It's an election budget : Manmohan Singh

The government presented a budget with big sops to  the middle class, small farmers and the rural population as elections are only months away.

"It's an election budget," Manmohan Singh told NDTV.

On being asked about the big income tax gift for the middle class and farmers, Dr Singh, who was the finance minister in the Narasimha Rao government, said, "In these circumstances of the case, concessions to farmers and concessions to middle class will obviously have implications in the election."

Those with an annual salary of up to Rs. 5 lakh will not have to pay income tax, Piyush Goyal said while reading out the budget in parliament, after making a series of big announcements. "This is not just an Interim Budget, this is a vehicle for developmental transformation of the nation," he said.

The government also announced the widely-anticipated scheme in which small farmers will get Rs. 6,000 in their bank accounts. "The government has made a historic plan called the PM-Kisan programme. Those small farmers who have less than two acres will get a support of Rs. 6,000,"  Goyal said. "It will be transferred directly to the bank accounts of farmers in three instalments of Rs. 2,000," he said. He announced an allocation of Rs. 75,000 crore for the scheme.

A pension scheme for workers in the unorganised sector with a monthly income of up to Rs. 15,000 too was announced. They will have an assured monthly pension of Rs. 3,000 after they retire at 60.

The government also decided to hike the gratuity limit from Rs. 10 lakh to Rs. 20 lakh from the next financial year.

Income tax refunds will be processed within 24 hours and released immediately, the minister said.