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HIGHLIGHTS-India unveils budget aimed at boosting infrastructure and foreign investment

Reuters New Delhi
Updated: 05-07-2019 14:15 IST
HIGHLIGHTS-India unveils budget aimed at boosting infrastructure and foreign investment

India on Friday unveiled a budget aimed at boosting infrastructure and foreign investment, the first since the Bharatiya Janata Party-led by Prime Minister Narendra Modi returned for a second term in power. Here are the highlights of Finance Minister Nirmala Sitharaman's budget for the 2019/20 fiscal year that began April 1: DEFICIT

* Fiscal deficit for 2019/2020 seen at 3.3% of GDP BORROWING

* Govt to borrow a gross 7.1 trn rupees via bonds in 2019/20 * Govt to borrow a net 4.73 trn rupees via bonds in 2019/20

* Short term borrowing saw at 250 bln rupees in 2019/20 * Govt to buy back 500 bln rupees of bonds in 2019/20

REVENUES/RECEIPTS * Dividends from state-owned firms seen at 574.87 bln rupees in 2019/20

* Gross tax revenue is seen at 24.6 trn rupees in 2019/20 * Net tax revenues seen at 16.49 trn rupees in 2019/20

TAXATION * Will levy tax deduction at source of 2% for cash withdrawals exceeding 10 mln rupees per year

* Proposes relief in securities transaction tax * All companies with an annual turnover of 4 bln rupees will now be under the 25% tax bracket

* Customs duty on steel raised to 7.5% from 5% * To increase customs duty on gold and precious metals to 12.5%

EXPENDITURE * Total government spending seen at 27.86 trn rupees in 2019/20

* Govt to spend 1.74 trn rupees on pensions in 2019/20 * Govt to spend 6.6 trn rupees on interest payments in 2019/20

ECONOMY * India will become a $3trn economy in the current fiscal year, and a $5trn economy in the next few years

* India to invest heavily in infrastructure and job creation * Government will raise part of its gross borrowing in external markets in foreign currencies

INVESTMENT * India will ease foreign direct investment restrictions in single-brand retail

* Proposes further opening up of FDI in aviation, insurance, media and animation sectors * Important to get retail investors to invest in treasury bills

* Will allow foreign investors to buy the debt of listed real estate investment trusts * Government aiming for $14.5 bln targets for disinvestment proceeds in FY20

BANKING * State-owned banks proposed to be provided 700 bln rupees of additional capital

* Will strengthen central bank's authority overshadow banks * There is a need to give tax parity to non-banking finance companies

INFRASTRUCTURE * The government will upgrade 125,000 kilometres of roads over the next five years at a cost of $11.6 bln

* Railway infrastructure will need an investment of $72bln between 2018 and 2030 * Govt to encourage global companies to set up large manufacturing plants

* India will enter into aircraft financing and leasing activities

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)