Key highlights - budget 2019

Fiscal Deficit 

• Government to focus on debt consolidation along with fiscal consolidation
• Fiscal deficit for 2019/20 estimated at 3.4 per cent of GDP
• Current account deficit for 2018/19 seen at 2.5 per cent of GDP
• Fiscal deficit to be less than 3.1 per cent in 2019/20 without a farm income benefit scheme
• Capital expenditure for 2019/20 to be around 3.36 trillion rupees on centrally sponsored schemes
• Disinvestment expected to cross 800 billion rupees in 2019
• India’s net market borrowing at 4.73 trillion rupees in 2019/20
• India’s revenue deficit at 2.2 per cent of GDP in 2019/20
• RBI dividend, financial institutions to the government at 829.1 billion rupees in 2019/20
• Gross market borrowing @ 7.04 trillion rupees in 2019/20
• India’s FY19 budget deficit pegged at 3.4% of GDP and fiscal deficit likely to be 2.5% in 2019-20

Entertainment sector

• Keep track of entertainment stocks like Mukta Arts, Eros International, INOX Leisure.
• The government announced single window clearance for Indian filmmakers.

Investment incentives

• Raises standard deduction from Rs 40,000 to Rs 50,000.
• No tax on notional rent on the second self-occupied house
• Further, no TDS on house rent up to Rs 2.4 lakh

Income Tax 

• Individuals with income up to Rs 5 lakh and another Rs 1.5 lakh in investments totalling Rs 6.5 lakh will have to pay no tax.
• This will benefit nearly Rs 3 crore middle-class income earners Tax Exemption on tax deducted at source on interest income from bank, post office savings raised to 40,000 rupees from 10,000 rupees
•  Individual taxpayers with income up to Rs 5 lakh proposed to get a full tax rebate
• The gratuity limit increased from Rs 10 lakh to Rs 20 lakh

Telecom sector

• Telecom stocks to benefit after govt announcement of creating 1 lakh digital villages in the next five years.
• Keep track on Bharti Airtel, Vodafone Idea and RIL

Modernising India

• Finance Minister to launch a national centre for Artificial Intelligence
• India poised to become $5 trillion economies in the next 5 years
• Aspire to become $10 trillion economies in the next 8 years
• From being the 11th largest economy in 2013-14 India became the 6th largest economy in the world.

Social schemes

• Government to launch the pension scheme of 3,000 rupees per month for unorganised sector workers after the age of 60 years.
• From social welfare state India seems to be moving towards a capitalist economy.
•  India has achieved over 98% rural sanitation coverage; 5.45 lakh villages declared ODF
• SwachhBharat now a national movement
• To provide comprehensive social security coverage for workers in the unorganised sector in India
• Finance Minister Piyush Goyal says NREGA scheme to get 600 billion rupees and will allocate 190 billion rupees for construction of rural roads

Transportation sector 

• Inland freight waterways commenced from Kolkata to Varanasi.  North-eastern states to be connected in due course.
• 100 plus airports now in India which is far below the government target
• India became the fastest highway developer in the world. 27 km of highways built each day
• Projects stuck for decades completed
• Sagar Mala to accelerate handling of import and export cars
• Construction of rural roads tripled. 15.8 lakh out of a total of 17.84 lakh habitations connected with pucca roads under PMGSY.
• PMGSY allocated 19,000 crore rupees in 2019-20

Defence sector

• Finance Minister allocated defence budget in India to be over 3 trillion rupees in FY19

Rail budget 2019

• FM allocates Rs 64,587 crore for Railways in FY20.

Power sector

• To promote renewable energy govt set up International Solar Alliance
• Installed solar generation capacity increased 10 times in the last five years
• Lakhs of new jobs created in this sector

Agriculture sector

• Small & marginal farmers to get budgetary support of 6,000 rupees per year.
• Government to allocate 750 billion rupees per year for farmer income
• Proposes to provide 2% interest subvention for farmers pursuing animal husbandry, fisheries
• Proposes to provide an additional 3% interest subvention to farmers hit by natural calamities if they repay loans on time
• Centre to spend Rs 75,000 crore annually on farm income support scheme
• It will be transferred in instalments of Rs 2,000 each
• Kisan Samman Nidhi scheme to be funded by central government
• Small, marginal farmers to get Rs 6,000 per year

Healthcare sector

• 22nd AIIMS hospital to come up in Haryana