Finance Minister Piyush Goyal presented sixth and final budget of Modi government today. This interim budget is focused on giving considerable benefits to agriculture, small and medium scale industries, and the health sectors.
Fiscal deficit brought down to 3.4%
While presenting the budget, Piyush Goyal said that Fiscal deficit had been brought down to 3.4% in FY19. He further added, “Massive surge in Foreign Direct Investment. The last five years have witnessed a wave of structural reforms. The GST, banking reforms, insolvency code are path-breaking moves”.
Budget 2019: Key takeaways
• In a major push for infrastructure ₹19,000 crore has been earmarked for Pradhan Mantri Gram Sadak Yojana
– According to the budget, Pradhan Mantri Gram Sadak Yojana road scheme will get ₹19,000 Crore in FY20
– Every household will get electricity by the end of next month
• Rural employment guarantee programme to get ₹5,000 crore to ₹55,000 crores
BJP government’s budget also boosted allocation for the rural employment guarantee programme by ₹5000 crores to ₹55,000 crores in this budget. The scheme is regarded as a lifeline for small farmers and agricultural labourers as this programme is sure to provide them with unskilled employment during rural distress.
Indian railways scores big in budget 2019
• Indian Railways to get ₹64,587 Crore in FY19-20
– Indian Railways will also receive a total of ₹1.58 trillion to expand the railway infrastructure in the country.
Pension scheme for unorganised sector workers
– Piyush Goyal also announced the pension scheme Pradhan Mantri Shram Yogi Mandhan according to which those who are working in the unorganised sector will get a pension of Rs. 3000 rupees per month. This will help bring millions under social security coverage
– According to this scheme, the informal workers who will join the pension scheme at 18 years will pay Rs. 55 per month whereas workers joining at the age of 29 have to pay Rs. 100 every month The pension will be paid once they reached the age of 60.
Defence budget allocation increased
– Piyush Goyal announced that the Defence budget would get a total of three lakh crore in 2019-20. He further added that if necessary additional funds will also be provided.
Huge Boost to agriculture in Budget 2019
• ₹75,000 crore has been earmarked for PM Kisan scheme in Budget 2019
– Goyal also added that the small and marginal farmers owning less than 5 acres of land would receive this income support through their bank accounts.
– He further announced that about 120 million farm households would receive income support of ₹2,000, thrice a year.
Radha Mohan Singh, Union agriculture minister, said, “We have also issued guidelines for Pradhan Mantri Kisan Samman Nidhi scheme. In 2018-19 financial year, for months before March, ₹2000 will be transferred to farmers’ accounts, and in the financial year 2019-20 farmers will get ₹6000.”
Great news for Homeowners
• Tax exemption on notional rent on the second house
– In another bonanza under Section 54 Capital gains tax exemption raised to ₹2 crore.
– Tax exemption notional rent on unsold inventory for up to 2 years
Goverment woos middle class with sops
* Bank and post office deposit holders can heave a sigh of relief as TDS threshold has been released
– TDS is exempted on post office savings up to ₹40,000
– TDS is also excused on rental income up to ₹2,40,000 per year
• Income tax exemption limit raised
– A person earning a salary of ₹5,00,000 annual Income will get a full tax rebate.
– Individuals having an income of ₹6.5 lakh will not be required to pay any tax if they make tax-related investments like PPF.
Huge increase in tax collections
• Tax collections increased to ₹12 lakh crore
– Tax collections increased from ₹6 lakh crore to 12 lakh crore. All returns will now be processed in 24 hours and refunds issued simultaneously. Within the next 2 years, returns chosen for scrutiny will also be done digitally with anonymity.
Boost for SMEs in Budget 2019
– According to this budget, Govt projects will receive 25% material from SMEs, and 3% from only women-owned SMEs .
Govt. targets Eight crore LPG cylinders under PM Ujwala Yojana
– This budget also says that a total of 8 crore cooking gas cylinders will be distributed by 2020 under the scheme of PM Ujwala Yojana.
Opposition paints a bleak picture of the budget 2019
While the BJP leaders and supporters praised the budget with “pro-farmer”, “pro-middle class” budget, whereas Congress criticised it as an election gimmick.
Shashi Tharoor, the Congress leader said the budget is a damp squib. He tweeted, “We’ve seen one good thing that is a tax exemption for the middle class. ₹6000 in income support for farmers boils down to ₹500 per month. Is that supposed to enable them to live with the honour & dignity?”.
P Chidambaram, the former finance minister, also termed the union budget as an “account for votes” and not a “vote on account”.
“It was not a Vote on Account. It was an Account for Votes,” He tweeted soon after the presentation of the Union Budget.