New Delhi, Feb 1 (UNI) Doing a tightrope walk between financial and electoral compulsions, Union Finance Minister Piyush Goyal on Friday presented the Interim Budget for 2019-20, which is also the final Budget of ruling National Democratic Alliance as the nation is going for Lok Sabha polls in early half of this year.
The Budget was mainly aimed at farmers, unorganized sector and middle class. According to experts, these three sectors represent a majority of voters, making the Budget as a pre-poll bonanza.
The agrarian distress, turned as a setback for Bharatiya Janata Party in recently concluded assembly elections in three major Hindi heartland states.
Mr Goyal announced the increased Defence budget to over Rs three lakh crore for the financial year 2019-20 in the budget presented in Lok Sabha.
For agrarian sector, 12 crore small and marginal farmers will be provided with assured yearly income of Rs 6,000 per annum under Pradhan Mantri Kisan Samman Nidhi.
“Under this programme, vulnerable landholding farmer families, having cultivable land up to 2 hectares, will be provided direct income support at the rate of 6,000 a year,” Mr Goyal said.
In another move, to benefit atleast three crore people from middle class, Mr Goyal announced enhancement of the limit of individual income tax from Rs 2.5 lakh to Rs 5 lakh per annum.
Moreover, those having an income of Rs 6.5 lakh annually will not have to pay any income tax provided they make investments.
Standard Deduction to be raised to Rs. 50,000 from Rs. 40,000, TDS threshold from Rs 10,000 to Rs 40,000 on interest earned on bank or post office deposits, the Minister said.
For the informal sector, Mr Goyal announced a new scheme– Pradhan Mantri Shramyogi Maandhan Scheme—under which fixed monthly pension of Rs 3,000 per month can be withdrawn by the senior citizens.
To avail the scheme, contribution would be Rs 100 per month for those under 29, while Rs 55 per month for a 18-year-old.
The Minister said that under the scheme, the government will put in an amount similar to the amount contributed by the beneficiary per month.
Speaking about Defence allocation, Mr Goyal said, “Our defence budget will be crossing Rs 3,00,000 crore for the first time in 2019-20. For securing our borders and to maintain preparedness of the highest order, if necessary, additional funds would be provided.”
Fiscal
The Interim Budget pegged the fiscal deficit for the year 2019-20 at 3.4 per cent of GDP, said Finance Minister Piyush Goyal.
“The estimate of incomes and expenditure which I am presenting today, pegs the fiscal deficit of year 2019-20 at 3.4 pc of GDP,” said Mr Goyal while presenting interim Budget.
“We would have maintained fiscal deficit at 3.3 per cent for year 2018-19 and taken further steps to consolidate fiscal deficit in year 2019-20. However, considering the need for income support to farmers, we have provided Rs. 20,000 crore in 2018-19 RE and Rs 75,000 crore in 2019-20 BE. If we exclude this, the fiscal deficit would have been less than 3.3% for 2018-19 and less than 3.1% for year 2019-20,” he said.
Railways
The Railways received an allocation of Rs 64,587 crore, while its overall capital expenditure programme is of Rs 1,58,658 cr.
“Indian Railways has experienced the safest year in its history. All Unmanned Level Crossings on broad gauge network have been eliminated,” the Minister claimed.
