India Budget: Implementation status of Budget 2019-20

india budget

Economics:

January 19, 2021

Overview:

India Union Budget is presented in Parliament in February. Implementation status of previous budget’s announcement is given in a separate document, although a bit later. Here are the implementation status of Budget 2019-20 [Budget Speech – 5th July’2019]. This part I ( 25/ 115 announcements )

Issues:

Here are the announcements from 1-25 and their status

S. No. Announcement Status
1 Reach 5 trillion economy Prepared a Roadmap
2 Increase road and water transport – Bharatmala, Sagarmala, Jal marg vikas project –        Total 233 roads projects at an aggregate length of 9,672 km have been appraised/approved under Bharatmala Pariyojana with total capital cost as Rs 2,45,019 crore

–        39 projects (cost: `1569 crore) have been sanctioned for total financial assistance of Rs 636.76 crore.

3 Implement essential elements of the regulatory roadmap for making India a hub of Aviation Domestic leasing transaction is underway through open bidding for indigenously manufactured and maintained civil aircraft by HAL
4 Adopt suitable policy interventions to create a congenial atmosphere for the development of MRO in the country Strategic push is being given for setting up Engine

Shops in India on airframe maintenance

5 Payment ecosystem for transport, based on National Common Mobility Card (NCMC) standards Launched indigenously-developed ‘One Nation

One Card’ National Common Mobility Card (NCMC)

6 Phase-II of FAME Scheme, following approval of the Cabinet with an outlay of `10,000 crore for a period of 3 years –        About 8500 EVs have been supported by way of demand incentive

–        Sanctioned 5595 no. of e-buses to 64 cities

–        Sanctioned about 2636 charging stations

7 National Highway Grid The year wise development of NHs/Roads since

2017-18 are as follows: 2017-18 (9,829 km), 2018-

19 (10,855 km), 2019-20 (3,656 km) till August

2019.

8 Inland waterways to shift a significant portion of inland cargo movement from road and rail Construction of the multimodal terminal at Haldia and the

Navigational Lock at Farakka has achieved substantial progress

9 Public-Private Partnership  for Railway Infrastructure Proposals of Redevelopment of 4 Railway Stations

i.e. Gwalior, Nagpur, Amritsar and Sabarmati and

Passenger Train Project have been granted in principle

approval by the Public Private Partnership

10 One Nation, One Grid – developing gas grids, water grids, i-ways, and regional airports –        Envisaged to develop additional pipelines of about 14,300 km to complete the National Gas Grid

–        National Perspective Plan (NPP) prepared by the Ministry of Water Resources,

–        In three rounds of bidding of UDAN, 96 Regional Connectivity Scheme (RCS) airports, 10 Water aerodromes & 31 heliports have been identified

11 Retirement of old & inefficient plants, and addressing low utilisation of Gas plant capacity Discuss revival of the gas based power plants.
12 A package of power sector tariff and structural reforms would soon be announced Under deliberation
13 A Model Tenancy Law will also be finalized and circulated to the States. Cabinet Note with Draft Model Tenancy Act has

been submitted

14 Large public infrastructure can be built on land parcels held by Central Ministries Government Land Information System (GLIS) has been devised and hosted on National Centre of Geo-Informatics (NcOG) portal
15 Loans upto Rs 1 crore for MSMEs within 59 minutes The portal www.psbloansin59minutes.com is functioning as a single interface portal. Under the Interest Subvention Scheme for MSMEs, `350 crore has been allocated for FY 2019-20 for 2% interest subvention for all GST registered MSMEs
16 Government will create a payment platform for MSMEs to enable filing of bills and payment thereof on the platform itself. Ministry of MSME is considering linking of Samadhaan Portal with delayed payment platform to be created by National E-Governance Services Limited (NeSL)/Bombay Stock Exchange (BSE).
17 Extend the pension benefit to about three crore retail traders & small shopkeepers whose annual turnover is less than `1.5 Cr Scheme has now renamed as National Pension Scheme for Traders and Self Employed Persons Yojana and rolled out on 12th September, 2019. As on 06.01.2020, 25374 persons have been enrolled under NPS-Traders
18 Number of measures are proposed to enhance the sources of capital for infrastructure financing –        RBI is in the process of issuing revised guidelines for revamping the Credit Default Swap market

–        Credit Guarantee Enhancement Corporation fund is being set up as a Non-Banking Financial Company (NBFC) with partnership of IIFCL, LIC, PFC, REC

19 A number of measures are proposed to deepen bond markets, –        AA rated bonds have already been allowed as collateral in the corporate tri-party repo platform at BSE

–        SEBI has been asked to consult market participants and conduct a detailed review to standardize and rationalize the ISINs framework.

20 Increasing minimum public shareholding in the listed companies SEBI has been asked to examine the implications of enhancement of current threshold on the Financial Market
21 Rationalize and streamline the existing Know Your Customer (KYC) norms for FPIs to make it more investor friendly Working Group set-up under the Chairmanship of Shri. H. R. Khan
22 initiate steps towards creating an electronic fund raising platform – a social stock exchange – under the regulatory ambit of Securities and Exchange Board of India (SEBI) SEBI has constituted a working group
23 inter-operability of RBI  depositories and SEBI depositories In order to facilitate seamless Value Free Transfer (VFT) between the SEBI Depositories, RBI is developing an advanced version of VFT module.
24 further opening up of FDI in aviation, media (animation, AVGC) and insurance sectors in consultation with all stakeholders. 100% Foreign Direct Investment (FDI) will be permitted for insurance intermediaries Consultations and Proposals

 

25 contemplating organizing an annual Global Investors Meet in India, using  National Infrastructure Investment Fund (NIIF) as the anchor Proposed to organize the annual Global Investors meet in India in second half of 2020

Going Forward:


We expect implementation status before current year budget to analyse the budget more accurately. It is very important to look through the implementation details, as government may announce many schemes, but they may not be implemented properly

References:

https://www.indiabudget.gov.in/impbud.php

Author:
Strategy Boffins Team
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