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Budget vs Stock Market 2020

Budget 2020 Highlights for Investment

Prominent Themes of the Budget

Ease of Governance Financial

Aspirational Economic Caring Society

LivingGovernance sector

sp a o aIndia

Agriculture, Irrigation and Rural Development

co o cDevelopment

Industry, Commerce and

Investment

Caring Society

Women & Child, Social

Welfare

Wellness, Water and Sanitation Infrastructure Culture and

Tourism

Education and Skills New Economy Environment and

Climate Change

GOVERNANCE

IBC• Honourable

exit through IBC for

STRUCTURAL REFORMSGST• 20 per cent reduction in turn around time for trucks.• Benefit to MSMEs through enhanced threshold and

composition limits.companies.

p• Savings of about 4 per cent of monthly spending

for an average household. • In last 2 years, 60 lakh new taxpayers added and

105 crore e-way bills generated1

DIGITAL REVOLUTIONShift to DBT• During 2018-

19, `7 lakh croret f d

Next wave• Digital Governance.• Improve physical quality of life through

N ti l I f t t Pi litransferred through DBT.

National Infrastructure Pipeline• Disaster Resilience.• Social Security through Pension and

Insurance penetration.

INCLUSIVE GROWTH• Governance guided by “Sabka Saath, Sabka Vikas, Sabka

Vishwas” with focus on:• Preventive Healthcare: Provision of sanitation and water• Healthcare: Ayushman Bharat• Clean energy: Ujjawala and Solar Power• Financial Inclusion Credit support and Pension• Financial Inclusion, Credit support and Pension• Affordable Hosuing• Digital penetration

FINANCIAL SECTOR

• Deposit Insurance Coverage to increase from `1 lakh to `5 Lakh per depositor.

• Eligibility limit for NBFCs for debt recovery under SARFAESI Act proposed to be reduced to asset size of `100 crore or loan size of `50 Lakh.

• Proposal to sell balance holding of government in IDBI BankProposal to sell balance holding of government in IDBI Bank.• Separation of NPS Trust for government employees from

• Specified categories of government securities would be openedSpecified categories of government securities would be opened for non resident investors

• FPI Limit for corporate bonds to be increased to 15 per cent.• New debt ETF proposed mainly for government securities.

2

PFRDAI.

Macroeconomic IndicatorsGDP Growth Rate (per cent) CPI and WPI (per cent)

44.5

55.5

66.5

77.5

88.5

-2

0

2

4

6

4-15

5-16

6-17

7-18 -19

April

-er

)

CAD/Forex (per cent)

-4 2014

2015

2016

2017

2018

2019

-20(

AD

ecem

be

CPI-C WPI

9,000 Net FDI

5

10

15

20

25

30

35

CAD/Forex (per cent)

2,0003,0004,0005,0006,0007,0008,000

US

$ M

illion

Trends in Deficits

0

5

-1,0000

1,000

Jan-

17Ap

r-17

Jul-1

7O

ct-1

7Ja

n-18

Apr-1

8Ju

l-18

Oct

-18

Jan-

19Ap

r-19

Jul-1

9O

ct-1

9

3

3.55253

nt)

ent) Debt

0.9

0.7

0 4 0 4 0 4

0.7

0.4

4.1

3.9

3.5 3.5 3.4

3.8

3.5

3.2

3.4

3.6

3.8

4.0

4.2

0.3

0.5

0.7

0.9

1.1

Perc

ent o

f GD

P

Perc

ent o

f GD

P

0

0.5

1

1.5

2

2.5

3

4546474849505152

Exte

rnal

Deb

t (pe

r cen

tral G

over

nmen

t Deb

t (pe

r ce

0.4 0.4 0.4 0.43.00.1

PD FD (RHS)

Cen

Central Government Debt as per cent of GDP

External Debt as per cent of GDP at current exchange rate

3

Tracking Progress in Numbers

322000032700003320000

Foreign Exchange Reserves (` crore)

80000009000000

10000000

Gross Bank Credit (` Crore)

29700003020000307000031200003170000

Aug-

2019

Aug-

2019

Aug-

2019

Sep-

2019

Sep-

2019

-Oct

-201

9

-Oct

-201

9

Nov

-201

9

Nov

-201

9

Dec

-201

9

Dec

-201

9

-Jan

-202

0

-Jan

-202

0

01000000200000030000004000000500000060000007000000

02-

16-

30-

13-

27-

11-

25-

08-

22-

06-

20-

03-

17-

Nov.24, 2017Mar. 30, 2018Nov.23, 2018Mar.29, 2019Nov.22, 2019

5060

Distribution of workers by status in Employment (per cent)

2011-12 2017-18

Conventional Power

Renewable Power

Irrigation

Rural Infrastructure

National Infrastructure Pipeline

th $

01020304050

Self employed Regular wage/ Salaried

Casual labour0 5 10 15 20

Roads

Urban and Housing

Railways

Rs. Lakh Crores

India is the 5th largest economy in the world in terms of GDP at current US $ Trillion.

3.9USA GERMANY CHINA

14.1

2.9

5.221.4

INDIA

JAPAN

All figures in US $ Trillion

4

Budget at a glance

Revenue Expenditure (in ` Capital Expenditure (in ` crore)

20,00,000

24,00,000

28,00,000

p (crore)

2,80,000

3,50,000

4,20,000

p p ( )

0

4,00,000

8,00,000

12,00,000

16,00,000

0

70,000

1,40,000

2,10,000

Revenue Receipts (in ` crore) Capital Receipts (in Rs

14,00,000

21,00,000

Revenue Receipts (in ` crore)

8 00 000

10,00,000

12,00,000

Capital Receipts (in Rs. crore)

0

7,00,000

0

2,00,000

4,00,000

6,00,000

8,00,000

5

Budget at a GlanceNon Debt Capital

Receipts6%

Rupee Comes FromBorrowings and Other Liabilities

20%Income Tax

17%

6%

Non Tax Revenue10%

Customs4%

Corporation Tax

Union Excise Duties

7%

GST18%

Corporation Tax18%

Centrally Sponsored SchemesPensions

Rupee Goes ToSchemes

9%

Subsidies6%

Defence8%

Central Sector

Other Expenditure

10%

6%

Interest Payments

18%Finance Commission and

Schemes13%

Commission and Other Transfers

10%

States' Share of Taxes and Duties

20%

6

Tax proposalsConcessional corporate tax rate of 15 per cent to new domesticcompanies in manufacturing and power sector.Tax concession for sovereign wealth fund of foreign governmentsand other foreign investments.Tax benefits to Start-ups by way of deduction of 100 per cent oftheir profits are enhanced by increasing turnover limit andperiod of eligibilityperiod of eligibility.Concessional tax rate for cooperatives proposed.Turnover threshold for audit of MSMEs increased.Extension of time limits pertaining to the tax benefits foraffordable housing.Issuance of Unique Registration Number to all charity institutionsf t lifor easy tax compliance.Health cess to be imposed on imports of medical equipment given these are made significantly in India.

Dividend Distribution Tax removed and classical system of dividend taxation adopted.

Simplified and New Income Tax Regime as an option to the old regimethe old regime.

Income Bracket (`

lakh) Below 5 5-7.5 7.5-10 10-12.5 12.5-15 Above 15Tax Rate (per

cent) Exempt 10 15 20 25 30

Simplified GST return shall be implemented from 1st April 2020. Refund process to be fully automated.

7

PM KUSUM to cover 20 lakh farmers for stand alone solar d f th 15 l kh f id t d

Agriculture, Irrigation and Rural Development

pumps and further 15 lakh for grid connected pumps.

• Viability gap funding for creation of efficient warehouses on PPP mode.SHG Vill t h• SHGs run Village storage scheme to be launched.

• Integartion of e-NWR with e-NAM.

“Kisan Rail” and “Krishi Udaan” to be l h d b I di R il d

• Fish Production launched by Indian Railways and Ministry of Civil Aviation respectively for a seamless national cold supply chain for perishables.

target of 200 lakh tonnes by 2022-23.

• Another 45000 acres of aqua

Eli i ti f FMD d b ll i culture to be supported.

• Fishery extentionthrough 3477 Sagar Mitras

• Elimination of FMD and brucellosis in cattle and PPR in sheep and goat by 2025.

• Increasing coverage of artificial insemination to 70 per cent.

• Doubling of milk processing Sagar Mitrasand 500 fish FPOs.

• Raise fishery exports to `1 lakh crore by

• Doubling of milk processing capacity by 2025.

• Agricultural credit target of `15 lakh crore for 2020-21.

lakh crore by 2024-25.

8

Wellness, Water and Sanitation

• More than 20 000 empanelled hospitals underMore than 20,000 empanelled hospitals under PM Jan Arogya Yojana.

• FIT India movement launched to fight NCDs.

Coverage under

• “TB Harega Desh Jeetega” campaign launched to end TB by 2025

35

under NikshayPoshan

Yojana (`

Lakh) • Viability gap funding proposed for setting up hospitals in the PPP mode.

launched to end TB by 2025.

• Expansion of Jan Aushadhi Kendra Scheme to all districts by 2024.

• ODF Plus to sustain ODF behaviour.

7080

• Focus on liquid and grey water management along with waste management.

SBM (` crore)

010203040506070

9638

12294

( )

0NFHS-3 NFHS-4

IMR U5MR 2019-20 (RE) 2020-21 (BE)

9

Education and Skills• About 150 higher educational institutions will start

apprenticeship embedded courses.I t hi t iti t f h i b b l l• Internship opportunities to fresh engineers by urban local bodies.

• Special bridge courses to improve skill sets of those seeking employment abroad.

EQUIP (` crore)Allocation 2020-21 (BE) Study in1413

0 10 20 30

Operation Digital Board

DHRUV

(` crore)

32

65

Study in India (crore)

• Degree level online education programmes for students of deprived

2020-21 (BE)2019‐20 (RE)

2020‐21 (BE)

sections of the society.

• Ind-SAT to be conducted in Asia and Africa under Study in India 2019-20 (RE)

2020-21 (BE)

Programme for Apprenticeship Training (` crore)

programme.

New Economy• Knowledge Translation Clusters for emerging technology sectors

166 168 170 172 174 176

• Knowledge Translation Clusters for emerging technology sectors• Scaling up of Technology Clusters harbouring test beds and small

scale manufacturing facilities.• National Mission on Quantum Technologies and applications with an

outlay of Rs.8000 crore proposed.10

Industry, Commerce and Investment• Scheme to encourage manufacturing of mobile

phones, electronic equipment and semi conductor packagingpackaging.

• National Technical Textiles Mission for a period of 4 years.

• NIRVIK Scheme for higher export credit disbursement launched.S tti f I t t Cl C ll t id• Setting up of an Investment Clearance Cell to provide end to end facilitation.

• Extension of invoice financing to MSMEs through TReDs.• A scheme to provide subordinate debt for entrepreneurs of

MSMEs

CORPORATE TAX RATE CUT

MSMEs.• Scheme anchored by EXIM Bank and SIDBI to handhold MSMEs

in exports markets.

23.2

22

20

Japan

India

Thailand

28

25

25

25

Sri Lanka

China

Indonesia

Bangladesh

30

28

0 10 20 30

Philippines

Sri Lanka

11

Infrastructure

• National Logistics Policy to be launched soonNational Logistics Policy to be launched soon.• Roads: Accelerated development of Highways.• Railways: Four station redevelopment projects• 150 passenger trains through PPP mode.• More Tejas type trains for tourist destinations.• Port: Corporatizing at least one major port.p g j p• Air: 100 more airports to be developed under

UDAAN.

Power: Efforts to replace conventional energy• Power: Efforts to replace conventional energy meters by prepaid smart meters.

• Gas Grid: Expand National Gas Grid to 27,000 km

• Infrastructure Financing: `103 lakh crore National infrastructure Pipeline projects announced.

• An international bullion exchange to be set up at GIFT City.

Accelerated road development

400050006000700080009000

Bharat Net (` crore)

0 4000 8000

in km

0100020003000

2019-20 (RE) 2020-21 (BE)

12

Women & Culture and Tourism Environment

Caring Society

Women & child, social Welfare• More than 6

lakh anganwadiworkers

Culture and Tourism• Proposal to establish

Indian Institute of Heritage and conservation.

• 5 archaeological sites to be developed

Environment and Climate Change• Coalition for

Disaster Resilient Infrastructureworkers

equipped with smart phones.

• A task force to be appointed to

sites to be developed as iconic sites.

• A museum on Numismatics and Trade to be established

• Tribal museum in

Infrastructure launched in September 2019.

• Encouragement to states implementingappointed to

recommend regarding lowering MMR and improving nutrition

• Tribal museum in Ranchi .

• Maritime museum to be set up at Lothal.

implementing plans for cleaner air in cities above 1 million.

nutrition levels.

Tourism promotion (` crore)

Nutrition related programmes(` crore)

2500

356002020-21 (BE)

2020-21 (BE)

13

Budget Allocation to Major Schemes

PM KISAN Pradhan Mantri Swasthya Suraksha Yojana

40000

50000

60000

70000

80000

30004000500060007000

Suraksha Yojana In ` C

rore

0

10000

20000

30000

2019-20 RE 2020-21 BE

0100020003000

2019-20 RE 2020-21 BE

2020-21 BE

DBT LPG

26000

27000

28000

29000

ICDS

0 10000 20000 30000 40000

2019-20 RE

23000

24000

25000

2019-20 RE

2020-21 BEPradhan Mantri

Awas Yojana

255002600026500270002750028000

Awas Yojana

2020-21 BE

Pradhan Mantri Gram Sadak Yojana

240002450025000

5500

2019-20 RE 2020-21 BE0 5000 10000 15000 20000

2019-20 RE

2020-21 BE

15

Expenditure of major items

Rs. 50040 Ministry of Housing and Urban Affairs

In ` Crore

Rs. 67112 Ministry of Health and Family Welfare

Ministry of Housing and Urban Affairs

Ministry of Road Transport and Highways

Ministry of Railways

Rs. 91823

Rs. 72216

f

Ministry of Human Resource Development

Rs. 99312

Ministry of Rural Development

Ministry of Consumer Affairs, Food and Public Distribution

Rs. 124535

Rs. 122398

Ministry of Agriculture and Farmers’ Welfare

Ministry of Home AffairsRs. 167250

Rs. 142762

Ministry of DefenceRs. 471378

14

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