Highlights: Re-election economics wins the day as please-all budget showers sops on voters

Finance Minister Piyush Goyal in the last Budget by the Modi government has announced tax exemption limit up to  Rs 5 lakh. This was but one of the many sops in a please-all budget.

Published: 01st February 2019 09:32 AM  |   Last Updated: 01st February 2019 11:15 PM   |  A+A-

Budget, Piyush Goyal

Finance Minister Piyush Goyal presenting the Union budget 2019-20. (Photo | Rajya Sabha)

By Online Desk

Friday went according to script as Finance Minister Piyush Goyal rolled out a please-all 'interim' budget for the year 2019-20 .

It included big tax sops, including an announcement that there will be no taxes for those earning upto Rs 5 lakh a year (up from Rs 250000), direct income support - Rs 6000 per year - for farmers who have under 2 hectares of land, monthly pension - Rs 3000 - for workers in the informal sector,  a hike in gratuity limit to Rs 30 lakh from Rs 10 lakh and many more sops. 

Also Watch | Q&A with Prabhu Chawla 18: Budget 2019- Another exercise in futility

Minister without portfolio Arun Jaitley had indicated that the interim budget may go "beyond the traditional " vote-on-account as tackling agricultural challenges "can't afford to wait". This 'interim' budget did stretch even his expectations and was in many ways, like Congress leader Mallikarjun Kharge said, an "election manifesto", and beyond laying out a vision plan that attempted to stretch to 2030.

Quick expert take on the budget from our columnist Shankkar Aiyar:

Presentation
Budget 2019 is well written and well presented. Cogent about economic cause and political consequence

Content
It ticks all the boxes - farmers, middle class, organised and unorganised workers, pensioners and women

Sops
The sops promise stimulus to demand and therefore are positive for the economy

Questions
1: Leaves out landless and tenant farmers
2: The math of fiscal management is fuzzy given the shortfall in disinvestment and GST

Overall Verdict
Re-Election Economics

Budget math: As done by Shankkar Aiyar it showed that the government will have to borrow Rs 80.36 crore per hour to fund its plans.

More highlights below:

 

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