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Finance Minister Nirmala Sitharaman presented the Union Budget 2019-20 in parliament today. Quick Aadhaar for Non-resident Indians on arrival in India, public-private partnership in railways, commercialisation of space ventures under ISRO are among the major announcements made by Ms Sitharaman in her budget speech. Ms Sitharaman has also proposed additional excise duty and infrastructure cess each by 1 rupee a litre on petrol and diesel.
This was the first full Budget of the National Democratic Alliance (NDA) in its second term, after coming to power with a massive win in the national election held in April and May. "It took India 55 years to reach a $1 trillion economy. When hearts are with hopes and aspirations, we added $1 trillion in just five years. The common man was served even when transformational reforms were laid out," Ms Sitharaman, India's first full-time woman finance minister said in her maiden speech.
Prime Minister Narendra Modi said the union budget is "one of hope" and "it is a budget that will boost India's development in the 21st Century". The budget, he said, will strengthen enterprises, increase participation of women in the country, simplify the tax system and modernise infrastructure.
Here are the highlights of Union Budget 2019:
What’s in store for startups
Here's A List Of Winners And Losers From The Announcements Today
Winners
State-Run Banks
A plan to infuse capital worth Rs. 70,000 crore ($10 billion) and provide a partial one-time guarantee on loan defaults on borrowings by shadow banks may help state-run banks. And shielding lenders by strengthening the Reserve Bank of India's regulatory hold on default-prone non-banking finance companies could help the beleaguered State Bank of India Ltd., Bank of Baroda, Canara Bank, Union Bank of India, Bank of India and Punjab National Bank, among others. The S&P BSE Bankex of lenders gained for a third day to near a record set in May.
Rural India
From raised spending on road building to connect villages, to more rural homes built with power and fuel connections and support for small businesses producing cattle feed, the government's continued push could benefit companies with exposure to rural India. That includes Godrej Agrovet Ltd., ITC Ltd., Hindustan Unilever Ltd. and Mahindra & Mahindra Ltd., all of whom have interests across the Indian heartland. A gauge of fast-moving consumer products companies rose for a sixth day, the longest streak of gains since March.
Aviation
Ms Sitharaman said the government will consider further opening up foreign direct investment in aviation. Apart from announcing another plan to sell state-owned Air India Ltd., the government also announced a plan enter aircraft financing and leasing. This would benefit Air India Ltd., SpiceJet Ltd., InterGlobe Aviation Ltd. and TATA SIA Airlines Ltd.
Water
The plan to provide piped water across Indian households by 2024 and the focus on managing the nation's resources by consolidating the country's scattered water administration under the Water Power ministry underlines the seriousness of India's rising shortages. Shakti Pumps India Ltd., Jain Irrigation Systems Ltd., KSB Ltd., Kirloskar Brothers Ltd., VA Tech Wabag Ltd., JK Agri Genetics Ltd., PI Industries Ltd. could benefit.
Renters
Ms Sitharaman's promise of a model tenancy law for lessors will be a welcome move for millions across growing cities where 87.7 million citizens are expected to live by 2050. Especially the financial capital Mumbai -- a city where high property prices force many to stay in leased or rented apartments.
Real Estate & Construction
Ms Sitharaman's promised to build 19.5 million rural homes by 2022. That's in addition to the continued focus on building roads under the national highways and rural roads programs. This would directly benefit Larsen & Toubro Ltd., Dilip Buildcon Ltd., IRB Infrastructure Ltd. GMR Infrastructure Ltd. Oberoi Realty Ltd., Prestige Estates Projects Ltd. and DLF Ltd.
Losers
Jewellers, Gold Importers
Jewelry stocks tanked as an increase in import tax boosted domestic prices to a record. That would make jewelry even costlier for buyers in the world's second-biggest market ahead of the festival and wedding season starting from August. Ms Sitharaman raised import tax on gold to 12.5 per cent from 10 per cent. Jewelers had sought a reduction in the taxes with the World Gold Council saying there was a strong case to cut the tax now due to a thriving grey market. Losers include Titan Co., PC Jeweller Ltd., Vaibhav Global Ltd. and Tribhovandas Bhimji Zaveri Ltd.
Defense
The Indian defense spending for financial year 2019-20 was pegged at Rs. 3.05 lakh crore ($45 billion), with no change in the allocation made in February's interim budget. Although this is higher than the revised estimates from the previous fiscal of Rs. 2.85 lakh crore, it's only going to keep pace with inflation and does not represent a real increase. The exemption in Customs Duty for imported military equipment was the only solace the armed forces received from Sitharaman, who was the Defense Minister in PM Modi's first term.
High and Middle-Income Earners
Wealthy and middle-class tax payers have a reason to groan. Ms Sitharaman proposed to raise tax on income earners above Rs. 2 crore. Not just that, India sought to discourage cash payments by levying 2 per cent tax on withdrawal of over Rs. 1 crore in a year. In addition, tax payers will have to spend an extra Rs. 2 on every liter of gasoline and diesel they buy. That's going to have a cascading effect on inflation as travel and food costs rise.
Auto Parts
India's plans to shift its long-term focus on electric vehicles could hurt the growth of auto part makers. Not only did the government announce plans to make India a global manufacturing hub for electric vehicles and lowered GST on EVs to 5 per cent from 12 per cent, the government also raised basic customs duty on auto parts. This could affect Motherson Sumi Systems Ltd., Bharat Forge Ltd., Minda Industries Ltd, Shriram Pistons & Rings Ltd and Greaves Cotton Ltd GRV IN.
Rivers & environment
The finance minister spoke about plans to use more of the country's rivers to move goods within India. Supporters say it will unleash vibrancy in internal trade and complement the roll out of the goods and services tax that will create a single market. Critics say this plan will worsen environmental concerns, destroying vital ecosystems.
Government to spend Rs 100 lakh crore on infrastructure-where is the money going to come from?
- NDTV (@ndtv) July 5, 2019
Rajeev Kumar, Secretary, Department of Financial Services with his views on NDTV #Budget2019 #BudgetWithNDTV pic.twitter.com/vJSDVjSNsM
"We've strongly welcomed it. Not only because some of our ideas and suggestions have been incorporated by Finance Minister, but also because it's a budget that focuses on sharpening growth, promoting pvt investments in the country," said Niti Aayog Vice-Chairman Rajiv Kumar
#BudgetWithNDTV | "Short sentences that do not explain what they are trying to do": Former Finance Minister P Chidambaram reacts to Modi government's #Budget2019 pic.twitter.com/oERXoCStf8
- NDTV (@ndtv) July 5, 2019
- FDI actually dipped over the year. Last year's FDI was 44 billion dollars or so, which was one per cent less than the previous years. I don't know how they are going to bring FDI.
- It is one of the most opaque budget speech.
- We have come to that repeatedly that while we support digitisation, you can't force people not to use cash. People who want to use cash will not deposit money in banks.
- If Aadhaar and PAN were equally good, why was their song and dance over linking pan with Aadhaar.
Former Finance Minister P Chidambaram addresses media on Union Budget 2019-20
Budget 2019: Announcements By Nirmala Sitharaman, Highlights, Best Quotes Of The DayHere's a full list of items that are likely to get cheaper and costlier after Budget 2019 announcements:
| Items | Cheaper/Costlier |
|---|---|
| Petrol | Costlier |
| Diesel | Costlier |
| Gold | Costlier |
| Imported books | Costlier |
| Cashew kernels | Costlier |
| PVC | Costlier |
| Vinyl flooring | Costlier |
| Tiles | Costlier |
| Metal fittings | Costlier |
| Mountings for furniture | Costlier |
| Auto parts | Costlier |
| Certain kinds of synthetic rubbers | Costlier |
| Marble slabs | Costlier |
| Optical fibre cable | Costlier |
| CCTV camera | Costlier |
| IP camera | Costlier |
| Digital and network video recorders | Costlier |
| Cigarette | Costlier |
| Electronic appliances | Cheaper |
| Electric vehicles | Cheaper |
"Would really like to thank Finance Minister for strengthening the resolve of the Railways," says Union Minister Piyush Goyal on #Budget2019 (ANI)
- NDTV (@ndtv) July 5, 2019
Follow special coverage on NDTV 24x7 and https://t.co/Fbzw6n8LeF pic.twitter.com/nsro7aMj4Y
For Income Tax Returns, Either Aadhaar Or PAN Will Do: Nirmala Sitharaman
Finance minister Nirmala Sitharaman said Aadhaar and PAN or Permanent Account Number will be interchangeable when it comes to filing Income Tax returns. The new rule is expected to benefit entry-level tax payers who have Aadhaar but not PAN.
"More than 120 crore Indians now have Aadhaar card, therefore for ease of tax-payers, I propose to make PAN card and Aadhaar card interchangeable and allow those who don't have PAN to file returns by simply quoting Aadhaar number. They would be able to use that wherever one is required to use PAN," the minister said today while presenting the Union budget in parliament.
PAN or Permanent Account Number has so far been mandatory for filing Income Tax Returns. After Aadhaar was introduced, it became mandatory to link PAN and Aadhaar for this purpose.
All Targets Are Reasonably, Realistically Placed: Nirmala Sitharaman
"This budget is setting a vision, target, laying out plans to achieve the target, not only in one sector, but all the sectors of the economy", Nirmala Sitharaman said while briefing the media after presenting her maiden budget.
#BudgetWithNDTV |"Startups have been given a whole set of tax benefits. This Budget is setting a vision, a target": Finance Minister Nirmala Sitharaman#Budget2019 pic.twitter.com/sKZyyrqdND
- NDTV (@ndtv) July 5, 2019
- This budget is presented with 10 year vision in mind.
- Emphasis on overall development of economy
- Budget aims at building a better India
- Special Emphasis on ease of living in this budget
Finance Minister Nirmala Sitharaman addresses media after presenting Union Budget earlier today.
Live: Finance Minister Nirmala Sitharaman addresses media on #Budget2019
- NDTV (@ndtv) July 5, 2019
Follow live updates here: https://t.co/lJFlzsN09k https://t.co/RUsQePa2zS
Ms Sitharaman, 59, is only the second women in the history of independent India to present the Union Budget. Former Prime Minister Indira Gandhi was the first and only women till now to have presented the Union Budget.
"Budget Is Manifestation Of PM's Dream To Make India A $5 trillion Economy," Says Devendra Fadnavis
Maharashtra Chief Minister Devendra Fadnavis lauded the Union Budget 2019-20 thaich was presented by Finance Minster Nirmala Sitharaman earlier today. " It is a visionary budget, at the macroeconomic level, one can say that, it is a manifestation of PM's dream to make India a $5 trillion economy. The budget aims at transforming 'gaon, gareeb and kisan," he said.
Felt Great That A Woman MP Was Presenting The Budget: Hema Malini
"Felt great that a woman parliamentarian was presenting the Budget," said BJP lawmaker Hema Malini.
The actor-turned-politician is representing Mathura in the Lok Sabha.
#WATCH BJP MP from Mathura, Hema Malini on #UnionBudget2019: Felt great that a woman MP was presenting the Union Budget...'Nari is Narayani, agar ye humare desh mein log samajh len toh ye jo hinsa ho rahi hai mahilaon ke prati, that will stop.' pic.twitter.com/y9yDGuJUPe
- ANI (@ANI) July 5, 2019
#BudgetWithNDTV | "There is nothing in it for Aam aadmi (common people) and now, we will have to pay Rs 2/litre more on petrol and diesel": Shashi Tharoor, Congress MP
- NDTV (@ndtv) July 5, 2019
Watch Live now on https://t.co/Fbzw6mR9Q5 and NDTV 24x7. pic.twitter.com/AzwIS81Nrx
Union Budget 2019: "Wings to farmers...", tweets Amit Shah
Home Minister Amit Shah tweets on Budget 2019. "Finance Minister Nirmala Sitharaman presents a #BudgetForNewIndia which lays the foundation of an inclusive and progressive nation, whose rise is powered by the hardwork of 130 crore Indians. The budget gives wings to India's farmers, youngsters, women and poor to fulfil their dreams," he tweeted.
- This budget is the budget of asha, vishwas and akansha
- This is a budget to make the country prosperous, empower citizens. It will strengthen the poor, give a better future to the youth
- The budget will simplify tax system, modernise infrastructure, strengthen enterprises, further increase participation of women in the country
Prime Minister Narendra Modi is speaking after Finance Minister Nirmala Sitharaman presented the Union Budget 2019.
#BudgetWithNDTV | "#Budget2019 would enthuse infrastructure industry. Government this time has been able to say what is their future path": Mahendra Singhi, MD and CEO, Dalmia Cement
- NDTV (@ndtv) July 5, 2019
Watch Live now on https://t.co/Fbzw6mR9Q5 and NDTV 24x7. pic.twitter.com/xxqBUKhvRo
Budget Live: New Tax On Petrol And Diesel, Says Nirmala Sitharaman In Budget
Finance Minister Nirmala Sitharaman has proposed additional excise duty on petrol and diesel by 1 rupee per litre. "I propose to increase special additional excise duty and road and infrastructure cess each one by 1 rupee a litre on petrol and diesel," she said.
Budget Live: Propose 2% TDS On Cash Withdrawal Over 1 Crore In 1 Year, Says Nirmala Sitharaman
Finance Minister Nirmala Sitharaman has proposed to levy TDS of 2% on cash withdrawal exceeding 1 crore from a bank in one year. She said the move was aimed to discourage practice of making business payments in cash.
Budget LIVE: Propose To Make PAN-Aadhaar Interchangeable, Says Nirmala Sitharaman
Propose to make PAN and Aadhaar interchangeable, says Nirmala Sitharaman
Propose to make PAN and Aadhaar interchangeable, says Nirmala Sitharaman
Budget LIVE: Corporate Tax Rate Expanded
Finance Minister Nirmala Sitharaman
- Corporate tax rate of 25% extended to all companies having annual turnover up to Rs. 400 crore
- Manufacturing of electric vehicles and goods and services tax (GST) rate proposed to be reduced from 12 per cent to 5 per cent.
- Additional income tax deduction of Rs. 1.5 lakh on interest paid for manufacturing of electric vehicles.
Union Budget 2019 LIVE
All companies with annual turnover of up to 4 billion rupees to have corporate tax of 25%, says Nirmala Sitharaman
All companies with annual turnover of up to 4 billion rupees to have corporate tax of 25%, says Nirmala Sitharaman
Budget LIVE: Nirmala Sitharaman Proposes Starting Exclusive Channel For Startups
The government has proposed an exclusive television channel to be set up for startups that will serve as a platform for discussing issues affecting their growth and match-making with venture capitalists.
The government has proposed an exclusive television channel to be set up for startups that will serve as a platform for discussing issues affecting their growth and match-making with venture capitalists.
Union Budget 2019 LIVE: Nirmala Sitharaman On Aadhaar For NRIs
Nirmala Sitharaman said that non-resident Indians (NRIs) may get Aadhaar cards on arrival, without the mandatory waiting period. NRIs currently need to have spent 180 days to be eligible for an Aadhaar card. The government plans to enable them to apply for an Aadhaar card using their Indian passport.
Nirmala Sitharaman said that non-resident Indians (NRIs) may get Aadhaar cards on arrival, without the mandatory waiting period. NRIs currently need to have spent 180 days to be eligible for an Aadhaar card. The government plans to enable them to apply for an Aadhaar card using their Indian passport.
Union Budget LIVE: Proposal For Aadhaar For NRIs
"I propose consider issuing Aadhaar for NRI with Indian passports after their arrival in India without 180 day waiting period," said Nirmala Sitharaman.
"I propose consider issuing Aadhaar for NRI with Indian passports after their arrival in India without 180 day waiting period," said Nirmala Sitharaman.
Budget LIVE: Nirmala Sitharaman Presents Budget 2019
Nirmala Sitharaman
This government wishes to encourage and facilitate role of women
Propose to form committee with govt and pvt stakeholders to form strategy to move forward
Union Budget 2019 LIVE
Sensex falls over 100 points, Nifty below 11,950 as Finance Minister Nirmala Sitharaman presents Budget.
Sensex falls over 100 points, Nifty below 11,950 as Finance Minister Nirmala Sitharaman presents Budget.
Union Budget 2019 Live: The Big Headlines
Blueprint for a national gas grid, water grid, i-ways and airports to be unveiled
Blueprint for a national gas grid, water grid, i-ways and airports to be unveiled
100% FDI permitted for insurance intermediaries
Government is considering increasing the FDI limit in media, aviation after consulting with local stakeholders
Union Budget 2019 LIVE: Nirmala Sitharaman In Parliament
- As world's third largest aviation market, time ripe to enter aircraft financing and leasing from Indian shores.
- 657 km of metro rail network has become operational across country
Budget 2019: PM Modi In Parliament
PPM Modi listens to Nirmala Sitharaman presenting the budget.
Budget 2019 LIVE
"It took India 55 years to reach a $1 trillion economy. When hearts are with hopes and aspirations, we added $1 trillion in just five years. The common man was served even when transformational reforms were laid out. We have to invest heavily in infrastructure. Citizens felt the difference in every nook and corner. Our focus has been mazboot desh ke liye mazboot nagrik (strong citizens for a strong nation)," Nirmala Sitharaman said.
"It took India 55 years to reach a $1 trillion economy. When hearts are with hopes and aspirations, we added $1 trillion in just five years. The common man was served even when transformational reforms were laid out. We have to invest heavily in infrastructure. Citizens felt the difference in every nook and corner. Our focus has been mazboot desh ke liye mazboot nagrik (strong citizens for a strong nation)," Nirmala Sitharaman said.
Nirmala Sitharaman:
The recent elections were charged with hope for a stable new India
Like never before, India celebrated its democracy by coming out in large numbers
Union Budget: Nirmala Sitharaman Presents Budget 2019
Nirmala Sitharaman begins presenting the budget.
Nirmala Sitharaman begins presenting the budget.
Union Budget 2019: PM Modi Reaches Parliament
PM Modi has reached parliament
PM Modi has reached parliament
Union Budget 2019: Nirmala Sitharaman's Parents Reach Parliament
Finance Minister Nirmala Sitharaman's parents were seen at parliament. It will be her first budget after taking charge as Finance Minister in May following a landslide win in the national election for Prime Minister Narendra Modi. Ms Sitharaman, 59, is India's first full time woman finance minister. Former prime minister Indira Gandhi held the portfolio too, but as additional charge. Her promotion as Finance Minister in PM Modi's new government puts her in charge of perhaps the most challenging assignment for this government.
Finance Minister Nirmala Sitharaman's parents were seen at parliament. It will be her first budget after taking charge as Finance Minister in May following a landslide win in the national election for Prime Minister Narendra Modi. Ms Sitharaman, 59, is India's first full time woman finance minister. Former prime minister Indira Gandhi held the portfolio too, but as additional charge. Her promotion as Finance Minister in PM Modi's new government puts her in charge of perhaps the most challenging assignment for this government.
Budget 2019 Copies Reach Parliament
Copies of Budget 2019 papers have been brought to parliament. Finance Minister Nirmala Sitharaman will begin her budget presentation in 30 minutes. The Finance Minister, say economists, needs to announce measures that spur growth without straining expenditure. In its economic survey yesterday, the government predicted that the economy will rebound and grow at 7 per cent this year, while outlining plans on how to double its economy by 2025 to $5 trillion.
Copies of Budget 2019 papers have been brought to parliament. Finance Minister Nirmala Sitharaman will begin her budget presentation in 30 minutes. The Finance Minister, say economists, needs to announce measures that spur growth without straining expenditure. In its economic survey yesterday, the government predicted that the economy will rebound and grow at 7 per cent this year, while outlining plans on how to double its economy by 2025 to $5 trillion.
Budget 2019: Sensex Reclaims 40,000 Ahead Of Nirmala Sitharaman's First Budget
Equity benchmark indices ruled strong during this morning ahead of the highly-anticipated Union Budget for 2019-20. Sensex and Nifty came off intraday highs and were trading flat ahead of Budget speech which is due to begin at 11:00 am. Gains in HDFC, Larsen & Toubro, HDFC Bank, Kotak Mahindra Bank, Reliance Industries and State Bank of India were offset by losses in ONGC, ITC, Yes Bank, NTPC and Vedanta.
Equity benchmark indices ruled strong during this morning ahead of the highly-anticipated Union Budget for 2019-20. Sensex and Nifty came off intraday highs and were trading flat ahead of Budget speech which is due to begin at 11:00 am. Gains in HDFC, Larsen & Toubro, HDFC Bank, Kotak Mahindra Bank, Reliance Industries and State Bank of India were offset by losses in ONGC, ITC, Yes Bank, NTPC and Vedanta.
#WATCH Delhi: Finance Minister Nirmala Sitharaman and MoS Finance Anurag Thakur arrive at the Parliament. #Budget2019 pic.twitter.com/vry6cs1caO
- ANI (@ANI) July 5, 2019
Budget 2019: Nirmala Sitharaman Leaves Rashtrapati Bhavan
Nirmala Sitharaman and Anurag Thakur have left Rashtrapati Bhavan after briefing the President.
Nirmala Sitharaman and Anurag Thakur have left Rashtrapati Bhavan after briefing the President.
Chief Economic Adviser On Budget 2019
"I hope many of the ideas from the economic survey will find place in the budget. This is not my first budget. I have already been part of the interim budget. I anticipate the budget to be a good one," Chief Economic Adviser KV Subramanian said.
"I hope many of the ideas from the economic survey will find place in the budget. This is not my first budget. I have already been part of the interim budget. I anticipate the budget to be a good one," Chief Economic Adviser KV Subramanian said.
Industrialist Anand Mahindra wishes Nirmala Sitharaman before she presents the Budget. "Good luck @nsitharaman ji. You are an inspiration for all our @NanhiKali girls around the country. Hoping to see you hit many boundaries in the parliament 'stadium' this morning!" Mr Mahindra tweeted.
Nirmala Sitharaman Briefs President
As per tradition, Finance Minister Nirmala Sitharaman meets President Ramnath Kovind before presenting the Union Budget.
As per tradition, Finance Minister Nirmala Sitharaman meets President Ramnath Kovind before presenting the Union Budget.
As per tradition, Finance Minister @nsitharaman calls on #PresidentKovind at Rashtrapati Bhavan before presenting the Union Budget pic.twitter.com/8aihedY3nP
- President of India (@rashtrapatibhvn) July 5, 2019
Budget 2019: Basic Tax Exemption Limit To Be Raised To Rs 3 Lakh, Says ReportThe middle-class tax payers may have a lot to cheer about in the Budget proposals to be presented by Finance Minister Nirmala Sitharaman today. News agency IANS quoted sources as saying that the Budget will take the sops announced in the interim Budget further by raising the basic tax exemption limit for an individual income tax payee to Rs. 3 lakh from Rs. 2.50 lakh at present to cover for the inflationary impact over the years.
Nirmala Sitharaman Poses With "Bahi khata", Not A Briefcase
Finance Minister Nirmala Sitharaman did not pose with the iconic briefcase, like her predecessors. In a departure from tradition, she was seen holding a red folder enclosed with a string and emblazoned with the Ashoka symbol, which was described by officials as the "bahi khata".
Finance Minister Nirmala Sitharaman did not pose with the iconic briefcase, like her predecessors. In a departure from tradition, she was seen holding a red folder enclosed with a string and emblazoned with the Ashoka symbol, which was described by officials as the "bahi khata".
What Happens Before The Budget Is Presented
- Nirmala Sitharaman, Anurag Thakur and Finance Ministry officials posed for the cameras outside the Finance Ministry office.
- Nirmala Sitharaman briefs President Ram Nath Kovind.
- Cabinet meet in Parliament House.
- Nirmala Sitharaman presents the Budget in parliament.
- Nirmala Sitharaman will address a post-Budget press conference along with Anurag. Thakur, Secretaries of the Finance Ministry and Chief Economic Adviser KV Subramanian.
Budget 2019: Nirmala Sitharaman At Finance Ministry
Finance Minister Nirmala Sitharaman and Union Minister of State for Finance Anurag Thakur with budget papers before she meets President Ram Nath Kovind to brief him on the budget.
#BudgetWithNDTV | 2 hours to go before #Budget2019 is presented. Will it be a tightrope walk for Finance Minister Nirmala Sitharaman?
- NDTV (@ndtv) July 5, 2019
Read here: https://t.co/yhLe72p6Zm
Follow LIVE Updates here: https://t.co/lJFlzsvphM pic.twitter.com/IgLJ7Vo0M6
Union Budget 2019 Expectations
- The budget is widely expected to boost spending at the cost of short-term slippage in fiscal deficit targets
- Personal income tax threshold for certain categories may be raised
- Spending on agriculture, healthcare and social sectors are likely to be increased
