Finance Minister Nirmala Sitharaman presents her maiden Budget in Parliament today. Here are the key takeaways from the Budget speech.
For economy
– Targets to become a $3 trillion economy in FY20, $5 trillion in a few years
– Proposes changes to kick-start domestic and foreign investment
– Will create blueprint for gas, water grids and regional airports
– To liberalise FDI in aviation, media, animation and insurance intermediaries
Transportation
– To carry out comprehensive restructuring of National Highway programme
– Cargo volume on Ganges to increase four times over the next four years
– In second phase of Bharat Mala project, states will be helped to develop roadways
– Time right for India to enter into aircraft financing and leasing
– Will create congenial atmosphere for development of MRO services
Power
– Package for power sector tariff and structural reforms to
be unveiled soon
To boost investment
– To implement enabling measures to boost International Financial Service Centres (IFSCs)
– To set up a Credit Guarantee Enhancement Corporation
– To initiate steps for electronic fund raising programme for listing of social enterprises, voluntary organisations
Market reforms:
– Asks SEBI to evaluate hiking minimum public shareholding to 25percent from 35 percent
– To allow FIIs and FPIs investment in debt securities issued by NBFCs
– Government will work with exchanges to allow AA bonds to be used as collateral- Proposes rationalising and streamlining of KYC (know your customer) norms for Foreign Portfolio Investors (FPIs) to make it investor-friendly
– NRI portfolio route to be merged with FPI for seamless investment in stock markets
For real estate
– Will finalise a model tenancy law and circulate to states; and propose steps for rental housing
For small businesses/MSMEs
– To extend pension benefit to three crore retail traders with an annual turnover less than Rs 1.5 crore under Pradhan Mantri Karmyogi Mandand scheme- Centre will create a payment platform for MSMEs for payment of bills.
Improve youth’s skills in AI and Robotics
-We will increase our efforts to improve the skills of our youth in newer areas such as Artifical Intelligence, Big Data, Robotics, etc valued highly within and outside the country to ensure they can secure high paying jobs both in India and abroad, she says.
Upgrade in education
The government proposes allocation of Rs 400 crore for world-class higher education institutions in the country, she says.
Measures for Urban India
Nearly 95% of all cities have declared themselves open-defecation free. More than 45,000 public toilets have been uploaded on google maps and nearly 1 crore citizens have downloaded the Swachhta app, the FM says.
PSU Banks recapitalization
The government has proposed to allocate Rs 70,000 crore for PSU Bank recapitalisation.
To boost investment
– To liberalise FDI in aviation, media, animation and insurance intermediaries
– To implement enabling measures to boost International Financial Service Centres (IFSCs)
– To set up a Credit Guarantee Enhancement Corporation
– To initiate steps for electronic fund raising programme for listing of social enterprises, voluntary organisations
– Considering whether govt holding can go below 51 percent in certain CPSEs on case-to-case basis
– To hike statutory limits for foreign investments in some companies
– Expert committee to be set up to make recommendations on infrastructure finance.
– Asks SEBI to evaluate hiking minimum public shareholding to 25 percent from 35 percent
– Government will work with exchanges to allow AA bonds to be used as collateral
– Proposes rationalising and streamlining of KYC (know your customer) norms for Foreign Portfolio Investors (FPIs) to make it investor-friendly
– NRI portfolio route to be merged with FPI for seamless investment in stock markets
– 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
– Will take up measures to make RBI and SEBI depositories inter-operable
– To allow FPIs/NRIs to subscribe to listed debt papers of REITs and InvITs
Banks
– State-run banks to get Rs 70,000 crore capital to boost credit
– To bring out a remedy against cash being deposited without knowledge of bank account holders
NBFCs
– Fundamentally sound NBFCs to keep getting funding from banks and mutual funds
– To allow FIIs and FPIs investment in debt securities issued by NBFCs
– Requirement of Debenture Reservation Reserve to be done away with for NBFCs
Agriculture/fisheries
– Govt to invest widely in agriculture infrastructure
– Support private entrepreneurship in value addition in agriculture
– Proposes Pradhan Mantri Matsya Sampada Yojana to address critical infrastructure gap in fisheries sector
Transportation
– To carry out comprehensive restructuring of National Highway programme
– Cargo volume on Ganges to increase four times over the next four years
– In second phase of Bharat Mala project, states will be helped to develop roadways
– 1,25,000 km of roads will be upgraded under Pradhan Gram
Sadak Yojana under Phase III at estimated cost of Rs 80,250
crore
Aviation
– Time right for India to enter into aircraft financing and leasing
– Will create congenial atmosphere for development of MRO services
– To harness India’s space ability commercially, New Space India (NSIL) has been incorporated to tap the benefits of ISRO
– Will re-initiate privatisation of Air India
Power
– Package for power sector tariff and structural reforms to
be unveiled soon
Retail
– Local sourcing norms to be eased for single-brand retail FDI
