Key Budget Highlights:
– The government set a fiscal deficit target of 3.3%, lower than consensus. It plans to meet this target via increased non-tax revenue from disinvestments (Rs 1,05,000 crore), the Reserve Bank of India’s special dividend, and additional levies on petrol and diesel.
– Public sector banks (PSB) get recapitalization of 70,000 crore. This will be additional relief after the major PSBs improved their loan book quality and coverage ratios.
– Private investment will be encouraged in railways through Public-Private-Partnership (PPP) model. The government also announced 22.6% increase in road development outlay and the Pradhan Mantri Gram Sadak Yojana (PMGSY) completion target was advance to 2019 from 2022.
– The budget reiterates focus on Housing for All. Loans for affordable housing will get tax benefit, which is expected to boost demand.
– The turnover threshold for lower tax rates of 25% has been increased to Rs 400 crore from Rs 250 crore. Continue reading “Special Article : Union Budget 2019: What does it mean for the Common Man?”