Union Budget 2019 –
On the 5 July 2019, Mrs. Nirmala Sitharaman presented maiden Budget of the Modi Government 2.0, post the thumping victory in the elections, the Finance Minister has been rich on intent and has something to offer every constituency – from start-ups to NBFCs and everyone in between.
The Union Budget lays down the outline to get India to a US$5 trillion economy by 2024. The Budget envisions the GDP growth beyond 8% year-on-year in real terms, provide inducement to infrastructure and manufacturing, propel job creation and aid the rural economy, all without destabilising the fiscal balance.
The Budget reflects a vision for the next three to five years and lays down the path ahead – reform in FDI, ease of living through less government and maximum governance, infusion of capital in the PSU banks, government guarantees for lending to NBFCs, strategic disinvestment, infrastructure development, gender equality, and promise of several other reforms for development of all sectors.
The Budget decided to tax the super-rich (people with incomes over INR 2 crore) with additional surcharges and reduced corporate tax rate be extended to companies with turnover up to INR 400 crore. However, no Realisation of DDT and introduction of Buy Back Tax on listed entries was not something the equities markets were expecting.
The budget with a vison to spend big on Infrastructure, Rural Development, Green Electricity, Railways with investment-based tax incentives, has managed to project a fiscal deficit at 3.3% maintaining a balance wherein everyone gets a little, with the promise of ‘Achhe Din’ in the near future.
As always, we at Vedya would be happy to hear your comments and look forward to your queries and questions.
This booklet is prepared exclusively for the benefit and use of the clients of Vedya Partners | Vedya Partners & Advisors (‘Vedya’). This should not be used as a substitute for professional advice. Reasonable care has been taken for ensuring the accuracy and the authenticity of the contents of this booklet. However, we do not take any responsibility for any error or omission contained therein on any account. It is recommended that the readers should take professional advice before acting on the same. The provisions contained in the Finance Bill (No. 2), 2019 (‘The Bill’) are proposals and are likely to undergo amendments while passing through Houses of Parliament before being enacted.
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