{"id":3662,"date":"2019-07-09T08:59:47","date_gmt":"2019-07-09T03:29:47","guid":{"rendered":"http:\/\/yourcareerheights.com\/?p=3662"},"modified":"2019-07-09T08:59:48","modified_gmt":"2019-07-09T03:29:48","slug":"union-budget-for-2019-20-key-highlights-impact-on-banking-financial-sector","status":"publish","type":"post","link":"https:\/\/yourcareerheights.com\/?p=3662","title":{"rendered":"Union Budget for 2019-20: Key Highlights &#038; Impact on Banking &#038; Financial Sector"},"content":{"rendered":"<div id=\"pl-3662\"  class=\"panel-layout\" ><div id=\"pg-3662-0\"  class=\"panel-grid panel-no-style\" ><div id=\"pgc-3662-0-0\"  class=\"panel-grid-cell\" ><div id=\"panel-3662-0-0-0\" class=\"so-panel widget widget_sow-editor panel-first-child panel-last-child\" data-index=\"0\" ><div class=\"panel-widget-style panel-widget-style-for-3662-0-0-0\" ><div\n\t\t\t\n\t\t\tclass=\"so-widget-sow-editor so-widget-sow-editor-base\"\n\t\t\t\n\t\t>\n<div class=\"siteorigin-widget-tinymce textwidget\">\n\t<h3><a href=\"https:\/\/i0.wp.com\/yourcareerheights.com\/wp-content\/uploads\/2019\/07\/nirmala-sitharaman-budget-speech.jpeg\"><img data-recalc-dims=\"1\" loading=\"lazy\" decoding=\"async\" class=\"alignleft size-medium wp-image-3663\" src=\"https:\/\/i0.wp.com\/yourcareerheights.com\/wp-content\/uploads\/2019\/07\/nirmala-sitharaman-budget-speech-300x213.jpeg?resize=300%2C213\" alt=\"\" width=\"300\" height=\"213\" srcset=\"https:\/\/i0.wp.com\/yourcareerheights.com\/wp-content\/uploads\/2019\/07\/nirmala-sitharaman-budget-speech.jpeg?resize=300%2C213&amp;ssl=1 300w, https:\/\/i0.wp.com\/yourcareerheights.com\/wp-content\/uploads\/2019\/07\/nirmala-sitharaman-budget-speech.jpeg?w=468&amp;ssl=1 468w\" sizes=\"auto, (max-width: 300px) 100vw, 300px\" \/><\/a><span style=\"color: #0000ff;\">The Union Minister for Finance and Corporate Affairs Smt.\u00a0<strong>Nirmala Sitharaman<\/strong>\u00a0made her maiden Budget Speechon 5<sup>th<\/sup> July 2019 and presented the Union Budget 2019-20 before the Parliament. The key highlights of Union Budget 2019 are as follows:<\/span><\/h3>\n<p><span style=\"color: #993366;\"><strong>10-point Vision for the decade<\/strong><strong><br \/>\n<\/strong>1. Building Team India with Jan Bhagidari: Minimum Government Maximum Governance.<\/span><br \/>\n<span style=\"color: #993366;\">2. Achieving green Mother Earth and Blue Skies through a pollution-free India.<\/span><br \/>\n<span style=\"color: #993366;\">3. Making\u00a0<strong>Digital India<\/strong>\u00a0reach every sector of the economy.<\/span><br \/>\n<span style=\"color: #993366;\">4. Launching Gaganyan, Chandrayan, other Space and Satellite programmes.<\/span><br \/>\n<span style=\"color: #993366;\">5. Building physical and social infrastructure.<\/span><br \/>\n<span style=\"color: #993366;\">6. Water, water management, clean rivers.<\/span><br \/>\n<span style=\"color: #993366;\">7. Blue Economy.<\/span><br \/>\n<span style=\"color: #993366;\">8. Self-sufficiency and export of food-grains, pulses, oilseeds, fruits and vegetables.<\/span><br \/>\n<span style=\"color: #993366;\">9. Achieving a healthy society via Ayushman Bharat, well-nourished women &amp; children, safety of citizens.<\/span><br \/>\n<span style=\"color: #993366;\">10. Emphasis on MSMEs, Start-ups, defence manufacturing, automobiles, electronics, fabs and batteries, and medical devices under Make in India.<\/span><\/p>\n<p><strong>Towards a 5 Trillion Dollar Economy<\/strong><strong><br \/>\n<\/strong>\u00b7 \"People.s hearts filled with Aasha (Hope), Vishwas (Trust), Aakansha (Aspirations)\", says FM.<br \/>\n\u00b7 Indian economy to become a 3 trillion dollar economy in the current year.<br \/>\n\u00b7 Government aspires to make India a 5 trillion dollar economy.<br \/>\n\u00b7 Need for investment in:<br \/>\no\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Infrastructure.<br \/>\no\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Digital economy.<br \/>\no \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Job creation in small and medium firms.<br \/>\n\u00b7 Initiatives to be proposed for kick-starting the virtuous cycle of investments.<br \/>\n\u00b7 Common man\u2019s life changed through MUDRA loans for ease of doing business.<br \/>\n<strong><br \/>\n<\/strong><strong>\u00b7 Measures related to MSMEs:<\/strong><br \/>\n<strong>Pradhan Mantri Karam Yogi Maandhan Scheme<\/strong><strong><br \/>\n<\/strong>\u00a0 \u00a4 Pension benefits to about three crore retail traders &amp; small shopkeepers with annual turnover less than Rs. 1.5 crore.<br \/>\n\u00a4 Enrolment to be kept simple, requiring only Aadhaar, bank account and a self-declaration.<br \/>\no\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0Rs. 350 crore allocated for FY 2019-20 for 2% interest subvention (on fresh or incremental loans) to \u00a0\u00a0\u00a0\u00a0all GST-registered MSMEs, under the Interest Subvention Scheme for MSMEs.<br \/>\n<strong>o\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0Payment platform for MSMEs<\/strong>\u00a0to be created to enable filing of bills and payment thereof, to eliminate delays in government payments.<br \/>\n\u00b7 India\u2019s first indigenously developed payment ecosystem for transport, based on National Common Mobility Card (NCMC) standards, launched in March 2019.<br \/>\n\u00b7 Inter-operable transport card runs on\u00a0<strong>RuPay<\/strong>card and would allow the holders to pay for bus travel, toll taxes, parking charges, retail shopping.<\/p>\n<ul>\n<li><strong> Massive push given to all forms of physical connectivity through:<\/strong><strong><br \/>\n<\/strong>o\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 Pradhan Mantri Gram Sadak Yojana.<br \/>\no\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 Industrial Corridors, Dedicated Freight Corridors.<br \/>\no\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 Bhartamala and Sagarmala projects, Jal Marg Vikas and <strong>UDAN<\/strong>Schemes.<br \/>\n\u00b7 State road networks to be developed in second phase of Bharatmala project.<br \/>\n\u00b7 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.<br \/>\n\u00b7 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.<br \/>\n\u00b7 Rs. 50 lakh crore investment needed in Railway Infrastructure during 2018-2030.<br \/>\n\u00b7 Public-Private-Partnership proposed for development and completion of tracks, rolling stock manufacturing and delivery of passenger freight services.<br \/>\n\u00b7 657 kilometers of Metro Rail network has become operational across the country.<br \/>\n\u00b7 Policy interventions to be made for the development of Maintenance, Repair and Overhaul (MRO), to achieve self- reliance in aviation segment.<br \/>\n\u00b7 Regulatory roadmap for making India a hub for aircraft financing and leasing activities from Indian shores, to be laid by the Government.<br \/>\n\u00b7 Outlay of Rs. 10,000 crore for 3 years approved for Phase-II of FAME Scheme.<br \/>\n\u00b7 Upfront incentive proposed on purchase and charging infrastructure, to encourage faster adoption of Electric Vehicles.<br \/>\n\u00b7 Only advanced-battery-operated and registered e-vehicles to be incentivized under FAME Scheme.<br \/>\n\u00b7 National Highway Programme to be restructured to ensure a National Highway Grid, using a financeable model.<br \/>\n\u00b7 Power at affordable rates to states ensured under .One Nation, One Grid..<br \/>\n\u00b7 Blueprints to be made available for gas grids, water grids, i-ways, and regional airports.<\/li>\n<li><strong> High Level Empowered Committee (HLEC) recommendations to be implemented:<\/strong><strong><br \/>\n<\/strong>o\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 Retirement of old &amp; inefficient plants.<br \/>\no\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 Addressing low utilization of gas plant capacity due to paucity of Natural Gas.<br \/>\n\u00b7 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).<br \/>\n\u00b7 Package of power sector tariff and structural reforms to be announced soon.<br \/>\n\u00b7 \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Reform measures to be taken up to promote rental housing.<br \/>\n\u00b7 \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Model Tenancy Law to be finalized and circulated to the states.<br \/>\n\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Joint development and concession mechanisms to be used for public infrastructure and affordable housing on land parcels held by the Central Government and CPSEs.<\/li>\n<li><strong> Measures to enhance the sources of capital for infrastructure financing:<\/strong><strong><br \/>\n<\/strong>o\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 Credit Guarantee Enhancement Corporation to be set up in 2019-2020.<br \/>\no\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 Action plan to be put in place to deepen the market for long term bonds with focus on infrastructure.<br \/>\no \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Proposed transfer\/sale of investments by FIIs\/FPIs (in debt securities issued by IDF-NBFCs) to any domestic\u00a0 investor within the specified lock-in period.<br \/>\n\u00b7 Measures to deepen bond markets:<br \/>\no \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Stock exchanges to be enabled to allow AA rated bonds as collaterals.<br \/>\no \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 User-friendliness of trading platforms for corporate bonds to be reviewed.<\/li>\n<li><strong> Social stock exchange:<\/strong><strong><br \/>\n<\/strong>o Electronic fund raising platform under the regulatory ambit of SEBI.<br \/>\no Listing social enterprises and voluntary organizations.<br \/>\no \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 To raise capital as equity, debt or as units like a mutual fund.<br \/>\n\u00b7 SEBI to consider raising the threshold for minimum public shareholding in the listed companies from 25% to 35%.<br \/>\n\u00b7 Know Your Customer (KYC) norms for Foreign Portfolio Investors to be made more investor friendly.<br \/>\n\u00b7 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.<\/li>\n<li><strong> Measures to make India a more attractive FDI destination:<\/strong><strong><br \/>\n<\/strong>o\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0FDI in sectors like aviation, media (animation, AVGC) and insurance sectors can be opened further after multi-stakeholder examination.<br \/>\no\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0Insurance Intermediaries to get 100% FDI.<br \/>\no \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Local sourcing norms to be eased for FDI in Single Brand Retail sector.<br \/>\n\u00b7 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).<br \/>\n\u00b7 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.<br \/>\n\u00b7 FPIs to be permitted to subscribe to listed debt securities issued by ReITs and InvITs.<br \/>\n\u00b7 NRI-Portfolio Investment Scheme Route is proposed to be merged with the Foreign Portfolio Investment Route.<br \/>\n\u00b7 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.<br \/>\n\u00b7 New Space India Limited (NSIL), a PSE, incorporated as a new commercial arm of Department of Space.<br \/>\n\u00b7 To tap the benefits of the Research &amp; Development carried out by ISRO like commercialization of products like launch vehicles, transfer to technologies and marketing of space products.<strong>Direct Taxes<\/strong><strong><br \/>\n<\/strong>\u00b7 Tax rate reduced to 25% for companies with annual turnover up to Rs. 400 crore<br \/>\n\u00b7 Surcharge increased on individuals having taxable income from Rs. 2 crore to Rs. 5 crore and Rs. 5 crore and above.<br \/>\n\u00b7 India.s Ease of Doing Business ranking under the category of .paying taxes. jumped from 172 in 2017 to 121 in the 2019.<br \/>\n\u00b7\u00a0<strong>Direct tax<\/strong>\u00a0revenue increased by over 78% in past 5 years to Rs. 11.37 lakh crore<strong>Tax Simplification and Ease of living - making compliance easier by leveraging technology:<\/strong><strong><br \/>\n<\/strong>\u00b7 Interchangeability of PAN and Aadhaar<br \/>\no \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Those who don.t have PAN can file tax returns using Aadhaar.<br \/>\no\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Aadhaar can be used wherever PAN is required.<br \/>\n\u00b7 Pre-filling of Income-tax Returns for faster, more accurate tax returns<br \/>\no\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Pre-filled tax returns with details of several incomes and deductions to be made available.<br \/>\no \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Information to be collected from Banks, Stock exchanges, mutual funds etc.<br \/>\n\u00b7 Faceless e-assessment<br \/>\no \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Faceless e-assessment with no human interface to be launched.<br \/>\no \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 To be carried out initially in cases requiring verification of certain specified transactions or discrepancies.<strong>Affordable housing<\/strong><strong><br \/>\n<\/strong>\u00b7 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.<br \/>\no \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Overall benefit of around Rs. 7 lakh over loan period of 15 years.<strong>Boost to Electric Vehicles<\/strong><strong><br \/>\n<\/strong>\u00b7 Additional income tax deduction of Rs. 1.5 lakh on interest paid on electric vehicle loans.<br \/>\n\u00b7 Customs duty exempted on certain parts of electric vehicles.<\/p>\n<p><strong>Other Direct Tax measures<\/strong><strong><br \/>\n<\/strong>\u00b7 Simplification of tax laws to reduce genuine hardships of taxpayers:<br \/>\no \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Higher tax threshold for launching prosecution for non-filing of returns<br \/>\no \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Appropriate class of persons exempted from the anti-abuse provisions of Section 50CA and Section 56 of the Income Tax Act.<\/p>\n<p><strong>Relief for Start-ups<\/strong><strong><br \/>\n<\/strong>\u00b7 Capital gains exemptions from sale of residential house for investment in start-ups extended till FY21.<br \/>\n\u00b7 .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.<br \/>\n\u00b7 Funds raised by start-ups to not require scrutiny from Income Tax Department<br \/>\no\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 E-verification mechanism for establishing identity of the investor and source of funds.<br \/>\n\u00b7 Special administrative arrangements for pending assessments and grievance redressal<br \/>\no\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 No inquiry in such cases by the Assessing Officer without obtaining approval of the supervisory officer.<br \/>\n\u00b7 No scrutiny of valuation of shares issued to Category-II Alternative Investment Funds.<br \/>\n\u00b7 Relaxation of conditions for carry forward and set off of losses.<\/p>\n<p><strong>NBFCs<\/strong><strong><br \/>\n<\/strong>\u00b7 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.<br \/>\nInternational Financial Services Centre (IFSC)<\/p>\n<p><strong>\u00b7 Direct tax incentives proposed for an IFSC:<\/strong><strong><br \/>\n<\/strong>o \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 100 % profit-linked deduction in any ten-year block within a fifteen-year period.<br \/>\no\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Exemption from dividend distribution tax from current and accumulated income to companies and mutual funds.<br \/>\no \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Exemptions on capital gain to Category-III Alternative Investment Funds (AIFs).<br \/>\no\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Exemption to interest payment on loan taken from non-residents.<\/p>\n<p><strong>Securities Transaction Tax (STT)<\/strong><strong><br \/>\n<\/strong>\u00b7 STT restricted only to the difference between settlement and strike price in case of exercise of options.<\/p>\n<p><strong>Indirect Taxes<\/strong><strong><br \/>\n<\/strong><br \/>\n<strong>Make In India<\/strong><strong><br \/>\n<\/strong>\u00b7 Basic Customs Duty increased on cashew kernels, PVC, tiles, auto parts, marble slabs, optical fibre cable, CCTV camera etc.<br \/>\n\u00b7 Exemptions from Custom Duty on certain electronic items now manufactured in India withdrawn.<br \/>\n\u00b7 End use based exemptions on palm stearin, fatty oils withdrawn.<br \/>\n\u00b7 Exemptions to various kinds of papers withdrawn.<br \/>\n\u00b7 5% Basic Custom Duty imposed on imported books.<br \/>\n\u00b7 Customs duty reduced on certain raw materials such as:<br \/>\no \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Inputs for artificial kidney and disposable sterilised dialyser and fuels for nuclear power plants etc.<br \/>\no\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Capital goods required for manufacture of specified electronic goods.<\/p>\n<p><strong>Defence<\/strong><strong><br \/>\n<\/strong>\u00b7 Defence equipment not manufactured in India exempted from basic customs duty<\/p>\n<p><strong>Other\u00a0<\/strong><a href=\"https:\/\/m.economictimes.com\/topic\/Indirect-Tax\"><strong>Indirect Tax<\/strong><\/a><strong>\u00a0provisions<\/strong><strong><br \/>\n<\/strong>\u00b7 Export duty rationalised on raw and semi-finished leather<br \/>\n\u00b7 Increase in Special Additional Excise Duty and Road and Infrastructure Cess each by Rs. 1 per litre on petrol and diesel<br \/>\n\u00b7 Custom duty on gold and other precious metals increased<br \/>\n\u00b7 Legacy Dispute Resolution Scheme for quick closure of pending litigations in Central Excise and Service tax from pre-GST regime<\/p>\n<p><strong>Grameen Bharat \/ Rural India<\/strong><strong><br \/>\n<\/strong>\u00b7 Ujjwala Yojana and Saubhagya Yojana have transformed the lives of every rural family, dramatically improving ease of their living.<br \/>\n\u00b7 Electricity and clean cooking facility to all willing rural families by 2022.<br \/>\n\u00b7 Pradhan Mantri Awas Yojana \u00a1V Gramin (PMAY-G) aims to achieve \"Housing for All\" by 2022:<br \/>\no \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 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).<\/p>\n<p><strong>\u00b7 Pradhan Mantri Matsya Sampada Yojana (PMMSY)<\/strong><strong><br \/>\n<\/strong>o \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 A robust fisheries management framework through PMMSY to be established by the Department of Fisheries.<br \/>\no \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 To address critical gaps in the value chain including infrastructure, modernization, traceability, production, productivity, post-harvest management, and quality control.<\/p>\n<p><strong>\u00b7 Pradhan Mantri Gram Sadak Yojana (PMGSY)<\/strong><strong><br \/>\n<\/strong>o \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 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.<br \/>\no \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 30,000 kilometers of PMGSY roads have been built using Green Technology, Waste Plastic and Cold Mix Technology, thereby reducing carbon footprint.<br \/>\no \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 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.<\/p>\n<p>\u00b7 Scheme of Fund for Upgradation and Regeneration of Traditional Industries. (SFURTI)<br \/>\no \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 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.<br \/>\no \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 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.<br \/>\n\u00b7 Scheme for Promotion of Innovation, Rural Industry and Entrepreneurship. (ASPIRE) consolidated.<br \/>\no \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 80 Livelihood Business Incubators (LBIs) and 20 Technology Business Incubators (TBIs) to be setup in 2019-20.<br \/>\no \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 75,000 entrepreneurs to be skilled in agro-rural industry sectors.<br \/>\n\u00b7 Private entrepreneurships to be supported in driving value-addition to farmers. produce from the field and for those from allied activities.<br \/>\n\u00b7 Dairying through cooperatives to be encouraged by creating infrastructure for cattle feed manufacturing, milk procurement, processing &amp; marketing.<br \/>\n\u00b7 10,000 new Farmer Producer Organizations to be formed, to ensure economies of scale for farmers.<br \/>\n\u00b7 Government to work with State Governments to allow farmers to benefit from e-NAM.<br \/>\n\u00b7 Zero Budget Farming in which few states. farmers are already being trained to be replicated in other states.<\/p>\n<p><strong>\u00b7 India's water security<\/strong><strong><br \/>\n<\/strong>o \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 New Jal Shakti Mantralaya to look at the management of our water resources and water supply in an integrated and holistic manner<br \/>\no \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Jal Jeevan Mission to achieve Har Ghar Jal (piped water supply) to all rural households by 2024<br \/>\no \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 To focus on integrated demand and supply side management of water at the local level.<br \/>\no \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Convergence with other Central and State Government Schemes to achieve its objectives.<br \/>\no \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 1592 critical and over exploited Blocks spread across 256 District being identified for the Jal Shakti Abhiyan.<br \/>\no \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Compensatory Afforestation Fund Management and Planning Authority (CAMPA) fund can be used for this purpose.<\/p>\n<p><strong>\u00b7 Swachh Bharat Abhiyan<\/strong><strong><br \/>\n<\/strong>o \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 9.6 crore toilets constructed since Oct 2, 2014.<br \/>\no\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 More than 5.6 lakh villages have become Open Defecation Free (ODF).<br \/>\no \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Swachh Bharat Mission to be expanded to undertake sustainable solid waste management in every village.<\/p>\n<p><strong>\u00b7 Pradhan Mantri Gramin Digital Saksharta Abhiyan<\/strong><strong><br \/>\n<\/strong>o \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Over two crore rural Indians made digitally literate.<br \/>\no\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Internet connectivity in local bodies in every Panchayat under Bharat-Net to bridge rural-urban divide.<br \/>\no\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Universal Obligation Fund under a PPP arrangement to be utilized for speeding up Bharat-Net.<\/p>\n<p><strong>Shahree Bharat\/Urban India<\/strong><strong><br \/>\n<\/strong>\u00b7 Pradhan Mantri Awas Yojana \u00a1V Urban (PMAY-Urban)-<br \/>\no \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Over 81 lakh houses with an investment of about Rs. 4.83 lakh crore sanctioned of which construction started in about 47 lakh houses.<br \/>\no \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Over 26 lakh houses completed of which nearly 24 lakh houses delivered to the beneficiaries.<br \/>\no \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Over 13 lakh houses so far constructed using new technologies.<br \/>\n\u00b7 More than 95% of cities also declared Open Defecation Free (ODF).<br \/>\n\u00b7 Almost 1 crore citizens have downloaded Swachhata App.<br \/>\n\u00b7 Target of achieving Gandhiji.s resolve of Swachh Bharat to make India ODF by 2nd October 2019.<br \/>\no \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 To mark this occasion, the Rashtriya Swachhta Kendra to be inaugurated at Gandhi Darshan, Rajghat on 2nd October, 2019.<br \/>\no \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Gandhipedia being developed by National Council for Science Museums to sensitize youth and society about positive Gandhian values.<br \/>\n\u00b7 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.<br \/>\n\u00b7 Proposal to enhance the metro-railway initiatives by:<br \/>\no\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 Encouraging more PPP initiatives.<br \/>\no\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 Ensuring completion of sanctioned works.<br \/>\no\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 Supporting transit oriented development (TOD) to ensure commercial activity around transit hubs.<\/p>\n<p><strong>Youth<\/strong><strong><br \/>\n<\/strong>\u00b7 New National Education Policy to be brought which proposes<br \/>\no \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Major changes in both school and higher education<br \/>\no \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Better Governance systems<br \/>\no\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Greater focus on research and innovation.<br \/>\n\u00b7 National Research Foundation (NRF) proposed<br \/>\no \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 To fund, coordinate and promote research in the country.<br \/>\no \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 To assimilate independent research grants given by various Ministries.<br \/>\no \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 To strengthen overall research eco-system in the country<br \/>\no\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 This would be adequately supplemented with additional funds.<br \/>\n\u00b7 Rs. 400 crore provided for \"World Class Institutions\", for FY 2019-20, more than three times the revised estimates for the previous year.<br \/>\n\u00b7 .Study in India. proposed to bring foreign students to study in Indian higher educational institutions.<br \/>\n\u00b7 Regulatory systems of higher education to be reformed comprehensively:<br \/>\no \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 To promote greater autonomy.<br \/>\no\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 To focus on better academic outcomes.<br \/>\n\u00b7 Draft legislation to set up Higher Education Commission of India (HECI), to be presented.<br \/>\n\u00b7 Khelo India Scheme to be expanded with all necessary financial support.<br \/>\n\u00b7 National Sports Education Board for development of sportspersons to be set up under Khelo India, to popularize sports at all levels<br \/>\n\u00b7 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.<br \/>\n\u00b7 Set of four labour codes proposed, to streamline multiple labour laws to standardize and streamline registration and filing of returns.<br \/>\n\u00b7 A television program proposed exclusively for and by start-ups, within the DD bouquet of channels.<br \/>\n\u00b7 Stand-Up India Scheme to be continued for the period of 2020-25. The Banks to provide financial assistance for demand based businesses.<\/p>\n<p><strong>Ease of Living<\/strong><strong><br \/>\n<\/strong>\u00b7 About 30 lakh workers joined the Pradhan Mantri Shram Yogi Maandhan Scheme that provides Rs. 3,000 per month as pension on attaining the age of 60 to workers in unorganized and informal sectors.<br \/>\n\u00b7 Approximately 35 crore LED bulbs distributed under UJALA Yojana leading to cost saving of Rs. 18,341 crore annually.<br \/>\n\u00b7 Solar stoves and battery chargers to be promoted using the approach of LED bulbs mission.<br \/>\n\u00b7 A massive program of railway station modernization to be launched.<\/p>\n<p><strong>Naari Tu Narayani\/Women<\/strong><strong><br \/>\n<\/strong>\u00b7 Approach shift from women-centric-policy making to women-led initiatives and movements.<br \/>\n\u00b7 A Committee proposed with Government and private stakeholders for moving forward on Gender budgeting.<br \/>\n\u00b7 SHG:<br \/>\no \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Women SHG interest subvention program proposed to be expanded to all districts.<br \/>\no \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Overdraft of Rs. 5,000 to be allowed for every verified women SHG member having a Jan Dhan Bank Account.<br \/>\no \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 One woman per SHG to be eligible for a loan up to Rs. 1 lakh under MUDRA Scheme.<\/p>\n<p><strong>India's Soft Power<\/strong><strong><br \/>\n<\/strong>\u00b7 Proposal to consider issuing Aadhaar Card for NRIs with Indian Passports on their arrival without waiting for 180 days.<br \/>\n\u00b7 Mission to integrate traditional artisans with global markets proposed, with necessary patents and geographical indicators.<br \/>\n\u00b7 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.<br \/>\n\u00b7\u00a0<strong>Revamp<\/strong>\u00a0of Indian Development Assistance Scheme (IDEAS) proposed.<br \/>\n\u00b7 17 iconic Tourism Sites being developed into model world class tourist destinations.<br \/>\n\u00b7 Present digital repository aimed at preserving rich tribal cultural heritage, to be strengthened.<\/p>\n<p><strong>Banking and Financial Sector<\/strong><strong><br \/>\n<\/strong>\u00b7 NPAs of commercial banks reduced by over Rs. 1 lakh crore over the last year.<br \/>\n\u00b7 Record recovery of over Rs. 4 lakh crore effected over the last four years.<br \/>\n\u00b7 Provision coverage ratio at its highest in seven years.<br \/>\n\u00b7 Domestic credit growth increased to 13.8%.<\/p>\n<p><strong>\u00b7 Measures related to PSBs:<\/strong><strong><br \/>\n<\/strong>o\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Rs. 70,000 crore proposed to be provided to PSBs to boost credit.<br \/>\no \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 PSBs to leverage technology, offering online personal loans and doorstep banking, and enabling customers of one PSBs to access services across all PSBs.<br \/>\no \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Steps to be initiated to empower accountholders to have control over deposit of cash by others in their accounts.<br \/>\no\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Reforms to be undertaken to strengthen governance in PSBs.<br \/>\n\u00b7 Measures related to NBFCs:<br \/>\no\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Proposals for strengthening the regulatory authority of RBI over NBFCs to be placed in the Finance Bill.<br \/>\no \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Requirement of creating a Debenture Redemption Reserve will be done away with to allow NBFCs to raise funds in public issues.<br \/>\no \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Steps to allow all NBFCs to directly participate on the TReDS platform.<br \/>\n\u00b7 Return of regulatory authority from NHB to RBI proposed, over the housing finance sector.<br \/>\n\u00b7 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.<br \/>\n\u00b7 Steps to be taken to separate the NPS Trust from PFRDA.<br \/>\n\u00b7 Reduction in Net Owned Fund requirement from Rs. 5,000 crore to Rs. 1,000 crore proposed:<br \/>\no \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 To facilitate on-shoring of international insurance transactions.<br \/>\no\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 To enable opening of branches by foreign reinsurers in the International Financial Services Centre.<\/p>\n<p><strong>\u00b7 Measures related to CPSEs:<\/strong><strong><br \/>\n<\/strong>o \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Target of Rs. 1, 05,000 crore of disinvestment receipts set for the FY 2019-20.<br \/>\no \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Government to reinitiate the process of strategic disinvestment of\u00a0<a href=\"https:\/\/m.economictimes.com\/topic\/Air-India\"><strong>Air India<\/strong><\/a>, and to offer more CPSEs for strategic participation by the private sector.<br \/>\no\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Government to undertake strategic sale of PSUs and continue to consolidate PSUs in the non-financial space.<br \/>\no \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 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.<br \/>\no \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Present policy of retaining 51% Government stake to be modified to retaining 51% stake inclusive of the stake of Government controlled institutions.<br \/>\no \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Retail participation in CPSEs to be encouraged.<\/p>\n<p><strong>o To provide additional investment space:<\/strong><strong><br \/>\n<\/strong>\u00a4\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Government to realign its holding in CPSEs<br \/>\n\u00a4\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0Banks to permit greater availability of its shares and to improve depth of its market.<br \/>\no \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Government to offer an investment option in ETFs on the lines of Equity Linked Savings Scheme (ELSS).<br \/>\no \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 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.<br \/>\n\u00b7 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.<br \/>\n\u00b7 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.<\/p>\n<p><strong>Digital Payments<\/strong><strong><br \/>\n<\/strong>\u00b7 TDS of 2% on cash withdrawal exceeding Rs. 1 crore in a year from a bank account<br \/>\n\u00b7 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.<\/p>\n<p><strong>Mega Investment in Sunrise and Advanced Technology Areas<\/strong><strong><br \/>\n<\/strong>\u00b7 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<br \/>\no\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Investment linked income tax exemptions to be provided along with indirect tax benefits.<\/p>\n<p><strong>Achievements during 2014-19<\/strong><strong><br \/>\n<\/strong>\u00b7 1 trillion dollar added to Indian economy over last 5 years (compared to over 55 years taken to reach the first trillion dollar).<br \/>\n\u00b7 India is now the 6th largest economy in the world, compared to 11th largest five years ago.<br \/>\n\u00b7 Indian economy is globally the 3rd largest in Purchasing Power Parity (PPP) terms.<br \/>\n\u00b7 Strident commitment to fiscal discipline and a rejuvenated Centre-State dynamic provided during 2014-<br \/>\n\u00b7 Structural reforms in indirect taxation, bankruptcy and real estate carried out.<br \/>\n\u00b7 Average amount spent on food security per year almost doubled during 2014-19 compared to 2009-14.<br \/>\n\u00b7 Patents issued more than trebled in 2017-18 as against the number in 2014.<br \/>\n\u00b7 Ball set rolling for a New India, planned and assisted by the\u00a0<strong>NITI Aayog<\/strong>.<\/p>\n<p><strong>Roadmap for future<\/strong><strong><br \/>\n<\/strong>\u00b7 <em>Simplification of procedures.<\/em><br \/>\n<em>\u00b7 Incentivizing performance.<\/em><br \/>\n<em>\u00b7 Red-tape reduction.<\/em><br \/>\n<em>\u00b7 Making the best use of technology.<\/em><br \/>\n<em>\u00b7 Accelerating mega programmes and services initiated and delivered so far.<\/em><\/p>\n<\/li>\n<\/ul>\n<p><span style=\"color: #993366;\"><strong>Impact of Budget on Banking and Financial Sector:<br \/>\n<\/strong>The government took measures to resolve liquidity issues of both banks and NBFCs, which had been reeling under bad loan pressure, by way of capital infusion into PSU banks. It would open funding avenues for financially-sound NBFCs and provide partial credit guarantee for public sector banks for the purchase of pooled assets of financially-sound NBFCs.<strong><br \/>\n<\/strong>-\u00a0 \u20b970,000 crore capital infusion in banks will spur lending to growth sectors in the economy.<\/span><br \/>\n<span style=\"color: #993366;\"><strong>-\u00a0 <\/strong>Budget has comprehensively addressed the important issues of liquidity, solvency and poor governance in the NBFC sector. It offers a liquidity window of \u20b91 lakh crore to public sector banks through the Reserve Bank of India to buy pooled assets of NBFCs and offered a one-time credit guarantee for first loss of up to 10%.<\/span><br \/>\n<span style=\"color: #993366;\">-\u00a0 Housing finance companies will come under the RBI\u2019s regulatory ambit.<\/span><br \/>\n<span style=\"color: #993366;\">-\u00a0 The government has proposed several measures to boost debt markets.<\/span><br \/>\n<span style=\"color: #993366;\">-\u00a0 Simplified KYC norms for FPI and move to streamline NRI investment are also steps in the right direction.<\/span><br \/>\n<span style=\"color: #993366;\">-\u00a0 In the insurance sector the announcement with respect to increase in FDI from 49 percent to 100 percent for insurance intermediaries and reduction of the net-owned fund requirement for re-insurers to join IFSC from INR50 billion to Rs 10 billion, will further encourage more insurance companies to set up operations in India.This may also result in strong alternate distribution channel in addition to bancassurance.<br \/>\n- 2% tax will be deducted at source on cash withdrawal of more than Rs 1 crore from a bank account in a year. The move is aimed at discouraging cash payments for business transactions.<\/span><\/p>\n<p><strong>We present below two articles which explain the Impact of Budget 2019-20 on Banking and Financial Sectors;<\/strong><\/p>\n<h3><strong>Budget 2019 responds comprehensively to banking &amp; financial sector, resolves liquidity issues<\/strong><\/h3>\n<h4>Overall, the budget has responded comprehensively to the sector\u2019s requirements by way of adequate fund allocation, better understanding of regulatory shortcomings and streamlining foreign investments into the economy.<\/h4>\n<p>In the\u00a0<a href=\"http:\/\/www.moneycontrol.com\/budget-2019\/\">Union Budget<\/a>\u00a0presented on July 5, the government took measures to resolve liquidity issues of both banks and NBFCs, which had been reeling under bad loan pressure, by way of capital infusion of Rs 70,000 crore into PSU banks. It would open funding avenues for financially-sound NBFCs and provide partial credit guarantee for public sector banks for the purchase of pooled assets of financially-sound NBFCs.<\/p>\n<p>The government\u2019s move to vest the Reserve Bank of India (RBI) with additional power over NBFCs and Housing Finance companies will streamline regulations and implementations. This is expected to provide more uniform regulatory environment to the lending segment. Steps have been taken through tax measures to bring deposit taking NBFCs and systematically important non-deposit taking NBFCs at par with banks and other public financial institutions. Measures to support financially sound NBFCs and higher regulatory RBI monitoring will lead to drive for consolidation of NBFCs.<\/p>\n<p>The government has proposed several measures to boost debt markets. To enhance the sources for infrastructure financing, it was proposed to set up of Credit Guarantee Enhancement Corporation and have an action plan for deepening the corporate bond repos, credit default swaps etc.<\/p>\n<p>In the tri-party repo market in corporate debt securities, an arrangement to allow AA-rated bonds as collaterals was envisaged. It was proposed to allow investments made by FIIs\/FPIs in debt securities issued by Infrastructure Debt Fund \u2013 Non-Bank Finance Companies (IDF-NBFCs) to be transferred\/sold to any domestic investor within the specified lock-in period. These measures should significantly ease liquidity and provide much needed impetus to infrastructure and real estate. Simplified KYC norms for FPI and move to streamline NRI investment are also steps in the right direction.<\/p>\n<p>For the insurance sector, there were announcements with respect to increase in FDI from 49 percent to 100 percent for insurance intermediaries and reduction of the net-owned fund requirement for re-insurers to join IFSC from INR50 billion to Rs 10 billion, This will further encourage more insurance companies to set up operations in India. 100 percent FDI in insurance intermediaries will help in building distribution scale and penetration of insurance. This may also result in strong alternate distribution channel in addition to bancassurance.<\/p>\n<p>True to its commitment to further promote the IFSC, several tax incentives have been announced such as an enhanced holiday scheme with added flexibility, tax exemption for interest paid on external borrowings, relaxation on certain distribution taxes and expansion in scope of securities (including securities held by certain Category III AIFs) eligible for tax exemption on trading in the IFSC. Further, there is a plan to develop an aircraft financing and leasing hub within the IFSC.<\/p>\n<p>A social stock exchange enabling easy funding for social enterprises will give a push to several welfare schemes of the Government, providing much needed impetus to an inclusive economic growth.<\/p>\n<p>Overall, the budget has responded comprehensively to the sector\u2019s requirements by way of adequate fund allocation, better understanding of regulatory shortcomings and streamlining foreign investments into the economy.<\/p>\n<h3>Source:<strong> Moneycontrol Contributor<\/strong><a href=\"https:\/\/twitter.com\/moneycontrolcom\">@moneycontrolcom<\/a><br \/>\n-----------------------------------------------------------------------------------------------------------------------------------<strong>Union Budget 2019-20: Bucks for the banks<\/strong><\/h3>\n<h3>The Union Budget is hoping to spur the economy by revitalising the financial sector<\/h3>\n<p>The maiden budget of Nirmala Sitharaman has many interesting features, but it does not have a defining central theme. There were expectations of a big growth push through either tax cuts or large expenditure programmes even if it meant a rise in the fiscal deficit. But the Finance Minister has chosen to be fiscally conservative, opting to play the long-term game, though it could lead to pain in the short term. The only indulgence she has permitted herself is a big \u20b970,000 crore capital infusion in banks that will, it is hoped, spur lending to growth sectors in the economy. Also, quite notably, the budget has sought to address the problems that have plagued the non-banking finance companies space over the last few months and the consequent credit freeze and loss of confidence in the market. Ms. Sitharaman has comprehensively addressed the important issues of liquidity, solvency and poor governance in the NBFC sector. She has made available a liquidity window of \u20b91 lakh crore to public sector banks through the Reserve Bank of India to buy pooled assets of NBFCs and offered a one-time credit guarantee for first loss of up to 10%. To enable better supervision of the sector, housing finance companies, which have been the main villains of the piece, will come under the RBI\u2019s regulatory ambit. A long-standing demand of NBFCs for equitable treatment with banks in the matter of taxing interest receivable on bad loans has been conceded. They will not need to maintain a Debenture Redemption Reserve on public placements that was leading to locking-up of funds, which is their raw material for business. These are important reform measures for NBFCs. More interesting is the move towards reviving development financial institutions. The big problem faced by NBFC financing infrastructure is the lack of long-term funding sources to match their lending tenure. This pushed them into borrowing short-term funds to lend to long-term projects, leading to asset-liability mismatches. The proposal to set up a committee to study the issue, including the experience with development finance institutions, is welcome.<\/p>\n<p>There are several reform measures that have been announced, but the most interesting is the reiteration of the government\u2019s commitment to strategic disinvestment and the declaration that it is willing to allow its stake to fall below 51% in non-financial PSUs. Start-ups can heave a sigh of relief as the angel tax is practically off the table. The government seems to be moving towards a single identity card for citizens in the form of Aadhaar, which will now be interchangeable with the PAN card. Taxpayers who do not have a PAN card can file returns quoting their Aadhaar number, which effectively can be a substitute for PAN in all transactions. Another reform measure is the introduction of faceless e-assessment of tax returns taken up for scrutiny. This will eliminate the scope for rent-seeking by officers as there will be no interface between assessee and official. In fact, the assessee will not even know the identity of the officer scrutinising the return. This is an absolutely welcome measure but needs to be closely watched for implementation. The corporate sector has got a minor sop with the turnover limit for the 25% tax bracket being raised to \u20b9400 crore per annum from \u20b9250 crore. The expectation was that this would be extended to all companies irrespective of size. It appears that the government wants to wait for the finalisation of the Direct Taxes Code, which is being examined by a committee. Real estate companies may have reason to cheer as the generous tax concession for affordable housing may create demand, especially in the smaller metros.<\/p>\n<p>The \u2018nudge theory\u2019 of economist Richard Thaler, mentioned extensively in the Economic Survey 2018-19 presented in Parliament on Thursday, has been put to use by the Finance Minister to push forward two of this government\u2019s pet themes \u2014 increasing digitalisation of money and promoting electric mobility. On the first, there will now be a 2% tax deducted at source when withdrawals from bank accounts exceed \u20b91 crore in a year. This is a commendable measure, but it could lead to genuine problems for businesses such as construction and real estate that are forced to deal in cash for wage payments. Of course, the TDS can be set off against their overall tax liability. The second, and more interesting \u2018nudge\u2019, is towards electric vehicles where those taking loans to buy one will get a tax deduction of up to \u20b91.5 lakh on the interest paid by them. But the fact is that there are not too many electric vehicles in the market now. And even for those that are there, the waiting period to deliver one is long. Besides, there is no ecosystem, such as charging points, even in the major cities. The government\u2019s hope seems to be that this incentive will create a market for e-vehicles that will then lead to the development of the ecosystem.<\/p>\n<p>The budget documents show that the government has stuck to the glide path for fiscal deficit, which will be at 3.3% this fiscal. This is, however, based on exaggerated growth projections in tax revenues. The estimated total revenue receipts this fiscal is \u20b919.62 lakh crore, which implies a 25.56% growth compared to the actual receipts of \u20b915.63 lakh crore (as presented in the Economic Survey) in 2018-19. This is an extremely ambitious projection, especially given the ongoing slowdown in the economy. Of course, the Finance Minister could get a comfortable buffer if the Bimal Jalan committee that is going into the sharing of RBI\u2019s reserves with the government comes up with favourable recommendations. The government also appears to be sliding into a protectionist mode, going by the increase in customs duty on everything from cashew kernels to PVC, newsprint and even auto parts. While some of it may be well-intentioned to promote domestic manufacturing, this sends out a retrograde signal on the reforms front.<\/p>\n<p>Source: <a href=\"https:\/\/www.thehindu.com\/opinion\/editorial\/bucks-for-the-banks\/article28299094.ece\">https:\/\/www.thehindu.com\/opinion\/editorial\/bucks-for-the-banks\/article28299094.ece<\/a><\/p>\n<p>&nbsp;<\/p>\n<\/div>\n<\/div><\/div><\/div><\/div><\/div><\/div>","protected":false},"excerpt":{"rendered":"<p>The Union Minister for Finance and Corporate Affairs Smt.\u00a0Nirmala Sitharaman\u00a0made her maiden Budget Speechon 5th July 2019 and presented the Union Budget 2019-20 before the Parliament. The key highlights of Union Budget 2019 are as follows: 10-point Vision for the decade 1. Building Team India with Jan Bhagidari: Minimum Government Maximum Governance. 2. Achieving green&hellip;<\/p>\n","protected":false},"author":1,"featured_media":3664,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[38,180,409,10,37,120,189,268,182,594],"tags":[174,35,11,278],"class_list":["post-3662","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-banking","category-budget","category-economic-survey","category-economy","category-finance","category-finance-ministry","category-financial-planning","category-fiscal-policy","category-general-budget","category-india","tag-budget","tag-economy","tag-finance","tag-finance-ministry"],"jetpack_featured_media_url":"https:\/\/i0.wp.com\/yourcareerheights.com\/wp-content\/uploads\/2019\/07\/Union-budget-2019-Budget-for-new-India.jpg?fit=640%2C441&ssl=1","jetpack_sharing_enabled":true,"jetpack-related-posts":[],"jetpack_likes_enabled":true,"_links":{"self":[{"href":"https:\/\/yourcareerheights.com\/index.php?rest_route=\/wp\/v2\/posts\/3662","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/yourcareerheights.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/yourcareerheights.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/yourcareerheights.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/yourcareerheights.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=3662"}],"version-history":[{"count":6,"href":"https:\/\/yourcareerheights.com\/index.php?rest_route=\/wp\/v2\/posts\/3662\/revisions"}],"predecessor-version":[{"id":3671,"href":"https:\/\/yourcareerheights.com\/index.php?rest_route=\/wp\/v2\/posts\/3662\/revisions\/3671"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/yourcareerheights.com\/index.php?rest_route=\/wp\/v2\/media\/3664"}],"wp:attachment":[{"href":"https:\/\/yourcareerheights.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=3662"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/yourcareerheights.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=3662"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/yourcareerheights.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=3662"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}