The BSE Sensex fell 394.67 points to 39,513.39 and the Nifty50 declined 135.60 points to 11,811.20 after Finance Minister Nirmala Sitharaman proposed increasing the minimum public shareholding in listed companies to 35% from 25%, threatening a wave of new issuance.

Benchmark indices fell sharply for first time in last five straight sessions after Budget failed to boost sentiment.

Sitharaman unveiled the proposal while presenting the budget for the fiscal year ending March 31, 2020 to parliament. She said the government has asked the Securities and Exchange Board of India to consider the proposal, but did not give many other details.

The government also trimmed its fiscal deficit target to 3.3% from 3.4% for this year in the budget and said some of the borrowing would be made in offshore markets.

Corporate taxes were cut to 25% for some firms, but the government also said it raise import tariffs on items such as gold and impose an additional excise duty on petrol and diesel.

The broader NSE Nifty fell 0.82% to 11,849.85 points by 0925 GMT, while the benchmark BSE Sensex was 0.67% lower at 39,646.57.

Six of the 11 sector indexes compiled by the NSE were in the red while 15 of the 19 sector indexes compiled by BSE were trading lower.

Shares of Tata Consultancy Services Ltd was the biggest drag on the index, falling as much as 4.6% in afternoon trade. The country's IT index was down 2.3%.

(With inputs from Reuters)

The BSE Sensex fell 394.67 points to 39,513.39 and the Nifty50 declined 135.60 points to 11,811.20 after Finance Minister Nirmala Sitharaman proposed increasing the minimum public shareholding in listed companies to 35% from 25%, threatening a wave of new issuance.

The BSE Sensex fell 394.67 points to 39,513.39 and the Nifty50 declined 135.60 points to 11,811.20 after Finance Minister Nirmala Sitharaman proposed increasing the minimum public shareholding in listed companies to 35% from 25%, threatening a wave of new issuance. Benchmark indices fell sharply for first time in last five straight sessions after Budget failed to boost sentiment. Sitharaman unveiled the proposal while presenting the budget for the fiscal year ending March 31, 2020 to parliament. She said the government has asked the Securities and Exchange Board of India to consider the proposal, but did not give many other details. The government also trimmed its fiscal deficit target to 3.3% from 3.4% for this year in the budget and said some of the borrowing would be made in offshore markets. Corporate taxes were cut to 25% for some firms, but the government also said it raise import tariffs on items such as gold and impose an additional excise duty on petrol and diesel. The broader NSE Nifty fell 0.82% to 11,849.85 points by 0925 GMT, while the benchmark BSE Sensex was 0.67% lower at 39,646.57. Six of the 11 sector indexes compiled by the NSE were in the red while 15 of the 19 sector indexes compiled by BSE were trading lower. Shares of Tata Consultancy Services Ltd was the biggest drag on the index, falling as much as 4.6% in afternoon trade. The country's IT index was down 2.3%. (With inputs from Reuters)

Sensex falls 395 points, Nifty below 11,900 as Budget 2019 fails to cheer markets 

Finance minister <a href="https://www.wionews.com/business-economy/need-structural-reforms-to-continue-growth-says-sitharaman-in-budget-speech-233176">Nirmala Sitharaman today announced </a>a slew of measures in the Budget to boost the economy. India is the sixth largest economy, she said. The finance minister said she will announce changes to kick-start foreign investment.

"It's right time to consider increasing minimum public shareholding in the listed companies, I have asked SEBI to consider raising the current threshold of 25 per cent to 35 per cent," India's finance minister informed Parliament during the Budget speech.

"We'll support private entrepreneurship in driving value addition to farmers produce and those from allied activities too, like bamboo, timber and also for generating renewable energy," the finance minister said during her Budget speech.&nbsp;

The major takeways included:

In order to harness India's space ability commercially, a public sector enterprise, New Space India Limited (NSIL) incorporated to tap benefits of ISRO.

Proposal&nbsp;to reform KYC for FPIs.

New National Education policy announced, encourage foreign students to study in India.

Propose to consider issuing Aadhaar Card for Non-Resident Indians (NRIs) with Indian passports after their arrival in India without waiting for the mandatory 180 days.&nbsp;

Rs 350 crore allocated for 2 per cent interest subvention for all GST-registered MSMEs on fresh or incremental loans.&nbsp;

Provide Non-resident Indians (NRIs) seamless access to Indian equities, NRI portfolio investment route to be merged with foreign portfolio investment route.

Pension for shopkeepers and retailers with turnover less than Rs 1.5 crore to be launched under Pradhan Mantri Karma Yogi Maan Dhan Scheme.

100 per cent FDI in insurance intermediaries.

1 crore loans for MSMEs in 59 minutes.&nbsp;

Pradhan Mantri Gram Sadak Yojana phase 3 envisaged to upgrade 1,25,000 km of road length over the next 5 years.

National Highways Programme will be done&nbsp;to ensure the creation of National Highways Grid of desirable capacity. The government envisions using rivers for cargo transport, it will also decongest roads and railways.

Government to&nbsp;invite suggestions for further opening up of FDI in the aviation sector, media, animation AVGC and insurance sectors in consultation with all stakeholders.&nbsp;

PPP to be used to unleash faster development and the delivery of passenger freight services.&nbsp; 
&nbsp; 
FAME II scheme to encourage faster adoption of electric vehicles by the right incentives and charging infrastructure.&nbsp;

New Rupay scheme for transport.

Rental laws to be reformed.

Long term bonds for markets.

Multiple transport lines with one card.

Big Metro line push for new India.

Sagarmala for road, rail and port connectivity. It is meant for 'poor man's transport'.

India to enter aircraft financing.

India to create aspirational jobs in the aviation sector.

<a href="https://www.wionews.com/business-economy/in-a-first-finance-minister-nirmala-sitharaman-to-carry-budget-documents-four-fold-red-cloth-233152">Sitharaman</a> pushed for the development of MRO industry.

Annual Global Investors' Meet to be organized in India, using National Investment and Infrastructure Fund(NIIF) as the anchor to get key sets of global players to come and invest in India.&nbsp;

Expansion of Swachh Bharat mission to undertake sustainable solid waste management in every village.

Management of water resources and water supply in an integrated and holistic manner to ensure 'Har Ghar Jal', to all rural households by 2024 under 'Jal Jeevan Mission'.

Government to set up Sports Development Board under Khelo India.

Women Self Help Group(SHG) Interest Subvention Programme to be expanded to all districts in India.

Finance minister Nirmala Sitharaman today announced a slew of measures in the Budget to boost the economy. India is the sixth largest economy, she said. The finance minister said she will announce changes to kick-start foreign investment.

Finance minister Nirmala Sitharaman today announced a slew of measures in the Budget to boost the economy. India is the sixth largest economy, she said. The finance minister said she will announce changes to kick-start foreign investment. "It's right time to consider increasing minimum public shareholding in the listed companies, I have asked SEBI to consider raising the current threshold of 25 per cent to 35 per cent," India's finance minister informed Parliament during the Budget speech. "We'll support private entrepreneurship in driving value addition to farmers produce and those from allied activities too, like bamboo, timber and also for generating renewable energy," the finance minister said during her Budget speech. The major takeways included: In order to harness India's space ability commercially, a public sector enterprise, New Space India Limited (NSIL) incorporated to tap benefits of ISRO. Proposal to reform KYC for FPIs. New National Education policy announced, encourage foreign students to study in India. Propose to consider issuing Aadhaar Card for Non-Resident Indians (NRIs) with Indian passports after their arrival in India without waiting for the mandatory 180 days. Rs 350 crore allocated for 2 per cent interest subvention for all GST-registered MSMEs on fresh or incremental loans. Provide Non-resident Indians (NRIs) seamless access to Indian equities, NRI portfolio investment route to be merged with foreign portfolio investment route. Pension for shopkeepers and retailers with turnover less than Rs 1.5 crore to be launched under Pradhan Mantri Karma Yogi Maan Dhan Scheme. 100 per cent FDI in insurance intermediaries. 1 crore loans for MSMEs in 59 minutes. Pradhan Mantri Gram Sadak Yojana phase 3 envisaged to upgrade 1,25,000 km of road length over the next 5 years. National Highways Programme will be done to ensure the creation of National Highways Grid of desirable capacity. The government envisions using rivers for cargo transport, it will also decongest roads and railways. Government to invite suggestions for further opening up of FDI in the aviation sector, media, animation AVGC and insurance sectors in consultation with all stakeholders. PPP to be used to unleash faster development and the delivery of passenger freight services. FAME II scheme to encourage faster adoption of electric vehicles by the right incentives and charging infrastructure. New Rupay scheme for transport. Rental laws to be reformed. Long term bonds for markets. Multiple transport lines with one card. Big Metro line push for new India. Sagarmala for road, rail and port connectivity. It is meant for 'poor man's transport'. India to enter aircraft financing. India to create aspirational jobs in the aviation sector. Sitharaman pushed for the development of MRO industry. Annual Global Investors' Meet to be organized in India, using National Investment and Infrastructure Fund(NIIF) as the anchor to get key sets of global players to come and invest in India. Expansion of Swachh Bharat mission to undertake sustainable solid waste management in every village. Management of water resources and water supply in an integrated and holistic manner to ensure 'Har Ghar Jal', to all rural households by 2024 under 'Jal Jeevan Mission'. Government to set up Sports Development Board under Khelo India. Women Self Help Group(SHG) Interest Subvention Programme to be expanded to all districts in India.

Budget 2019: Key takeaways announced by Nirmala Sitharaman in Parliament

Prime Minister Narendra Modi on Friday addressed the nation after Finance Minister Nirmala Sitharaman tabled the newly-elected <a href="https://www.wionews.com/business-economy/budget-2019-highlights-of-taxation-revenue-policy-announced-by-finance-minister-nirmala-sitharaman-233200">government's budget for the first year</a>.&nbsp;

Opening his post-budget address, the prime minister said that the budget "has given hope to the country".

"It testifies that the path we are on is right and that we will reach our target," PM Modi said, adding that the budget will help facilitate the creation of 'New India'.&nbsp;

"The middle class will progress with this budget, development work will expedite even more. The tax structure will simply and infrastructure will modernise," PM Modi said.&nbsp;

"The budget for a 'New India' has a roadmap to transform the agriculture sector of the country, this budget is one of hope," he added.&nbsp;

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PM Narendra Modi: Ye desh ko samridh aur jan jan ko samarth banane wala budget hai. Is budget se gareeb ko bal milega. yuva ko behtar kal milega <a href="https://twitter.com/hashtag/Budget2019?src=hash&amp;ref_src=twsrc%5Etfw">#Budget2019</a> <a href="https://t.co/PllxCyqs4m">pic.twitter.com/PllxCyqs4m</a>
— ANI (@ANI) <a href="https://twitter.com/ANI/status/1147056169489448960?ref_src=twsrc%5Etfw">July 5, 2019</a></blockquote>
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Sitharaman's maiden budget is being largely seen as a "balanced one".&nbsp;

Ashok Jha, former finance secretary, called it a "pretty balanced budget".

"There are concessions given to various sectors, in fact, there is a simplification of taxation, trying to reduce tax payers' hassles," Jha told WION.&nbsp;

"There are indicators of growth in the budget. 70,000 crore push to public sectors banks, governance reforms in public sectors banks. All these are growth-inducing things," Gautam Chikermane, vice president, ORF told WION.&nbsp;

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Ashok Jha, former finance secretary, calls it a pretty balanced budget. 'There are concessions given to various sectors, in fact, there is a simplification of taxation, trying to reduce tax payers' hassles'<a href="https://twitter.com/hashtag/Budget2019?src=hash&amp;ref_src=twsrc%5Etfw">#Budget2019</a> 
Watch post budget analysis LIVE: <a href="https://t.co/iSR65rv97J">https://t.co/iSR65rv97J</a> <a href="https://t.co/6dgSRNJyy3">pic.twitter.com/6dgSRNJyy3</a>
— WION (@WIONews) <a href="https://twitter.com/WIONews/status/1147056075675328513?ref_src=twsrc%5Etfw">July 5, 2019</a></blockquote>
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Some of the key <a href="https://www.wionews.com/business-economy/budget-2019-key-takeaways-announced-by-nirmala-sitharaman-in-parliament-233179">highlights of Sitharaman's budget</a> speech today featured no taxation for those earning less than 5 lakh per annum. The government decided to hike the petrol price by Rs 1 per litre and customs duty on gold as well.&nbsp;

A slew of benefits was announced for startups. Going by Sitharaman's budget presentation, the Modi government 2.0 seems to have given a big push to infrastructure, technology, rural development, startups and has also promised to make housing affordable and hassle-free process to boost investment.&nbsp;

During the Budget speech, finance minister Nirmala Sitharaman said India's sovereign external debt to GDP was among the lowest globally at less than 5 per cent.

Budget 2019: India will become a $3-billion economy this year, says Nirmala Sitharaman

<div class="videoWrapper trancodeVideo"><iframe allowfullscreen="" autoplay="1" class="includeVideo" frameborder="0" height="350" src="http://wionews.com/videos/budget-2019-india-will-become-a-3-billion-economy-this-year-says-nirmala-sitharaman-233230/embed" style="width:100%;max-width:560px;" width="560"></iframe></div>

"The fiscal deficit this year is 3.3 per cent, brought down from 3.4 per cent," Sitharaman said.

"More than 120 crore Indians now have Aadhar card, therefore for ease of taxpayers I propose to make PAN card and Aadhar card interchangeable and allow those who don't have PAN to file returns by simply quoting Aadhar number and use it wherever they require to use PAN," the finance minister said.&nbsp;

Highlights of Tax policy:

- Direct tax revenue increased by 78 per cent.

- Excise hike on Rs 1 litre on petrol, diesel

- Customs duty on gold increased by 2 per cent

- Cheaper home loans for houses up to 45 lakhs

- Proposal to levy TDS of 2 per cent on cash withdrawal exceeding Rs 1 crore in a year from a bank account.

- Tax benefits for buying electric vehicles.

- Easing of Angel tax for startups.

- Additional income tax deduction on loans taken on e-vehicles.

- All companies with an annual turnover of Rs 400 crores to now come under the &nbsp;25 per cent bracket. It will cover 99.3 per cent of all the companies.

- Tax deduction for affordable housing.

- Interchangeability of PAN, Aadhar.

- Discourage making cash payments in business transactions.

Prime Minister Narendra Modi on Friday addressed the nation after Finance Minister Nirmala Sitharaman tabled the newly-elected government's budget for the first year.

Prime Minister Narendra Modi on Friday addressed the nation after Finance Minister Nirmala Sitharaman tabled the newly-elected government's budget for the first year. Opening his post-budget address, the prime minister said that the budget "has given hope to the country". "It testifies that the path we are on is right and that we will reach our target," PM Modi said, adding that the budget will help facilitate the creation of 'New India'. "The middle class will progress with this budget, development work will expedite even more. The tax structure will simply and infrastructure will modernise," PM Modi said. "The budget for a 'New India' has a roadmap to transform the agriculture sector of the country, this budget is one of hope," he added. PM Narendra Modi: Ye desh ko samridh aur jan jan ko samarth banane wala budget hai. Is budget se gareeb ko bal milega. yuva ko behtar kal milega #Budget2019 pic.twitter.com/PllxCyqs4m — ANI (@ANI) July 5, 2019 × Sitharaman's maiden budget is being largely seen as a "balanced one". Ashok Jha, former finance secretary, called it a "pretty balanced budget". "There are concessions given to various sectors, in fact, there is a simplification of taxation, trying to reduce tax payers' hassles," Jha told WION. "There are indicators of growth in the budget. 70,000 crore push to public sectors banks, governance reforms in public sectors banks. All these are growth-inducing things," Gautam Chikermane, vice president, ORF told WION. Ashok Jha, former finance secretary, calls it a pretty balanced budget. 'There are concessions given to various sectors, in fact, there is a simplification of taxation, trying to reduce tax payers' hassles'#Budget2019 Watch post budget analysis LIVE: https://t.co/iSR65rv97J pic.twitter.com/6dgSRNJyy3 — WION (@WIONews) July 5, 2019 × Some of the key highlights of Sitharaman's budget speech today featured no taxation for those earning less than 5 lakh per annum. The government decided to hike the petrol price by Rs 1 per litre and customs duty on gold as well. A slew of benefits was announced for startups. Going by Sitharaman's budget presentation, the Modi government 2.0 seems to have given a big push to infrastructure, technology, rural development, startups and has also promised to make housing affordable and hassle-free process to boost investment. During the Budget speech, finance minister Nirmala Sitharaman said India's sovereign external debt to GDP was among the lowest globally at less than 5 per cent. Budget 2019: India will become a $3-billion economy this year, says Nirmala Sitharaman "The fiscal deficit this year is 3.3 per cent, brought down from 3.4 per cent," Sitharaman said. "More than 120 crore Indians now have Aadhar card, therefore for ease of taxpayers I propose to make PAN card and Aadhar card interchangeable and allow those who don't have PAN to file returns by simply quoting Aadhar number and use it wherever they require to use PAN," the finance minister said. Highlights of Tax policy: - Direct tax revenue increased by 78 per cent. - Excise hike on Rs 1 litre on petrol, diesel - Customs duty on gold increased by 2 per cent - Cheaper home loans for houses up to 45 lakhs - Proposal to levy TDS of 2 per cent on cash withdrawal exceeding Rs 1 crore in a year from a bank account. - Tax benefits for buying electric vehicles. - Easing of Angel tax for startups. - Additional income tax deduction on loans taken on e-vehicles. - All companies with an annual turnover of Rs 400 crores to now come under the 25 per cent bracket. It will cover 99.3 per cent of all the companies. - Tax deduction for affordable housing. - Interchangeability of PAN, Aadhar. - Discourage making cash payments in business transactions.

Budget has given hope to country, shows we are on right track: PM Modi 

Industry leaders expect the Union Budget for 2019-20 to lower corporate taxes and spur investments for shoring up consumption levels and reversing the slowdown in economic growth.

CII Director General Chandrajit Banerjee said the corporate tax rate, which currently stands at about 35 per cent for larger companies, should be reduced to 25 per cent. It should be brought down to 18 per cent in a phased manner with simultaneous elimination of exemptions.

Secondly, he said, dividend distribution tax should be brought down from 20 per cent to 10 per cent in the Budget. Thirdly, to encourage taxpayers to invest in mutual funds and shares, the gains from the sale of such instruments should be made more tax-friendly by removing the taxability on sale of long-term capital assets.

"To kick start the economy and encourage investments, the cost of equity should be reduced so that investors are encouraged to take equity risks at a time when raising the growth rate is of utmost importance," he said.

Finance Minister Nirmala Sitharaman will present the first Budget of the second term of Prime Minister Narendra Modi led NDA government at the Centre on July 5.

FICCI president Sandip Somany has called for the simplification of Goods and Services Tax (GST), lowering of interest rates, addressing farm distress and the creation of an eco-system that promotes employment.

The government during its previous tenure succeeded in bringing in critical reforms, including GST, Real Estate (Regulation and Development) Act, and Insolvency and Bankruptcy Code.

"It is time now to not only work towards the required modifications in them but also usher in the next wave of reforms, especially in the important areas of land, labour, and judiciary," he said.

Somany said the real solution to rural distress and farmers' problems lies in the creation of a strong infrastructure to support agriculture, including irrigation and warehousing facilities.

Besides, the reforms associated with agricultural marketing also need to be pushed so that farmers' cost of production and selling is reduced.

"These reforms though depend on coordination with the states and the success of GST can be replicated here. Value-added products have to be produced in agriculture. Exports of agri products should be encouraged," he said.

At the same time, liquidity issues with regard to non-banking financial companies are resurfacing. The government needs to take care of the concerns so that apprehensions in the credit ecosystem subsides quickly. "We are optimistic that the liquidity concerns can be managed with the help of concerted efforts," said Somany.

"We also have to put in place a robust system for capturing the jobs data so that we have an accurate estimate of jobs that are being created industry-wise," he added.

In January to March, GDP growth fell to 5.8 per cent while overall growth during the entire financial year 2018-19 was 6.8 per cent. Indicators like falling industrial output and de-growth in automobile sales have stoked fears of a deeper slowdown.

The Federation of Indian Export Organisations (FIEO) has urged the government to announce various measures such as employment-linked income tax benefits and set up a fund for marketing purposes to boost the country's outbound shipments in the upcoming Budget.

"We would urge the government to provide income tax relief to units which provide additional employment in the export sector," it said in a statement.

Further, FIEO said the Budget should encourage domestic manufacturing with a focus on imports substitution.

"On customs front, the instances of inverted duty structure need to be looked into," it said adding the corporate tax reduction may be extended to all entities," it said.

Industry leaders expect the Union Budget for 2019-20 to lower corporate taxes and spur investments for shoring up consumption levels and reversing the slowdown in economic growth.

Industry leaders expect the Union Budget for 2019-20 to lower corporate taxes and spur investments for shoring up consumption levels and reversing the slowdown in economic growth. CII Director General Chandrajit Banerjee said the corporate tax rate, which currently stands at about 35 per cent for larger companies, should be reduced to 25 per cent. It should be brought down to 18 per cent in a phased manner with simultaneous elimination of exemptions. Secondly, he said, dividend distribution tax should be brought down from 20 per cent to 10 per cent in the Budget. Thirdly, to encourage taxpayers to invest in mutual funds and shares, the gains from the sale of such instruments should be made more tax-friendly by removing the taxability on sale of long-term capital assets. "To kick start the economy and encourage investments, the cost of equity should be reduced so that investors are encouraged to take equity risks at a time when raising the growth rate is of utmost importance," he said. Finance Minister Nirmala Sitharaman will present the first Budget of the second term of Prime Minister Narendra Modi led NDA government at the Centre on July 5. FICCI president Sandip Somany has called for the simplification of Goods and Services Tax (GST), lowering of interest rates, addressing farm distress and the creation of an eco-system that promotes employment. The government during its previous tenure succeeded in bringing in critical reforms, including GST, Real Estate (Regulation and Development) Act, and Insolvency and Bankruptcy Code. "It is time now to not only work towards the required modifications in them but also usher in the next wave of reforms, especially in the important areas of land, labour, and judiciary," he said. Somany said the real solution to rural distress and farmers' problems lies in the creation of a strong infrastructure to support agriculture, including irrigation and warehousing facilities. Besides, the reforms associated with agricultural marketing also need to be pushed so that farmers' cost of production and selling is reduced. "These reforms though depend on coordination with the states and the success of GST can be replicated here. Value-added products have to be produced in agriculture. Exports of agri products should be encouraged," he said. At the same time, liquidity issues with regard to non-banking financial companies are resurfacing. The government needs to take care of the concerns so that apprehensions in the credit ecosystem subsides quickly. "We are optimistic that the liquidity concerns can be managed with the help of concerted efforts," said Somany. "We also have to put in place a robust system for capturing the jobs data so that we have an accurate estimate of jobs that are being created industry-wise," he added. In January to March, GDP growth fell to 5.8 per cent while overall growth during the entire financial year 2018-19 was 6.8 per cent. Indicators like falling industrial output and de-growth in automobile sales have stoked fears of a deeper slowdown. The Federation of Indian Export Organisations (FIEO) has urged the government to announce various measures such as employment-linked income tax benefits and set up a fund for marketing purposes to boost the country's outbound shipments in the upcoming Budget. "We would urge the government to provide income tax relief to units which provide additional employment in the export sector," it said in a statement. Further, FIEO said the Budget should encourage domestic manufacturing with a focus on imports substitution. "On customs front, the instances of inverted duty structure need to be looked into," it said adding the corporate tax reduction may be extended to all entities," it said.

Industry leaders call for massive infrastructure investments ahead of Union Budget FY20

Finance Minister Nirmala Sitharaman, Minister of State for Finance Anurag Thakur and senior officials of the ministry Saturday observed the symbolic 'Halwa' ceremony to mark the launch of formal printing of documents relating to the Union Budget 2019-20.

The NDA government would on July 5 unveil the full Budget for 2019-20. On February 1, the government had presented an Interim Budget to take Parliament nod for spending till the new government takes charge after the general elections.

Finance Secretary Subhash Chandra Garg, Revenue Secretary Ajay Bhushan Pandey, DIPAM Secretary Atanu Chakraborty and Financial Services Secretary Rajiv Kumar too attended the customary pre-Budget event.

"Halwa ceremony marking the commencement of Budget printing process for the General Budget 2019-20 was held in North Block here today afternoon in the august presence of the Union Minister of Finance &amp; Corporate Affairs, Nirmala Sitharaman," a Finance Ministry statement said.

As part of the ritual, 'halwa' is prepared in a big 'kadhai' (large frying pot) and served to the entire staff in the ministry.

The significance of the event is that after the sweet dish is served, a large number of officials and support staff, who are directly associated with the Budget making and printing process, are required to stay in the ministry and remain cut off from their families till the presentation of the Budget in the Lok Sabha.

They are not even allowed to contact their near and dear ones through phone or any other form of communication, like e-mail.

Only very senior officials in the finance ministry are permitted to go home.&nbsp;

Finance Minister Nirmala Sitharaman, Minister of State for Finance Anurag Thakur and senior officials of the ministry Saturday observed the symbolic 'Halwa' ceremony to mark the launch of formal printing of documents relating to the Union Budget 2019-20.

Finance Minister Nirmala Sitharaman, Minister of State for Finance Anurag Thakur and senior officials of the ministry Saturday observed the symbolic 'Halwa' ceremony to mark the launch of formal printing of documents relating to the Union Budget 2019-20. The NDA government would on July 5 unveil the full Budget for 2019-20. On February 1, the government had presented an Interim Budget to take Parliament nod for spending till the new government takes charge after the general elections. Finance Secretary Subhash Chandra Garg, Revenue Secretary Ajay Bhushan Pandey, DIPAM Secretary Atanu Chakraborty and Financial Services Secretary Rajiv Kumar too attended the customary pre-Budget event. "Halwa ceremony marking the commencement of Budget printing process for the General Budget 2019-20 was held in North Block here today afternoon in the august presence of the Union Minister of Finance & Corporate Affairs, Nirmala Sitharaman," a Finance Ministry statement said. As part of the ritual, 'halwa' is prepared in a big 'kadhai' (large frying pot) and served to the entire staff in the ministry. The significance of the event is that after the sweet dish is served, a large number of officials and support staff, who are directly associated with the Budget making and printing process, are required to stay in the ministry and remain cut off from their families till the presentation of the Budget in the Lok Sabha. They are not even allowed to contact their near and dear ones through phone or any other form of communication, like e-mail. Only very senior officials in the finance ministry are permitted to go home.

Printing of Budget 2019-20 documents begins with 'Halwa' ceremony

The <a href="https://www.wionews.com/india-news/interim-budget-2019-how-high-was-piyush-goyals-josh-asks-anand-mahindra-194413">Union Budget for 2019-20</a> is likely to spell out a roadmap for banking reforms, including consolidation of the state-owned lenders, with a view to enabling the sector to play a pivotal role in pushing India towards US $5 trillion economies, sources said.

The first Budget of Modi 2.0 government is scheduled to be presented on July 5 by Finance Minister Nirmala Sitharaman on the backdrop of India's economy hitting 5-year low growth of 6.8 per cent in 2018-19.

The banking sector has an important role in the reinvigorating sagging economy, the sources said, adding the Budget speech of the Finance Minister will contain a roadmap for the reforms in the sector.

The upcoming Budget would also provide direction to the consolidation journey in the public sector banking space, started last year by affecting the first three-way merger, they added.

As part of this exercise, erstwhile Vijaya Bank and Dena Bank were merged with Bank of Baroda (BoB) effective April 1 to create the third-largest lender of the country.

According to the sources, the journey will continue broadly on the same lines of the merger of smaller banks with big lenders.

So, fit candidates for the acquisition of small lenders would be Punjab National Bank, Canara Bank, Bank of India and Union Bank of India with some capital support, the sources added.

It is to be noted that the government infused Rs 5,042 crore in BoB to enhance its capital base to meet additional expense due to an amalgamation of Dena Bank and Vijaya Bank.

The maiden three-way amalgamation is the first step in the consolidation of the public sector banking industry, recommended in 1991 by the Narasimham Committee report. Through this merger, the government has created an institution of global scale and size, thereby providing significant benefit to all stakeholders.

The consolidated entity started the operation with a business mix of over Rs 15 lakh crore on the balance sheet, with deposits and advances of Rs 8.75 lakh crore and Rs 6.25 lakh crore, respectively.

BoB, the second-largest public sector lender after State Bank of India, now has over 9,500 branches, 13,400 ATMs, and 85,000 employees to serve 12 crore customers.

Prior to BoB merger, the government only had experience of State Bank which had merged five of its associate banks - State Bank of Patiala, State Bank of Bikaner and Jaipur, State Bank of Mysore, State Bank of Travancore and State Bank of Hyderabad and also Bhartiya Mahila effective April 2017.

The Union Budget for 2019-20 is likely to spell out a roadmap for banking reforms, including consolidation of the state-owned lenders, with a view to enabling the sector to play a pivotal role in pushing India towards US $5 trillion economies, sources said.

The Union Budget for 2019-20 is likely to spell out a roadmap for banking reforms, including consolidation of the state-owned lenders, with a view to enabling the sector to play a pivotal role in pushing India towards US $5 trillion economies, sources said. The first Budget of Modi 2.0 government is scheduled to be presented on July 5 by Finance Minister Nirmala Sitharaman on the backdrop of India's economy hitting 5-year low growth of 6.8 per cent in 2018-19. The banking sector has an important role in the reinvigorating sagging economy, the sources said, adding the Budget speech of the Finance Minister will contain a roadmap for the reforms in the sector. The upcoming Budget would also provide direction to the consolidation journey in the public sector banking space, started last year by affecting the first three-way merger, they added. As part of this exercise, erstwhile Vijaya Bank and Dena Bank were merged with Bank of Baroda (BoB) effective April 1 to create the third-largest lender of the country. According to the sources, the journey will continue broadly on the same lines of the merger of smaller banks with big lenders. So, fit candidates for the acquisition of small lenders would be Punjab National Bank, Canara Bank, Bank of India and Union Bank of India with some capital support, the sources added. It is to be noted that the government infused Rs 5,042 crore in BoB to enhance its capital base to meet additional expense due to an amalgamation of Dena Bank and Vijaya Bank. The maiden three-way amalgamation is the first step in the consolidation of the public sector banking industry, recommended in 1991 by the Narasimham Committee report. Through this merger, the government has created an institution of global scale and size, thereby providing significant benefit to all stakeholders. The consolidated entity started the operation with a business mix of over Rs 15 lakh crore on the balance sheet, with deposits and advances of Rs 8.75 lakh crore and Rs 6.25 lakh crore, respectively. BoB, the second-largest public sector lender after State Bank of India, now has over 9,500 branches, 13,400 ATMs, and 85,000 employees to serve 12 crore customers. Prior to BoB merger, the government only had experience of State Bank which had merged five of its associate banks - State Bank of Patiala, State Bank of Bikaner and Jaipur, State Bank of Mysore, State Bank of Travancore and State Bank of Hyderabad and also Bhartiya Mahila effective April 2017.

Budget likely to spell out roadmap for banking sector reforms: Report

India’s <a href="https://www.wionews.com/business-economy/in-2018-indias-gdp-to-grow-at-73-china-to-grow-at-65-world-bank-189117">GDP growth</a> is expected to accelerate moderately to 7.5 per cent in Fiscal Year 19-20, driven by continued investment strengthening, particularly private-improved export performance and resilient consumption, the World Bank has said.

The real GDP growth is estimated at 7.2 per cent in FY18/19, the World Bank said in its latest report on South Asia on Sunday ahead of the spring meeting of the World Bank and the International Monetary Fund. Data for the first three quarters suggest that growth has been broad-based. Industrial growth accelerated to 7.9 per cent, making up for a deceleration in services.

Balanced growth

Meanwhile, agriculture growth was robust at four per cent. On the demand side, domestic consumption remained the primary growth driver, but gross fixed capital formation and exports both made growing contributions. Over the last quarter, growth is expected to remain balanced across sectors, the report said. Inflation dynamics have been subdued over most of the FY18/19, the report said.

The World Bank said India’s GDP growth is expected to accelerate moderately to 7.5 per cent in FY19/20, driven by continued investment strengthening-particularly private- improved export performance, and resilient consumption. With robust growth, and food prices poised to recover, inflation is expected to converge toward four per cent, it said, adding that both the current account and the fiscal deficit are expected to narrow.

“On the external front, improvements in India’s export performance and low oil prices should bring about a reduction in the current account deficit to 1.9 per cent of GDP,” it said. “On the internal front, the consolidated fiscal deficit is projected to decline, albeit slowly (to 6.2 and 6.0 per cent of GDP in FY19/20 and FY20/21 respectively). As the centre’s deficit is budgeted to remain unchanged at 3.4 per cent of GDP in FY19/20, the burden of adjustment will rest on the states, the World Bank said.

Inflation

A sustained decline in food prices since July 2018, subsequently complemented by the softening of oil prices and concomitant appreciation of the rupee, has led to a steady decline in inflation, it noted. Observing that headline inflation stood at 2.6 per cent in February 2019, and the average for FY18/19 so far at 3.5 per cent, well below the RBI’s target-midpoint of four per cent, the report said that as a result, the RBI reduced the policy rate by 25 basis points (to 6.25 per cent) in February 2019. However, the report said that the current account deficit widened in FY18-19.

India’s external position worsened significantly in the first half of FY18-19, as large portfolio outflows were triggered by US monetary policy and fears of contagion from stress in some emerging market economies. The nominal exchange rate depreciated, and foreign reserves declined by over eight per cent over January to October 2018. However, since then, the decline in oil prices and the United States Fed signalling a slower pace of normalisation than initially anticipated led to a partial reversal. Portfolio outflows have reversed, and the rupee has appreciated by about four per cent since October 2018.

India’s GDP growth is expected to accelerate moderately to 7.5 per cent in Fiscal Year 19-20, driven by continued investment strengthening, particularly private-improved export performance and resilient consumption, the World Bank has said.

India’s GDP growth is expected to accelerate moderately to 7.5 per cent in Fiscal Year 19-20, driven by continued investment strengthening, particularly private-improved export performance and resilient consumption, the World Bank has said. The real GDP growth is estimated at 7.2 per cent in FY18/19, the World Bank said in its latest report on South Asia on Sunday ahead of the spring meeting of the World Bank and the International Monetary Fund. Data for the first three quarters suggest that growth has been broad-based. Industrial growth accelerated to 7.9 per cent, making up for a deceleration in services. Balanced growth Meanwhile, agriculture growth was robust at four per cent. On the demand side, domestic consumption remained the primary growth driver, but gross fixed capital formation and exports both made growing contributions. Over the last quarter, growth is expected to remain balanced across sectors, the report said. Inflation dynamics have been subdued over most of the FY18/19, the report said. The World Bank said India’s GDP growth is expected to accelerate moderately to 7.5 per cent in FY19/20, driven by continued investment strengthening-particularly private- improved export performance, and resilient consumption. With robust growth, and food prices poised to recover, inflation is expected to converge toward four per cent, it said, adding that both the current account and the fiscal deficit are expected to narrow. “On the external front, improvements in India’s export performance and low oil prices should bring about a reduction in the current account deficit to 1.9 per cent of GDP,” it said. “On the internal front, the consolidated fiscal deficit is projected to decline, albeit slowly (to 6.2 and 6.0 per cent of GDP in FY19/20 and FY20/21 respectively). As the centre’s deficit is budgeted to remain unchanged at 3.4 per cent of GDP in FY19/20, the burden of adjustment will rest on the states, the World Bank said. Inflation A sustained decline in food prices since July 2018, subsequently complemented by the softening of oil prices and concomitant appreciation of the rupee, has led to a steady decline in inflation, it noted. Observing that headline inflation stood at 2.6 per cent in February 2019, and the average for FY18/19 so far at 3.5 per cent, well below the RBI’s target-midpoint of four per cent, the report said that as a result, the RBI reduced the policy rate by 25 basis points (to 6.25 per cent) in February 2019. However, the report said that the current account deficit widened in FY18-19. India’s external position worsened significantly in the first half of FY18-19, as large portfolio outflows were triggered by US monetary policy and fears of contagion from stress in some emerging market economies. The nominal exchange rate depreciated, and foreign reserves declined by over eight per cent over January to October 2018. However, since then, the decline in oil prices and the United States Fed signalling a slower pace of normalisation than initially anticipated led to a partial reversal. Portfolio outflows have reversed, and the rupee has appreciated by about four per cent since October 2018.

India’s GDP expected to accelerate moderately to 7.5% in 2019-20: World Bank

Shortage of pilots continued to hamper budget carrier IndiGos operations with <a href="http://www.wionews.com/videos/indigo-airlines-cancels-47-flights-hundreds-of-passengers-affected-9294">the airline cancelling as many as 30 flights Tuesday</a> from across stations and passengers allegedly being forced to buy last-minute high fares for its flights, a source said.

On Monday also, the Gurugram-headquartered airline had pulled 32 flights from its network.

On the other hand, there was no indication of any probe by the aviation regulator into the cancellation of such a large number of flights by the airline since last Saturday.

IndiGo has cancelled 30 flights for Tuesday due to the ongoing pilots' issue. Most of the flights have been cancelled from Kolkata, Hyderabad and Chennai, the source said.

While eight flights are not being operated from Kolkata, another five flights are cancelled from Hyderabad and four each from Bangalore and Chennai, among others, he added.

The source also alleged that IndiGo was forcing passengers to either buy last-minute fares or offering them alternate flights with one-stop connectivity with long transit time.

Response to the queries sent to IndiGo and Directorate General of Civil Aviation on this issue was awaited.

In a statement on Sunday, the airline had blamed on weather for disruption in operations across its network.

"As part of recovering our schedule, the positioning of the crew and aircraft had to be readjusted. As a result, a number of flights were cancelled, it had said without giving any specific number of flights were cancelled. 
&nbsp;

Shortage of pilots continued to hamper budget carrier IndiGos operations with the airline cancelling as many as 30 flights Tuesday from across stations and passengers allegedly being forced to buy last-minute high fares for its flights, a source said.

Shortage of pilots continued to hamper budget carrier IndiGos operations with the airline cancelling as many as 30 flights Tuesday from across stations and passengers allegedly being forced to buy last-minute high fares for its flights, a source said. On Monday also, the Gurugram-headquartered airline had pulled 32 flights from its network. On the other hand, there was no indication of any probe by the aviation regulator into the cancellation of such a large number of flights by the airline since last Saturday. IndiGo has cancelled 30 flights for Tuesday due to the ongoing pilots' issue. Most of the flights have been cancelled from Kolkata, Hyderabad and Chennai, the source said. While eight flights are not being operated from Kolkata, another five flights are cancelled from Hyderabad and four each from Bangalore and Chennai, among others, he added. The source also alleged that IndiGo was forcing passengers to either buy last-minute fares or offering them alternate flights with one-stop connectivity with long transit time. Response to the queries sent to IndiGo and Directorate General of Civil Aviation on this issue was awaited. In a statement on Sunday, the airline had blamed on weather for disruption in operations across its network. "As part of recovering our schedule, the positioning of the crew and aircraft had to be readjusted. As a result, a number of flights were cancelled, it had said without giving any specific number of flights were cancelled.

For second day, IndiGo cancels 30 flights because of shortage of pilots

Last week, the government announced its Interim Budget for 2019-20. Defence allocation was again a disappointment, particularly for those looking forward to covering up important deficiencies and introducing a degree of modernisation.

With a 3 per cent hike from the last Defence Budget, the current allocation will cover inflation, but very little beyond that.

In all civilisations, wise generations and statesmen have been keenly aware of the values of peace and war. Peace connotes development, progress and lives led in comfort and tranquillity. War denotes death, destruction and poor development.

Greek historian Herodotus noted in 484 BC: “No one is so foolish as to choose war over peace. In peace, sons bury their fathers. In war, fathers bury their sons.” War and peace have been part of all civilisations; two sides of the same coin.

Most of us believe that in the mythological Sat Yug, our people lived a great life, peaceful, free from toil and grief. But they forget that even Sat Yug was not entirely peaceful. There was violence between Devalok and Asurlok. In fact, none of our mythological Yugs was peaceful. In Treta Yug, there was war between Ram and Ravan. In Dwapar Yug, the Pandavs fought with Kauravs.

On war and peace, there is another classical quote, ‘Si vis pacem, para bellum’ (Latin writer Flavious Vegetius). It means “If you want peace, prepare for war”.

This phrase is used to affirm that the effective means for ensuring peace for a people is always to be armed and ready to defend oneself. Chinese words Shi ji convey the same idea.

The historical truth is that peace cannot be had free. It accrues only to those nations which are strong and prepared for war. Strong nations seldom listen to weak nations when their own national interests are at stake. They indulge in coercive diplomacy backed by threats of war.

Hoping for peace can only be wishful thinking if a nation is not strong to deter/dissuade its foes.

Vegetius’ quote is also interpreted to mean that the time to prepare for war is not when the war is imminent, but when times are peaceful. A strong peacetime army would signal to would-be attackers that the battle may not be worth it.

To set the foundations on which to erect the outline of a general theory of war, Vice-Admiral JC Wylie (US Navy) had worked on several basic assumptions. One such assumption described by Wylie in his papers ‘Military Strategy: A General Theory of Power’ is “Despite whatever effort there may be to prevent it, there may be a war.”

Military history tells us that nations who neglect this historical determinism make themselves vulnerable to military surprise, defeat, and ignominy.

This assumption is a reminder to strategists to visualise security threats and to remain prepared for any eventuality. To those who may find this assumption irritable or doubtful, I would remind them of the Kargil War which broke out within two months of the Prime Ministers of India and Pakistan signing the Lahore Declaration.

Another basic assumption for war planning, as mentioned by Wylie, was “We cannot predict with certainty the pattern of war for which we prepare ourselves.” It has seldom been possible to forecast the time, place, scope, intensity and the general tenor of a war.

India, since Independence, has never prepared itself adequately for wars. Only in 1971, did we manage to get time and prepare ourselves because Sam Manekshaw insisted on delaying the conflict and the circumstances were favourable.

In all other wars, our adversaries took the initiative because they considered us to be politically and militarily inadequately prepared.

Erosion of credible conventional deterrence often makes them audacious and challenge us. Before the Kargil war, Pakistan had perceived that due to prolonged involvement in anti-terrorist and anti-insurgency operations in Punjab, J&amp;K and North East India, our army was not in any shape to fight. Its weapons and equipment were obsolete, as no modernisation had taken place for more than a decade.

While addressing troops of the Pakistan Army on October 29, 1998, Musharraf had said, “Don’t be carried away by the rhetoric of the Indians, whose armed forces are totally exhausted and whose morale is at its lowest.” In March 1999, the intelligence adviser to Nawaz Sharif, Lt Gen Javed Nasir, wrote that “Indian Army was incapable of undertaking any conventional operation.”

Some of us want peace desperately. We refuse to learn from history and happenings on the ground. We get thrilled whenever a friendly statement is made by a Pakistani or a Chinese leader. That may be soothing. But to be intoxicated by over-optimism and neglect our defence preparedness would be naïve and dangerous.

To deter or dissuade potential challengers, our armed forces require strengthening of capabilities with a certain amount of specialisation.

There is an acute shortage of fighter aircraft in the Indian Air Force and submarines in the Indian Navy. The Indian Army needs to replace its basic weapons for infantry.

Keeping in view the nature of conflicts in the foreseeable future, we need to raise more special forces, upgrade command, control, communications, computers, information, surveillance and reconnaissance, cyber and space war capabilities.

We also require better defence infrastructure along our northern borders. The next war, if we are forced to fight, will be quite different from any war that we have fought so far.

For peaceful development, security awareness, sagacity and rationality are needed in our political discourse to allow required build-up of military capability. India must aim for the cheaper, preparedness option. The other, more expensive option, is unthinkable.

(This article was originally published on The DNA. Read the&nbsp;<a href="https://www.dnaindia.com/analysis/column-defence-allocation-too-small-2716953">original article)</a>

(Disclaimer: The opinions expressed above are the personal views of the author and do not reflect the views of ZMCL.)

Last week, the government announced its Interim Budget for 2019-20. Defence allocation was again a disappointment, particularly for those looking forward to covering up important deficiencies and introducing a degree of modernisation.

Last week, the government announced its Interim Budget for 2019-20. Defence allocation was again a disappointment, particularly for those looking forward to covering up important deficiencies and introducing a degree of modernisation. With a 3 per cent hike from the last Defence Budget, the current allocation will cover inflation, but very little beyond that. In all civilisations, wise generations and statesmen have been keenly aware of the values of peace and war. Peace connotes development, progress and lives led in comfort and tranquillity. War denotes death, destruction and poor development. Greek historian Herodotus noted in 484 BC: “No one is so foolish as to choose war over peace. In peace, sons bury their fathers. In war, fathers bury their sons.” War and peace have been part of all civilisations; two sides of the same coin. Most of us believe that in the mythological Sat Yug, our people lived a great life, peaceful, free from toil and grief. But they forget that even Sat Yug was not entirely peaceful. There was violence between Devalok and Asurlok. In fact, none of our mythological Yugs was peaceful. In Treta Yug, there was war between Ram and Ravan. In Dwapar Yug, the Pandavs fought with Kauravs. On war and peace, there is another classical quote, ‘Si vis pacem, para bellum’ (Latin writer Flavious Vegetius). It means “If you want peace, prepare for war”. This phrase is used to affirm that the effective means for ensuring peace for a people is always to be armed and ready to defend oneself. Chinese words Shi ji convey the same idea. The historical truth is that peace cannot be had free. It accrues only to those nations which are strong and prepared for war. Strong nations seldom listen to weak nations when their own national interests are at stake. They indulge in coercive diplomacy backed by threats of war. Hoping for peace can only be wishful thinking if a nation is not strong to deter/dissuade its foes. Vegetius’ quote is also interpreted to mean that the time to prepare for war is not when the war is imminent, but when times are peaceful. A strong peacetime army would signal to would-be attackers that the battle may not be worth it. To set the foundations on which to erect the outline of a general theory of war, Vice-Admiral JC Wylie (US Navy) had worked on several basic assumptions. One such assumption described by Wylie in his papers ‘Military Strategy: A General Theory of Power’ is “Despite whatever effort there may be to prevent it, there may be a war.” Military history tells us that nations who neglect this historical determinism make themselves vulnerable to military surprise, defeat, and ignominy. This assumption is a reminder to strategists to visualise security threats and to remain prepared for any eventuality. To those who may find this assumption irritable or doubtful, I would remind them of the Kargil War which broke out within two months of the Prime Ministers of India and Pakistan signing the Lahore Declaration. Another basic assumption for war planning, as mentioned by Wylie, was “We cannot predict with certainty the pattern of war for which we prepare ourselves.” It has seldom been possible to forecast the time, place, scope, intensity and the general tenor of a war. India, since Independence, has never prepared itself adequately for wars. Only in 1971, did we manage to get time and prepare ourselves because Sam Manekshaw insisted on delaying the conflict and the circumstances were favourable. In all other wars, our adversaries took the initiative because they considered us to be politically and militarily inadequately prepared. Erosion of credible conventional deterrence often makes them audacious and challenge us. Before the Kargil war, Pakistan had perceived that due to prolonged involvement in anti-terrorist and anti-insurgency operations in Punjab, J&K and North East India, our army was not in any shape to fight. Its weapons and equipment were obsolete, as no modernisation had taken place for more than a decade. While addressing troops of the Pakistan Army on October 29, 1998, Musharraf had said, “Don’t be carried away by the rhetoric of the Indians, whose armed forces are totally exhausted and whose morale is at its lowest.” In March 1999, the intelligence adviser to Nawaz Sharif, Lt Gen Javed Nasir, wrote that “Indian Army was incapable of undertaking any conventional operation.” Some of us want peace desperately. We refuse to learn from history and happenings on the ground. We get thrilled whenever a friendly statement is made by a Pakistani or a Chinese leader. That may be soothing. But to be intoxicated by over-optimism and neglect our defence preparedness would be naïve and dangerous. To deter or dissuade potential challengers, our armed forces require strengthening of capabilities with a certain amount of specialisation. There is an acute shortage of fighter aircraft in the Indian Air Force and submarines in the Indian Navy. The Indian Army needs to replace its basic weapons for infantry. Keeping in view the nature of conflicts in the foreseeable future, we need to raise more special forces, upgrade command, control, communications, computers, information, surveillance and reconnaissance, cyber and space war capabilities. We also require better defence infrastructure along our northern borders. The next war, if we are forced to fight, will be quite different from any war that we have fought so far. For peaceful development, security awareness, sagacity and rationality are needed in our political discourse to allow required build-up of military capability. India must aim for the cheaper, preparedness option. The other, more expensive option, is unthinkable. (This article was originally published on The DNA. Read the original article) (Disclaimer: The opinions expressed above are the personal views of the author and do not reflect the views of ZMCL.)

Budget 2019: Defence allocation too small

The Central government, which has been continuously working on the motto of ‘Sabka Saath - Sabka Vikas’, has once again, with Budget 2019, reaffirmed its commitment to the all-round development of the agriculture sector and enhancing the income of farmers. 
 
The budgetary allocation of the Agriculture and Farmers’ Welfare Ministry has been raised by around 2.5 times from Rs 58,080 crore in 2018-19 to Rs 1,41,174.37 crore in 2019-20. In fact, the budgetary allocation of Rs 1,41,174.37 crore in 2019-20 is 16.6 per cent more than Rs 1,21,082 crore during UPA (2009-14). That is why, the government in accordance with its philosophy of increasing both agricultural production and farmers’ income, has created history in Budget 2019 by making provision of income support and other schemes with a focus on rural India.

To provide assured income support to the small and marginal farmers, the government has launched a historic programme ‘Pradhan Mantri Kisan Samman Nidhi (PM-KISAN)’ entailing an annual expenditure of Rs 75,000 crore. Under this programme, vulnerable landholding farmer families, having cultivable land upto 2 hectares, will be provided direct income support at the rate of Rs 6,000 per year to ensure their investment and other needs.

This income support will be transferred directly into the bank accounts of beneficiary farmers, in three equal instalments of Rs 2,000 each. This programme will be fully funded by the Government of India. It will also protect farmers from the clutches of moneylenders and ensure continuity in their farm activities.

This programme will be made effective from December 1, 2018, and the first instalment for the period up to March 31, 2019, would be paid this year itself after identifying eligible farmers. A sum of Rs 20,000 crore has been proposed for 2018-19 for this.&nbsp;

The Rashtriya Gokul Mission has been started for the first time by the Modi government to promote the country’s cattle and buffaloes, to preserve their genetic resources in a scientific and holistic form and for continuous growth in the productivity of Indian bovine. Considering its importance, the allocation of Rs 250 crore in Budget 2018-19 has been raised to Rs 750 crore.

India is the second largest fish producing nation in the world, accounting for 6.3 per cent of global production. The fisheries sector contributes 1 per cent to GDP and provides livelihood to about 1.5 crore people at the primary level. The sector registered an average annual growth of more than 7 per cent in recent years and the total production during 2017-18 was 12.61 million tonnes. During 2017-18, the revenue from exports was estimated at Rs 45,106.89 crores, which shows an average annual growth rate of approximately 11.31 per cent in recent years. To provide sustained and focused attention towards the development of this sector, the government has decided to create a separate Department of Fisheries.

Through the Kisan Credit Card, the government provides institutional credit at cheap rates to farmers. This not only helps in increasing agricultural production but also productivity. In the interest subvention scheme, farmers are given short-term loan of up to Rs 3 lakh per annum by banks on timely payment of loan at the rate of 4 per cent.

In the last Budget, our government announced the facility of extension of Kisan Credit Card scheme (KCC) to Animal Husbandry and Fisheries farmers: 2 per cent interest subvention to the farmers pursuing the activities of animal husbandry and fisheries who avail loan through Kisan Credit Card will also be provided. Further, in case of timely repayment of loan, they will also get an additional 3 per cent interest subvention. Now, livestock farmers and fishermen will be able to avail loans at concessional rate of 4 per cent.

Presently, the crop loans are rescheduled for such affected farmers and they get the benefit of interest subvention of 2 per cent only for the first year of the rescheduled loan. Now, all farmers affected by severe natural calamities, where assistance is provided from National Disaster Relief Fund (NDRF), will be provided the benefit of interest subvention of 2 per cent and prompt repayment incentive of 3 per cent for the entire period of reschedulement of their loans.

At present, there are about 7 crore active KCC, which means that almost 50 per cent of the farmers are still out of the institutional credit system. To ensure the provision of easy and concessional credit and to bring all farmers under KCC fold, the government has decided to initiate a comprehensive drive with a simplified application form.

It is clear from these provisions and Budget 2019 that the government has taken all steps to ensure the development and income of our farmers. The fixing of minimum support price and providing income support will be helpful in doubling the income of farmers by 2022.

(This article was originally published on The DNA. Read the <a href="https://www.dnaindia.com/analysis/column-budget-2019-is-dubbed-farmers-budget-for-its-welfare-schemes-2716556">original article</a>)

(Disclaimer: The opinions expressed above are the personal views of the author and do not reflect the views of ZMCL.)

 
&nbsp;

The Central government, which has been continuously working on the motto of ‘Sabka Saath - Sabka Vikas’, has once again, with Budget 2019, reaffirmed its commitment to the all-round development of the agriculture sector and enhancing the income of farmers.

The Central government, which has been continuously working on the motto of ‘Sabka Saath - Sabka Vikas’, has once again, with Budget 2019, reaffirmed its commitment to the all-round development of the agriculture sector and enhancing the income of farmers. The budgetary allocation of the Agriculture and Farmers’ Welfare Ministry has been raised by around 2.5 times from Rs 58,080 crore in 2018-19 to Rs 1,41,174.37 crore in 2019-20. In fact, the budgetary allocation of Rs 1,41,174.37 crore in 2019-20 is 16.6 per cent more than Rs 1,21,082 crore during UPA (2009-14). That is why, the government in accordance with its philosophy of increasing both agricultural production and farmers’ income, has created history in Budget 2019 by making provision of income support and other schemes with a focus on rural India. To provide assured income support to the small and marginal farmers, the government has launched a historic programme ‘Pradhan Mantri Kisan Samman Nidhi (PM-KISAN)’ entailing an annual expenditure of Rs 75,000 crore. Under this programme, vulnerable landholding farmer families, having cultivable land upto 2 hectares, will be provided direct income support at the rate of Rs 6,000 per year to ensure their investment and other needs. This income support will be transferred directly into the bank accounts of beneficiary farmers, in three equal instalments of Rs 2,000 each. This programme will be fully funded by the Government of India. It will also protect farmers from the clutches of moneylenders and ensure continuity in their farm activities. This programme will be made effective from December 1, 2018, and the first instalment for the period up to March 31, 2019, would be paid this year itself after identifying eligible farmers. A sum of Rs 20,000 crore has been proposed for 2018-19 for this. The Rashtriya Gokul Mission has been started for the first time by the Modi government to promote the country’s cattle and buffaloes, to preserve their genetic resources in a scientific and holistic form and for continuous growth in the productivity of Indian bovine. Considering its importance, the allocation of Rs 250 crore in Budget 2018-19 has been raised to Rs 750 crore. India is the second largest fish producing nation in the world, accounting for 6.3 per cent of global production. The fisheries sector contributes 1 per cent to GDP and provides livelihood to about 1.5 crore people at the primary level. The sector registered an average annual growth of more than 7 per cent in recent years and the total production during 2017-18 was 12.61 million tonnes. During 2017-18, the revenue from exports was estimated at Rs 45,106.89 crores, which shows an average annual growth rate of approximately 11.31 per cent in recent years. To provide sustained and focused attention towards the development of this sector, the government has decided to create a separate Department of Fisheries. Through the Kisan Credit Card, the government provides institutional credit at cheap rates to farmers. This not only helps in increasing agricultural production but also productivity. In the interest subvention scheme, farmers are given short-term loan of up to Rs 3 lakh per annum by banks on timely payment of loan at the rate of 4 per cent. In the last Budget, our government announced the facility of extension of Kisan Credit Card scheme (KCC) to Animal Husbandry and Fisheries farmers: 2 per cent interest subvention to the farmers pursuing the activities of animal husbandry and fisheries who avail loan through Kisan Credit Card will also be provided. Further, in case of timely repayment of loan, they will also get an additional 3 per cent interest subvention. Now, livestock farmers and fishermen will be able to avail loans at concessional rate of 4 per cent. Presently, the crop loans are rescheduled for such affected farmers and they get the benefit of interest subvention of 2 per cent only for the first year of the rescheduled loan. Now, all farmers affected by severe natural calamities, where assistance is provided from National Disaster Relief Fund (NDRF), will be provided the benefit of interest subvention of 2 per cent and prompt repayment incentive of 3 per cent for the entire period of reschedulement of their loans. At present, there are about 7 crore active KCC, which means that almost 50 per cent of the farmers are still out of the institutional credit system. To ensure the provision of easy and concessional credit and to bring all farmers under KCC fold, the government has decided to initiate a comprehensive drive with a simplified application form. It is clear from these provisions and Budget 2019 that the government has taken all steps to ensure the development and income of our farmers. The fixing of minimum support price and providing income support will be helpful in doubling the income of farmers by 2022. (This article was originally published on The DNA. Read the original article) (Disclaimer: The opinions expressed above are the personal views of the author and do not reflect the views of ZMCL.)

Budget 2019 is dubbed Farmers’ Budget for its welfare schemes

Assam Finance Minister Himanta Biswa Sarma on Wednesday presented a Rs 1,193 crore deficit budget for 2019-20 with no fresh taxes and introducing new schemes like providing rice to poor at Re 1 a kg and gold for brides.

The budget also proposed to provide financial assistance to students, including girls from the minority community.

With an opening balance of minus Rs 1,799.84 crore, the budget proposed to have transactions of Rs 606.80 crore during 2019-20, Sarma told the House.

Sarma said that for special category states like Assam, companies with turnover of Rs 10 lakh are required to register for Goods and Services Tax (GST).

However, to give succour to small businesses and considering the small base, the government has raised the GST threhold limit to Rs 20 lakh following approval of the GST Council effective February 1, 2019.

Sarma further proposed to raise the threshold limit for registration under GST for suppliers of goods to Rs 40 lakh. However, the limit stays at Rs 20 lakh for supplier of services.

He said that under the National Food Security Act (NFSA), the Centre provides rice at Rs 3 per kg to 57 lakh households in Assam covering a total population of 2.46 crore.

"To further strengthen food security for our people, we will provide rice at a further subsidized rate of Re 1 per kg instead of the present Rs 3 per kg and the move will benefit 53 Lakh households," Sarma said.

The government has also proposed to give 1 tola of gold (11.66 grams) to brides' parents of belonging to the economically weaker sections of the society.

"We shall give one tola gold costing around Rs 38,000 as on today to brides belonging to all such communities of our state where it is customary to provide gold at the time of wedding" under the Arundhati scheme.

Assam Finance Minister Himanta Biswa Sarma on Wednesday presented a Rs 1,193 crore deficit budget for 2019-20 with no fresh taxes and introducing new schemes like providing rice to poor at Re 1 a kg and gold for brides.

Assam Finance Minister Himanta Biswa Sarma on Wednesday presented a Rs 1,193 crore deficit budget for 2019-20 with no fresh taxes and introducing new schemes like providing rice to poor at Re 1 a kg and gold for brides. The budget also proposed to provide financial assistance to students, including girls from the minority community. With an opening balance of minus Rs 1,799.84 crore, the budget proposed to have transactions of Rs 606.80 crore during 2019-20, Sarma told the House. Sarma said that for special category states like Assam, companies with turnover of Rs 10 lakh are required to register for Goods and Services Tax (GST). However, to give succour to small businesses and considering the small base, the government has raised the GST threhold limit to Rs 20 lakh following approval of the GST Council effective February 1, 2019. Sarma further proposed to raise the threshold limit for registration under GST for suppliers of goods to Rs 40 lakh. However, the limit stays at Rs 20 lakh for supplier of services. He said that under the National Food Security Act (NFSA), the Centre provides rice at Rs 3 per kg to 57 lakh households in Assam covering a total population of 2.46 crore. "To further strengthen food security for our people, we will provide rice at a further subsidized rate of Re 1 per kg instead of the present Rs 3 per kg and the move will benefit 53 Lakh households," Sarma said. The government has also proposed to give 1 tola of gold (11.66 grams) to brides' parents of belonging to the economically weaker sections of the society. "We shall give one tola gold costing around Rs 38,000 as on today to brides belonging to all such communities of our state where it is customary to provide gold at the time of wedding" under the Arundhati scheme.

Assam budget proposes 1 tola gold for brides, rice at Re 1 a kg

Who doesn’t like a sweet surprise! Budget day started with much hype and contradicting opinions – would the interim Finance Minister (FM) stick to the conventional line or would he break convention? &nbsp;

As the FM presented the Interim Budget, given the manner in which the speech was read out, everyone started reconciling to the thought that there would be no change in direct tax provisions. And then suddenly, there was a ‘pop’ - much like a chocolaty explosion in the middle of hard toffee.&nbsp;

He saved the best for the last, ending with a slew of beneficial tax provisions for the common man. However, has he delivered on the expectations of individual taxpayers, especially the middle-class? &nbsp;Let us have a closer look at the personal tax proposals.

There is no change to the income tax rates and slabs. Instead, a tax rebate of Rs 12,500 has been proposed for resident individuals with taxable income not exceeding Rs 5 lakh. Effectively, no tax will be payable by such individuals.&nbsp;

The rebate will, in fact, provide relief to individuals with higher gross income, as rebate is calculated on the final tax payable after applying deductions available under various sections such as 80C (up to Rs 150,000 for investments such as insurance premium, PF contributions, school fees, principal repayment of home loan and PPF), section 80D for medical insurance premium, section 80E for interest on education loan and section 80TTA for interest on savings bank account, among others.&nbsp;

Standard deduction for salaried individuals has been increased by Rs 10,000 to Rs 50,000. Standard deduction up to Rs 40,000 was reintroduced in the last Budget.&nbsp;

Simultaneously, the deductions available for conveyance allowance and medical expenditure were withdrawn, giving a net benefit of only Rs 5,800.

With the proposed increase in the standard deduction of Rs 10,000, the salaried class will get much-needed relief.&nbsp;

Under the current provisions, a notional rental income is applied on more than one self-occupied house property. If a person owns more than one house property which are not let out, only one house can be considered as self-occupied and hence not be subject to tax.&nbsp;

Any additional house or property, if not rented out, is subject to tax on the basis of notional rental value. It is now proposed that this exemption benefit will be available to two such houses. This is a welcome provision, especially for individuals who have houses in different cities on account of their employment.&nbsp;

However, it is to be noted that the corresponding interest on home loans for both such houses will remain restricted to Rs 2 lakh in aggregate.&nbsp;

Furthermore, notional rent will still apply to more than two such houses.

Currently, an individual or Hindu undivided family (HUF) can avail exemption of long term capital gains arising from the sale of the residential house if the capital gains are re-invested in another residential house in India within the prescribed time period. This exemption has now been extended to reinvestment in two such residential houses.&nbsp;

However, this benefit is available only if the capital gains from the sale of the original residential house does not exceed Rs 2 crore. &nbsp;

Moreover, this exemption can be availed only once in the lifetime of the assessee.

The FM has also given relief through proposed amendments in TDS provisions. The threshold for deduction of tax on interest from bank/post office deposits has been increased from Rs 10,000 to Rs 40,000.&nbsp;

TDS provisions on rental income have also been liberalised by increasing the threshold from Rs 180,000 to Rs 240,000. &nbsp;

Both these provisions will provide relief to persons with limited income, as they will not face the hardship of having cash locked up in TDS refunds.&nbsp;

The tone of the Interim Budget was clearly to appease a cross-section of taxpayers. Apart from the specific provisions, the FM also emphasised on greater use of technology in tax administration to make compliance easier, viz. processing tax returns and refunds within 24 hours of filing, handling scrutiny assessments through electronic mode and reducing personal interaction with tax authorities.

He also thanked honest taxpayers for their contribution to nation building, referring to an increase in the number of tax filers and increase in direct tax collections.

Clearly, this government has chosen to move away from the convention of presenting only a vote on account in an election year. The common man will certainly hope that these proposed amendments are here to stay.&nbsp;

(The article is co-authored by Shikha Malsisaria)&nbsp;

(This article was originally published on The DNA. Read the <a href="https://www.dnaindia.com/analysis/column-budget-aimed-at-appeasing-cross-section-of-taxpayers-2716075">original article</a>)

(Disclaimer: The opinions expressed above are the personal views of the author and do not reflect the views of ZMCL.)

Who doesn’t like a sweet surprise! Budget day started with much hype and contradicting opinions – would the interim Finance Minister (FM) stick to the conventional line or would he break convention?

Who doesn’t like a sweet surprise! Budget day started with much hype and contradicting opinions – would the interim Finance Minister (FM) stick to the conventional line or would he break convention? As the FM presented the Interim Budget, given the manner in which the speech was read out, everyone started reconciling to the thought that there would be no change in direct tax provisions. And then suddenly, there was a ‘pop’ - much like a chocolaty explosion in the middle of hard toffee. He saved the best for the last, ending with a slew of beneficial tax provisions for the common man. However, has he delivered on the expectations of individual taxpayers, especially the middle-class? Let us have a closer look at the personal tax proposals. There is no change to the income tax rates and slabs. Instead, a tax rebate of Rs 12,500 has been proposed for resident individuals with taxable income not exceeding Rs 5 lakh. Effectively, no tax will be payable by such individuals. The rebate will, in fact, provide relief to individuals with higher gross income, as rebate is calculated on the final tax payable after applying deductions available under various sections such as 80C (up to Rs 150,000 for investments such as insurance premium, PF contributions, school fees, principal repayment of home loan and PPF), section 80D for medical insurance premium, section 80E for interest on education loan and section 80TTA for interest on savings bank account, among others. Standard deduction for salaried individuals has been increased by Rs 10,000 to Rs 50,000. Standard deduction up to Rs 40,000 was reintroduced in the last Budget. Simultaneously, the deductions available for conveyance allowance and medical expenditure were withdrawn, giving a net benefit of only Rs 5,800. With the proposed increase in the standard deduction of Rs 10,000, the salaried class will get much-needed relief. Under the current provisions, a notional rental income is applied on more than one self-occupied house property. If a person owns more than one house property which are not let out, only one house can be considered as self-occupied and hence not be subject to tax. Any additional house or property, if not rented out, is subject to tax on the basis of notional rental value. It is now proposed that this exemption benefit will be available to two such houses. This is a welcome provision, especially for individuals who have houses in different cities on account of their employment. However, it is to be noted that the corresponding interest on home loans for both such houses will remain restricted to Rs 2 lakh in aggregate. Furthermore, notional rent will still apply to more than two such houses. Currently, an individual or Hindu undivided family (HUF) can avail exemption of long term capital gains arising from the sale of the residential house if the capital gains are re-invested in another residential house in India within the prescribed time period. This exemption has now been extended to reinvestment in two such residential houses. However, this benefit is available only if the capital gains from the sale of the original residential house does not exceed Rs 2 crore. Moreover, this exemption can be availed only once in the lifetime of the assessee. The FM has also given relief through proposed amendments in TDS provisions. The threshold for deduction of tax on interest from bank/post office deposits has been increased from Rs 10,000 to Rs 40,000. TDS provisions on rental income have also been liberalised by increasing the threshold from Rs 180,000 to Rs 240,000. Both these provisions will provide relief to persons with limited income, as they will not face the hardship of having cash locked up in TDS refunds. The tone of the Interim Budget was clearly to appease a cross-section of taxpayers. Apart from the specific provisions, the FM also emphasised on greater use of technology in tax administration to make compliance easier, viz. processing tax returns and refunds within 24 hours of filing, handling scrutiny assessments through electronic mode and reducing personal interaction with tax authorities. He also thanked honest taxpayers for their contribution to nation building, referring to an increase in the number of tax filers and increase in direct tax collections. Clearly, this government has chosen to move away from the convention of presenting only a vote on account in an election year. The common man will certainly hope that these proposed amendments are here to stay. (The article is co-authored by Shikha Malsisaria) (This article was originally published on The DNA. Read the original article) (Disclaimer: The opinions expressed above are the personal views of the author and do not reflect the views of ZMCL.)

Budget aimed at appeasing cross-section of taxpayers

The ‘middle class’ is a humongous classification. It can consist of a salaried employee, a small businessman, a pensioner, even an under-employed person who survives on a generous contribution to his wellbeing by relatives. To add to the complexity, the middle class is subdivided into ‘lower middle class’, middle class’ and ‘upper middle class’, all with varying incomes and different concerns and desires. But what binds them together is the taxes they pay as individual assesses, and the perennial grievance which arises from such a tax-trap. The middle class is also the most difficult to appease and its loyalty takes no time in shifting from one political party to another.&nbsp;

When finance minister Piyush Goyal stood up to deliver his Budget speech on Friday, he was not unaware of the challenge of pleasing this mercurial section of the population. And more so, since in recent months, his party had suffered electoral reversals in three important north Indian states, with one of the major causes being the shift of the middle-class votes away from the Bharatiya Janata Party (BJP). Something had to be done, since this was the last Budget, even if an interim one, before the party faced the people in the Lok Sabha election. And something was done. Whether the last-ditch effort will bring rewards, will be known in about four months. 
&nbsp; 
Given the middle class’s expanse, just one measure would not have sufficed. So the finance minister announced a slew of dramatic proposals, which were greeted with loud thumps and vocal cheering from the treasury bench. A nonplussed opposition looked on with a somewhat dazed expression, though its leaders later recovered and, outside Parliament, rubbished the announcements as the ‘final jumla’ of a government on its way out. Nevertheless, the moment belonged to the Modi regime. &nbsp;

The one announcement which most energised the NDA rank and possibly the millions that fall in the middle-class category was the 100 per cent tax rebate for individual tax-payers whose annual income does not cross five lakh rupees.&nbsp;

Until now, they had to pay five per cent as the tax on their income. The five lakh rupee ceiling can go even higher if the individual takes advantage of various tax-saving measures related to interest on educations, national pension schemes, medical claims, interest on home loans etc. According to experts, it is possible for individuals earning as high as eight to ten lakh rupees per year to remain out of the tax net with some help from the existing tax-saving avenues. &nbsp; 
&nbsp; 
To understand the potential political reach of this proposal, one needs to only remember that close to 30 million taxpayers from the middle class will end up saving more than Rs 18,000 crore annually. There are the other spinoffs. Savings on tax can result in a boost to consumption, which in turn could positively affect industrial output, even if that impacts largely the fast-moving consumer goods (FMCG) sector. At any rate, it could lead to more money flowing in tax-saving instruments, which is not a bad thing in itself.&nbsp;

The middle class was given further bonanzas. The standard deduction limit has been proposed to be raised from the present Rs 40,000 to Rs 50,000; &nbsp;second-time home buyers, again an important constituent of the aspirational middle-class category, will get exemption on notional rent earned on the second house, benefits from long-term capital gains tax, and relief on tax deducted at source (TDS) for rental income (up to Rs 2.40 lakh). Here too, there are multiple benefits, besides those to the middle class. With more middle-class taxpayers being encouraged to own a second home, the housing sector, which is struggling with unsold properties, can get a leg-up.

As if these were not enough — clearly the finance minister believed that if he had come this far, a little further would do no harm — the tax exemption limit on interest on savings in banks and post offices was increased fourfold, from Rs 10,000 to Rs 40,000. &nbsp;

Leave aside the economics — where is the government going to find the money for these concessions, or, will it be able to adhere to the fiscal deficit target, etc — for now. That is for the next regime to grapple with. If it’s going to be the BJP-led NDA again, then it will be judged by its ability to deliver on those promises and also simultaneously offer a roadmap for fiscal prudence; if it’s a new regime, it can simply junk Goyal’s proposals in its full-fledged Budget and dish out something else in their place. It’s the politics that matters in the immediate term, which is what the Budget has been all about.&nbsp;

(Disclaimer: The opinions expressed above are the personal views of the author and do not reflect the views of ZMCL.)

The ‘middle class’ is a humongous classification. It can consist of a salaried employee, a small businessman, a pensioner, even an under-employed person who survives on a generous contribution to his wellbeing by relatives.

The ‘middle class’ is a humongous classification. It can consist of a salaried employee, a small businessman, a pensioner, even an under-employed person who survives on a generous contribution to his wellbeing by relatives. To add to the complexity, the middle class is subdivided into ‘lower middle class’, middle class’ and ‘upper middle class’, all with varying incomes and different concerns and desires. But what binds them together is the taxes they pay as individual assesses, and the perennial grievance which arises from such a tax-trap. The middle class is also the most difficult to appease and its loyalty takes no time in shifting from one political party to another. When finance minister Piyush Goyal stood up to deliver his Budget speech on Friday, he was not unaware of the challenge of pleasing this mercurial section of the population. And more so, since in recent months, his party had suffered electoral reversals in three important north Indian states, with one of the major causes being the shift of the middle-class votes away from the Bharatiya Janata Party (BJP). Something had to be done, since this was the last Budget, even if an interim one, before the party faced the people in the Lok Sabha election. And something was done. Whether the last-ditch effort will bring rewards, will be known in about four months. Given the middle class’s expanse, just one measure would not have sufficed. So the finance minister announced a slew of dramatic proposals, which were greeted with loud thumps and vocal cheering from the treasury bench. A nonplussed opposition looked on with a somewhat dazed expression, though its leaders later recovered and, outside Parliament, rubbished the announcements as the ‘final jumla’ of a government on its way out. Nevertheless, the moment belonged to the Modi regime. The one announcement which most energised the NDA rank and possibly the millions that fall in the middle-class category was the 100 per cent tax rebate for individual tax-payers whose annual income does not cross five lakh rupees. Until now, they had to pay five per cent as the tax on their income. The five lakh rupee ceiling can go even higher if the individual takes advantage of various tax-saving measures related to interest on educations, national pension schemes, medical claims, interest on home loans etc. According to experts, it is possible for individuals earning as high as eight to ten lakh rupees per year to remain out of the tax net with some help from the existing tax-saving avenues. To understand the potential political reach of this proposal, one needs to only remember that close to 30 million taxpayers from the middle class will end up saving more than Rs 18,000 crore annually. There are the other spinoffs. Savings on tax can result in a boost to consumption, which in turn could positively affect industrial output, even if that impacts largely the fast-moving consumer goods (FMCG) sector. At any rate, it could lead to more money flowing in tax-saving instruments, which is not a bad thing in itself. The middle class was given further bonanzas. The standard deduction limit has been proposed to be raised from the present Rs 40,000 to Rs 50,000; second-time home buyers, again an important constituent of the aspirational middle-class category, will get exemption on notional rent earned on the second house, benefits from long-term capital gains tax, and relief on tax deducted at source (TDS) for rental income (up to Rs 2.40 lakh). Here too, there are multiple benefits, besides those to the middle class. With more middle-class taxpayers being encouraged to own a second home, the housing sector, which is struggling with unsold properties, can get a leg-up. As if these were not enough — clearly the finance minister believed that if he had come this far, a little further would do no harm — the tax exemption limit on interest on savings in banks and post offices was increased fourfold, from Rs 10,000 to Rs 40,000. Leave aside the economics — where is the government going to find the money for these concessions, or, will it be able to adhere to the fiscal deficit target, etc — for now. That is for the next regime to grapple with. If it’s going to be the BJP-led NDA again, then it will be judged by its ability to deliver on those promises and also simultaneously offer a roadmap for fiscal prudence; if it’s a new regime, it can simply junk Goyal’s proposals in its full-fledged Budget and dish out something else in their place. It’s the politics that matters in the immediate term, which is what the Budget has been all about. (Disclaimer: The opinions expressed above are the personal views of the author and do not reflect the views of ZMCL.)

Budget 2019: The moment belonged to Narendra Modi government and middle-class taxpayers

The government will find it difficult to meet the fiscal deficit target of 3.4 per cent in 2019-20 on account on higher spending and low revenue growth, Moody's Investors Service said.

Observing that Indian government's debt is "stubbornly high" as a percentage of GDP, Moody's Investors Service Managing Director, Sovereign Risk Group, Gene Fang said it could be brought down only if the Centre sticks to the fiscal consolidation path.

Deviating from the path laid down in the Fiscal Responsibility and Budget Management (FRBM) Act, the government has pegged the fiscal deficit for the next financial year at 3.4 per cent of GDP, as against the original target of 3.1 per cent.

"While the government's growth assumptions appear reasonable, we think the government will continue to face challenges in meeting its fiscal targets, primarily due to structural increases in spending and difficulties in raising revenue further," Fang told PTI in an interview.

Fang said the 3.4 per cent fiscal deficit target for the year ending March 2020 is wider than expected, largely driven by increased spending to provide income support to small farmers and tax rebates ahead of the general elections in April-May this year.

The Interim Budget for 2019-20 doled out a scheme under which farmers holding up to 2 hectares of land would get an annual payout of Rs 6,000 -- a move intended to benefit about 12 crore farmers, among other measures for middle-class taxpayers.

However, there was a 0.1 per cent slip in the fiscal deficit estimate for the current financial year to 3.4 per cent.

While presenting the Budget, Finance Minister Piyush Goyal had said the government has provided Rs 20,000 crore in 2018-19 and Rs 75,000 crore in 2019-20 for providing income support to farmers, which has led to the slippage in the fiscal deficit.

Asked if India risks a rating downgrade following the breach in fiscal deficit target, Moody's said the country's 'Baa2' rating has a 'Stable' outlook, which indicates a balance of upside and downside risks.

"India's government debt remains stubbornly high as a per cent of GDP, but it's mostly domestically funded with a relatively long dated maturity structure.&nbsp;

India's economic growth also offers the potential to bring debt/GDP down, but only if the medium-term fiscal objectives of the FRBM are realised," Fang said.

As per the FRBM Act, debt-to-GDP ratio was to be brought down to 40 per cent by 2024-25 from 50.1 per cent in 2017-18.

In the 2018-19 Budget, the government had targeted to reduce its debt-to-GDP ratio to 48.8 per cent in 2018-19, 46.7 per cent in 2019-20 and 44.6 per cent in 2020-21, while fiscal deficit as a percentage of GDP was targeted to be reduced to 3.3 per cent, 3.1 per cent and 3 per cent, respectively during the same period.

US-based ratings agency Moody's had in 2017 upped India's rating to Baa2 from Baa3, changing outlook to 'stable' from 'positive', and said that reforms will help stabilise rising levels of debt.

The government will find it difficult to meet the fiscal deficit target of 3.4 per cent in 2019-20 on account on higher spending and low revenue growth, Moody's Investors Service said.

The government will find it difficult to meet the fiscal deficit target of 3.4 per cent in 2019-20 on account on higher spending and low revenue growth, Moody's Investors Service said. Observing that Indian government's debt is "stubbornly high" as a percentage of GDP, Moody's Investors Service Managing Director, Sovereign Risk Group, Gene Fang said it could be brought down only if the Centre sticks to the fiscal consolidation path. Deviating from the path laid down in the Fiscal Responsibility and Budget Management (FRBM) Act, the government has pegged the fiscal deficit for the next financial year at 3.4 per cent of GDP, as against the original target of 3.1 per cent. "While the government's growth assumptions appear reasonable, we think the government will continue to face challenges in meeting its fiscal targets, primarily due to structural increases in spending and difficulties in raising revenue further," Fang told PTI in an interview. Fang said the 3.4 per cent fiscal deficit target for the year ending March 2020 is wider than expected, largely driven by increased spending to provide income support to small farmers and tax rebates ahead of the general elections in April-May this year. The Interim Budget for 2019-20 doled out a scheme under which farmers holding up to 2 hectares of land would get an annual payout of Rs 6,000 -- a move intended to benefit about 12 crore farmers, among other measures for middle-class taxpayers. However, there was a 0.1 per cent slip in the fiscal deficit estimate for the current financial year to 3.4 per cent. While presenting the Budget, Finance Minister Piyush Goyal had said the government has provided Rs 20,000 crore in 2018-19 and Rs 75,000 crore in 2019-20 for providing income support to farmers, which has led to the slippage in the fiscal deficit. Asked if India risks a rating downgrade following the breach in fiscal deficit target, Moody's said the country's 'Baa2' rating has a 'Stable' outlook, which indicates a balance of upside and downside risks. "India's government debt remains stubbornly high as a per cent of GDP, but it's mostly domestically funded with a relatively long dated maturity structure. India's economic growth also offers the potential to bring debt/GDP down, but only if the medium-term fiscal objectives of the FRBM are realised," Fang said. As per the FRBM Act, debt-to-GDP ratio was to be brought down to 40 per cent by 2024-25 from 50.1 per cent in 2017-18. In the 2018-19 Budget, the government had targeted to reduce its debt-to-GDP ratio to 48.8 per cent in 2018-19, 46.7 per cent in 2019-20 and 44.6 per cent in 2020-21, while fiscal deficit as a percentage of GDP was targeted to be reduced to 3.3 per cent, 3.1 per cent and 3 per cent, respectively during the same period. US-based ratings agency Moody's had in 2017 upped India's rating to Baa2 from Baa3, changing outlook to 'stable' from 'positive', and said that reforms will help stabilise rising levels of debt.

Difficult for govt to maintain 3.4% fiscal deficit in FY'20: Moody's

Union Minister <a href="http://www.wionews.com/india-news/will-present-an-interim-budget-clarifies-finance-ministry-193892">Arun Jaitley</a> Sunday said his medical treatment at a US hospital is all over but hinted that he may not return to India in time to reply to the debate on <a href="http://www.wionews.com/india-general-elections-2019/it-was-not-an-interim-budget-but-a-full-fledged-budget-chidambaram-194383">Interim Budget in Parliament.&nbsp;</a>

Jaitley, 66, had missed presenting the sixth and final budget of the Narendra Modi government's present term as he had to fly to the US due to ill health.&nbsp;

In his absence, the charge of the finance ministry was given to Railway Minister Piyush Goyal, who on February 1 presented the Interim Budget for 2019-20 financial year.&nbsp;

Jaitley had on the Budget day stated that he would be back in India soon. 
&nbsp; 
In an interview to PTI here, he said he was on recovery course and his return to India in time to reply to the <a href="http://www.wionews.com/business-economy/ndas-interim-budget-on-friday-likely-to-offer-some-hope-and-relief-194176">Budget </a>debate in Parliament will depend on when his doctors allow him to leave.&nbsp;

"It depends on after my treatment here, which is all over. I am on the recovery course. It's when my doctors allow me to go back. As of present, as I understand, Piyush Goyal will be replying (to the Budget debate in Parliament)," he said.&nbsp;

Jaitley had last month flown here for treatment of an unstated illness. Neither he nor the government has commented on the nature of his illness but reports suggest he was suffering from soft tissue cancer and had to be operated upon.&nbsp;

This is his first overseas visit after he underwent renal transplant surgery on May 14, 2018, at AIIMS. That time too, Goyal was given the additional charge of the finance ministry.

Jaitley, who had stopped attending office at the beginning of April, was back in North Block — the seat of the finance ministry — on August 23.&nbsp;

He had in September 2014 undergone a bariatric surgery to treat weight gain that he suffered because of a long-standing diabetic condition.

Union Minister Arun Jaitley Sunday said his medical treatment at a US hospital is all over but hinted that he may not return to India in time to reply to the debate on Interim Budget in Parliament.

Union Minister Arun Jaitley Sunday said his medical treatment at a US hospital is all over but hinted that he may not return to India in time to reply to the debate on Interim Budget in Parliament. Jaitley, 66, had missed presenting the sixth and final budget of the Narendra Modi government's present term as he had to fly to the US due to ill health. In his absence, the charge of the finance ministry was given to Railway Minister Piyush Goyal, who on February 1 presented the Interim Budget for 2019-20 financial year. Jaitley had on the Budget day stated that he would be back in India soon. In an interview to PTI here, he said he was on recovery course and his return to India in time to reply to the Budget debate in Parliament will depend on when his doctors allow him to leave. "It depends on after my treatment here, which is all over. I am on the recovery course. It's when my doctors allow me to go back. As of present, as I understand, Piyush Goyal will be replying (to the Budget debate in Parliament)," he said. Jaitley had last month flown here for treatment of an unstated illness. Neither he nor the government has commented on the nature of his illness but reports suggest he was suffering from soft tissue cancer and had to be operated upon. This is his first overseas visit after he underwent renal transplant surgery on May 14, 2018, at AIIMS. That time too, Goyal was given the additional charge of the finance ministry. Jaitley, who had stopped attending office at the beginning of April, was back in North Block — the seat of the finance ministry — on August 23. He had in September 2014 undergone a bariatric surgery to treat weight gain that he suffered because of a long-standing diabetic condition.

Arun Jaitley indicates won't be back in India to reply to Budget debate

There is a difference between a chartered accountant and a lawyer. One reads the fine print to help you. The other introduces it to fox you. Such thoughts come to mind after an interim budget presented by an interim finance minister who happens to be standing in for a lawyer who is recuperating in the US.

It must be said that Piyush Goyal has successfully packaged a slew of populist measures without losing the math enough to invite criticism from the fiscal conservatives. And the manner he has done this is to introduce catchy situations where the beneficiaries of the budget for 2019-20, be it the farmer, the unorganised urban worker or the middle class taxpayer, has to either feel satisfied with a token handout or pay up or save up in order to eat the carrots being dangled in front.

You could argue that Arun Jaitley, the Finance Minister for whom Goyal has come in like a nightwatchman in a cricket game, could have a lawyer's brief to build an argument, but it takes a smart accountant to make a small thing look big in the money game.

Let us take the farmer. The small farmer who has two hectares of land or less is getting roughly Rs 500 per month - but in an economy where a daily wage of Rs 400 for landless farm workers has become quite common. So, the income support scheme, which was widely anticipated after Prime Minister Narendra Modi's BJP suffered defeats in Madhya Pradesh, Chhattisgarh and Rajasthan Assembly elections, is a hesitant first step. But it is enough to tell as many as 120 million farmers (which could potentially translate as thrice as many votes): "It is not as if we do not care for you." Will the farmers bite this, or say this is too little and too late for a nation in which food prices are not attractive enough for its producers? We will have to wait and see.

The urban middle class gets a big benefit from an income tax rebate, but all indications are that this requires some extra saving to be invested properly in tax-friendly schemes in order to get a parallel benefit in tax avoided. Rs 12,500 per year is the benefit one will get at most. The standard deduction increase to Rs. 50,000 from Rs 40,000 can be added to this as a small frill.

The unorganised urban worker - let us say a taxi driver, a housemaid or a rickshaw puller -- has been promised a monthly pension of Rs 3,000 a month, but only on a contribution of Rs 100 a month. The trick is that on a 15% return in a decent pension fund, the compounded amount from contribution will be healthy enough to generate a corpus for Rs 3,000 a month annuity when a 20-something worker reaches the pensionable age of 60. So the government is not dipping into its own pocket to pay Rs 3,000 a month right away for the better part of an increasingly young population.

Now, add some other pro-poor schemes such as the Ayushman Bharat scheme for health insurance that has already covered 100 million people with a not-so-big outlay needed to make people safer, and you have populism without the fiscal pinch. It takes a smart CA.

(This article was originally published on The Zee News. Read the <a href="https://zeenews.india.com/blogs/piyush-goyal-delivers-budget-2019-with-the-art-of-a-chartered-accountant-2176402.html">original article</a>)

(Disclaimer: The opinions expressed above are the personal views of the author and do not reflect the views of ZMCL.)

There is a difference between a chartered accountant and a lawyer. One reads the fine print to help you. The other introduces it to fox you. Such thoughts come to mind after an interim budget presented by an interim finance minister who happens to be standing in for a lawyer who is recuperating in the US.

There is a difference between a chartered accountant and a lawyer. One reads the fine print to help you. The other introduces it to fox you. Such thoughts come to mind after an interim budget presented by an interim finance minister who happens to be standing in for a lawyer who is recuperating in the US. It must be said that Piyush Goyal has successfully packaged a slew of populist measures without losing the math enough to invite criticism from the fiscal conservatives. And the manner he has done this is to introduce catchy situations where the beneficiaries of the budget for 2019-20, be it the farmer, the unorganised urban worker or the middle class taxpayer, has to either feel satisfied with a token handout or pay up or save up in order to eat the carrots being dangled in front. You could argue that Arun Jaitley, the Finance Minister for whom Goyal has come in like a nightwatchman in a cricket game, could have a lawyer's brief to build an argument, but it takes a smart accountant to make a small thing look big in the money game. Let us take the farmer. The small farmer who has two hectares of land or less is getting roughly Rs 500 per month - but in an economy where a daily wage of Rs 400 for landless farm workers has become quite common. So, the income support scheme, which was widely anticipated after Prime Minister Narendra Modi's BJP suffered defeats in Madhya Pradesh, Chhattisgarh and Rajasthan Assembly elections, is a hesitant first step. But it is enough to tell as many as 120 million farmers (which could potentially translate as thrice as many votes): "It is not as if we do not care for you." Will the farmers bite this, or say this is too little and too late for a nation in which food prices are not attractive enough for its producers? We will have to wait and see. The urban middle class gets a big benefit from an income tax rebate, but all indications are that this requires some extra saving to be invested properly in tax-friendly schemes in order to get a parallel benefit in tax avoided. Rs 12,500 per year is the benefit one will get at most. The standard deduction increase to Rs. 50,000 from Rs 40,000 can be added to this as a small frill. The unorganised urban worker - let us say a taxi driver, a housemaid or a rickshaw puller -- has been promised a monthly pension of Rs 3,000 a month, but only on a contribution of Rs 100 a month. The trick is that on a 15% return in a decent pension fund, the compounded amount from contribution will be healthy enough to generate a corpus for Rs 3,000 a month annuity when a 20-something worker reaches the pensionable age of 60. So the government is not dipping into its own pocket to pay Rs 3,000 a month right away for the better part of an increasingly young population. Now, add some other pro-poor schemes such as the Ayushman Bharat scheme for health insurance that has already covered 100 million people with a not-so-big outlay needed to make people safer, and you have populism without the fiscal pinch. It takes a smart CA. (This article was originally published on The Zee News. Read the original article) (Disclaimer: The opinions expressed above are the personal views of the author and do not reflect the views of ZMCL.)

Piyush Goyal delivers Budget 2019 with the art of a Chartered Accountant

Unveiling the development vision for the next decade, the government on Friday said it would focus on <a href="http://www.wionews.com/business-economy/budget-2019-full-text-of-finance-minister-piyush-goyals-speech-in-parliament-194373">10 key areas including job creation</a>, physical and social infrastructure building, pollution-free nation and clean rivers.

Presenting the Budget 2019-20, Finance Minister Piyush Goyal laid out vision for 10 most important dimensions in 2030.

<a href="http://www.wionews.com/business-economy/budget-2019-full-text-of-finance-minister-piyush-goyals-speech-in-parliament-194373">Also Read: Big takeaways from Union Budget 2019</a>

"The first dimension of this vision will be to build physical as well as social infrastructure for a $10-trillion economy and to provide ease of living," he said.

It will comprise, he said, next-generation infrastructure of roads, railways, seaports, airports, urban transport, gas and electric transmission and inland waterways.

On the social infrastructure side, Goyal said every family will have a roof over its head and will live in a healthy, clean and wholesome environment.

"We will also build quality, science-oriented educational system with institutes of excellence providing leadership at the top," he said.

The other dimensions of the visions include creating a <a href="http://www.wionews.com/business-economy/union-budget-2019-no-income-tax-for-annual-income-upto-rs-5-lakh-says-piyush-goyal-194324">Digital India reaching every sector </a>of the economy; making India a pollution-free nation; expanding rural industrialisation using modern digital technologies to generate massive employment; space; and clean rivers.

Elaborating on rural industrialisation, he said this would be built upon the Make in India approach to develop grassroots-level clusters, structures and mechanisms encompassing the MSMEs, village industries and start-ups spread in the country.

The fifth dimension of the Vision for India 2030 is clean rivers, with safe drinking water to all Indians and efficient use of water in irrigation using micro-irrigation techniques.

"Our coastline and our ocean waters powering India's development and growth is the sixth dimension of our vision," he said, adding that making India self-sufficient in food, exporting to the world to meet their food needs and producing food in the most organic way is the eighth dimension.

"High farm production and productivity will be achieved through modern agricultural practices and value addition. An integrated approach towards agro and food processing, preservation, packaging and maintenance of the cold chain will be our focus of attention," he added.

Further, he said that by 2030, the government will work towards a distress-free healthcare and a functional and comprehensive wellness system for all.

"Our India of 2030 will have a proactive and responsible bureaucracy which will be viewed as friendly to people," the minister said.

With this comprehensive 10-dimensional Vision, "we will create an India where poverty, malnutrition, littering and illiteracy would be a matter of the past. India would be a modern, technology-driven, high growth, equitable and transparent society," the minister said.

Unveiling the development vision for the next decade, the government on Friday said it would focus on 10 key areas including job creation, physical and social infrastructure building, pollution-free nation and clean rivers.

Unveiling the development vision for the next decade, the government on Friday said it would focus on 10 key areas including job creation, physical and social infrastructure building, pollution-free nation and clean rivers. Presenting the Budget 2019-20, Finance Minister Piyush Goyal laid out vision for 10 most important dimensions in 2030. Also Read: Big takeaways from Union Budget 2019 "The first dimension of this vision will be to build physical as well as social infrastructure for a $10-trillion economy and to provide ease of living," he said. It will comprise, he said, next-generation infrastructure of roads, railways, seaports, airports, urban transport, gas and electric transmission and inland waterways. On the social infrastructure side, Goyal said every family will have a roof over its head and will live in a healthy, clean and wholesome environment. "We will also build quality, science-oriented educational system with institutes of excellence providing leadership at the top," he said. The other dimensions of the visions include creating a Digital India reaching every sector of the economy; making India a pollution-free nation; expanding rural industrialisation using modern digital technologies to generate massive employment; space; and clean rivers. Elaborating on rural industrialisation, he said this would be built upon the Make in India approach to develop grassroots-level clusters, structures and mechanisms encompassing the MSMEs, village industries and start-ups spread in the country. The fifth dimension of the Vision for India 2030 is clean rivers, with safe drinking water to all Indians and efficient use of water in irrigation using micro-irrigation techniques. "Our coastline and our ocean waters powering India's development and growth is the sixth dimension of our vision," he said, adding that making India self-sufficient in food, exporting to the world to meet their food needs and producing food in the most organic way is the eighth dimension. "High farm production and productivity will be achieved through modern agricultural practices and value addition. An integrated approach towards agro and food processing, preservation, packaging and maintenance of the cold chain will be our focus of attention," he added. Further, he said that by 2030, the government will work towards a distress-free healthcare and a functional and comprehensive wellness system for all. "Our India of 2030 will have a proactive and responsible bureaucracy which will be viewed as friendly to people," the minister said. With this comprehensive 10-dimensional Vision, "we will create an India where poverty, malnutrition, littering and illiteracy would be a matter of the past. India would be a modern, technology-driven, high growth, equitable and transparent society," the minister said.

Budget 2019: Modi government's vision for India 2030 focuses on 10 key areas

Budget 2019: Arun Jaitley speaks on Budget 2019

West Bengal Chief Minister Mamata Banerjee termed the interim budget as a ‘budget of desperation’ on Friday.

“We feel this is an expiry budget. This is a budget of desperation. This budget will not be implemented. The tenure of this government will be over in one month. After elections, a new government will come and present a new budget. I am not an economist, but I have practical knowledge and ideas. Nobody knows what the financial situation of the country is, she said.

The chief minister further added, "It is obvious, economic emergency is going on in the country. Where will this money come from? How will it be managed? This government has no moral authority to put forth this budget. After expiry is there any value? This is a value-less budget".

Banerjee also alleged that the budget is a farce and an attempt to cheat farmers ahead of the Lok Sabha elections in the country. She claimed that the Pradhan Mantri Kisan Samman Nidhi scheme was copied from Bengal government’s Krishak Bandhu scheme introduced on December 31, last year.

“Why has this government not announced a single agenda for farmers for the last four and a half years? We have already started the ‘Krishak Bandhu’ scheme. A similar scheme has been announced today. Why did not announce these schemes earlier? They know they can never implement these scheme but it is an attempt to get votes,” she said.

She further added that the MGNREGA’s total budget has been curtailed as a result of which the 100 days work for the poor will be affected.&nbsp; 
“They have not given any extra amount for MGNREGA scheme. The funds are lower than revised estimate. People are not getting their dues. They have decreased funds for Swachh Bharat Mission by 25 per cent,” Banerjee said.

West Bengal Chief Minister Mamata Banerjee termed the interim budget as a ‘budget of desperation’ on Friday. “We feel this is an expiry budget. This is a budget of desperation.

West Bengal Chief Minister Mamata Banerjee termed the interim budget as a ‘budget of desperation’ on Friday. “We feel this is an expiry budget. This is a budget of desperation. This budget will not be implemented. The tenure of this government will be over in one month. After elections, a new government will come and present a new budget. I am not an economist, but I have practical knowledge and ideas. Nobody knows what the financial situation of the country is, she said. The chief minister further added, "It is obvious, economic emergency is going on in the country. Where will this money come from? How will it be managed? This government has no moral authority to put forth this budget. After expiry is there any value? This is a value-less budget". Banerjee also alleged that the budget is a farce and an attempt to cheat farmers ahead of the Lok Sabha elections in the country. She claimed that the Pradhan Mantri Kisan Samman Nidhi scheme was copied from Bengal government’s Krishak Bandhu scheme introduced on December 31, last year. “Why has this government not announced a single agenda for farmers for the last four and a half years? We have already started the ‘Krishak Bandhu’ scheme. A similar scheme has been announced today. Why did not announce these schemes earlier? They know they can never implement these scheme but it is an attempt to get votes,” she said. She further added that the MGNREGA’s total budget has been curtailed as a result of which the 100 days work for the poor will be affected. “They have not given any extra amount for MGNREGA scheme. The funds are lower than revised estimate. People are not getting their dues. They have decreased funds for Swachh Bharat Mission by 25 per cent,” Banerjee said.

Budget of desperation: Mamata Banerjee slams Centre

The government has allocated a sum of Rs 3,18,931.22 crore to Defence out of the total outlay of Rs 27,84,200 crore of the interim Budget 2019-2020 announced on Friday. The Rs 3.18 lakh crore&nbsp;does not include the Defence Pension which stands at Rs 1,12 lakh crore&nbsp;in Budget estimates for financial year 19-20. The allocation of Rs 3.18 lakh crore&nbsp;represents a growth of 7.93 per cent over Budget estimates of FY 2018-19 of Rs 2.95 lakh crore&nbsp;and 6.87 per cent over revised estimates at Rs 2. 98 lakh crore. &nbsp;

While announcing the Budget Interim Finance Minister Piyush Goyal said," Our Defence Budget will be crossing Rs 3,00,000 crore for the first time in 2019-20. For securing our borders and to maintain preparedness of the highest order, if necessary, additional funds would be provided."

According to an Army release, "the total defence allocation including the defence pension accounts for 15.48 per cent&nbsp;of the total central government expenditure for the year 2019-20".

The release explained that out of Rs 3.18 lakh crore&nbsp;allocated for financial year 2019-20, Rs 2.10 lakh crore&nbsp;is for revenue (net) expenditure and Rs 1.08 lakh crore&nbsp;for capital expenditure for the defence services and the departments under the defence ministry. The Rs 1.08 crore amount allocated for capital expenditure includes the amount for modernisation.

Piyush Goyal while speaking in the parliament on Friday also said that the current government has disbursed over Rs 35000 crore for implementation of One Rank One Pension (OROP).

He added," The Government also announced substantial hike in the Military Service Pay (MSP) of all service personnel and special allowances given to Naval and Air Force personnel deployed in high risk duties"

The government has allocated a sum of Rs 3,18,931.22 crore to Defence out of the total outlay of Rs 27,84,200 crore of the interim Budget 2019-2020 announced on Friday.

The government has allocated a sum of Rs 3,18,931.22 crore to Defence out of the total outlay of Rs 27,84,200 crore of the interim Budget 2019-2020 announced on Friday. The Rs 3.18 lakh crore does not include the Defence Pension which stands at Rs 1,12 lakh crore in Budget estimates for financial year 19-20. The allocation of Rs 3.18 lakh crore represents a growth of 7.93 per cent over Budget estimates of FY 2018-19 of Rs 2.95 lakh crore and 6.87 per cent over revised estimates at Rs 2. 98 lakh crore. While announcing the Budget Interim Finance Minister Piyush Goyal said," Our Defence Budget will be crossing Rs 3,00,000 crore for the first time in 2019-20. For securing our borders and to maintain preparedness of the highest order, if necessary, additional funds would be provided." According to an Army release, "the total defence allocation including the defence pension accounts for 15.48 per cent of the total central government expenditure for the year 2019-20". The release explained that out of Rs 3.18 lakh crore allocated for financial year 2019-20, Rs 2.10 lakh crore is for revenue (net) expenditure and Rs 1.08 lakh crore for capital expenditure for the defence services and the departments under the defence ministry. The Rs 1.08 crore amount allocated for capital expenditure includes the amount for modernisation. Piyush Goyal while speaking in the parliament on Friday also said that the current government has disbursed over Rs 35000 crore for implementation of One Rank One Pension (OROP). He added," The Government also announced substantial hike in the Military Service Pay (MSP) of all service personnel and special allowances given to Naval and Air Force personnel deployed in high risk duties"

Budget 2019: Defence gets Rs 3.18 lakh crore; 7% higher than last year

The <a href="http://www.wionews.com/india-news/budget-will-take-india-on-path-to-development-pm-modi-194378">interim Budget saw India</a> increase its contribution substantially to the Maldives while bringing support to SAARC and BIMSTEC Secretariat at the same level.

According to Budget estimates for 2019-2020, <a href="http://www.wionews.com/business-economy/defence-budget-increased-over-rs-20000-crore-crosses-rs-300000-crore-for-first-time-194380">Maldives got Rs 400 crore grant</a> and Rs 175 crore loan from India making New Delhi's contribution to the Indian ocean country at Rs 575 crore. It is five- times increase from the sum India contributed in FY 2017-2018 which was just Rs 109.24 crore.&nbsp;

<a href="http://www.wionews.com/business-economy/budget-2019-full-text-of-finance-minister-piyush-goyals-speech-in-parliament-194373">Budget 2019: Full text of finance minister Piyush Goyal's speech in Parliament</a>

In the case of Maldives, even the revised <a href="http://www.wionews.com/business-economy/live-updates-union-budget-2019-194198">estimates for the financial year</a> 2018-2019 saw a massive increase. In last year's&nbsp;Budget, India had announced a contribution of Rs 125 crore, it was revised at Rs 440 crore.

It comes after Maldives President Ibrahim Solih&nbsp;visited India in December of 2018, his first foreign visit to any country after taking charge in November last year.&nbsp;During the visit, India had announced an assistance of $1.4 billion&nbsp;to Male.

Clearly, the change in regime in the Maldives has had an impact. The previous regime under Yameen had junked pro-India policies for a pro-China strategy.

For Afghanistan, a country in which India is building a number of infrastructure projects, the interim Budget gave Rs 325 crore. Last year also it was as much but in the revised estimates released on Friday, it increased to Rs 470 crore.&nbsp;

Bhutan, which is India's close partner and gets substantial budgetary support saw a grant of Rs 2,115 crore and a loan of Rs 500 crore. With Rs 2,615 crore, it is the maximum support India gives to any country. Nepal got Rs 700 crore, Myanmar got Rs 400 crore, Bangladesh got Rs 175 crore &amp; Sri Lanka Rs 150 crore in the interim Budget 2019-2020.&nbsp;

The Budget estimate for Chabahar port, India's key connectivity plan with Afghanistan and central Asia remained unchanged from the previous year at Rs 150 crore.

India also provides support to international and regional organisations. The amount given for SAARC and BIMSTEC Secretariat stands same at Rs 8 crore. Interestingly, BIMSTEC funds saw an increase from Rs 5 crore last year to Rs 8 crore this year. &nbsp;

The 2016 SAARC summit in Islamabad was cancelled after India along with regional countries like Bangladesh, Bhutan, Afghanistan boycotted the summit due to Islamabad's support to terrorism. BIMSTEC has seen a new push from New Delhi especially after the summit in Nepal last year.

India funds two universities also - &nbsp;The South Asian University and Nalanda International University -&nbsp; which saw Indian support worth Rs 380 crore and Rs 220 crore in the interim Budget.

For 2019-2020, India announced Rs 265 crore for United Nations, last year it was Rs 258 crore which revised estimates being increased at Rs 307 crore. This is excluding the contribution to its various bodies - like UNESCO and UNCTAD.

India will also give a membership contribution of Rs 0.70 cr to FATF under the interim Budget estimates.&nbsp;

Indian Ocean and Africa

Two Indian ocean countries - Mauritius and Seychelles, who have been getting aid historically from New Delhi, got Rs 700 crore and Rs 75 crore. Mauritius PM Pravind Kumar Jugnauth was on an 8-day long India visit only last week and was the chief guest at the Pravasi Bharatiya Divas in Varanasi.

India also increased its support to African countries with the Budget announcing Rs 400 crore this year. Last it was Rs 200 crore and before that, it was Rs 175 crore. This is an increase in line with New Delhi's Africa policy which has seen an increase in engagement with the African continent.&nbsp;

India also provides support to Mongolia. This year it has announced Rs 5 crore, which is&nbsp;same as last year.

The interim Budget saw India increase its contribution substantially to the Maldives while bringing support to SAARC and BIMSTEC Secretariat at the same level. According to Budget estimates for 2019-2020, Maldives got Rs 400 crore grant and Rs 175 crore loan from India making New Delhi's contribution to the Indian ocean country at Rs 575 crore.

The interim Budget saw India increase its contribution substantially to the Maldives while bringing support to SAARC and BIMSTEC Secretariat at the same level. According to Budget estimates for 2019-2020, Maldives got Rs 400 crore grant and Rs 175 crore loan from India making New Delhi's contribution to the Indian ocean country at Rs 575 crore. It is five- times increase from the sum India contributed in FY 2017-2018 which was just Rs 109.24 crore. Budget 2019: Full text of finance minister Piyush Goyal's speech in Parliament In the case of Maldives, even the revised estimates for the financial year 2018-2019 saw a massive increase. In last year's Budget, India had announced a contribution of Rs 125 crore, it was revised at Rs 440 crore. It comes after Maldives President Ibrahim Solih visited India in December of 2018, his first foreign visit to any country after taking charge in November last year. During the visit, India had announced an assistance of $1.4 billion to Male. Clearly, the change in regime in the Maldives has had an impact. The previous regime under Yameen had junked pro-India policies for a pro-China strategy. For Afghanistan, a country in which India is building a number of infrastructure projects, the interim Budget gave Rs 325 crore. Last year also it was as much but in the revised estimates released on Friday, it increased to Rs 470 crore. Bhutan, which is India's close partner and gets substantial budgetary support saw a grant of Rs 2,115 crore and a loan of Rs 500 crore. With Rs 2,615 crore, it is the maximum support India gives to any country. Nepal got Rs 700 crore, Myanmar got Rs 400 crore, Bangladesh got Rs 175 crore & Sri Lanka Rs 150 crore in the interim Budget 2019-2020. The Budget estimate for Chabahar port, India's key connectivity plan with Afghanistan and central Asia remained unchanged from the previous year at Rs 150 crore. India also provides support to international and regional organisations. The amount given for SAARC and BIMSTEC Secretariat stands same at Rs 8 crore. Interestingly, BIMSTEC funds saw an increase from Rs 5 crore last year to Rs 8 crore this year. The 2016 SAARC summit in Islamabad was cancelled after India along with regional countries like Bangladesh, Bhutan, Afghanistan boycotted the summit due to Islamabad's support to terrorism. BIMSTEC has seen a new push from New Delhi especially after the summit in Nepal last year. India funds two universities also - The South Asian University and Nalanda International University - which saw Indian support worth Rs 380 crore and Rs 220 crore in the interim Budget. For 2019-2020, India announced Rs 265 crore for United Nations, last year it was Rs 258 crore which revised estimates being increased at Rs 307 crore. This is excluding the contribution to its various bodies - like UNESCO and UNCTAD. India will also give a membership contribution of Rs 0.70 cr to FATF under the interim Budget estimates. Indian Ocean and Africa Two Indian ocean countries - Mauritius and Seychelles, who have been getting aid historically from New Delhi, got Rs 700 crore and Rs 75 crore. Mauritius PM Pravind Kumar Jugnauth was on an 8-day long India visit only last week and was the chief guest at the Pravasi Bharatiya Divas in Varanasi. India also increased its support to African countries with the Budget announcing Rs 400 crore this year. Last it was Rs 200 crore and before that, it was Rs 175 crore. This is an increase in line with New Delhi's Africa policy which has seen an increase in engagement with the African continent. India also provides support to Mongolia. This year it has announced Rs 5 crore, which is same as last year.

Budget 2019: India increases significant contribution to Maldives; BIMSTEC to get similar funds as SAARC

Union minister Arun Jaitley who presided over the previous <a href="http://www.wionews.com/india-news/big-takeaways-from-union-budget-2019-194331">four Budgets of the NDA government </a>said the economic reforms undertaken by the government unshackled the Indian economy, calling the 2019 Budget "pro-growth, fiscally prudent, pro-farmer, pro-poor."

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The Interim Budget (2019) and a five year direction <a href="https://t.co/xWL5KjRwcl">https://t.co/xWL5KjRwcl</a>
— Arun Jaitley (@arunjaitley) <a href="https://twitter.com/arunjaitley/status/1091285435056312320?ref_src=twsrc%5Etfw">February 1, 2019</a></blockquote>
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Jaitley is currently in the United States after undergoing surgery at a hospital in New York. He had left for the US last month, in his absence Piyush Goyal presented the interim Budget today.

<a href="http://www.wionews.com/business-economy/budget-2019-full-text-of-finance-minister-piyush-goyals-speech-in-parliament-194373">Budget 2019: Full text of finance minister Piyush Goyal's speech in Parliament</a>

"Interim Budgets are also an opportunity for the government of the day to introspect their performance of the last five years and place its facts before the people," he said, while adding,"the future vision is to make India a $5 trillion economy. By the middle of the next decade we will achieve this and thereafter, target doubling that size of the economy."

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Last year the Government restored the benefit of Standard Deduction to salaried taxpayer at Rs.40,000/-. This year this benefit is being extended to Rs.50,000/-.
— Arun Jaitley (@arunjaitley) <a href="https://twitter.com/arunjaitley/status/1091287474305990656?ref_src=twsrc%5Etfw">February 1, 2019</a></blockquote>
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Jaitley in a tweet said that the <a href="http://www.wionews.com/business-economy/budget-2019-income-tax-refunds-to-be-processed-within-24-hours-says-fm-194308">Budget expanded spending</a> while pragmatically sticking to fiscal prudence. He complimented Piyush Goyal for delivering an "excellent Budget".

"Higher direct and indirect tax collections in 2016-17 and 2017-18 are an indicator of high growth in those two years. Growth is based on estimates, but tax collections are real."&nbsp;

"GST has already brought down most taxes on goods from 31% tax to the 18%, 12% and the 5% bracket," he asserted. "Never in the history of India during the five-year tenure of a government we have witnessed tax reduction and a middle class relief of this magnitude," Jaitley added.

Jaitley while speaking to ANI said: "What did the UPA do in their 10 years in power? A one-time loan waiver of Rs 70,000 crores. Only 52,000 crores were waived off and CAG report was that out of that Rs 52,000 crore a significant part of the money went to traders and businessmen and not to farmers."

"Now look at what we've been doing. Rural roads - 91% completed, rural housing - 2022 everyone will have a roof, 98.7% people in rural areas now have sanitation, every willing home is having electricity, every man has switched over the cooking methods," he said.

 
&nbsp;

Union minister Arun Jaitley who presided over the previous four Budgets of the NDA government said the economic reforms undertaken by the government unshackled the Indian economy, calling the 2019 Budget "pro-growth, fiscally prudent, pro-farmer, pro-poor.

Union minister Arun Jaitley who presided over the previous four Budgets of the NDA government said the economic reforms undertaken by the government unshackled the Indian economy, calling the 2019 Budget "pro-growth, fiscally prudent, pro-farmer, pro-poor." The Interim Budget (2019) and a five year direction https://t.co/xWL5KjRwcl — Arun Jaitley (@arunjaitley) February 1, 2019 × Jaitley is currently in the United States after undergoing surgery at a hospital in New York. He had left for the US last month, in his absence Piyush Goyal presented the interim Budget today. Budget 2019: Full text of finance minister Piyush Goyal's speech in Parliament "Interim Budgets are also an opportunity for the government of the day to introspect their performance of the last five years and place its facts before the people," he said, while adding,"the future vision is to make India a $5 trillion economy. By the middle of the next decade we will achieve this and thereafter, target doubling that size of the economy." Last year the Government restored the benefit of Standard Deduction to salaried taxpayer at Rs.40,000/-. This year this benefit is being extended to Rs.50,000/-. — Arun Jaitley (@arunjaitley) February 1, 2019 × Jaitley in a tweet said that the Budget expanded spending while pragmatically sticking to fiscal prudence. He complimented Piyush Goyal for delivering an "excellent Budget". "Higher direct and indirect tax collections in 2016-17 and 2017-18 are an indicator of high growth in those two years. Growth is based on estimates, but tax collections are real." "GST has already brought down most taxes on goods from 31% tax to the 18%, 12% and the 5% bracket," he asserted. "Never in the history of India during the five-year tenure of a government we have witnessed tax reduction and a middle class relief of this magnitude," Jaitley added. Jaitley while speaking to ANI said: "What did the UPA do in their 10 years in power? A one-time loan waiver of Rs 70,000 crores. Only 52,000 crores were waived off and CAG report was that out of that Rs 52,000 crore a significant part of the money went to traders and businessmen and not to farmers." "Now look at what we've been doing. Rural roads - 91% completed, rural housing - 2022 everyone will have a roof, 98.7% people in rural areas now have sanitation, every willing home is having electricity, every man has switched over the cooking methods," he said.

Higher direct and indirect tax collections indicator of high growth in last two years: Jaitley

Budget 2019: NITI Aayog Vice Chairman Speaks to WION

The Modi government will present the last budget of the current tenure on Friday. With the election around the corner, the budget is expected to be an interim one and present the outline for the next financial year beginning April 1.

In an election year, the incumbent government usually presents vote-on-account in Parliament which enables the government machinery to meet important expenses of administration, like salaries etc. The vote-on-account is usually for a period of three-four months and is meant to provide a smooth transition for the next government; it gives time to Parliament when it reconstitutes after the elections to discuss and pass the full Budget and allocate money accordingly.

The Modi government has indicated that this year's budget will not be a vote-on-account but an interim one. While the vote-on-account deals only with the expenditure side of the budget, an interim budget has both expenditure and receipts and gives the complete financial statement, much like a full budget.

India had been following a practice of presenting the budget on last working day of February. The Modi government changed that practice in 2017 and started presenting the budget on February 1. The move was challenged in the Supreme Court, but the court refused to intervene.

The budget session of Parliament began on January 31 and will go on till February 13. President Ram Nath Kovind delivered the joint sitting of the two Houses on January 31.&nbsp;

This year's interim Budget is going to be significant, according to a Zee Business channel report. Modi-led government could change the financial year cycle from April-March to January-December, thereby changing the 152-year long tradition that commenced in 1867. The report, citing sources, said that from 2020, the fiscal year will begin on January 1 and end on December 31, adding that the date for budget session of Parliament will also be changed.

The Modi government will present the last budget of the current tenure on Friday. With the election around the corner, the budget is expected to be an interim one and present the outline for the next financial year beginning April 1.

The Modi government will present the last budget of the current tenure on Friday. With the election around the corner, the budget is expected to be an interim one and present the outline for the next financial year beginning April 1. In an election year, the incumbent government usually presents vote-on-account in Parliament which enables the government machinery to meet important expenses of administration, like salaries etc. The vote-on-account is usually for a period of three-four months and is meant to provide a smooth transition for the next government; it gives time to Parliament when it reconstitutes after the elections to discuss and pass the full Budget and allocate money accordingly. The Modi government has indicated that this year's budget will not be a vote-on-account but an interim one. While the vote-on-account deals only with the expenditure side of the budget, an interim budget has both expenditure and receipts and gives the complete financial statement, much like a full budget. India had been following a practice of presenting the budget on last working day of February. The Modi government changed that practice in 2017 and started presenting the budget on February 1. The move was challenged in the Supreme Court, but the court refused to intervene. The budget session of Parliament began on January 31 and will go on till February 13. President Ram Nath Kovind delivered the joint sitting of the two Houses on January 31. This year's interim Budget is going to be significant, according to a Zee Business channel report. Modi-led government could change the financial year cycle from April-March to January-December, thereby changing the 152-year long tradition that commenced in 1867. The report, citing sources, said that from 2020, the fiscal year will begin on January 1 and end on December 31, adding that the date for budget session of Parliament will also be changed.

Budget 2019: What is interim Budget and how is it different from the regular one?

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