Govt to disclose its budget for 2019-20; List of items mentioned

New Delhi, Jan 31: The government will divulge its budget for the 2019-20 fiscal year on Friday, with investors expecting increased investment in areas such as agriculture, as Prime Minister Narendra Modi tries to solicit voters ahead of general elections to be held by May.

After a twist of recent defeat in key state elections for PM Modi s Bharatiya Janata Party (BJP), the government is expected to address rural and urban middle-class voters by way of farm relief measures and tax cuts.

The government is expected to project economic growth of around 7.5 per cent for the next financial year, while expanding capital spending on railways, roads and ports by 7-8 per cent.



Below is a list of some of the items expected in the budget, based on published media reports.

@Divestment:

# Target of about USD 11 billion from state asset sales in FY 2019-20

# Potential stake sales via IPOs include Telecommunications Consultants India, Indian Railways subsidiaries IRCTC, RailTel Corp India and National Seeds Corp

@Metals

# Gold - Speculation around a duty cut

@Agriculture:

# Farm relief package itself could run to at least Rs 1 lakh crore (USD 14.04 billion)

# Set to earmark about Rs1.8 lakh crore for food subsidies in the fiscal year

# Expected to waive premium for taking insurance policy for food crops

# Proposal for waiving interest on crop loans for farmers who pay on time

@Banks

# Discount of 2 percentage points on loans for businesses with annual sales of less than Rs. 5 crore; government to compensate banks for the costs

# Rs 4,000 crore-rupee capital infusion for public-sector general insurers

@Health

# Budget allocation for health is likely to increase by 5 per cent from a year ago

@Taxes

# An anticipated corporate tax rate cut to 25 per cent from 30 per cent may be put on hold until after the elections

# Higher tax exemptions for the middle class and for small businesses anticipated

@Autos

# Reduction of goods and services tax (GST) on electric vehicles and batteries

@IT/Telecom

# Better digital infrastructure in rural areas

# Abolition of the angel tax to boost start-ups

# Exemption from GST for spectrum and licence fee payouts, reduction in spectrum fees and cuts in import duty on telecom equipment (currently at 20 per cent)