Budget Highlights 2019 with Maggu-Bhai

Highlights of Union Budget 2019-

The Union Minister for Finance and Corporate Affairs Smt. Nirmala Sitharaman presented her
maiden Union Budget 2019-20 before the Parliament. The budget document was carried in a
Red cloth “Bahi Khata” moving away from the tradition of carrying the budget document in
briefcase. This was the second longest budget speech at 2 hours and 11 minutes. Key
highlights of Union Budget 2019 are as follows:

10-point Vision for the decade:-

 Building Team India with Jan Bhagidari: Minimum Government Maximum

Governance.
 Achieving green Mother Earth and Blue Skies through a pollution-free India.
 Making Digital India reach every sector of the economy.
 Launching Gaganyan, Chandrayan, other Space and Satellite programmes.
 Building physical and social infrastructure.
 Water, water management, clean rivers.
 Blue Economy.
 Self-sufficiency and export of food-grains, pulses, oilseeds, fruits and vegetables.
 Achieving a healthy society via Ayushman Bharat, well-nourished women & children,
safety of citizens.
 Emphasis on MSMEs, Start-ups, defence manufacturing, automobiles, electronics,
fabs and batteries, and medical devices under Make in India.

Current Account Deficit – 2.1% of GDP in 2018-19(was 5.6% of GDP in 2013-14)

Tax to GDP ratio estimated at 11.9% in 2018-19 and 11.7% in 2019-20

Fiscal deficit target set at 3.3%( as against 3.4% in interim budget)

Economy was US $1.8 trillion in 2014 and reached US $2.7 trillion in 2018. Aim to reach US $5
trillion in few years.
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India is the 3rd largest domestic aviation market.

Towards a 5 TrillionDollar Economy:-

 Indian economy to become a 3 trillion dollar economy in the current year. Currently
6th largest in world and 3rd largest after US and China in terms of Purchasing Power
Parity.
 Government aspires to make India a 5 trillion dollar economy.
 Need for investment in:
o Infrastructure.
o Digital economy.
o Job creation in small and medium firms.
 Initiatives to be proposed for kick-starting the virtuous cycle of investments.
 Common man’s life changed through MUDRA loans for ease of doing business.

Measures related to MSMEs:

 Pradhan Mantri Karam Yogi Maandhan Scheme

o Pension benefits to about three crore retail traders & small shopkeepers with
annual turnover less than Rs. 1.5 crore.
o Enrolment to be kept simple, requiring only Aadhaar, bank account and a self-
declaration.
 Rs. 350 crore allocated for FY 2019-20 for 2% interest subvention (on fresh or
incremental loans) to all GST-registered MSMEs, under the Interest Subvention
Scheme for MSMEs.
 Payment platform for MSMEs to be created to enable filing of bills and payment
thereof, to eliminate delays in government payments.
 India’s first indigenously developed payment ecosystem for transport, based
on National Common Mobility Card (NCMC) standards, launched in March 2019.

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 Inter-operable transport card runs on RuPay card and would allow the holders to pay
for bus travel, toll taxes, parking charges, retail shopping.
 Massive push given to all forms of physical connectivity through:
o Pradhan Mantri Gram Sadak Yojana.
o Industrial Corridors, Dedicated Freight Corridors.
o Bhartamala and Sagarmala projects, Jal Marg Vikas and UDAN Schemes.
o State road networks to be developed in second phase of Bharatmala project.
 Navigational capacity of Ganga to be enhanced via multi modal terminals
at Sahibganj and Haldia and a navigational lock at Farakka by 2019-20, under Jal Marg
Vikas Project.
 Four times increase in next four years estimated in the cargo volume on Ganga,
leading to cheaper freight and passenger movement and reducing the import bill.
 Rs. 50 lakh crore investment needed in Railway Infrastructure during 2018-2030.
 Public-Private-Partnership proposed for development and completion of tracks,
rolling stock manufacturing and delivery of passenger freight services.
 657 km of Metro Rail network has become operational across the country.
 Policy interventions to be made for the development of Maintenance, Repair and
Overhaul (MRO), to achieve self- reliance in aviation segment.
 Regulatory roadmap for making India a hub for aircraft financing and leasing activities
from Indian shores, to be laid by the Government.
 Outlay of Rs. 10,000 crore for 3 years approved for Phase-II of FAME Scheme has
commenced from 1st April, 2019.
 Upfront incentive proposed on purchase and charging infrastructure, to encourage
faster adoption of Electric Vehicles.
 Only advanced-battery-operated and registered e-vehicles to be incentivized under
FAME Scheme.
 National Highway Programme to be restructured to ensure a National Highway Grid,
using a financeable model.
 Power at affordable rates to states ensured under ‘One Nation, One Grid’.

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 Blueprints to be made available for gas grids, water grids, i-ways, and regional airports.
 High Level Empowered Committee (HLEC) recommendations to be implemented:
 Retirement of old & inefficient plants.
 Addressing low utilization of gas plant capacity due to paucity of Natural Gas.
 Cross subsidy surcharges, undesirable duties on open access sales or captive
generation for industrial and other bulk power consumers to be removed under Ujjwal
DISCOM Assurance Yojana (UDAY).
 Package of power sector tariff and structural reforms to be announced soon.
 Reform measures to be taken up to promote rental housing.
 Model Tenancy Law to be finalized and circulated to the states.
 Joint development and concession mechanisms to be used for public infrastructure
and affordable housing on land parcels held by the Central Government and CPSEs.

Measures to enhance the sources of capital for infrastructure financing:

 Credit Guarantee Enhancement Corporation to be set up in 2019-2020.

 Action plan to be put in place to deepen the market for long term bonds with focus on
infrastructure.
 Proposed transfer/sale of investments by FIIs/FPIs (in debt securities issued by IDF-
NBFCs) to any domestic investor within the specified lock-in period.

Measures to deepen bond markets:

 Stock exchanges to be enabled to allow AA rated bonds as collaterals.

 User-friendliness of trading platforms for corporate bonds to be reviewed.
Social stock exchange:

 Electronic fund raising platform under the regulatory ambit of SEBI.

 Listing social enterprises and voluntary organizations.
 To raise capital as equity, debt or as units like a mutual fund.

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 SEBI to consider raising the threshold for minimum public shareholding in the listed
companies from 25% to 35%.
 Know Your Customer (KYC) norms for Foreign Portfolio Investors to be made more
investor friendly.
 Government to supplement efforts by RBI to get retail investors to invest in
government treasury bills and securities, with further institutional development using
stock exchanges.
Measures to make India a more attractive FDI destination:

 FDI in sectors like aviation, media (animation, AVGC) and insurance sectors can be
opened further after multi-stakeholder examination.
 Insurance Intermediaries to get 100% FDI.
 Local sourcing norms to be eased for FDI in Single Brand Retail sector.
 Government to organize an annual Global Investors Meet in India, using National
Infrastructure Investment Fund (NIIF) as an anchor to get all three sets of global
players (pension, insurance and sovereign wealth funds).
 Statutory limit for FPI investment in a company is proposed to be increased from 24%
to sectoral foreign investment limit. Option to be given to the concerned corporate to
limit it to a lower threshold.
 FPIs to be permitted to subscribe to listed debt securities issued by ReITs and InvITs.
 NRI-Portfolio Investment Scheme Route is proposed to be merged with the Foreign
Portfolio Investment Route.
 Cumulative resources garnered through new financial instruments like Infrastructure
Investment Trusts (InvITs), Real Estate Investment Trusts (REITs) as well as models like
Toll-Operate-Transfer (ToT) exceed Rs. 24,000 crore.
 New Space India Limited (NSIL), a PSE, incorporated as a new commercial arm of
Department of Space.
 To tap the benefits of the Research & Development carried out by ISRO like
commercialization of products like launch vehicles, transfer to technologies and
marketing of space products.

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Direct Taxes:-

 Direct Tax has increased by over 78% from 6.38 lakh cr in FY 2013-14 to 11.37
lakh cr in FY 2018-19.
 Tax rate reduced to 25% for companies with annual turnover up to Rs. 400 crore
 Surcharge increased on individuals having taxable income from Rs. 2 crore to Rs. 5
crore and Rs. 5 crore and above with effective tax rates for these two categories will
increase by around 3% and 7% respectively.
 India’s Ease of Doing Business ranking under the category of ‘paying taxes’ jumped
from 172 in 2017 to 121 in the 2019.
 Direct tax revenue increased by over 78% in past 5 years to Rs. 11.37 lakh crore
 Deduction of tax by certain individuals or HUF: Presently, there is no requirement for
an individual or HUF to deduct tax at source on payments made to a resident
contractor or professional when it is for personal use, or if the individual or HUF is not
subjected to audit for his business or profession. Proposal to insert a new provision
making it obligatory for such individual to deduct tax at source at the rate of 5% if
annual payment made to a contractor/professional > Rs. 50 lakh.
 Consideration for TDS on immovable property: It is proposed to provide that for the
purpose of tax deduction at source from payment made for acquisition of immovable
property, consideration shall include other charges in the nature of club membership
fee, car parking fee, electricity and water facility fee, maintenance fee, advance fee or
any other charges of similar nature which are incidental to the purchase of immovable
property.
 Gifts made to non-residents - Proposed to provide that gift of any sum of money, or
property situated in India, by a person resident in India to a person outside India (not
being a gift otherwise exempt), on or after 5th day of July 2019, shall be deemed to
accrue or arise in India.

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 Compulsory filing of return: It is proposed to make return filing compulsory for

persons, who have deposited more than Rs. 1 crore in a current account in a year, or
who have expended more than Rs. 2 lakh on foreign travel or more than Rs. 1 lakh on
electricity consumption in a year. It is also proposed to provide that a person whose
income becomes lower than maximum amount not chargeable to tax due to claim of
rollover benefit of capital gains shall also be required to furnish the return.
 Incentives to NPS subscribers: Increase limit of exemption from 40% to 60% on final
withdrawal from NPS; allow deduction for employer’s contribution up to 14% of salary
from 10%, in case of Central govt employee; allow deduction under Sec 80C for
contribution made to Tier II NPS account by Central govt employees.
 Incentives for start-ups: The condition for carry forward and set off of losses in cases
of eligible start-ups is proposed to be relaxed enabling them to carry forward their
losses on satisfaction of any one of the two conditions, i.e. continuity of 51%
shareholding/voting power or continuity of 100% of original shareholders. The
provision which allows exemption of capital gains from sale of residential property on
investment of net consideration in equity shares of eligible start-up shall be extended
by 2 years, i.e. 31st March 2021. The condition of minimum holding of 50% of share
capital or voting rights in the start-up is proposed to be relaxed to 25%. The condition
restricting transfer of new asset being computer or computer software is also
proposed to be relaxed from the current 5 years to 3 years.
Other Direct Tax measures

 Simplification of tax laws to reduce genuine hardships of taxpayers:

o Higher tax threshold for launching prosecution for non-filing of returns
o Appropriate class of persons exempted from the anti-abuse provisions of
Section 50CA and Section 56 of the Income Tax Act.
 Interchangeability of PAN and Aadhaar
o Those who don’t have PAN can file tax returns using Aadhaar.
o Aadhaar can be used wherever PAN is required.

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o It is also proposed to provide that if a person fails to intimate the Aadhaar

number, the PAN allotted to such person shall be made inoperative in the
prescribed manner after the date notified for the said linking.
 Pre-filling of Income-tax Returns for faster, more accurate tax returns
o Pre-filled tax returns with details of several incomes and deductions to be
made available.
o Information to be collected from Banks, Stock exchanges, mutual funds etc.
 Faceless e-assessment
o Faceless e-assessment with no human interface to be launched.
o To be carried out initially in cases requiring verification of certain specified
transactions or discrepancies.
 Affordable housing
o Additional deduction up to Rs. 1.5 lakhs for interest paid on loans borrowed up
to 31st March, 2020 for purchase of house valued up to Rs. 45 lakh.
o Overall benefit of around Rs. 7 lakh over loan period of 15 years.
 Boost to Electric Vehicles
o Additional income tax deduction of Rs. 1.5 lakh on interest paid on electric
vehicle loans.
o Customs duty exempted on certain parts of electric vehicles.
o Lower GST rate on electrical vehicles from 12% to 5%.
 Relief for Start-ups
o Capital gains exemptions from sale of residential house for investment in start-
ups extended till FY21.
o ‘Angel tax’ issue resolved- start-ups and investors filing requisite declarations
and providing information in their returns not to be subjected to any kind of
scrutiny in respect of valuations of share premiums.
o Funds raised by start-ups to not require scrutiny from Income Tax Department
o E-verification mechanism for establishing identity of the investor and source
of funds.

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o Special administrative arrangements for pending assessments and grievance

redressal
o No inquiry in such cases by the Assessing Officer without obtaining approval of
the supervisory officer.
o No scrutiny of valuation of shares issued to Category-II Alternative Investment
Funds.
o Relaxation of conditions for carry forward and set off of losses.
 NBFCs –
o Interest on certain bad or doubtful debts by deposit taking as well as
systemically important non-deposit taking NBFCs to be taxed in the year in
which interest is actually received.
 Direct tax incentives proposed for an IFSC: -
o 100 % profit-linked deduction in any ten-year block within a fifteen-year
period.
o Exemption from dividend distribution tax from current and accumulated
income to companies and mutual funds.
o Exemptions on capital gain to Category-III Alternative Investment Funds (AIFs).
o Exemption to interest payment on loan taken from non-residents.
 Securities Transaction Tax (STT) –
o STT restricted only to the difference between settlement and strike price in
case of exercise of options.
Indirect Taxes:-

 Basic Customs Duty increased on cashew kernels, PVC, tiles, metal fittings, mountings
for furniture, auto parts, certain kinds of synthetic rubber, marble slabs, optical fibre
cable, CCTV camera, IP cameras, digital and network video recorders etc.
 Exemptions from Custom Duty on certain electronic items now manufactured in India
withdrawn.
 End use based exemptions on palm stearin, fatty oils withdrawn.
 Exemptions to various kinds of papers withdrawn.

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 5% Basic Custom Duty imposed on imported books.

 Customs duty reduced on certain raw materials such as:
o Inputs of cargo sheets, amorphous alloy ribbon, inputs for manufacture of
artificial kidney and disposable sterilised dialyser, fuels for nuclear power
plants etc.
o Capital goods required for manufacture of specified electronic goods.
 Defence
o Defence equipment not manufactured in India exempted from basic customs
duty
 Other Indirect Tax provisions
o Export duty rationalised on raw and semi-finished leather
o Increase in Special Additional Excise Duty and Road and Infrastructure Cess
each by Rs. 1 per litre on petrol and diesel
o Custom duty on gold and other precious metals increased from 10% to 12.5%.
o A nominal basic excise duty is being imposed on Tobacco products and Crude.
o Legacy Dispute Resolution Scheme for quick closure of pending litigations in
Central Excise and Service tax from pre-GST regime
Grameen Bharat / Rural India:-

 Ujjwala Yojana and Saubhagya Yojana have transformed the lives of every rural
family, dramatically improving ease of their living.
 Electricity and clean cooking facility to all willing rural families by 2022.
 Pradhan Mantri Awas Yojana – Gramin (PMAY-G) aims to achieve "Housing for All" by
2022:
o Eligible beneficiaries to be provided 1.95 crore houses with amenities like
toilets, electricity and LPG connections during its second phase (2019-20 to
2021-22).
o Number of days for completion of houses has reduced from 314 days in 2015-
16 to 114 days in 2017-18.
 Pradhan Mantri Matsya Sampada Yojana (PMMSY)

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o A robust fisheries management framework through PMMSY to be established

by the Department of Fisheries.
o To address critical gaps in the value chain including infrastructure,
modernization, traceability, production, productivity, post-harvest
management, and quality control.
 Pradhan Mantri Gram Sadak Yojana (PMGSY)
o Target of connecting the eligible and feasible habitations advanced from 2022
to 2019 with 97% of such habitations already being provided with all weather
connectivity.
o 30,000 kilometers of PMGSY roads have been built using Green Technology,
Waste Plastic and Cold Mix Technology, thereby reducing carbon footprint.
o 1,25,000 kilometers of road length to be upgraded over the next five years
under PMGSY III with an estimated cost of Rs. 80,250 crore.
 Scheme of Fund for Upgradation and Regeneration of Traditional Industries’ (SFURTI)
o Common Facility Centres (CFCs) to be setup to facilitate cluster based
development for making traditional industries more productive, profitable and
capable for generating sustained employment opportunities.
o 100 new clusters to be setup during 2019-20 with special focus on Bamboo,
Honey and Khadi, enabling 50,000 artisans to join the economic value chain.
 Scheme for Promotion of Innovation, Rural Industry and Entrepreneurship’
(ASPIRE) consolidated for setting up
o 80 Livelihood Business Incubators (LBIs) and 20 Technology Business
Incubators (TBIs) to be setup in 2019-20.
o 75,000 entrepreneurs to be skilled in agro-rural industry sectors.
 Private entrepreneurships to be supported in driving value-addition to farmers’
produce from the field and for those from allied activities.
 Dairying through cooperatives to be encouraged by creating infrastructure for cattle
feed manufacturing, milk procurement, processing & marketing.

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 10,000 new Farmer Producer Organizations to be formed, to ensure economies of

scale for farmers.
 Government to work with State Governments to allow farmers to benefit from e-
NAM.
 Zero Budget Farming in which few states’ farmers are already being trained to be
replicated in other states.
 India’s water security
o Constituting the Jal Shakti Mantralaya integrating the Ministry of water
resource, river development and ganga rejuvenation and ministry of drinking
water sanitation to look at the management of our water resources and water
supply in an integrated and holistic manner
o Jal Jeevan Mission to achieve Har Ghar Jal (piped water supply) to all rural
households by 2024
o To focus on integrated demand and supply side management of water at the
local level.
o Convergence with other Central and State Government Schemes to achieve its
objectives.
o 1592 critical and over exploited Blocks spread across 256 District being
identified for the Jal Shakti Abhiyan. Compensatory Afforestation Fund
Management and Planning Authority (CAMPA) fund can be used for this
purpose.

 Swachh Bharat Abhiyan

o 9.6 crore toilets constructed since Oct 2, 2014.
o More than 5.6 lakh villages have become Open Defecation Free (ODF).
o Swachh Bharat Mission to be expanded to undertake sustainable solid waste
management in every village.

 Pradhan Mantri Gramin Digital Saksharta Abhiyan,

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o Over two crore rural Indians made digitally literate.

o Internet connectivity in local bodies in every Panchayat under Bharat-Net to
bridge rural-urban divide.
o Universal Service Obligation Fund under a PPP arrangement to be utilized for
speeding up Bharat-Net.

Shahree Bharat/Urban India:-

 Pradhan Mantri Awas Yojana – Urban (PMAY-Urban)-

o Over 81 lakh houses with an investment of about Rs. 4.83 lakh crore
sanctioned of which construction started in about 47 lakh houses.
o Over 26 lakh houses completed of which nearly 24 lakh houses delivered to
the beneficiaries.
o Over 13 lakh houses so far constructed using new technologies.
 More than 95% of cities also declared Open Defecation Free (ODF).
 More than 45000 public and community toilets across 1700 cities have been uploaded
on Google maps.
 Almost 1 crore citizens have downloaded Swachhata App.
 Target of achieving Gandhiji’s resolve of Swachh Bharat to make India ODF by 2nd
October 2019.
o To mark this occasion, the Rashtriya Swachhta Kendra to be inaugurated at
Gandhi Darshan, Rajghat on 2nd October, 2019.
o Gandhipedia being developed by National Council for Science Museums to
sensitize youth and society about positive Gandhian values.
 Railways to be encouraged to invest more in suburban railways through SPV
structures like Rapid Regional Transport System (RRTS) proposed on the Delhi-Meerut
route.
 Proposal to enhance the metro-railway initiatives by:
o Encouraging more PPP initiatives.

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o Ensuring completion of sanctioned works.

o Supporting transit oriented development (TOD) to ensure commercial activity
around transit hubs.

Youth:-

 New National Education Policy to be brought which proposes

o Major changes in both school and higher education
o Better Governance systems
o Greater focus on research and innovation.
 National Research Foundation (NRF) proposed
o To fund, coordinate and promote research in the country.
o To assimilate independent research grants given by various Ministries.
 To strengthen overall research eco-system in the country
 This would be adequately supplemented with additional funds.
 Initiatives like SWAYAM, GIAN, IMPRINT have been implemented successfully. Two
IIT’s and IISc Banglore are in the top 200 bracket in the world university rankings.
 Rs. 400 crore provided for “World Class Institutions”, for FY 2019-20, more than three
times the revised estimates for the previous year.
 ‘Study in India’ proposed to bring foreign students to study in Indian higher
educational institutions.
 Regulatory systems of higher education to be reformed comprehensively:
 To promote greater autonomy.
 To focus on better academic outcomes.
 Draft legislation to set up Higher Education Commission of India (HECI), to be
presented.
 Khelo India Scheme to be expanded with all necessary financial support.
 National Sports Education Board for development of sportspersons to be set up under
Khelo India, to popularize sports at all levels

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 About 10 million youth to take up industry relevant skill training through the Pradhan
Mantri Kaushal Vikas Yojana(PMKVY). This is helping to create a large pool of skilled
manpower with speed and high standards. To prepare youth for overseas jobs, focus
to be increased on globally valued skill-sets including language training, AI, IoT, Big
Data, 3D Printing, Virtual Reality and Robotics.
 Set of four labour codes proposed, to streamline multiple labour laws to standardize
and streamline registration and filing of returns.
 A television program proposed exclusively for and by start-ups, within the DD bouquet
of channels. This shall serve as a platform for promoting start-ups, discussing issues
affecting their growth, matching with their venture capitalists and for funding and tax
planning.
 Stand-Up India Scheme to be continued for the period of 2020-25 coinciding with the
15th Finance commission period. The Banks to provide financial assistance for demand
based businesses.

Ease of Living:-

 About 30 lakh workers joined the Pradhan Mantri Shram Yogi Maandhan
Scheme(launched on 5th march 2019, at Ahemdabad) that provides Rs. 3,000 per
month as pension on attaining the age of 60 to workers in unorganized and informal
sectors.
 Approximately 35 crore LED bulbs distributed under UJALA Yojana leading to cost
saving of Rs. 18,341 crore annually.
 Solar stoves and battery chargers to be promoted using the approach of LED bulbs
mission.
 A massive program of railway station modernization to be launched.

Naari Tu Narayani/Women:-

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 Approach shift from women-centric-policy making to women-led initiatives and

movements.
 A Committee proposed with Government and private stakeholders for moving
forward on Gender budgeting.
 SHG:
o Women SHG interest subvention program proposed to be expanded to all
districts.
o Overdraft of Rs. 5,000 to be allowed for every verified women SHG member
having a Jan Dhan Bank Account.
o One woman per SHG to be eligible for a loan up to Rs. 1 lakh under MUDRA
Scheme.

India’s Soft Power:-

 Proposal to consider issuing Aadhaar Card for NRIs with Indian Passports on their
arrival without waiting for 180 days.
 Mission to integrate traditional artisans with global markets proposed, with necessary
patents and geographical indicators.
 18 new Indian diplomatic Missions in Africa approved in March, 2018, out of which 5
already opened. Another 4 new Embassies intended in 2019-20.
 Proposed to Revamp Indian Development Assistance Scheme (IDEAS), a scheme that
provides concessional financing for projects and contributes to infrastructure
development and capacity building in recipient developing countries.
 17 iconic Tourism Sites being developed into model world class tourist destinations.
 To strengthen the digital repository which was developed to store documents, folk
songs, photos and videos regarding their evolution, place of origin, lifestyle,
architecture, education level, traditional art and other details of tribes in India

Banking and Financial Sector:-

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 NPAs of commercial banks reduced by over Rs. 1 lakh crore over the last year.
 Record recovery of over Rs. 4 lakh crore effected over the last four years.
 Provision coverage ratio at its highest in seven years.
 Domestic credit growth increased to 13.8%.
 Measures related to PSBs:
o Rs. 70,000 crore proposed to be provided to PSBs to boost credit.
o PSBs to leverage technology, offering online personal loans and doorstep
banking, and enabling customers of one PSBs to access services across all PSBs.
o Steps to be initiated to empower accountholders to have control over deposit
of cash by others in their accounts.
o Reforms to be undertaken to strengthen governance in PSBs.
 Measures related to NBFCs:
o Proposals for strengthening the regulatory authority of RBI over NBFCs to be
placed in the Finance Bill.
o For purchase of high-rated pooled assets of financially sound NBFC’s
amounting to a total of Rs 1 lakh crore during the current fiscal year, Govt will
provide one time 6 months partial credit guarantee to PSB for first loss upto
10%.
o Requirement of creating a Debenture Redemption Reserve will be done away
with to allow NBFCs to raise funds in public issues.
o Steps to allow all NBFCs to directly participate on the TReDS platform by
amending Factoring Regulation Act, 2011.
 Return of regulatory authority from NHB to RBI proposed, over the housing finance
sector.
 Rs. 100 lakh crore investment in infrastructure intended over the next five years.
Committee proposed to recommend the structure and required flow of funds through
development finance institutions.
 Steps to be taken to separate the NPS Trust from PFRDA.

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o Reduction in Net Owned Fund requirement from Rs. 5,000 crore to Rs. 1,000
crore proposed:
o To facilitate on-shoring of international insurance transactions.
o To enable opening of branches by foreign reinsurers in the International
Financial Services Centre.
 Measures related to CPSEs:
o Target of Rs. 1, 05,000 crore of disinvestment receipts set for the FY 2019-20.
o Government to reinitiate the process of strategic disinvestment of Air India,
and to offer more CPSEs for strategic participation by the private sector.
o Government to undertake strategic sale of PSUs and continue to consolidate
PSUs in the non-financial space.
o Government to consider going to an appropriate level below 51% in PSUs
where the government control is still to be retained, on case to case basis.
o Present policy of retaining 51% Government stake to be modified to retaining
51% stake inclusive of the stake of Government controlled institutions.
o Retail participation in CPSEs to be encouraged.
o To provide additional investment space.
 Government to realign its holding in CPSEs
 Banks to permit greater availability of its shares and to improve depth of its market.
o Government to offer an investment option in ETFs on the lines of Equity Linked
Savings Scheme (ELSS).
o Government to meet public shareholding norms of 25% for all listed PSUs and
raise the foreign shareholding limits to maximum permissible sector limits for
all PSU companies which are part of Emerging Market Index.
 Government to raise a part of its gross borrowing program in external markets in
external currencies. This will also have beneficial impact on demand situation for the
government securities in domestic market.

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 Budget Highlights 2019 with Maggu-Bhai

 New series of coins of One Rupee, Two Rupees, Five Rupees, Ten Rupees and Twenty
Rupees, easily identifiable to the visually impaired to be made available for public use
shortly.

Digital Payments:-

 TDS of 2% on cash withdrawal exceeding Rs. 1 crore in a year from a bank account. It
is also proposed that the Central Government may notify the persons to whom these
provisions shall not be applicable in consultation with the Reserve Bank of India.
 Business establishments with annual turnover more than Rs. 50 crore shall offer low
cost digital modes of payment to their customers and no charges or Merchant
Discount Rate shall be imposed on customers as well as merchants.
 Mega Investment in Sunrise and Advanced Technology Areas
 Scheme to invite global companies to set up mega-manufacturing plants in areas such
as Semi-conductor Fabrication (FAB), Solar Photo Voltaic cells, Lithium storage
batteries, Computer Servers, Laptops, etc
 Investment linked income tax exemptions to be provided along with indirect tax
benefits.

Roadmap for future:-

 Simplification of procedures.
 Incentivizing performance.
 Red-tape reduction.
 Making the best use of technology.
 Accelerating mega programmes and services initiated and delivered so far.

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