1. Presentation to Members of Institute of Cost Accountants
Union Budget 2019
13th July 2019

2. GDP Growth Country 2018 2019 Brazil 1.1 1.4 Russia 2.3 India 7.3 6.8
China
6.6
6.2
Country
2018
2019
World
3.6
3.2 US
2.9
2.6
Eurozone
1.8
1.2 UK
1.4
Japan
0.8
0.5

4. Macro-economic Performance of Bric Countries
Parameters
Years
Brazil
Russia
India
China
GDP Growth%
2018
1.1
2.3
7.3
6.6
2019
1.4
6.8
6.2
Inflation Rate % y-o-y
3.7
2.9
3.9
1.9 4
4.9
2.5
Fiscal Deficit as % GDP
-7.1
2.6
-3.4
-4.2
-5.8
2.1
-3.3
-4.5
Public Debt as % GDP
77.2
10.3
49.3
19.4
82.2
9.5
48.3
22.5
Current A/c Balance USD Billion
-14.5
113.8
-64.9
49.1
-24.9
115
-53.3
37.2

5. India Economic Slowdown
Demand Side Parameters - Growth in Percentage
Parameters
1Q2019
4Q2018
Private Consumption
7.3
8.0
Gross Fixed Capital Formation
3.6
11.7
Public Consumption
9.2
6.5
Exports
10.6
16.7
Imports
13.3
14.5
Supply side - Growth in Percentages
Manufacturing
3.1
6.4
Trade, hotel, transport, Communication
6.0
6.9
Construction
7.1
9.7
Agriculture, Forestry, Fishing
0.1
2.8
Mining
4.2
1.8
Social and Personal Services
10.7
7.5
Fin, Real Estate, Professional Services
9.5
7.2

6. Economic Slowdown Retreat of Globalisation
Inventory levels in auto / real estate very high
Collapse in private consumption – demonitisation
Rural economy badly hit
SMEs slowdown
High NPAs – Tight lending
Vicious cycle
Roll-out of GST
Small businesses badly hit
Compliance with GSTN Network
Highest rate of Unemployment
Crisis in aviation sector
ILFS, DHLF defaults

7. Economic Survey Virtuous cycle Savings Investments Exports Demography
Insolvency Code
Swachta Abhiyan
Legal Framework
Tax Administration
Behaviourial Economics

8. Reform, Perform Transform Aasha, Vishwas, Aakansha यक़ीन हो तो कोई रास्ता निकलता है हवा की ओट भी ले कर चराग़ जलता है 

9. Long Term Vision: 5 Trillion Dollar Economy

10. Karya purusha karena lakshyam sampadyate With determined human efforts, the task will surely be completed
Mazboot desh ke liye
Mazboot Nagarik

11. Turning Points in the History of Nation
Date
Turning Points
15th Aug 1947
Tryst with Destiny
24th July 1991
Tryst with Reforms
1st July 2017
Tryst with Taxation
5th July 2019
Tryst with Economy

12. 8% p.a. Growth Expected

13. Paradigm Shift One Nation, One Tax One Nation, One Grid Old Policy
New Policy
Mixed Economy
Market Economy
Public Sector
Private Sector
Internal Financing
External Financing
Agriculture
Infrastructure
One Nation, One Tax
One Nation, One Grid

14. Implications of Union Budget 2019

15. Heavy Inflows in Stock Exchange
Commanding Heights of the Economy are up for Disinvestment
Rs lakh crore of Disinvestment in Central PSUs
Public Shareholding increased from 25% to 35%
Promotors Quota to be maximum 65% from 75%
Surplus shares to be offered for sale or MNCs delisting
Huge Inflows Expected in Stock Market: Rs. 4 lakh crores
Huge supply of shares can impact its prices.
Timing is very important in minimizing the impact
Over 1400 companies likely to be impacted.
Special mention: TCS, Wipro, Dabur, Bandhan, Pidilite

16. Inward Outward 100% FDI permitted in Insurance Intermediaries
Local Sourcing Norms eased for FDI in Single Brand Retail Sector
India getting integrated with global value chain.
India becoming part of global financial system
Investments from Pension Funds, Sovereign Wealth Funds, top Insurance Cos.\
FPIs investments in debt securities issued by ReIT and InvIT permitted
FPI Investment in stocks

17. One Nation One Grid
Rs. 1 lakh crores investment planned in Infrastructure sector for next 5 years.
Rs. 50 lakh crores investment in Railways next 12 years.
Smooth connectivity through Rural Roads, Industrial Corridors, Freight Corridors, Bharatmala, Sagarmala, Udaan Scheme
Power availability to states – developing gas grids, water grids, i-ways and regional airports.

19. Essentials for Development
Main Item
With
Politics
Principles
Wealth
Work
Pleasure
Conscience
Commerce
Morality
Science
Humanity
Worship
Sacrifice