An Interim Union Budget for 2019-20 was presented by Mr Piyush Goyal in Parliament.
Pradhan Mantri Kisan Samman Nidhi: Direct income support of Rs 6,000 per year for small and marginal farmers (having less than 2 hectares of land).
This scheme will benefit 12 crore small and marginal farmers and will cost Rs 75,000 crore.
It will be transferred directly into the bank accounts of the beneficiary in three equal instalments of Rs 2,000 each.
The scheme will come into effect with the retrospective date of December 1, 2018.
Pradhan Mantri Shram Yogi Maan Dhan: This is the world’s largest pension scheme benefitting 10 crore labourers and workers like plumbers, electricians, household helps, drivers etc (salary less than Rs 15,000) in the unorganised sector.
A pension of Rs 3,000 per month will be provided after they attain the age of 60 years.
A worker joining this scheme at the age of 29 years will have to contribute Rs 100 per month while a worker joining at the age of 18; will have to contribute Rs 55 per month.
500 crore rupees has been allocated for the scheme.
Tax slab: There will be no change in the existing rates or slabs of Income Tax for the financial year 2019-20.
Individuals having an income of up to 5 lakh rupees will not have to pay any tax.
Persons with a gross income of up to 6.5 lakh rupees may not be required to pay any income tax if they make investments in Provident Funds and specified savings and insurance.
Additional deductions like interest on the home loans of up to 2 lakh rupees and interest on education loans, national pension scheme contribution, medical insurance, medical expenditure of senior citizens will attract tax relief.
The standard deduction for the salaried people has been raised to Rs 50,000 from Rs 40,000.
TDS threshold on rental income is raised from 1.8 lakh to 2.4 lakh and on interest earned on bank/post office deposits is being raised from Rs 10,000 to Rs 40,000.
Exemption on income tax on notional rent on a second self-occupied house.
The benefit of rollover capital gains will be increased from investment in one residential house to two residential houses for a tax payer having capital gains up to 2 crores. This benefit can be availed once in a lifetime.
Defence: An outlay of highest-ever 3.5 lakh crore rupees have been set aside for the Defence Budget 2019-20.
This is around 20,000 crore rupees more compare to the allocation for the current year.
The budget also proposes a substantial hike in the allocations to health care, MGNREGA, Welfare programmes of SCs and STs, Pradhan Mantri Gram Sadak Yojana, Women’s Development, Empowerment of Youth and development of infrastructure in the North-East.
Middle path on populism: The BJP’s election managers were asking for a massive waiver of Rs 1.5 lakh crore but only Rs 75,000 crore package was granted.
The government also announced a 10% reservation in government jobs and education for economically weaker sections.
The interim budget has a provision for increasing seats in educational institutions by 25% and an increase in outlay for SC/ST schemes and programmes by 28-35%.
Piyush Goyal speaks
The government will not cut any subsidies to fund welfare schemes.
He hinted that taxpayers could get more in the final budget for FY20 that will be presented in July after the general election.
“Where is the fiscal problem — I don’t understand,” Piyush Goyal said. “This year we have provided Rs 20,000 crore extra for farmers, so only that 0.1% of slippage. And that also I have explained earlier is (actually) 3.36%.” That’s against the targeted 3.3% for FY19.
India’s GDP growth seen at 6.7-7.2% in 3rd quarter
The Indian economy had grown 7.1% in the second quarter and 8.2% in the first quarter but in the third quarter of FY19, it is likely to have grown at a slower pace of 6.7-7.2%.
The Reserve Bank of India expects FY19 growth at 7.4%.
The first advance estimates of gross domestic product (GDP) showed the economy is likely to expand 7.2% in FY19.