Union Budget 2019: Finance Minister Nirmala Sitharaman Friday announced a slew of measures in her maiden Budget 2019-20 speech in the Parliament today. Among key announcement, Sitharaman said the government will launch an inter-opearable ATM-like One Nation One Card for pan-India travel, new rental laws for affordable housing, interest subvention scheme for MSMEs and women.

Here’s what Finance Minister Nirmala Sitharaman said in her Budget 2019 speech:

The recent election which brought us to this august House today, was charged with brimming hope and desire for a bright and stable New India. Like never before, India celebrated its democracy by coming out to vote in large numbers, like never before. Voter turnout was the highest at 67.9%. Every section – young, old, first time voters, voters since the first General Election, women – all turned up to stamp their approval of a performing Government. Through their unambiguous and firm mandate they have reaffirmed “putting the nation first”. The people of India have validated the two goals for our country’s future: that of national society and economic growth.

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Union Budget 2019: The Union Budget for financial year 2019–20 (FY20) has used the revised numbers for FY19 as the benchmark as against the accounts, which showed a smaller size of almost Rs 1.5 trillion to almost retain the budgetary numbers for the coming year with a marginal improvement in the fiscal deficit number to 3.3 per cent.

While the speech has focused on the main thrust areas, benefits have been provided to specific sectors like affordable housing and electric vehicles. It has kept most of the tax structures unchanged. Customs rates have been selectively increased and petrol and diesel are to cost more as this is an assured revenue stream for the government.

A major takeaway is the bank recapitalisation (bank recap) amount of Rs 70,000 crore that has been announced. However, this would be through the issuance of securities, which means that once again it will not be a part of the budget but an offering through the recap bonds route. The cost of such an exercise would be witnessed through the interest payments that have to be made over a period of time. The infusion of such capital is welcome, as it will help banks to lend especially so as six of the public sector banks (PSBs) have come out of the prompt and corrective (PCA) framework and would require capital to grow.

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Union Budget 2019: Setting a new precedent Union Finance Minister Nirmala Sitharaman on Friday was seen hugging the budget documents wrapped in a red cloth, the traditional ‘bahi khaata’ way, instead of the leather briefcase that until now her predecessors walked around with.

Chief Economic Advisor K. Subramanian said that it was a departure from “slavery of western tradition”. The red cloth symbolises the ‘bahi khaata’ traditionally used in every Indian business set up to maintain accounts.

Sitharaman was seen carrying the red cloth wrapped budget papers that was neatly bound with the auspicious yellow and red ribbon. The Lion Capital shone brightly on top of the bahi khaata, as the first-time Finance Minister walked out of the North Block.

Traditionally until now all former Finance Ministers have carried their Budget Document in a hardbound leather briefcase that takes after the parallel British custom — much like many of India’s laws and Parliamentary practices.

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Union Budget 2019: All eyes are set on the first Union Budget under Modi 2.0 that is slated to be unveiled on Friday (July 5).

With a clear evidence of economic slowdown and weak corporate earnings, Finance Minister Nirmala Sitharaman has her task cut out. Deep agrarian distress, high unemployment rates, the slowdown in automobiles and consumer demand, crisis in NBFC (non-banking financial company) sector and rising pressures in real estate and housing and muted capex cycle in the economy are some of the pressing issues that need addressal.

Market experts expect the government to lay out a growth-oriented budget to pump-prime the economy. The priority, they say, should be to arrest the declining growth momentum and the crisis of confidence by being a little expansionary this time. Since inflation is expected to be benign in the short-to-medium term, many experts feel the government should let go of the fiscal deficit target of 3.4 per cent set in the Interim Budget in February 2019.

The domestic market has not witnessed any pre-budget rally this time as the stocks surged in the run-up to the Lok Sabha elections and hopes of Modi government returning to power.

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Union Budget 2019:With the Narendra Modi-led NDA government going into its second term, albeit with a stronger majority, the start-up community expects it follow through on entrepreneurial policies introduced over the last five years and remove a dozen or so bottlenecks to position the country as a start-up powerhouse.

The interim budget presented on February 1 this year, which is only meant to support activities for two-three months in an election year, was understandably missing on big-bang announcements for start-ups. All eyes are on the Union Budget that will be presented by finance minister Nirmala Sitharaman on Friday.

According to half a dozen experts Business Standard spoke to, the industry is looking ahead for more tax sops for start-ups, a simpler and toned-down compliance regime and a uniform policy framework that courts foreign business and investors in India as well as supports local entrepreneurship.

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