Budget 2019

Newly-appointed Finance Minister Nirmala Sitharaman arrives to takes charge of the Finance Ministry at North Block, in New Delhi on 31 May 2019.  (Photo: PTI)
Newly-appointed Finance Minister Nirmala Sitharaman arrives to takes charge of the Finance Ministry at North Block, in New Delhi on 31 May 2019. (Photo: PTI)

Budget likely to spell out roadmap for banking sector reforms, consolidation

  • Banking sector has an important role in the reinvigorating sagging economy
  • Upcoming Budget would also provide direction to the consolidation journey in the PSB space

A file photo of Finance Minister Nirmala Sitharaman
Newly-appointed Finance Minister Nirmala Sitharaman touches her file out of reverence as she takes charge of the Finance Ministry at North Block, in New Delhi. (Photo: PTI)
Newly-appointed Finance Minister Nirmala Sitharaman touches her file out of reverence as she takes charge of the Finance Ministry at North Block, in New Delhi. (Photo: PTI)

Key sector in focus for budget to boost growth and jobs

  • Finance minister Nirmala Sitharaman has called a meeting of of leading industry chambers CII, Ficci, Assocham on 11 June
  • The PMO has sought proposals on key measures for budget 2019-20

While steps to promote investments in manufacturing would be high on agenda, the Modi 2.0 government would also look at steps to address agriculture distress and improve farm income in the upcoming Budget (Photo: ANI)
While steps to promote investments in manufacturing would be high on agenda, the Modi 2.0 government would also look at steps to address agriculture distress and improve farm income in the upcoming Budget (Photo: ANI)

PM Modi brainstorms with key secretaries to finalize 100-day agenda

  • Sources said the meeting at the Prime Minister's residence had in attendance all five secretaries in the finance ministry as well as NITI Aayog officials
  • The agenda for increasing revenue mop-up and taking reform steps to push GDP growth may have also figured in the meeting

During the sale, buyers will be able to exchange a TV purchased from Flipkart for 90% of its value within 30 days.
During the sale, buyers will be able to exchange a TV purchased from Flipkart for 90% of its value within 30 days.

Consumer appliance makers seek lower GST on large-screen TVs, ACs, refrigerators

  • At present, the GST on TVs with a screen size above 32 inch attract 28% GST while it is 18% on those with size of 32 inch and below
  • Companies such as Sony India and Panasonic feel that there is a need to boost demand in the consumer appliances sector

Finance minister Nirmala Sitharaman will present the Union budget on 5 July (Pradeep Gaur/Mint)
Finance minister Nirmala Sitharaman will present the Union budget on 5 July (Pradeep Gaur/Mint)

India’s budget math faces a tough challenge now

To keep up with the pressure of making headline fiscal deficit numbers look good, the government has increasingly resorted to off-budget financing for revenue as well as capital spending

Market watchers are also scrutinizing technical indicators that are signaling bonds may have become too expensive after their six-week rally. (Mint)
Market watchers are also scrutinizing technical indicators that are signaling bonds may have become too expensive after their six-week rally. (Mint)

Bond markets get cold feet as India rally faces Narendra Modi's budget test

  • With economic growth and tax collections worsening, markets are worried
  • Once bond markets have digested July’s budget, there may be room for the rally to resume

Government made a record capital infusion of  ₹1.06 trillion in state-owned banks last fiscal. It was enhanced from earlier provision of  ₹65,000 crore in December 2018 (Photo: Mint)
Government made a record capital infusion of 1.06 trillion in state-owned banks last fiscal. It was enhanced from earlier provision of 65,000 crore in December 2018 (Photo: Mint)

Budget likely to make 30,000 crore provision for PSBs

  • GDP growth has slipped to 5-year low of 6.8%, in addition, public sector banks will need capital for credit growth
  • As far as their own resource mobilisation are concerned, sources said, they are unable to tap capital market because of their low share prices

Union Minister for Finance and Corporate Affairs, Nirmala Sitharaman chairing the Pre-Budget consultation with the Economists, in New Delhi on Friday. Vice-Chairman NITI Aayog Dr. Rajiv Kumar is also seen.  (ANI )
Union Minister for Finance and Corporate Affairs, Nirmala Sitharaman chairing the Pre-Budget consultation with the Economists, in New Delhi on Friday. Vice-Chairman NITI Aayog Dr. Rajiv Kumar is also seen. (ANI )

Nirmala Sitharaman meets economists for budget suggestions

  • Sitharaman is expected to present budget on 5 July
  • Economists present at the meeting suggested reforms pertaining to import duty, maintaining fiscal consolidation

Union Finance Minister Nirmala Sitharaman along with Minister of State Anurag Thakur holds a pre-budget consultation meeting with the representatives of Financial Sector & Capital Markets, in New Delhi (Photo: PTI)
Union Finance Minister Nirmala Sitharaman along with Minister of State Anurag Thakur holds a pre-budget consultation meeting with the representatives of Financial Sector & Capital Markets, in New Delhi (Photo: PTI)

NBFC liquidity, AIFs figure in FM's pre-Budget meet with financial sector

  • With a view to give boost to Indian markets, the representatives of financial sector and capital markets submitted several suggestions
  • The representatives suggested capital infusion in regional banks, review of interest rates of the government’s small savings schemes

Finance minister Nirmala Sitharaman at a pre-budget consultation with representatives of the financial sector and capital markets, in New Delhi on Thursday (PTI)
Finance minister Nirmala Sitharaman at a pre-budget consultation with representatives of the financial sector and capital markets, in New Delhi on Thursday (PTI)

Extend tax sops to retail investors in corporate bonds: Market players to FM

  • Financial and capital markets players also pitched for additional tax sops for investments in term insurance plans
  • The Union Budget for 2019-20 is scheduled to be presented on 5 July

Ficci has sent its pre-Budget suggestions to the government. (iStock)
Ficci has sent its pre-Budget suggestions to the government. (iStock)

Ficci for increasing FDI cap in insurance to 74%

  • To increase FDI flows in insurance sector, the clause pertaining to Indian management and control needs to be relooked, Ficci said
  • The body also said there is a need to improve investor confidence about the surrounding ecosystem in the country

Photo: Reuters
Photo: Reuters

Bring down corporate tax to 18% sans exemptions: CII

  • CII says 18% corporate tax along with zero exemptions could be revenue neutral
  • Industry body suggests that the govt should take steps to spur investment and growth, which slowed to five-year low of 6.8% in 2018-19

Ujjwala connections have reached the 71.9 million-mark
Ujjwala connections have reached the 71.9 million-mark

Budget to hike Ujjwala bar towards 100% household LPG coverage

  • FM may propose to complete the targeted 80 million connections under the Pradhan Mantri Ujjwala Yojana (PMUY) in first 100 days
  • In addition, another 10-20 million new LPG connections would be given in the subsequent months to cover all poor households

The proposal is at a discussion level but has found favour for being a step towards a digital economy. Photo: Mint
Finance minister Nirmala Sitharaman. (PTI)
Nirmala Sitharaman’s tweet has given citizens hope that their ideas will be incorporated into the final budget document. (Pradeep Gaur/Mint)
Nirmala Sitharaman’s tweet has given citizens hope that their ideas will be incorporated into the final budget document. (Pradeep Gaur/Mint)

What Indians want from their finance minister Nirmala Sitharaman

  • The FM’s call for ideas drew a myriad of responses—from higher taxes on jewellery to sops for dishwashers
  • Timed as it was exactly a month before the budget is to be presented on 5 July, Sitharaman’s tweet has given people hope that their ideas will be incorporated