union budget 2018-19

New Delhi – Finance minister Arun Jaitley is presenting the Union Budget for 2018-19 in Parliament.

Here are the Live Updates-

Parliament session began at 11.

Feb 01, 11:04 AM (IST)
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Feb 01, 11:09 AM (IST)
Worried about the country’s growth next year? No need, says Jaitley. The country’s exports are slated to report a 15% growth this fiscal year and the economy is expected to grow at more than 7% next fiscal.
Feb 01, 11:10 AM (IST)
Our government is now focussing on ease of living and that there is limited interference of the government in their lives. Free gas connections are being provided, 4 crore houses are being electrified, low-cost medicines are being provided, stents are being provided, free dialysis facilities are being provided, easier and cheaper convenient mode of transactions are being provided.
Feb 01, 11:11 AM (IST)
FM Jaitley is now addressing the Parliament in Hindi, outlining the various measures announced by the government. “Many services and benefits are being delivered to the people at their doorsteps,” he says.
Feb 01, 11:13 AM (IST)
He says the government is committed to the welfare of farmers. We had sought to effect a paradigm shift. The PM had given a call to double farmer income by 2020. We consider agriculture as an enterprise and want them to produce more from same land parcels and earn well too.
Feb 01, 11:13 AM (IST)
As expected, the finance minister has started talking about reforms for farmers inside the first 10 minutes of his speech. Farmers across the country better listen carefully to what he is going to say next.   It looks like Jaitley will be delivering the entire speech in both Hindi and English. Don’t think anyone will have any reason to complain at the end of it, at least about the language used.
Feb 01, 11:15 AM (IST)
MSP for Kharif crops will be the 1.5x cost of production. If prices are lower than MSP then the government has to ensure there are ways to make sure the farmers receive necessary MSP or an apt price for their products.
Feb 01, 11:17 AM (IST)
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Feb 01, 11:20 AM (IST)

Feb 01, 11:20 AM (IST)

Food processing sector is growing an average 8% per annum. Allocation in this sector is being doubled from 750 cr last year to 1400 crore in 2018-19.

Feb 01, 11:21 AM (IST)
Government proposes to launch Operation Green for which a sum of Rs 500 crore will be allocated.

Feb 01, 11:23 AM (IST)

More for farmers to happy about looks like. The government has proposed setting up an agricultural market fund of Rs 2,000 crore. These reforms are clearly aimed at putting a smile on the farmer’s face and encourage him to continue doing what he does for the country.

Feb 01, 11:24 AM (IST)

 

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Feb 01, 11:43 AM (IST)

Feb 01, 11:44 AM (IST)

FM says the government will introduce 24 new medical colleges including upgrading certain existing colleges. This will ensure there is 1 government medical college in every state of the country.

Feb 01, 11:44 AM (IST)

“The government’s focus on futures and warehousing for agriculture is welcome. In a way, it revives the WDRA provisions (Warehousing Development Regulations Act) which have been languishing since 2012.  But all this requires two major conditions. First, the government needs to create more incentives for warehousing.  It needs to reduce the role of the FCI (which has provided to be both corrupt and collusive with rich farmers at the cost of small farmers).  It needs to appoint assayers ad auditors who will audit the warehouse receipts and stocks to prevent another NSEL type scam. The budget does not talk about this. Secondly, the biggest hurdle to any futures market is the proper functioning of commodity exchanges.  Till now, the government has banned the trade, disrupted trade, and even closed down commodity exchanges. These do not augur well for commodity exchanges. Moreover, the government will have to create adequate funds to purchase crops at MSP rates from any farmer who can then deposit this at the warehouses and then sell the crop through commodity exchanges. The budget does not give any indication that it has worked this out as yet. This also means that the government’s procurement programme has to move away from rice and wheat only.” – RN Bhaskar, Moneycontrol Consulting Editor.

Feb 01, 11:47 AM (IST)
The govt aims to improve quality of life in 115 districts which have been identified. 47 projects under cleaning Ganga have been completed, Jaitley said, adding the project has gathered speed.
Feb 01, 11:49 AM (IST)

Students planning to study medicine in the future can rest easier now. The government has said that it will add 24 new government-run medical colleges to the country and upgrade all existing ones. The idea is to make sure that there is a medical college in every state in the country.

Feb 01, 11:49 AM (IST)
MSMEs are a major engine of growth and employment, the FM notes, adding he will soon announce measures for SME NPAs
Feb 01, 11:52 AM (IST)
The FM says the government targets Rs 3 lakh crore for lending under Mudra in 2018 -19. He also proposes to bring banks on TREDS, and link it with GSTN
Feb 01, 11:52 AM (IST)
One of the banking sector’s major concerns is likely to be addressed soon, going by Jaitley’s speech. The finance minister has said that he will soon be announcing measures to help deal with NPAs of SMEs, reiterating that MSMEs are extremely important for our economy.
Feb 01, 11:53 AM (IST)
“As expected the first half of the budget was for Bharat, Kisan, women, senior citizens, rural areas – a pro people’s budget.  As we move into the second half of the speech, we will move to India.” – Manoj Nagpal, Moneycontrol Consulting Editor.
Feb 01, 11:54 AM (IST)
Nearly 70 lakh formal jobs have been created this year…govt will contribute 12 % EPF in wages of new employment in all sectors. He says  facility of fixed-term employment will be extended
Feb 01, 11:56 AM (IST)
If this is not a people’s Budget, nothing is or ever can be. Roads and railways, both of which have been causing for complaint about the Indian citizen in the past, have been given a record allocation in this Budget, no doubt with an eye toward next year’s general election. Hope the government finds a way to fund this without widening fiscal deficit.
Feb 01, 11:59 AM (IST)
For those of you who are about to start your first job, the government has decided to try and make it worth your while. Jaitley has announced that the government 12% EPF in wages of new employees in all sectors. This news is as good as one can expect for the job sector.
Feb 01, 11:59 AM (IST)
The FM has now moved on to make announcements related to the backbone of the economy i.e. infrastructure. Need Rs 50 lakh crore to improve infra, he says. We are confident of completing 9000 km national highways to be by 2018- 19, he says.
Feb 01, 12:01 PM (IST)
He notes that 35,000 km will be completed under Bharatmala project with an outlay of Rs 5.35 lakh cr before moving on to the initiatives in Railways.
Railways capex for FY19 will be at Rs 1.48 lakh cr, he says.
Feb 01, 12:02 PM (IST)
At this rate, the country is not going to be looking the same this time next year. Jaitley has said that the government will complete constructing 9000 km of national highways by the end of FY19. A huge number of train coaches and new tracks are also in the works.
Feb 01, 12:03 PM (IST)
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Below are CRISIL’s like takeaways from the Budget speech

– Increase in MSP will further boost tractor sales, currently growing at 16%
– Of 2,000 APMCs, those connected to E-NAM is 470, which is less than the target of  585 for last fiscal #budget2018
– Liberalisation of agri exports to benefit the pulses sector
– Out of a production of 22 MT in 2016, exports were just 1.3 MT
– LPG demand growth to rise to over 10% next 2 years given 8 crores new BPL connections targeted
– Power, LPG via Ujala and Saubhagya remains area of concern for income, OMCs because of lack of recovery
– Dedicated fund for affordable housing to improve formal finance penetration
– Focus on rural housing, rural roads and rural infra spend will push up employment
– Rs 10,000 cr for fisheries to boost seafood exports
– India already world’s largest shrimp exporter
– Rising rural income to improve demand for cement
– Rural demand is 33% of total cement demand
– Massive health insurance plan a boost for hospitals, health insurers
– 18 architecture schools show construction sector importance to the economy, govt
– Ragi, jowar, moong, maize, paddy to benefit the most
– Increase in MSP by 1.5 times cost of production
– Huge health insurance plan could cost govt around Rs 50,000 crore annually
– 3.7 lakh km rural roads plan huge boost for construction cos
– Rail University in Vadodara to boost R&D initiatives, help improve rly ops
– Micropension, insurance via Jan Dhan to boost fin inclusion
– 23% growth in Mudra target will help micro-entrepreneurs
– Agri-commodity exports limited now
– Liberalisation is a big boost to sector
– 1 cr houses under PMAY augurs well for lenders
– Growth in affordable housing loans to remain strong
– Govt’s 12% contribution to EPF for new employees
– Will encourage formal sector coverage
– Textiles subsidy under TUFs up 18% at Rs 7,140 cr
– Textiles subsidy under TUFs up 18% at Rs 7,140 cr
– Fisheries fund a big boost to Rs 140,000 cr seafood industry

Feb 01, 12:14 PM (IST)
Feb 01, 12:15 PM (IST)
Feb 01, 12:16 PM (IST)

Recapitalisation of PSU Banks will allow banks Rs 5 lakh cr of additional lending in FY19, he says.

Feb 01, 12:17 PM (IST)

Feb 01, 12:19 PM (IST)

“As expected, disinvestment of Rs 1 lakh cr seems to be one of the main ways of financing various initiatives announced.” – Anil Rego, CEO & Founder, Right Horizons.

 

 

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