Highlights: India unveils budget aimed at wooing countryside before election

Get real time updates directly on you device, subscribe now.

Highlights: India unveils budget aimed at wooing countryside before election

NEW DELHI (Reuters) – India on Friday unveiled an interim budget with giveaways for rural and poorer citizens, in what is being seen as a critical test for Prime Minister Narendra Modi, who is facing anger over depressed farm incomes and unemployment with a general election just months away.

Highlights: India unveils budget aimed at wooing countryside before election 1

India’s interim Finance Minister Piyush Goyal arrives at the parliament to present 2019-20 budget in New Delhi, India, February 1, 2019. REUTERS/Adnan Abidi

India’s Hindu nationalist-led government poured extra money into support for farmers and a tax cut for low-income workers, but that came at a cost, with the country letting its fiscal deficit targets slip this year and next.

Here are the highlights of interim Finance Minister Piyush Goyal’s budget for the 2019/20 fiscal year beginning April 1.

GROWTH/DEFICIT

– GDP growth in 2018/19 estimated at 7.2 percent

– Fiscal deficit for 2018/19 seen at 3.4 percent of GDP

– Fiscal deficit for 2019/20 estimated at 3.4 percent of GDP

– Fiscal deficit for 2020/21 and 2021/22 estimated at 3 percent of GDP

– Government’s stated commitment earlier was to bring down the fiscal deficit to 3.1 percent of GDP by the end of March 2020, and to 3 percent by March 2021

– India’s current account deficit for 2018/19 seen at 2.5 pct of GDP

BORROWING

– Gross market borrowing seen at 7.1 trillion rupees in 2019/20

– Net market borrowing seen at 4.73 trillion rupees in 2019/20

– Government to buy back 500 billion rupees worth of bonds in 2019/20

– India to raise 1.08 trillion rupees via cash management bills in 2019/20

– Debt to GDP ratio to be brought down to 40 percent by 2024/25

RECEIPTS

– Revenue receipts seen at 1.98 trillion rupees in 2019/20 (2.2 percent of GDP)

– Capital receipts seen at 8.06 trillion rupees in 2019/20

EXPENDITURE

– Total expenditure in 2019/20 budgeted at 27.84 trillion rupees

– Capital expenditure for 2019/20 seen around 3.36 trillion rupees in centrally sponsored schemes

– Defence budget raised to beyond 3 trillion rupees in 2019/20

– To allocate 645.87 billion rupees for railways capital expenditure in 2019/20

– Allocation to India’s northeast region proposed to be increased by 21 percent over previous fiscal year

FARMING/RURAL AFFAIRS

– India to allocate 750 billion rupees ($10.56 billion) per year to support farmers’ incomes

– Impact of 200 billion rupees in current fiscal year

– Vulnerable farmers to receive 6,000 rupees per year under new scheme

– Farmers affected by natural disasters to receive 2 percent interest subvention, additional 3 percent if they repay loans on time

– Government to provide 2 percent interest subvention for farmers pursuing animal husbandry, fisheries

– India to allocate 190 billion rupees for construction of rural roads in 2019/20

TAXATION

– Income tax exemption limit doubled to 500,000 rupees in 2019/20, tax slabs for others unchanged

– Benefit of rollover of capital tax gains to be increased from investment in one residential house to that in two residential houses, for a taxpayer having capital gains up to 20 million rupees; can be exercised once in a lifetime

– Average monthly tax collection at 971 billion rupees per month so far this year

– Small and medium-sized businesses registered under the Goods and Services Tax to get 2 percent interest subvention on loan of 10 million rupees – finance minister

BANKING/FINANCE

– Dividends to government from the Reserve Bank of India (RBI) and public sector financial institutions dividends seen at 829.1 billion rupees in 2019/20

– Dividends to government from RBI and public sector financial institutions dividends revised to 741.4 billion rupees in 2018/19

– Goyal says expects other banks on the central bank’s Prompt Corrective Action list to be removed soon

EMPLOYMENT

– India to launch social security coverage for workers in unorganised sector

– New scheme to provide assured monthly pension of 3000 rupees per month, with contribution of 100 rupees per month, for workers in unorganised sector after 60 years of age

– Scheme will benefit 100 million workers in unorganized sector, may become the world’s biggest pension scheme for unorganised sector in five years – Goyal

– Government to allocate 600 billion rupees for a rural employment scheme in 2019/20

FINANCE MINISTER COMMENTS

– “We have reversed the policy paralysis engulfing the nation, and have restored the image of the country”

– “Several times in the past only empty promises have been made to the people living in our villages”

– “We are poised to become a 5 trillion dollar economy in the next five years, we aspire to become a 10 trillion dollar economy in the next eight years”

– “India is now on the way to becoming a global manufacturing hub in several sectors”

($1 = 71.0420 Indian rupees)

Complied by by Alasdair Pal; Editing by Krishna N. Das

Our Standards:The Thomson Reuters Trust Principles.

Images are for reference only.Images gathered automatic from google.All rights on the images are with their original owners.

2019-02-03 03:16:33

Images are for reference only.Images gathered automatic from google.All rights on the images are with their original owners.

Get real time updates directly on you device, subscribe now.

Comments
Loading...

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More