Interim Budget 2019-20: An overview

Approving 12 Crore Small farmers with income support, a state-of-the-art Pension initiative for 10 Crore unorganized sector workers, exempting income up to Rs. 5 lakhs from the Income Tax, highest ever budget allocation of Rs 3 lakh crore for Defence, record allocation of funds at Rs. 59 crores for North Eastern Areas, a new AIIMS for Haryana, single window clearance for Indian film makers at par with foreigners and higher budgetary allocations of Education, Health, Infrastructure for the benefits of weaker sections including SC/ST, a Separate Department of Fisheries for welfare of 1.5 crore fisherman are a few of the key highlights of the Budget 2019-20.

The budget was presented at the Parliament on 1st Feb, 2019 by the Union Minister of Finance Mr. Piyush Goyal. In addition to a major initiative for the farmers, it provides tax concessions and sets the Developmental Agenda for the years to come.

Key Highlights
New Scheme- namely “Pradhan Mantri Kisan Samman Nidhi (PM-KISAN)” to extend income support to farmer families @Rs. 6,000 per year, who have land of at least 2 hectares was announced.

While declaring the Interim Budget 2019-20, the Union Minister said “our government is launching a historic programme PM-KISAN with an expense of Rs. 75,000 crores for the FY 2019-20 and Rs. 20,000 crores as the revised estimates of FY 2018-19”. Under this scheme, Rs. 2,000 will be transferred to the bank accounts of around 12 crore Small & Marginal farmer families each, in instalments. The program shall be implemented from 1st December 2019.

In order to develop the fisheries division, the government has decided to create a separate Department of Fisheries. “The government wants to promote further growth of over 7% to promote livelihood of about 1.45 crore people dependent on the fisheries sector”, said the Union Minister. He announced that 2% interest subsidy to the farmers pursuing the activities of animal husbandry and fisheries, who avail loan through Kisan Credit Card. He further announced that if the farmers timely repay their loan, they shall get an additional 3% interest in the subsidy.
In order to provide pension benefits to at least 10 crore labourers and workers in the unorganised sector a new Scheme called 'Pradhan Mantri Shram-Yogi Maandhan' was announced. In the coming five-years it could become one of the largest pension schemes of the world. An amount of Rs. 500 crores have been allocated for the Scheme. The scheme shall also be implemented from this year, he said.

Benefits on Tax
People with an income of up to Rs. 5 lakhs per annum shall not be needed to pay any income tax. Individuals who have a gross income of Rs. 6.50 lakhs would also not be required to pay any income tax with the exception that they make investments in specified savings plan, insurance etc.” said the Union Minister.

For salaried persons, the typical deduction has been raised from the current Rs. 40,000 to Rs. 50,000. This will provide additional tax benefit of Rs. 4,700 crores to more than 3 crore salary earners and pensioners. A group of ministers were also appointed to examine and make recommendations to reduce the burden of GST on home buyers.

Growth and Foreign Direct Investment
The country witnessed its best phase of macro-economic stability during the last five years. in his Opening Remarks of his Budget speech the union Minister said, “We are the fastest growing major economy in the world. The annual GDP growth during last five years was higher than the growth achieved by any Government since 1991, when the economic reforms began. We are the 6th largest in the world today”, the Finance Minister proudly announced. India has been able to attain 239 billion Dollars of Foreign Direct Investment (FDI) during the last 5 years due to the steady growth in the economy.

Enhanced allocations for major Schemes
The initiative, Pradhan Mantri Gram Sadak Yojana (PMGSY) has been given Rs. 19,000 crores in FY 2019-20 as against Rs. 15,500 crores in FY2018-19. As of now a total 1.53 crore houses have been built under the Pradhan Mantri Awas Yojana and by March 2019, all the households shall be provided with electricity connection. As per the recent data 143 crore LED bulbs have been provided which in turn has helped the lower and middle-class in saving Rs. 50,000 crores.

Ayushman Bharat, World’s largest wellness (healthcare) programme, providing medical treatment to nearly 50 crore people in the country, out of which around 10 lakh patients have already benefited through free treatment for medical treatment which otherwise would have cost them Rs. 3,000 crores. Many lower and middle-class people are also benefiting from the reduction in the prices of vital medicines and the availability of medicines at reasonable prices through the Pradhan Mantri Jan Aushadhi Kendras, the Union Minister added.

14 out of 21 AIIMS are operational or in the process of beginning operations in the country. He also said that the 22nd AIIMS in Haryana is also to be set up soon. Provision for the Integrated Child Development Scheme (ICDS) has been increased from Rs. 23,357 crores as of FY 2018-19 to Rs. 27,584 crores for the FY 2019-20.

Under the Ujjwala Yojana aiming to delivery 8 crore free LPG connections, at least 6 crore connections have already been given and the rest shall get connections by next year.

A National Artificial Intelligence Portal shall be developed soon as a part of the National Programme on 'Artificial Intelligence'. The Department of Industrial Policy and Promotion will now be renamed as the Department for Promotion of Industries and Internal Trade. For the first time in the country the Defence Budget has been set for over Rs. 3 lakh crores announced the Union Minister.

In its totality the expenditure ha been increased from Rs. 24,57,235 crores in 2018-19 to Rs. 27,84,200 crores in 2019-20.  An increase of Rs. 3,26,965 crores or approx. 13% can be noted here.  The Government shall now focus on Debt consolidation, after the completion of the fiscal deficit consolidation programme.