India Union budget 2019

Budget 2019-20

Today, July 05, 2019, Union Finance Minister Nirmala Sitharaman presents the Union Budget 2019-20. The live presentation of Budget is broadcasted from the Lok Sabha which includes the full Budget speech of the Finance Minister Sitharaman. Finance minister Sitharaman is likely to begin Budget 2019 speech at 11:00 am. Ahead of the Budget presentation today, the Chief Economic Advisor to the Government of India Krishnamurthy Subramanian presented the Economic Survey of India on July 04, 2019. 

Today, the newly-elected Finance Minister Nirmala Sitharaman has become the second woman finance minister after Indira Gandhi who has tabled the Union Budget in Parliament. There are huge expectations from Budget 2019 as it is the first Budget by National Democratic Alliance (NDA) government after sweeping a historic victory in the 2019 Lok Sabha elections.

Some Highlights:- 

• Finance minister Nirmala Sitharaman said the government plans to use rivers for cargo transportation.
• Projects such as industrial corridors, DFC, Bharatmala, Sagarmala and UDAN schemes will continue to improve connectivity and increase competitiveness.
• Railway infrastructure will need investment of₹50 lakh crore between 2018 and 2030, she said adding that Public Private Partnerships (PPP) will be used to unleash faster development and delivery of passenger freight services.
•  The finance minister also expects cargo movement in Ganga will increase four times in four years with the creation of transit hubs at Varanasi, Sahigbanj and Haldia.

The government has set an investment target of ₹80,250 crore for phase three of the Pradhan Mantri Gram Sadak Yojana, under which the government wants to build 1,25,000 km of village roads. The earlier phases of this scheme led to the construction of 30,000 km of village roads with green technology, which will continue, Sitharaman said.

The finance ministry had allocated the highest-ever budgetary support of ₹83,016 crore to the highways sector in the interim budget announced earlier this year in February and₹64,587 crore for railways.

The country has raised ₹24,000 crore by monetizing public infrastructure, through infrastructure investment trusts, real estate investment trusts and the toll-operate-transfer scheme of the National Highways Authority of India. To boost investment, the government will encourage foreign portfolio investors to invest in infrastructure debt funds, introduce credit default swaps for the infrastructure sector, deepen the corporate bond market, and encourage equity investment by non-residential Indians.

To attract more global investment, the government will consider further opening up of foreign direct investment (FDI) in aviation, media, animation, and the insurance sector in consultation with stakeholders, Finance Minister Nirmala Sitharaman said on Friday while presenting her maiden Union Budget.

She said the government will likely permit 100% FDI for insurance intermediaries.

Despite global headwinds, India's FDI inflows rose 6% in 2018-19 to $64.37 billion, she added.

"I propose to further consolidate, the gains in order to make India more attractive FDI destination. The government will examine suggestions of further opening up of FDI in aviation, media, AVGC (Animation, Visual effects, Gaming and Comics) and insurance sector in consultation with stakeholders," she said.

Currently, the government allows 26% FDI in publishing of newspapers and periodicals involved with news and current affairs through the approval route, while in aviation, foreign carriers are allowed to own 49% in Indian carriers.

India will be a $3 trillion economy in 2019-20, said finance minister Nirmala Sitharaman while presenting her maiden Union Budget on Friday.

“Our economy was $1.85 trillion when we assumed power (in 2014) and it reached $2.7 trillion (in five years since)," said Sitharaman while outlining her government’s commitment to make India a $5 trillion economy by 2024.

However, she added India would need investment in infrastructure, digital economy and job creation in small and medium enterprises to achieve the government's vision of $5 trillion economy.

"I am confident we will achieve our goals. With determined human effort, the task must be completed," Sitharaman added.

In terms of Purchasing Power Parity (PPP), India has become the third largest economy in the world after the US and China, she said.

The Indian economy grew at 6.8%, a five-year low, in 2018-19 and fourth quarter growth slumped to 5.8% which was a 17-quarter low