala Sitharaman, Goods and Services Tax collections will contribute 19 paise in every rupee revenue. Corporation tax is the single largest source of income, contributing 21 paise to each rupee earned.

5.11 PM | Focus on education policy

The Centre allocated Rs 400 crore for setting up world-class education institutes and announced ‘Study in India’ programme that will aim at attracting foreign students to the country. Union Finance Minister Nirmala Sitharaman said the government will bring in a new national education policy to transform India’s higher education system to one of the best in the world.

The policy proposes major changes in both school and higher education, improve governance and gives more focus on research and innovation, for which a National Research Foundation (NRF) would be set up to coordinate and promote research in the country.

4.53 PM | Amnesty scheme for excise, service tax cases to unlock Rs 3.75 lakh crore

The government on Friday proposed a dispute resolution-cum-amnesty scheme —Sabka Vishwas Legacy Dispute Resolution Scheme, 2019 — aimed at unlocking over Rs 3.75 lakh crore involved in pending cases related to service tax and excise duty.

The relief proposed under the scheme varies from 40 per cent to 70 per cent of the tax dues for cases other than voluntary disclosure cases, depending on the amount of tax dues involved. According to a Budget document, the scheme also provides for relief from payment of interest and penalty.

4.41 PM | Why is the market miffed?

Though proposals relating to the capital markets took up a chunk of airtime in the Finance Minister’s budget speech, the stock markets weren’t particularly thrilled at the Union Budget for 2019-20. Remaining in the red for most part of the speech, the Sensex had lost over 300 points by the time the FM wound up her speech.

There were three sets of budget proposals that possibly drew this adverse reaction from the stock markets.

4.31 PM | Why we need to take fiscal deficit of 3.3% with a pinch of salt

The bond markets have rejoiced. The yield on the 10-year G-Sec has fallen by 10 basis points, cheering the 3.3% fiscal deficit number retained for FY20, by Finance Minister Nirmala Sitharaman. But how has the Centre achieved this feat, given that the provisional actual figures for FY19, released by the Controller-General of Accounts, suggested a massive shortfall of Rs 1.67 lakh crore in tax revenues, in the last fiscal?

4.08 PM | Things that got dearer and cheaper

A large number of items including petrol, diesel, gold, silver, cigarettes, fully-imported cars and split air conditioners (ACs) will become more expensive due to hike in taxes, as proposed by Finance Minister Nirmala Sitharaman in the Union Budget for 2019-20.

At the same time certain items such as electric vehicle components, camera module and charger of mobile phones and set-top boxes will become cheaper.

3.40 PM | Tax incentives

Finance Minister Nirmala Sitharaman said the government is proposing additional tax deduction of Rs 1.50 lakh on interest paid on home loans taken up to March 2020. Sitharaman also proposed that 25 per cent corporate tax will apply on companies with up to Rs 400 crore turnover; covering 99.3 pc of corporate India.

Funds raised by startups will not require any scrutiny by tax department, she said adding the period of exemption from capital gains from sale of start-up has been extended.

3.15 PM | EV push

Finance Minister Nirmala Sitharaman, in her maiden Union Budget speech, has allocated Rs 10,000 crore to the Faster Adoption and Manufacturing of Electric Vehicles (FAME II) scheme. She said the government will also provide additional income tax deduction of 1.5 lakh on the interest paid on loans taken to purchase electric vehicles (EV), in a move to make EVs affordable to consumers.

With an intention to incentivise e-mobility, customs duty is being exempted on certain parts of electric vehicles. Additionally, a proposal to increase the special additional excise duty and road and infrastructure cess each by one rupee a litre on petrol and diesel was announced

3.01 PM | You can file IT-R with Aadhaar

Finance Minister Nirmala Sitharaman said PAN and Aadhaar have been made interchangeable, allowing those who do not have PAN to file income tax returns.

Presenting the first budget of the Modi government in its second term, Sitharaman said Aadhaar card for NRIs with Indian passports will be issued after their arrival in India, without waiting for the mandatory 180 days.

2.45 PM | Nirmala Sitharaman’s maiden budget

As she laid down the road map to turn into a $ 5 trillion economy by 2024-25, middle-class was left wanting for more. A large plank of the strategy to achieve this milestone is set to be achieved through unshackling investments and further opening up of the economy in terms of promised increase in FDI in aviation, insurance and media sectors.

Asserting that India would become a $ 3 trillion economy in the current fiscal itself, Nirmala outlined the various measures that Government proposes to take to ramp up infrastructure in seaways, roads, airports and payment infrastructure to realise the vision of $ 5 trillion economy.

2.30 PM | Nirmala Sitharaman only second woman to present Union Budget

Finance Minister Nirmala Sitharaman became only the second woman in the history of independent India to present the Union Budget. Breaking away from the brown Budget briefcase, Sitharaman held a red parcel like bag with a key hole on the emblem.

Former Prime Minister Indira Gandhi was the first and only woman till now to have presented the Union Budget. In 1970, she presented the Union Budget of India for 1970-71, after she took over the finance portfolio following the resignation of Morarji Desai as finance minister.

2:10 PM | Central levies on petrol and diesel hiked by ₹2 a litre

Petrol and diesel in the country will be dearer by ₹2 a litre after Finance Minister Nirmala Sitharaman increased the Special Excise duty and Road and Infrastructure cess levied on auto fuels by ₹ 1 each.

2:00 PM | Govt to provide tax incentives to high-tech manufacturing plants. The Finance Minister said the scheme will include units in the fields of solar photovoltaic cells, lithium storage batteries, solar electric charging infrastructure, computers servers, laptop .

1:50 PM | Finance Minister Nirmala Sitharaman 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. “The fiscal deficit this year is 3.3 per cent brought down from 3.4 per cent,” she said while presenting Budget for 2019-20.

While presenting interim Budget 2019-20 in February, the government had pegged fiscal deficit target at 3.4 per cent.

1:45 PM | According to the government data, with 100 per cent electrification target being achieved, the government’s focus is now to provide consistent electricity at affordable rates.

1:40 PM | A focus on completing rail-based projects – like freight corridors and urban transportation – with more private participation for getting funds to improve the capacity was flagged by Union Finance Minister Nirmala Sitharaman in her first budget speech.

1.36 PM | Budget speech

Union Finance Minister Nirmala Sitharaman presented her maiden budget in the Parliament. Click here to read the full text of the Budget Speech 2019-20

1.19 PM | Corporate tax lowered

Finance Minister Nirmala Sitharaman on Friday proposed to raise the annual turnover limit from Rs 250 crore to Rs 400 crore for availing a lower corporate tax rate of 25 per cent.

The proposal would cover 99.3 per cent of the companies operating in the country, she said while presenting Union Budget 2019-20 in the Lok Sabha.

1.14 PM | FDI in civil aviation sector

The proposed enhancement of foreign direct investment in the civil aviation sector announced in Union Budget 2019-20 could ease the proposed divestment of Air India. Delivering the Budget speech, Nirmala Sitharaman talked about the strategic divestment of Air India.

An industry watcher with over four decades of experience in airlines’ finance feels that the proposed relaxation of Foreign Direct Investment in the civil aviation sector will bring the necessary investments and would lead to healthy competition.

1.07 PM | Finance Minister concludes the Union Budget 2019-20 speech

1.06 PM | Customs Duty

Import of defence equipment not being manufactured in India to be exempt from basic customs duty

Imported books to cost more in order to encourage local publishing. FM proposes 5 per cent custom duty is imposed on imported books

Special additional duty and road cess on petrol and diesel to be increased by Re.1 each a litre.

Increase of customs duty on gold and precious metals from 10% to 12.5%

12.58 PM | Indirect tax

GST has been a monumental reform in every sense with Centre and states coming together. GST to be further simplified to a single monthly return.

No separate e-way bill from 2020, e-Invoice System will be introduced

Legacy dispute resolution scheme proposed for closure of pending litigation in GST cases.

12.54 PM | Digital payments

The scheme of faceless assessment without manual intervention will be launched in phased manner

To discourage business payment in cash: Levy of TDS at source of 2 per cent for cash withdrawals exceeding Rs 1 crore from a bank account

Business establishments with annual turnover of over Rs 50 crore will give digital payment to customers and no charges on MDR on business and customers

To announce revenue mobilisation measures: enhance surcharge on individuals with taxable income of Rs 2-5 crore effective tax rate will increase by 3% and 7% each

12.52 PM | Tax filing

Proposes series of measures to leverage technology and make compliance easier for taxpayer

Nirmala Sitharaman proposes interchangeability of PAN and Aadhar. Now you can file I-T returns with Aadhar: PAN, Aadhar interchange is to be allowed.

Pre-filled tax returns will be available for taxpayers with details of tax deductions, bank deposits, information collected from various sources

12.51 PM | NBFCs — need to provide greater parity in tax treatment vis a vis banks

12.49 PM | Affordable Housing

Additional deduction of Rs 1.5 lakh for interest paid on loans upto March 31, 2019 for purchase of affordable house of Rs 45 lakh or below

Up to Rs 45 lakh, will get enhanced interest deduction up to Rs 3.5 lakh

Additional deduction of Rs. 1.50 lakh on interest paid for house purchase from Rs. 2 lakh. Total benefit Rs. 3.5 lakh. FM says net gain would be Rs. 7 lakh

Period of exemption for capital gains arising from sale of house for investment in startups to be extended to March 31, 2021.

12.45 PM | Start-ups and Angel Tax

Funds raised by Startups will not face any scrutiny by the income tax department, says Nirmala Sitharaman

A mechanism will be set up for this verification of investors and companies. CBDT will set up mechanism to alleviate issues with pending cases regarding angel tax.

startups and investors who file information in returns will not have to go through scrutiny, mechanism of e-verification to be introduced.

12.43 PM | Taxes for EV

Envision India as global hub of manufacturing electric vehicles

Additional IT deduction up to Rs.1.5 lakh for loans taken to purchase electric vehicles

Proposal to make India an EV and solar PV Cells manufacturing hub

12.39 PM | Taxes

We don’t intend to trample anybody through taxation says FM.

Direct tax revenues increased by 78% to 11.37 lakh crore in FY19. It is growing at double digit every year.

Only when taxable income exceeds ₹5lakh will people pay income tax

Simplify tax administration and ensure greater transparency .

FM will continue with phased reduction of corporate tax rates, include all cos with annual turnover of up to Rs 400 crore in 25% tax, will cover 99.3% of all companies

Tax proposals will stimulate growth, incentivise affordable housing and promote start ups and digital economy

To invite global companies to set up mega factories in sunrise industries

12.33 PM | Economy

India’s sovereign external debt to GDP is amongst the lowest globally at less than 5 per cent says Nirmala Sitharaman.

New series of coins Rs 1, 2, 5, 20 – easily identifiable coins to be made available soon.

12.31 PM | CPSE and disinvestments

Strategic disinvestment of select CPSEs to remain a priority, says Finance Minister. Strategic disinvestment to continue in Air India and select central public sector enterprises.

12.27 PM | Govt to invest Rs 100 lakh crore in infra over next 5 years, says Finance Minister.

NPS trusts to be separated from PFRDA.

Gives a boost to foreign reinsurers in IFSCs —proposes to reduce net owned fund requirement from Rs 5,000 crore to Rs 1,000 crore

12.20 PM | Banking sector and NPAs

NPAs of commercial banks reduced by over Rs 1 lakh crore.

About 4 lakh crore recovered by banks due to IBC an other measures in last 4 years.

PSU banks are further provided Rs 70,000 crore rupees to boost economy.

NBFC should continue to get funding from banks and MFs says Finance Minister. NBFCs are playing imp role in capital formation in MSME segment.

For purchase of high rated pooled pf assets amounting to Rs 1 lakh crore one-time six-months PCE to PSU Bank for first block upto 10%

Appropriate proposals for strengthening RBIs supervision over NBFCs placed in Finance Bill .

To avoid conflict of interest regulation of housing finance companies is proposed to move from NHB to RBI.

Govt for consolidation of PSUs in non banking space, FM

12.19 PM | Tourism

17 iconic tourism sites 7 are being developed to enhance visitor experience. FM also proposes digital repository of tribal culture.

12.18 PM | Markets

The Sensex and Nifty are trading down 0.50 per cent each while the Finance Minister Nirmala Sitharaman is presenting her maiden Budget. At 11.53 am, the Sensex is down 133 points at 39,774.66, while Nifty down 59 points at 11,887.05.

12.15 PM | NRIs

Issuing adhar cards for NRIs with Indian passport after their arrival in India without waiting for mandatory 180 days.

12.11 PM | Women power

Finance Minister says naari tu narayani, speaks on women issues. Govt believes we can make progress with greater women participation. 78 women MPs in the Parliament, Finance Minister notes.

Proposes to expand women SHG interest subvention to all villages, OD of Rs 5,000 allowed per woman in SHG, one woman in every SHG eligible for a loan of Rs 1 lakh under MUDRA scheme

12.08 PM | Ease of living

Government aims to bring greater ease of living in lives of citizens. 35 crore LED bulbs have been distributed under Ujala…FM stresses on the cost saving 18341 crores annually.

Rs 18,341 crore annually cost saving with distribution of 35 crore LED bulbs. India is going to be free of incandescent bulbs. will promote use of solar stoves and battery chargers

30 lakh workers have already joined the PM Maandhan Yojana (pension scheme for informal sector)

12.04 PM | Start-ups

Stand-up India programmed to be extended till 2025.

Exclusive television program for start-ups under DD bouquet channels.

12.02 PM | Proposes to set up a national research foundation. Will assimilate research grants from various ministries.

To streamline multiple labour laws into a set of 4 labour codes. Government to bring about labour reforms, to cut down on litigations

12.01 PM | Sports

National sports education board to be set up. Government committed to expand Khelo India Scheme

11.56 AM | Education

National educational policy to focus on higher education planned. Major changes in school and higher education. Plan to establish a National Research Foundation Will identify thrust areas of national importance.

National Research Foundation will accumulate funds by all ministries and use it to prioritize and avoid duplication of research.

Finance Minister launches Study in India programme to bring foreign students to India. Also presses for greater autonomy for institutes. India to become hub for higher education.

Five yes ago not a single Indian institution were in the global ranking list. Now we have three institutes.

Regulatory system if higher education will be reformed. Higher education commission.

₹400 crore provided under ‘World Class Institutions’ for financial year 2019-2020

10 million youth to take up industry-relevant skill training under the Kaushal Vikas Yojana

11.55 AM | Rashtriya Swachhata Kendra to be inaugurated at RajGhat, on 2nd October, 2019.

Gandhipedia is being developed to sensistise youth and society about positive gandhian values.

11.53 AM | Urban India

81 lakh houses in urban India have been sanctioned, 24 lakh already delivered. Rapid urbanisation in India an opportunity rather than a challenge.

Government to encourage PPP in metro rail projects. In the process of completing dedicated rail freight corridor

11.51 AM | Swachh Bharat

Swachh Bharat mission —9.6 crore toilets constructed. The Mission to be expanded to sustainable solid waste management in every village.

Make India Open Defecation free by October 2 , this year. 95% of cities have become open defecation free,

11.47 AM | Water management

Access to clean drinking water will be a priority. Ensuring water security and access to safe, adequate drinking water is a priority. Water resource department aims “Har ghar jal” by 2024 under the Jal Jeevan Mission.

Nirmala Sitharaman to look at rain water havesting, waste discharge managment.

1.25 lakh km with an investment of Rs 80,250 crore to be allocated under the PM Sadak Yojana scheme

11: 45 AM | Agriculture focus

10,000 new farmer producers organisation. India is now self-sufficient in pulses, FM thanks farmers. Centre to invest significantly in agriculture infrastructure.

Aim to form 10,000 new Farmer Producers Company (FPOs). Measures to allow farmers to benefit from eNAM. Ease of Doing Business and Ease of Living should also apply to Farmers. Need to focus on zero budget farming.

Farmers being trained already, to help double farmer income. Ease of living and ease of business should be provided to famers too: FM.

To promote private investment in agri infrastructure, support creation of 10000 new FPCs, work with States to implement eNAM and replicate the model of zero budget farming.

80 livelihood incubators and 20 tech incubators to develop 75,000 entrepreneurs in the Agriculture

11.44 AM | Annadata to turn into urjadata: Farmers to become power generators through entrepreneurship support from govt: FM

11.43 AM | Finance Minister also proposes bamboo and honey clusters

11.42 AM | Rural roads

Rs.80,250 crore to upgrade 1.25 lakh km of rural roads under PMGSY over the next 5 years. 97% habitations now have road connectivity. 30k km PM rural road was built using green technology. Rs 80,000 cr provision for 1.25,000 km new rural roads.

11.40 AM | Fisheries

PM Fishery Scheme for end to end solutions. Fisheries management framework to be set up under Fisheries Department.

11.37 AM | Rural initiatives

Central focus of all programmes is gaon, garib and kisan. Electricity, LPG provided. By 2022, 75th year Independence Day, Every single family, except the unwilling, will have electricity and clean cooking fuel.

By 2022, I would like to assure the nation that every single rural family,except those who are unwilling to take the connection, will have an electricity and clean cooking facility.

Every single rural family will have electricity and clean cooking facilities, except those who are unwilling to take it, says FM

1.5 cr rural homes completed under PMAY phase I till now; 1.95 cr houses to be provided in phase 2 now By 2022, 1.95 crore households proposed under PM Awas Yojana to eligible beneficiaries.

Completion of houses under PMAY took 314 days in 2017; now it takes just 114 days.

11.36 AM | Space programmes

New CPSE –New Space India Ltd to explore commercialisation of space programme. New Space India Limited has been incorporated as the new commercial arm of Dept of Space for research and development carried out by ISRO

‘11.34 AM | Finance Minister proposes to merge FPI and NRI portfolio

11.30 AM | FDI push

To consider higher FDI in aviation, media and insurance. The government is contemplating organising an annual investors global meet in India. Global investors meet using national investment fund to get industrialists, sovereign wealth funds and VC funds.

FDI inflows robust. To study opening up of FDI in several other sectors. Nod for 100 per cent FDI in insurance intermediaries. FDI in media and aviation to be liberalised.

11.28 AM | Capital market reforms

Nirmala Sitharaman proposes Social stock exchange for listing social enterprises. Social Stock Exchange in the making: Time to take capital markets closer to the masses. Propose to create electronic fund raising platform.

The social stock exchange under SEBI for listing social enterprises and voluntary organisations to raise capital as equity, debt or units like and MF . Raise public shareholding from 25% to 35%, FM asks SEBI to consider

11.26 AM | India requires investments of Rs 20-lakh crore every year. Minimum public holding in companies to be raised to 35% from 25% now

FM proposes clutch of measures for corporate debt market for infra sector and deepen bond markets. AA rated bonds can be used as collateral for. Infrastructure debt funds to be allowed by FDI

11.25 AM | Pension to traders with turnover under Rs 1.5 cr. proposes pension scheme for small traders.

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

11.23 AM | MSMEs

2% interest subvention on fresh loans to MSMEs. Loans upto Rs 1 crore for MSMEs within 59 minutes: FM. Govt to create a payment platform for MSMEs to enable filing of bills and payment on the platform itself to cut down payment time .

Under the interest subvention schemes for MSMEs 50 cr has been allocated for FY20 for 2% interest subvention for all GST-registered MSMEs on fresh or increment loans.

Govt will create a payment platform for MSMEs to enable filing of bills and payment on the platform itself to cut down payment time

11.22 AM | Current rental laws are archaic, says Nirmala Sitharaman. A Modern tenancy Law will be finalised. To promote rental housing, a model tenancy law will be designed n circulated to states

Govt examining UDAY and will be improved. Will remove undesirable duties: FM

11.19 AM | One Nation One Grid – a blueprint for gas grids, water grids will be unveiled. Package for power sector tariff will soon be announced.

11.18 AM | Upfront incentives for purchase of electric vehicles. Only registered eVehicles will be allowed for incentives under FAME-II scheme says FM

Government will carry out comprehensive restructuring of national highways

Develop inland waterways, use rivers for cargo transport. Government plans to use rivers to transport cargo to decongest roads and railways

States will be held to develop state roadways

We need to develop our inland waterways, to shift inland cargoes from roads, railways, says Nirmala Sitharaman

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

11.14 AM | Transportation

Waterways will reduce the cost of transportation: FM in the Budget speech

Aircraft financing and leasing from India.

Sagarmala project will modernize ports and improve infrastructure

Time is ripe for aircraft financing to create self reliant aviation industry, says FM

Propose to reach self reliance in MRO through suitable policy intervention in aviation

657 km of metro rail network has been enabled across India

DFC, Sagarmala, Bharatmala infrastructure projects helping bridge rural urban divide

Rs 10,000 crore allocated to FAME II. The scheme aims to encourage faster adoption of electric vehicles by right incentives and charging infrastructure

11.12 AM | NDA’s ambitious ‘Make in India’ with ‘Swadeshi’ movement of the Independence era. Nirmala Sitharaman says these movements encouraged the local enterprise and self-reliance.

To kick-start domestic and foreign investment

11.11 AM | All of India’s private sector firms have played a role in growth. Govt does not look down on legitimate profit making, India Inc is job creator, wealth creator

11.10 AM | We need to invest heavily in infrastructure, job creation and small and medium firms, says Finance Minister

11.08 AM | Indian economy to touch the $3 trillion mark this year, third largest economy. Our economy is now 6th largest in the world, was 11th five years ago

11.06 AM | We have capacity to reach $5 trillion in few years

Vision for next five years

Social infrastructure

Digital infrastructure

Pollution free India

MSME

Defence manufacutring

Water management

Blue economy

Space programmes

Food grains export

Ayushmann Bharat

Clean India

Minimum government maximum governance

11.02 AM | Average amount spent on food security doubled between 2014-19 compared to earlier. ‘Mazboot desh k liye mazboot nagrik’

11.00 AM | Finance Minister Nirmala Sitharaman begins the Union Budget 2019-20 speech at the Parliament.



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