Know the key highlights of the Interim Budget for 2019-20


The Finance Minister has presented the interim budget for the next financial year on 1st February 2019. Do you know the key features of the budget? Read this article for a better understanding of the new budget.

On 1st February 2019, the Union Minister for Finance, Corporate Affairs, Railways & Coal, Shri Piyush Goyal submitted the interim budget proposal before the MPs of Lok Sabha. As this is an interim budget in an election year, no major policy decision has been announced. However, it is necessary to know the new announcements made in this interim budget.

New Announcements

I have tried to indicate the new announcements made in the Budget for different sections of the society in the subsequent part of this article. The significant ones are:-

For the farmers

The small and marginal farmers will be paid an annual income of Rs. 6000/- under the Prime Minister's Kisan Yojna. The financial outlay for the Rashtriya Gokul Mission has been increased to Rs. 750 crores. The Government will set up Rashtriya Kamdhenu Ayog for genetic upgradation of cows. There will be a separate Department of Fisheries which will look after the welfare of fishermen, The Government has also announced 2% interest subversion for animal husbandry and fisheries related activities. Further, there would be an additional 3% interest subvention for timely repayment. The Government has also allowed rescheduling of loans taken by the farmers at the time of disasters.



For the labours

In a very significant proposal, the Government has proposed to ensure fixed monthly pension to ten crore people engaged in the unorganized sectors (Pradhan Mantri Shram Yogi Maandhan scheme). The workers will get Rs. 3000/- per month after reaching 60 years of age with a contribution of Rs. 100/- per month.

Direct Tax proposals

The Government has proposed significant changes in the direct tax proposals. Some of these are an exemption of income of Rs. 5 lakh from the income tax, raising the standard deduction to Rs. 50,000/-, raising the TDS threshold to Rs. 40,000/-, tax exemption on notional rent on the second self-occupied home, TDS threshold has been raised for deduction of tax on rent from Rs. 1,50,000/ to Rs. 2,40,000/-, benefits of rollover of capital gains to Rs. 2 crores, an extension of tax benefits for affordable housing up to 31st March 2020 Section 80-IBA of IT Act and extension of tax exemption period on notional rent on unsold inventories to two years. These proposals will definitely help the middle-class salaried people.

Proposals for Defense, Railways, MGNREGA and Health

The Government has proposed a defense outlay of more than Rs. 3 lakh crores with adequate provision for One-Rank-One-Pension (OROP). The capital support for Railways is proposed to be Rs. 64,587 crores and the overall capital expenditure programme would be Rs. 1,58,658 crores. The operating ratio has been consistently improving over the years. The Government has proposed an allocation of Rs. 60,000 crores for MGNREGA. The Government has also declared that the 22nd AIIMS will be set up in Haryana.

Proposals for North-East, vulnerable sections, MSME, traders and entertainment industry

For the North-East, the allocation has been proposed to be increased by 21%. The Government has stated that Arunachal Pradesh has been included in India's air map and Meghalaya, Tripura and Mizoram have been included in India's rail map. The Government has proposed to set up a new committee under NITI Ayog to identify all remaining de-notified nomadic and semi-nomadic tribes. There has been a substantial increase in allocation for the Scheduled Caste and Scheduled Tribes. The Government has also announced 2% interest subvention on an incremental loan of Rs. 1 crore for GST registered SMEs and the Government has announced that at least 3% of the 25% sourcing for the PSUs will be from women-owned SMEs. For the entertainment industry, the Government has announced that the Indian film-makers will get access to single window clearance for shooting. Further, the Government has proposed to introduce anti-camcording provisions in the Cinematograph Act to check piracy.



Final few words

In addition to the above, the Government has mooted many other proposals for various sections like women in the interim budget. The Government has declared that the fiscal deficit will be an estimated 3.4% in 2018-19. It has also stated that the GST is continuously reduced and the tax collection has improved by a very significant percentage. The inflation has been contained from 10% during the UPA regime to 2.1% during the present regime. The domestic air traffic has been doubled and the growth of GDP during the last five years is very significant. 90% of the country has been brought under sanitation coverage. Overall, the interim budget has brought much good news to all sections of the Indian citizens.


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Comments

Author: Neeru Bhatt03 Feb 2019 Member Level: Gold   Points : 3

A good compilation of information by the author which can be used to see the budget proposals at a glance.

Though there are many people-friendly initiatives taken in this particular budget, I think the partially self-contributory pension scheme for the laborers is a great gesture from the Govt. It will immensely help these people who have no source of income once they turn old and are unable to work. Even if a laborer contributes Rs 100 p.m. for 40 years, his contribution stands at Rs 48000 only but he is getting a pension of Rs 3000 p.m. The good part is that once the scheme is in force, the pension may get revised time to time in future.

Author: Umesh04 Feb 2019 Member Level: Diamond   Points : 3

An exhaustive and timely article by the author submitted quickly after the budget announcements. It will help people, especially ISC members, to understand the budget much more clearly as the coverage in the media was in a brief form.

Though there are many highlights in this budget, the one particular aspect which I have seen is that by increasing the minimum taxable income to Rs 5 lakhs for those who have taxable income only up to Rs 5 lakh, the Govt has given relief to a very large section of the society. This not only covers the lower middle class but also those senior citizens whose taxable income is less than or equal to Rs 5 lakhs.

Author: Sankalan Bhattacharya07 Feb 2019 Member Level: Gold   Points : 4

The author has presented the key features of this interim budget in a nice way. When every other TV channel is busy analysing the budget, one should have a fair idea of all its features and this article is a right step in that direction.

The middle class is happy because of the exemption of income tax up to Rs 5 Lakh. The pension scheme announced for the labourers in the unorganised sector is noteworthy and will work as a guarantee when the labourers retire from their work. A lot more need to be done for farmers and paying a small amount of Rs 6000/- per year to the small and marginal farmers won't be able to solve many of their problems. Let's hope this will be addressed and some more initiatives will be announced in the full budget after the elections.



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