• Tuesday, February 27, 2024

Business

India unveils budget for financial year 2019-20

India’s Finance Minister Nirmala Sitharaman (C) gestures during a photo opportunity as she leaves her office to present the federal budget in the parliament in New Delhi, India, July 5, 2019 (Photo: REUTERS/Anushree Fadnavis).

By: Radhakrishna N S

INDIA on Friday (5) unveiled a budget aimed at boosting infrastructure and foreign investment, the first since the Bharatiya Janata Party (BJP) led by prime minister Narendra Modi returned for a second term in power.

Here are the highlights of finance minister Nirmala Sitharaman’s budget for the 2019-20 fiscal year that began April 1.

Deficit
* Fiscal deficit for 2019-2020 seen at 3.3 per cent of GDP

Borrowing
* Government to borrow a gross Rs 7.1 trillion via bonds in 2019-20

* Government to borrow a net Rs 4.73 trillion via bonds in 2019-20

* Short term borrowing seen at Rs 250 billion in 2019-20

* Government to buy back Rs 500bn of bonds in 2019-20

Revenues/Receipts
* Dividends from state-owned firms seen at Rs 574.87bn in 2019-20

* Gross tax revenue seen at Rs 24.6 trillion in 2019-20

* Net tax revenues seen at Rs 16.49 trillion in 2019-20

Taxation
* Will levy tax deduction at source of 2 per cent for cash withdrawals exceeding Rs 10 million per year

* Proposes relief in securities transaction tax

* All companies with annual turnover of Rs 4bn will now be under the 25 per cent tax bracket

* Customs duty on steel raised to 7.5 per cent from 5 per cent

* To increase customs duty on gold and precious metals to 12.5 per cent

Expenditure
* Total government spending seen at Rs 27.86 trillion in 2019-20

* Government to spend Rs 1.74 trillion on pensions in 2019-20

* Government to spend Rs 6.6 trillion on interest payments in 2019-20

Economy
* India will become a $3trn economy in the current fiscal year, and a $5 trillion economy in the next few years

* India to invest heavily in infrastructure and job creation

* Government will raise part of its gross borrowing in external markets in foreign currencies

Investment
* India will ease foreign direct investment restrictions in single-brand retail

* Proposes further opening up of FDI in aviation, insurance, media and animation sectors

* Important to get retail investors to invest in treasury bills

* Will allow foreign investors to buy debt of listed real estate investment trusts

* Government aiming for $14.5bn target for disinvestment proceeds in financial year 2020

Banking
* State-owned banks proposed to be provided Rs 700bn of additional capital

* Will strengthen central bank’s authority over shadow banks

* There is a need to give tax parity to non-banking finance companies

Infrastructure
* The government will upgrade 125,000 kilometres of roads over the next five years at a cost of $11.6bn.

* Railway infrastructure will need an investment of $72bln between 2018 and 2030

* Government to encourage global companies to set up large manufacturing plants

* India will enter into aircraft financing and leasing activities.

(Reuters)

Eastern Eye

Related Stories

Eastern Eye

Videos

Mrunal Thakur on Dhamaka, experience of working with Kartik Aaryan,…
Nushrratt Bharuccha on Chhorii, pressure of comparison with Lapachhapi, upcoming…
Abhimanyu Dassani on Meenakshi Sundareshwar, how his mom Bhagyashree reacted…