Piyush Goyal presents poll-bound budget addressing distressed farmers and middle-class

Amid the opposition Congress' announcements of farm loan waivers in states they won polls and income support promises, the Narendra Modi-led National Democratic Alliance (NDA) government took the rivals' bullish campaign by horn.

Piyush Goyal proposed yearly income of Rs. 6000 per annum assured under PM Kisan scheme targeting 12 crore small and marginal farmers and a rise in the income tax exemption limit to Rs. 5 lakh as he presented the National Democratic Alliance Government's sixth and final budget on Friday.

He said an outlay of Rs. 75,000 crore for FY 2019-20 with additional Rs. 20,000 crore in RE 2018-19 has been approved in the Budget.

He also announced the outlay for Rashtriya Gokul mission increased to Rs 750 crore.

According to the budget proposal, which obviously aims at the 2019 Lok Sabha polls, standard deduction is to be raised from Rs. 40,000 to Rs. 50,000 while salary earners of up to Rs. 6,50,000 income are not to  pay tax if they make tax related investments.

He said under this more than Rs. 23,000 crore tax relief will go to 3 crore middle class taxpayers.

He announced that all income tax returns will now be processed in 24 hours and refunds issued simultaneously.

Standing in as finance minister as Arun Jaitley is on medical leave, this is Goyal’s first budget speech, though it is the second time that he is holding interim charge of the finance ministry.

The minister also announced setting up a separate fisheries department and subsidy and said the Narendra Modi government had increased minimum support price of farming products by 50 per cent, thereby increasing the income of farmers.

With an eye on the Lok Sabha polls and winning votes to return to power at the Centre, Congress President Rahul Gandhi last Monday promised that his party would ensure minimum income guarantee for every poor in the country if the Congress-led government was formed after the general elections this year.

Presenting the Union Budget 2019, Interim Finance Minister Piyush Goyal said that defence budget has been increased to more than Rs 3 lakh crore- the highest ever- for the financial year 2019-20.

Goyal also said that Rs 35,000 crore has already been disbursed under 'One Rank, One Pension' for the armed forces.

During his Budget speech, Goyal also said that substantial pay hike has been announced for the military personnel.

More allocations will be made to the defence forces if needed, Goyal added.

The Government has unveiled its vision for the next decade, listing thereby ten most important dimensions in 2030.

“With this comprehensive ten-dimensional Vision, we will create an India where poverty, malnutrition, littering and illiteracy would be a matter of the past. India would be a modern, technology driven, high growth, equitable and transparent society.” said  Goyal while presenting the Interim Budget 2019-20 in Parliament today.

The Minister further said, “India is poised to become a five trillion dollar economy in the next five years and aspires to become 10 trillion dollar economy thereafter.”

Highlights Of Interim Budget 2019-20

New Announcements

Farmers

12 crore small and marginal farmers to be provided with assured yearly income of Rs. 6000 per annum under PM-KISAN

Outlay of Rs. 75,000 crore for FY 2019-20 with additional Rs. 20,000 crore in RE 2018-19

Outlay for Rashtriya Gokul mission increased to Rs 750 crore

Rashtriya Kamdhenu Ayog  to be setup for sustainable genetic up-gradation of the Cow resources

New separate Department of Fisheries for welfare of 1.5 crore fishermen

2% interest subvention to Farmers for Animal husbandry and Fisheries activities; additional 3% in case of timely repayment.

Interest subvention of 2% during disaster will now be provided for the entire period of reschedulement of loan

Labour

Pradhan Mantri Shram Yogi Maandhan scheme to ensure fixed monthly pension to 10 crore unorganized sector workers

Rs 3000 per month after 60 years of age with an affordable contribution of only Rs 100/55 per month

Health

22nd AIIMS to be setup in Haryana

MGNREGA

Rs. 60, 000 crore allocation for MGNREGA in BE 2019-20

Direct Tax proposals

· Income upto Rs. 5 lakh exempted from Income Tax

· More than Rs. 23,000 crore tax relief to 3 crore middle class taxpayers

· Standard Deduction to be raised to Rs. 50,000 from Rs. 40,000

· TDS threshold to be raised from Rs. 10,000 to Rs. 40,000 on interest earned on bank/post office deposits

· Existing rates of income tax to continue

· Tax exempted on notional rent on a second self-occupied house

· Housing and real estate sector to get boost-

TDS threshold for deduction of tax on rent to be increased from Rs. 1,80,000 to Rs. 2,40,000
Benefit of rollover of capital gains increased from investment in one residential house to two residential houses for capital gains up to Rs. 2 crore.
Tax benefits for affordable housing extended till 31st March, 2020 under Section 80-IBA of Income Tax Act
Tax exemption period on notional rent, on unsold inventories, extended from one year to two years

Fiscal Programme

Fiscal deficit pegged at 3.4% of GDP for 2019-20

Target of 3% of fiscal deficit to be achieved by 2020-21.

Fiscal deficit brought down to 3.4% in 2018-19 RE from almost 6% seven years ago

· Total expenditure increased by over 13% to Rs.27,84,200 crore in 2019-20 BE

· Capital Expenditure for 2019-20 BE estimated at Rs. 3,36,292 crore

· Centrally Sponsored Schemes (CSS) allocation increased to Rs. 3,27,679 crore in BE 2019-20

· National Education Mission allocation increased by about 20% to Rs. 38,572 crore in BE 2019-20

· Allocation for Integrated Child Development Scheme (ICDS) increased by over 18% to Rs. 27,584 crore in BE 2019-20

· Substantial increase in allocation for the Scheduled Castes and Scheduled Tribes -

Allocation for SCs increased by 35.6% - from Rs. 56,619 crore in BE 2018-19 to Rs. 76,801 crore in BE for 2019-20
Allocation for the STs increased by 28% - from 39,135 crore in BE 2018-19 to Rs. 50,086 crore in 2019-20 BE

· Government confident of achieving the disinvestment target of 80,000 crore

Focus now on debt consolidation along with fiscal deficit consolidation programme

Poor and Backward Classes

“First right on the resources of country is that of the poor”: FM
25% additional seats in educational institutions to meet the 10% reservation for the poor
Targeted expenditure to bridge urban-rural divide & to improve quality of life in villages
All willing households to be provided electricity connections by March 2019

North East

Allocation to be increased by 21% to Rs. 58,166 crore in 2019-20 BE over 2018-19 BE
Arunachal Pradesh came on the air map recently
Meghalaya, Tripura and Mizoram came on India’s rail map for the first time
Container cargo movement through improved navigation capacity of the Brahmaputra

Vulnerable sections

A new committee under NITI Ayog to identify all the remaining De-notified nomadic and semi-Nomadic tribes.
New Welfare development Board under Ministry of social justice and empowerment for development and welfare of De-notified nomadic and semi nomadic tribes

Defence

Defence budget to cross Rs 3,00,000 crore for the first time ever

Entertainment Industry

Indian filmmakers  to get access to Single window clearance as well for ease of shooting films Regulatory provisions to rely more on self-declaration To introduce anti-camcording provisions in the Cinematograph Act to control piracy

MSME and Traders

2% interest subvention on an incremental loan of  Rs 1 crore for GST registered SMEs
Atleast 3% of the 25% sourcing for the Government undertakings will be from women owned SMEs

Renewed Focus on Internal trade ; DIPP renamed to Department for Promotion of Industries and Internal trade

Digital Villages

The Government to make 1 lakh villages into Digital Villages over next five years

Poor and Backward Classes

10% reservation for the poor  in educational institutions and government jobs Free electricity connection to every household under Saubhagya Yojana World’s largest healthcare programme, Ayushman Bharat, for nearly 50 crore people Aspirational Districts Programme for development in 115 most backward districts Rs. 1,70,000 crore spent during 2018-19 for cheaper food grains to poor and middle class 143 crore LED bulbs provided in mission mode with the cooperation of private sector Poor & middle class are saving Rs. 50, 000 crore p.a. in electricity bills due to LED bulbs 10 lakh patients benefited from free treatment under Ayushman Bharat Jan Aushadhi Kendras providing medicines at affordable prices to poor and middle class 14 out of 21 AIIIMS operating presently have been announced since 2014 Government tripled rural roads’ construction under the PMGSY 15.80 lakh habitations out of 17.84 lakh connected with pucca roads Rs. 19,000 crore for PMGSY in BE 2019-20 against Rs. 15,500 crore in RE 2018-19 1.53 crore houses built under PM Awas Yojana during the 2014-18

Women development to women led development

6 crore free LPG gas connections provided under Ujjwala Yojna ; All 8 crore by next year 70% of MUDRA Loan availed by Women Maternity leave extended to 26 weeks Financial support for pregnant women under Pradhan Mantri Matru Vandana

Youth

Over one crore youth trained under Pradhan Mantri Kaushal Vikash Yojana Self-employment boost through MUDRA, STAND-UP and START-UP India

MSME and Traders

Up-to Rs 1 crore loans can be availed in less than an hour 25%-28% is the average savings due to GeM (Government e-Market place)