Sitharaman’s Maiden Budget Sets Stage For $5 Trillion Economy
Finance Minister Nirmala Sitharaman and MoS Anurag Thakur arrive at Parliament to present the Union Budget 2019-20.
Finance Minister Nirmala Sitharaman and MoS Anurag Thakur arrive at Parliament to present the Union Budget 2019-20.(Photo: PTI)

Sitharaman’s Maiden Budget Sets Stage For $5 Trillion Economy

Finance Minister Nirmala Sitharaman, in her maiden budget speech on Friday, 5 July, said India is set to become USD 3 trillion economy in the current fiscal. She added that structural reforms are needed to reach USD 5 trillion in the next few years.

Terming the budget as one that extends "hope" and boosts "self confidence", PM Narendra Modi said it will empower the poor and provide the youth with a better future.

Snapshotclose

  • Finance Minister Sitharaman said the fiscal deficit was brought down to 3.3% this year from 3.4% last year
  • “Gaon, Garib and Kisan” are going to be the focus for government projects
  • Every willing rural family will have electricity and LPG connection by 2022, Sitharaman said
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Individual Taxpayers Expect Relief

Like in every budget, taxpayers expect Sitharaman may give relief to the common man by raising personal income tax threshold for certain categories.

It also remains to be seen if she continues with the full tax rebate for individuals earning upto Rs 5 lakh annually, announced by Piyush Goyal in the Interim Budget in February.

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Focus on Providing Impetus to Economy

In the Budget, there is expected to be a big push for infrastructure spending including on roads and railways to drive growth which had slowed to a five-year low of 5.8 percent in the first three months of 2019 – well below China's 6.4 percent. The slowdown is also reflected in high-frequency numbers such as IIP and automobile sales numbers.

The economy has also been impacted by slowing trade, rising protectionism, trade conflict between the United States and China, Brexit, US sanctions on Russia, Iran and Venezuela impacted the domestic economy.

The sluggishness in the economy has led to expectations of the Budget containing further stimulus measures to boost the growth through new policy initiatives and continued reforms to achieve accelerated growth and increase in employment.

Sitharaman at Finance Ministry, Budget Presentation at 11 am

Finance Minister Nirmala Sitharaman reached the Finance Ministry on Friday morning before the presentation of the Union Budget, along with MoS Anurag Thakur, Finance Secretary SC Garg, Chief Economic Advisor Krishnamurthy Subramanian and other officials.

The budget is all set to be presented at 11 am in the Lok Sabha.

KEY EVENT

Sensex Above 40,000 Ahead of Budget Presentation

Ahead of the presentation of the Union Budget, Indian equity benchmarks extended gains, with the S&P BSE Sensex rising as much as 0.31 percent to 40,031.81 and the NSE Nifty 50 rising as much as 0.29 percent to 11,981.

'Indian Tradition': CEA Explains Not Using a Briefcase for Keeping Budget Documents

Explaining the reason behind Finance Minister Nirmala Sitharaman keeping budget documents in a four-fold red cloth and not a briefcase, CEA Krishnamurthy Subramanian was quoted by ANI as saying, "It is in the Indian tradition. It symbolises our departure from slavery of Western thought. It is not a budget but a 'bahi khata' (ledger)."

Nirmala Sitharaman Calls on President Kovind Before Union Budget Presentation

Nirmala Sitharaman Reaches Parliament

Finance Minister Nirmala Sitharaman has reached Parliament ahead of the presentation of the Union Budget. The budget is scheduled to be presented at 11 am in the Lok Sabha.

Cabinet Meeting Underway Before Budget Presentation

A Cabinet meeting, being chaired by Prime Minister Narendra Modi, is underway to approve the budget before it is presented in the Lok Sabha by Finance Minister Nirmala Sitharaman.

Copies of budget brought to the Parliament.
Copies of budget brought to the Parliament.
(Photo: ANI)
KEY EVENT

Cabinet Approves Union Budget

The Cabinet has formally approved the Union Budget, with Finance Minister Nirmala Sitharaman scheduled to present it in the Lok Sabha shortly.

KEY EVENT

First Term of Modi Govt Stood Out as a Performing Govt: Nirmala Sitharaman

Addressing her first-ever Budget speech, Finance Minister Nirmala Sitharaman said the first term of PM Modi-led NDA government stood out as a performing government.

"Between 2014-2019, he provided a rejuvenated centre-state dynamics, cooperative federalism, GST Council and strident commitment to fiscal discipline," she said.

Sitharaman's Parents in Parliament

Finance Minister Nirmala Sitharaman's parents had also arrived in the Parliament on Friday ahead of her maiden budget speech in the Lok Sabha.

KEY EVENT

India to Become $3 Trillion Economy in the Current Year Itself: Nirmala Sitharaman

In her budget speech, Nirmala Sitharaman said the Indian economy will grow to become a $3 trillion economy in the current year itself.

"It is now the sixth largest in the world. Five years ago it was at the 11th position... It took us over 55 years to become a $1 trillion economy. But when the hearts are filled with hope, trust and aspiration, we, in just 5 years, added $1 trillion," she said.

Budget 2019 Speech: Days of Policy Paralysis Are Gone, Says FM

Nirmala Sitharaman, in her budget speech, said the days of policy paralysis and license quota control regime are gone, adding that India Inc is the country's job creator and wealth creator.

“Schemes such as 'Bharatmala', 'Sagarmala' and UDAN are bridging the rural and urban divide, improving our transport infrastructure,” the Finance Minister added.

KEY EVENT

Budget 2019: Key Takeaways in the Transport Sector

KEY EVENT

Budget 2019: Key Takeaways in FDI Sector

Budget 2019 Speech: FAME II Scheme to Encourage Faster Adoption of Electric Vehicles, Says FM

Finance Minister Nirmala Sitharaman, in her budget speech, said an outlay of Rs 10,000 crore had been approved on 1 April 2019 to encourage faster adoption of electric vehicles.

“FAME II scheme aims to encourage faster adoption of electric vehicles by right incentives and charging infrastructure,” she added.

KEY EVENT

Budget 2019: Key Takeaways for MSME Sector

KEY EVENT

Govt Proposes to Expand Swachh Bharat to Include Solid Waste Management: FM

Finance Minister Nirmala Sitharaman said the Swachh Bharat Abhiyan has "achieved a resounding success", with 9.6 crore toilets having been constructed since October 2014.

“95 percent of all cities have become open defecation free... Government proposes to expand Swachh Bharat to include solid waste management in every village," she said.

Budget 2019: Sensex Gives Up Gains, Falls Over 150 pts

The BSE Sensex surrendered early gains to fall over 150 points on Friday, dragged by losses in oil and gas, metal and power stocks, as Finance Minster Nirmala Sitharaman presented her maiden Union Budget.

The 30-share index was trading 171.82 points, or 0.43 percent, lower, at 39,736.24 at 11:50 am. Similarly, the 50-share NSE Nifty declined 55.70 points or 0.47 percent, to 11,891.05.

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'Water Supply to All Rural Households by 2024': Nirmala Sitharaman

Budget 2019: Key Takeaways for Banking and Finance Sectors

Budget 2019: Key Takeaways for the Rural Sector

KEY EVENT

Budget 2019 Speech: PAN & Aadhaar to Become Interchangeable To File Taxes, Says FM

Finance Minister Nirmala Sitharaman said PAN and Aadhaar will be made interchangeable for filing tax returns. "Taxpayers can file returns by quoting Aadhaar number instead of PAN," she said.

Bank Stocks Gain on Recapitalisation Announcement

Following the budget announcement of recapitalisation of PSU banks worth Rs 70,000 crore, the Nifty Bank sub-index in the equity markets witnessed an upward trend. Gaining more than 0.30 percent, SBI was one of the leaders in the markets.

KEY EVENT

Budget 2019: Petrol, Diesel to be Pricier by Rs 2

A special additional excise duty, and a road and infrastructure cess of Re 1 each, has been proposed on each litre of petrol and diesel, in the Budget.

Finance Minister Nirmala Sitharaman also proposed to increase customs duty on gold and other precious metals from 10 to 12.5 percent.

KEY EVENT

'Fiscal Deficit This Year is 3.3%': Nirmala Sitharaman

In her budget speech, Nirmala Sitharaman said, “Fiscal deficit this year is 3.3 percent, brought down from 3.4 percent last year.”

Sensex Drops Over 300 Pts

Sensex dropped by 334.61 points to 39,573.45, following the Budget announcement made by Finance Minister Nirmala Sitharaman.

FM Tables Budget in Rajya Sabha

Finance Minister Nirmala Sitharaman has tabled the Union Budget 2019-20 in the Rajya Sabha.

KEY EVENT

Middle-Class Will Progress With This Budget, Says PM Modi

Speaking after the presentation of the Union Budget, Prime Minister Narendra Modi said:

“The budget for a New India has a roadmap to transform the agriculture sector of the country, this budget is one of hope... The middle class will progress with this budget, development work will expedite even more. The tax structure will simplify and infrastructure will modernise.”
PM Narendra Modi

'Futuristic' Amit Shah, Rajnath Singh, Nitin Gadkari Congratulate FM on Presentation of Union Budget

Senior BJP leaders, including Home Minister Amit Shah, Defence Minister Rajnath Singh and Road Transport and Highways Minister Nitin Gadkari, took to Twitter to congratulate Finance Minister Nirmala Sitharaman for the Union Budget.

"By bringing in socio-economic transformation, it is a futuristic budget. It will be successful in taking India to (becoming a) $5 trillion economy. It has taken care of all the sections of society, be it poor, backward or rich people," Rajnath Singh said, while speaking to the media outside the Parliament.

Congress Leader Siddaramaiah Takes a Dig at Budget

KEY EVENT

'Emphasis Was on Overall Development of Economy': FM After Budget Presentation

Addressing the media after presenting her first budget, Finance Minister Nirmala Sitharaman said, "The emphasis was very clearly on the overall development of economy. We looked at rural initiatives, all of which will give certain dynamic to the rural areas. Similarly, we looked at how urban living can be better."

"This Budget is setting a vision, a target. Bank (difficulties have been addressed. NBFC crisis has been addressed," she added.

“Non Banking Financial Companies (NBFCs) are a critical component of our banking system. The Government has adopted a comprehensive approach for NBFC financing.”
Nirmala Sitharaman

Sitharaman also pointed out that the welfare-oriented outlay for SCs, STs and the poor has increased in the budget.

Defence Budget Increased, Says Nirmala Sitharaman

Speaking at a media briefing after the presentation of the budget, Nirmala Sitharaman pointed out that there has been a substantial increase in the defence budget.

The government allocated over Rs 1 lakh crore (Rs 1,12,079.57 crore) for defence pensions. Along with the defence budget, the total defence allocation comes to over Rs 4 lakh crore (Rs 4,31,010.79 crore) and accounts for 15.47% of the total Central government expenditure for the coming fiscal.

BJP Working President JP Nadda Congratulates FM on Maiden Budget

BJP working President JP Nadda said, “This budget is dedicated to the poor people of the country, to the Dalits, to the farmers, to the youth and women of the country. It represents all sections of society. I really congratulate the finance minister.”

Budget Day: Sensex Cracks 395 Points; Metal, Power Stocks Sink

The BSE Sensex plunged 395 points on Friday on heavy selling in metal, power, auto and IT counters, after the Budget proposal of raising public shareholding threshold stoked fears about liquidity in the market.

Union Budget is Pathbreaking: Niti Aayog CEO

NITI Aayog CEO Amitabh Kant said, “The Union Budget is path-breaking. It's a very comprehensive Budget. We're particularly delighted as Finance Minister has acknowledged the role of Niti. But more important is the roadmap that she has set for laying down a vision for $5-trillion economy.”

It is a Budget For All: Piyush Goyal

On the Congress calling the Union Budget a ‘manifesto’, Railway Minister Piyush Goyal said, “Our track record is that we've performed on every single budget for last 5 years. Congress made promises that no one was willing to buy, because they were just _shekh chilli ki kahani_, dreams in the air that nobody trusted.”

He added, “It's a budget for all. It has addressed issues which will make 'ease of living' for the poor, the middle class. It has ensured large-scale infrastructure development which has made life and living easy for 130 crore Indians, rich or poor.”

He also said the Budget has given a huge thrust to startups, job creation and Make in India.

US Corporate Sector Welcomes Indian Budget, Says It Will Attract FDIs

The American corporate sector on Friday hailed the maiden Budget of Finance Minister Nirmala Sitharaman, noting that it is not only inclusive but also attractive for foreign investments.

President of US India Strategic and Partnership Forum (USISPF) Mukesh Aghi said the budget is inclusive and policy decisions are encouraging for American companies.

It's "good news" for companies like Apple, Aghi told PTI. The Budget opens up the Indian market, and encourages US companies to invest more, at the same time it ensures prosperity and growth for the lower sections, he said.

The Budget is trying to make positive structural changes, he added.

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