Revenue source of India

Nirmala sitharaman the finance minister of India kept total borrowing plan unchanged at 7.1 trillion rupees, the proposed budget does not contain any major proposals to boost spending. The annual budget presented in parliament in a red cloth cover by the finance minister..

Having provoked by the media flurry the gesture of Sitharaman’s was intended to generate wise budget for 2019.  The new finance minister broke the tradition inherited from the British.  It is a step in the direction of becoming a superpower.

Key-points of Budget 2019!

  • India at the moment facing both structural and cyclical slowdown. The farmers are frozen up because of investment and credit, with new project launches in 2014.
  • The more to the fact is the manufacturing and Exports both are facing a crisis thanks to the custom duty and sustained weakness in skill and competitiveness.
  • Sitharaman shown financial budget of India offered one hope of addressing the problem like non banking financial companies and its Shadow banking sector.
  • Now public banks will be able to reach capitalised and start-ups would be able to borrow money at cheaper interest and could get the amount more quickly.
  • One more thing here is to be noted that the failure of governments skilling program was closed over in the budget and rather than looking to integrate global supply chains the finance minister continued practicing Modi’s government of arbitrarily raising tariffs to save domestic industry.
  • There are use appetite for debate in the foreign market as per the top finance ministry official. Mr Narendra Modi faces shrinking options to raise budget because of slowing economy tax revenue.
  • The new budget may make a positive difference to the current account because of the inflow of foreign currency.
  • Sitaraman raised the surcharge effectively heading the foreign portfolio investors along with the higher tax, around 40% of the FPI automatically  came under the giant tax rate
  • Seetharaman proposed budget innovate that increases the surcharg,  and the charge is top of the income tax rate from 15 to 25% for those who has taxable income of between 2 crore to 5 crore,  and 37% increase for those who are earning more than 5 crore.
  • The budget of 2019 tells us that government aims to significantly raise public sector employment that hit a six year low in FY18 in, but it is worth taking the estimate with The Pinch of salt

So the conclusion is that many market critics were eagerly waiting for union budget 2019-20 what she has presented on Friday. The picture is been painted the government targeted API that is increasing surcharges over FPI only, but the fact is surcharges are increased for all  non corporate entities and individuals regardless of whether they are investor,  domestic or foreigner, FPI, FII.

So now the sensex is down to 166 points 38, 569. Investors are quite disappointed with Nirmala’s text official reactions.  Now the clarification is no more  required at this moment .