Budget 2019 Highlights
Vision for the decade
- Vision statement:
- Building physical and social infrastructure;
- Digital India reaching every sector of the economy;
- Pollution free India with green Mother Earth and Blue Skies;
- Make in India with particular emphasis on MSMEs, Start-ups, defence manufacturing, automobiles, electronics, fabs and batteries, and medical devices;
- Water, water management, clean Rivers;
- Blue Economy;
- Space programmes, Gaganyan, Chandrayan and Satellite programmes;
- Self-sufficiency and export of food-grains, pulses, oilseeds, fruits and vegetables;
- Healthy society – Ayushman Bharat, well-nourished women & children. Safety of citizens;
- Team India with Jan Bhagidari. Minimum Government Maximum Governance.
5 Trillion Dollar Economy
- Connectivity is the lifeblood of an economy. The Government has given a massive push to all forms of physical connectivity through :
- Pradhan Mantri Gram Sadak Yojana,
- industrial corridors,
- dedicated freight corridors,
- Bhartamala and Sagarmala projects,
- Jal Marg Vikas and
- UDAN Schemes.
These initiatives will improve logistics tremendously, reducing the cost of transportation and increasing the competitiveness of domestically produced goods.
- As the world’s third largest domestic aviation market, the time is ripe for India to enter into aircraft financing and leasing activities from Indian shores. Government will implement the essential elements of the regulatory roadmap for making India a hub for such activities.
- Government will adopt suitable policy interventions to create a congenial atmosphere for the development of MRO in the county.
- During 2019, about 210 kms metro lines have been operationalized. With this, 657 kms of Metro Rail network has become operational across the country.
- The National Common Mobility Card (NCMC) standards, will enable people to pay multiple kinds of transport charges, including metro services and toll tax, across the country. This inter-operable transport card runs on RuPay card and would allow the holders to pay for their bus travel, toll taxes, parking charges, retail shopping and even withdraw money.
- The main objective of the FAME Scheme is to encourage faster adoption of Electric vehicles by way of offering upfront incentive on purchase of Electric vehicles and also by establishing the necessary charging infrastructure for electric vehicles.
- The Government will carry out a comprehensive restructuring of National Highway Programme to ensure that the National Highway Grid of desirable length and capacity is created using financeable model.
- As part of the Jal Marg Vikas Project for enhancing the navigational capacity of Ganga, a multi modal terminal at Varanasi has become functional in November 2018 and two more such terminals at Sahibganj and Haldia and a navigational lock at Farakka would be completed in 2019-20. This will make movement of freight, passenger cheaper and reduce our import bill.
- It is proposed to use Public-Private Partnership to unleash faster development and completion of tracks, rolling stock manufacturing and delivery of passenger freight services.
- To take connectivity infrastructure to the next level, we will build on the successful model in ensuring power connectivity – One Nation, One Grid – that has ensured power availability to states at affordable rates.
- It is proposed that several reform measures would be taken up to promote rental housing. Current Rental Laws are archaic as they do not address the relationship between the Lessor and the Lessee realistically and fairly. A Model Tenancy Law will also be finalized and circulated to the States.
- Under the Interest Subvention Scheme for MSMEs, 350 crore has been allocated for FY 2019-20 for 2% interest subvention for all GST registered MSMEs, on fresh or incremental loans.
- Government will create a payment platform for MSMEs to enable filing of bills and payment thereof on the platform itself.
- Encouraged by the overwhelming response, the Government of India has decided to extend the pension benefit to about three crore retail traders & small shopkeepers whose annual turnover is less than 5 crore under a new Scheme namely Pradhan Mantri Karam Yogi Maandhan Scheme. Enrolment into the Scheme will be kept simple requiring only Aadhaar and a bank account and rest will be on self-declaration.
- A number of measures are proposed to enhance the sources of capital for infrastructure financing:
- A Credit Guarantee Enhancement Corporation for which regulations have been notified by the RBI, will be set up in 2019- 20.
- An action plan to deepen the market for long term bonds including for deepening markets for corporate bond repos, credit default swaps etc., with specific focus on infrastructure sector, will be put in
- It is proposed to permit investments made by FIIs/FPIs in debt securities issued by Infrastructure Debt Fund – Non-Bank Finance Companies (IDF-NBFCs) to be transferred/sold to any domestic investor within the specified lock-in
- Corporate Debt markets are crucial for the infrastructure sector. Given the need to further deepen bond markets, a number of measures are proposed to be taken up:-
- To deepen the Corporate tri-party repo market in Corporate Debt securities, Government will work with regulators RBI/SEBI to enable stock exchanges to allow AA rated bonds as
- User-friendliness of trading platforms for corporate bonds will be reviewed, including issues arising out of capping of International Securities Identification Number (ISIN).
- It is right time to consider increasing minimum public shareholding in the listed companies. I have asked SEBI to consider raising the current threshold of 25% to 35%.
- It is proposed to rationalize and streamline the existing Know Your Customer (KYC) norms for FPIs to make it more investor friendly without compromising the integrity of cross-border capital flows.
- It is propose to initiate steps towards creating an electronic fund raising platform – a social stock exchange – under the regulatory ambit of Securities and Exchange Board of India (SEBI) for listing social enterprises and voluntary organizations working for the realization of a social welfare objective so that they can raise capital as equity, debt or as units like a mutual fund.
- It is propose to consolidate the gains in order to make India a more attractive FDI destination:
a. The Government will examine suggestions of further opening up of FDI in aviation, media (animation, AVGC) and insurance sectors in consultation with all stake holders.
b. 100% Foreign Direct Investment (FDI) will be permitted for insurance
c. Local sourcing norms will be eased for FDI in Single Brand Retail
- In order to become part of the global financial system to mobilise global savings, government is contemplating organizing an annual Global Investors Meet in India, using National Infrastructure Investment Fund (NIIF) as the anchor, to get all three sets of global players-top industrialists/corporate honchos, top pension/insurance/sovereign wealth funds and top digital technology/venture funds.
- It is propose to increase the statutory limit for FPI investment in a company from 24% to sectoral foreign investment limit with option given to the concerned corporates to limit it to a lower threshold. FPIs will be permitted to subscribe to listed debt securities issued by ReITs and InvITs.
- It is proposed to merge the NRI-Portfolio Investment Scheme Route with the Foreign Portfolio Investment Route.
- India has emerged as a major space power with the technology and ability to launch satellites and other space products at globally low cost. A Public Sector Enterprise viz. New Space India Limited (NSIL) has been incorporated as a new commercial arm of Department of Space to tap the benefits of the Research & Development carried out by ISRO. The Company will spearhead commercialization of various space products:
- Production of launch vehicles,
- transfer of technologies and
- Marketing of space products.
Grameen Bharat/Rural India
- By 2022, every single rural family, except those who are unwilling to take the connection will have an electricity and a clean cooking facility.
- Under Pradhan Mantri Awas Yojana – Gramin (PMAY-G) during 2019-20 to 2021-22, 1.95 crore houses are proposed to be provided to the eligible beneficiaries.
- Fishing and fishermen communities through a focused Scheme –
- the Pradhan Mantri Matsya Sampada Yojana (PMMSY) –
the Department of Fisheries will establish a robust fisheries management framework.
- ‘Scheme of Fund for Upgradation and Regeneration of Traditional Industries’ (SFURTI) aims to set up more Common Facility Centres (CFCs) to facilitate cluster based development to make the traditional industries more productive, profitable and capable for generating sustained employment opportunities.
- We will support private entrepreneurships in driving value-addition to farmers’ produce from the field and for those from allied activities, like Bamboo and timber from the hedges and for generating renewable energy.
- We also hope to form 10,000 new Farmer Producer Organizations, to ensure economies of scale for farmers over the next five years.
- Ensuring India’s water security and providing access to safe and adequate drinking water to all Indians is a priority of the Government.
a. Constitution of the Jal Shakti Mantralaya – integrating the Ministry of Water Resources, River Development and Ganga Rejuvenation and Ministry of Drinking Water and Sanitation.
- Swachh Bharat Abhiyan has touched the very conscience of the nation besides bringing enormous health and environmental benefits. It is propose to expand the Swachh Bharat Mission to undertake sustainable solid waste management in every village.
- To bridge rural-urban digital divide, Bharat-Net is targeting internet connectivity in local bodies in every Panchayat in the country.
Shahree Bharat/Urban India
- It is propose to enhance the metro- railway initiatives by encouraging more PPP initiatives and ensuring completion of sanctioned works, while supporting Transit Oriented Development (TOD) to ensure commercial activity around transit hubs.
- The Government will bring in a New National Education Policy to transform India’s higher education system to one of the global best education systems.
- We propose to establish a National Research Foundation (NRF) to fund, coordinate and promote research in the country. NRF will ensure that the overall research eco-system in the country is strengthened with focus on identified thrust areas relevant to our national priorities and towards basic science without duplication of effort and expenditure.
- To prepare our youth to also take up jobs overseas, we will increase focus on skill sets needed abroad including language training. We will also lay focus on new-age skills like Artificial Intelligence (AI), Internet of Things, Big Data, 3D Printing, Virtual Reality and Robotics, which are valued highly both within and outside the country, and offer much higher remuneration.
- The Government is proposing to streamline multiple labour laws into a set of four labour codes.
- We propose to start a television programme within the DD bouquet of channels exclusively for start-ups.
- The Stand Up India Scheme has made human dignity and self- esteem go up. “Kayakave Kailasa”. The Ministry of Petroleum & Natural Gas has enabled SC/ST entrepreneurs in providing Bulk LPG Transportation. The synthesis between stand up and start up with commercial banks playing the catalyst has brought this transformational change.
Ease of Living
- The Pradhan Mantri Shram Yogi Maandhan Scheme aims at providing 3,000 per month as pension on attaining the age of 60 to crores of workers in unorganized and informal sectors.
- It is proposed to promote the use of solar stoves and battery chargers in the country.
- To make railway travel a pleasant and satisfying experience for the common citizen, we will launch a massive programme of railway station modernization this year.
Naari Tu Narayani/Women
- It is propose to expand the Women SHG interest subvention programme to all districts. Furthermore, for every verified women SHG member having a Jan Dhan Bank Account, an overdraft of 5,000 shall be allowed. One woman in every SHG will also be made eligible for a loan up to 1 lakh under the MUDRA Scheme.
India’s Soft Power
- It is propose to consider issuing Aadhaar Card for Non-Resident Indians with Indian Passports after their arrival in India without waiting for 180 days.
- It is propose to launch a Mission which will integrate our traditional artisans and their creative products with global markets. Wherever necessary we shall obtain patents and geographical indicators for them. With this aim, for the first time in this August House, I declare that we will launch a mission of linking creative industry with the economy and wherever it requires protecting Intellectual Property rights taking it to the National and International Market front.
Banking and Financial Sector
- NBFCs which do public placement of debt have to maintain a Debenture Redemption Reserve (DRR) and in addition, a special reserve as required by RBI, has also to be maintained.
- To bring more participants, especially NBFCs, not registered as NBFCs-Factor, on the TReDS platform, amendment in the Factoring Regulation Act, 2011 is necessary and steps will be taken to allow all NBFCs to directly participate on the TReDS platform.
- Regulation authority over the housing finance sector is shifted from NHB to RBI. Necessary proposals have been placed in the Finance Bill.
- New series of coins of One Rupee, Two Rupees, Five Rupees, Ten Rupees and Twenty Rupees, easily identifiable to the visually impaired, were released by the Hon’ble Prime Minister on 7th March, 2019. These new coins will be made available for public use shortly.