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Thursday, January 31, 2019

Highlights of the Interim Budget for 2019-20 (Apr-Mar), presented by Finance Minister Piyush Goyal in Parliament today




FY20 ESTIMATES

* Will spend 190 bln rupees FY20 on rural road plan

* 600 bln rupees being allocated for MNREGA FY20

* Will provide more if needed for MNREGA in FY20

* Defence outlay at 3 trln rupees in FY20

* Allocated 645.8 bln rupees for railways FY20

* FY20 northeast infra allocation at 581.7 bln rupees

* Railway operating ratio seen 96.2% in FY19, 95% in FY20



FY19 REVISED 

* FY19 fiscal deficit seen at 3.4% of GDP

* Allocated 200 bln rupees for farm income scheme in FY19



FISC HEALTH

* Restored fiscal balance

* India has been in best phase of macroeconomy in last 5 yrs

* Contained fisc deficit despite raising states' tax share

* India attracted $239 bln as FDI in 5 years

* Most FDI came through automatic route

* Current account deficit seen at 2.5% of GDP

* Will provide additional funds for Defence, if needed

* Disbursed over 350 bln rupees for one-rank-one-pension plan



GROWTH, INFLATION

* Average growth in 5 yrs highest since econ reforms began

* 2008-2014 saw expansive credit growth

* Reforms have set stage for decades of high growth

* Inflation is unfair tax on poor, middle class

* Have broken the back of back-breaking inflation

* Contained double digit inflation



FINANCIAL SECTOR, MARKETS

* RBI's AQR revealed hidden NPAs in 2015

* Had guts to tell RBI to do asset quality review of banks

* Have run a corruption-free govt

* Ushered in new era of transparency

* Banks' merger being done to improve access to capital

* Spent 2.6 trln rupees so far on bank recapitalisation

* Bank mergers done to get economies of scale

* Expect other banks to soon exit prompt corrective action

* IBC a resolution friendly mechanism retaining assets' value

* On IBC: Even big businessmen now worry about loan repayment

* 3 trln rupees already recovered by banks

* IBC has institutionalised recovery of NPAs

* Govt stopped culture of phone banking

* Measures undertaken to ensure clean banking

* 175-bln-rupee orders placed on govt e-marketplace

* Govt e-marketplace being extended to all PSUs



INFRASTRUCTURE, INDUSTRY

* 7.23 trln rupees MUDRA loans given so far

* India 2nd largest hub for start-ups now

* To create 100,000 digital villages in 5 years

* Mobile data consumption increased 5 times in last 5 years

* Need to improve hydropower capacity to cut oil, gas import

* Solar power generation capacity raised 10 times

* To start container cargo movement in northeast

* All unmanned level crossings on broad gauge eliminated

* 27 km of highways being built each day

* India fastest highways developer in the world

* Gone beyond incremental growth in infra



FARM SECTOR

* Seek a new India where farmers' income would have doubled

* Income support scheme to be given in 3 equal instalments

* Income support for farmers holding less than 2 ha land

* Kisaan scheme to transfer 6,000 rupees/yr to small farmers

* To create PM Kissan Fund for small, medium farmers

* Fall in commodity, farm pdt prices have reduced farm income

* There is a need for structured income support for farmers

* Agriculture continues to be main driver of rural economy

* Increased allocation for Gokul scheme to 7.5 bln rupees

* 1st instalment of 2,000 rupees to be given to farmers soon

* Income support scheme to cost 750 bln rupees per year

* Farm income scheme to be effective from Dec 1, 2018

* 120 mln small farmers to benefit from income support scheme

* Farm income scheme to be fully funded by central govt

* Interest subvention for farmers hit by natural disasters

* To set up Rashtriya Kamdhenu Aayog

* To start drive to bring all farmers under Kisan credit plan

* 2% interest subvention for animal husbandry, fisheries



SOCIAL SECTOR, EDUCATION
* Ayushman Bharat to provide facilities to 500 mln people

* Massive scale-up in healthcare in last 5 years

* Construction of rural roads tripled under PM road plan

* Swachh Bharat world's largest behavioural change movement

* Conducted transparent auction of natural resources

* To set up 22nd AIIMS in Haryana

* Households saved 30 bln rupees from Ayushman Bharat

* 1.7 trln rupees spent for food at affordable rates for poor

* 5-bln-rupee allocation for new "mega" pension plan

* Half of GDP is from 420 mln workers in informal sector

* EPFO data shows formalisation of econ, job creation

* Jobs are created when there is high growth

* Aim 80 mln LPG connections under Ujjwala plan by next yr

* To allot more funds for new "mega" pension plan, if needed

* To give 3,000 rupees/month under new PM pension plan

* New pension plan for workers earning below 15,000 rupees/month



MISCELLANEOUS

* India is solidly back on track

* Have reversed policy paralysis engulfing the nation

* Goyal wishes speedy recovery to Jaitley

* People of India gave strong mandate to our govt

* India 6th largest economy in the world

* India fastest growing major economy in the world today

* India recognised as a bright spot in last five years

* India marching towards growth, prosperity

* Have run a corruption-free govt

* Ushered in new era of transparency

More to come

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