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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:

 

12:34 Feb 1

BREAKING: Big tax announcements

  • Individual taxpayers with annual income upto 5 lakh rupees to get full tax rebate. Up from Rs 2 lakh 50 thousand earlier. Benefit to these taxpayers- Rs 12,500. Fine print - These benefits will not be extended to those earning above Rs 500000.
  • Individuals with gross income up to 6.5 lakh rupees will not need to pay any tax if they make investments in provident funds and prescribed equities Standard tax deduction for salaried persons raised from 40,000 rupees to 50,000 rupees
  • TDS threshold on interest on bank and post office deposits raised from 10,000 to 40,000 rupees
  • Benefits under Sec 80 (i) BA (Affordable Housing scheme/House for all) being extended for one more year, for all housing projects approved till end of 2019-2020
  • 11:54 Feb 1

    At last! Goyal gets to talk trains



    * Not a single unmanned railway crossing on the broad gauge in India , says Goyal
    * Vande Bharat Express that will "provide speed, service and safety to citizens" announced, says the Finance Minister. An aside. If those factors need highlighting, what is he saying about existing trains?
    11:28 Feb 1

    Pradhan Mantri Kisan Samman Nidhi approved, says Goyal; to provide direct income support for farmers

    To give assured income support for small and marginal farmers, Goyal says the Pradhan Mantri Kisan Samman Nidhi has been approved. Expected to benefit 12 crore farmers with under two hectares of land against their name. Rs 6000 per year in direct income support for these farmers is what it will assure. Ticks off the first box of expected budget sop - on farm support.


    Expert view from our columnist Shankkar Aiyar: Cost Rs 75000 Crore/Year; Big question: What about landless/tenant farmers?


    Announced a hike in minimum support price by 1.5 times for all 22 crops
    Also, an attempt to reward distressed farmers who repay loans: All farmers severely affected by severe natural calamities will get 2% interest waiver and additional 3% interest waiver upon timely repayment of loans. This is in place of loan waivers
    04:12 Feb 1

    Rs 17 a day is an insult to farmers: Rahul Gandhi

    04:10 Feb 1

    Friends of BJP have prepared this budget: HDK

    I want to ask if this budget was prepared by officials of Finance dept or RSS? In this budget, Narendra Modi has given cotton candy for farmers. When I announced loan waiver scheme, PM mocked it as lollipop. Friends of BJP have prepared this budget: Karnataka CM H D Kumaraswamy 

    04:09 Feb 1

    Prime Minister Narendra Modi: This is an Interim Budget. This is just a trailer of the budget which, after elections, will take India on the path to development.  

    03:48 Feb 1

    Here’s an explainer on how much tax you will have to pay according to your annual income.

    Individual taxpayers having annual income up to Rs 5 lakh will get full tax rebate. [CLICK HERE TO KNOW THE TAX SLAB]

    02:49 Feb 1

    It was a full fledged budget accompanied by an election campaign speech: P Chidambaram

    The Interim Finance Minister Goyal tested our patience by the longest interim budget speech in the recent memory. It was not an interim budget, it was a full fledged budget accompanied by an election campaign speech.
    02:47 Feb 1

    It is not a vote on account but an account for votes: Former Finance Minister P Chidambaram

    02:40 Feb 1

    Opposition has no issues to talk about, they are scared of Modi Ji’s welfare schemes. We don’t do votebank politics, we do development politics: Dharmendra Pradhan

    02:15 Feb 1

    Those sitting in AC rooms cannot understand the plight of the small farmers. Keeping this in mind, we have introduced Pradhan Mantri Kisan Samman Nidhi scheme. This is a historic decision, says Piyush Goyal
     

    02:02 Feb 1

    The budget has met the expectations of farmers, labourers and middle class. By bearing a cost of Rs 75,000 crore,the govt will implement Pradhan Mantri Kisan Samman Nidhi scheme. This scheme will also benefit those farmers who do not take loans: BJP chief Amit Shah 

    01:44 Feb 1

    Home Minister Rajnath Singh on Union Budget 2019: It’s a historic budget, and all the sections of the society will benefit from it. 

    01:44 Feb 1

    Concession to farmers and middle classes will have an impact on the elections: Former PM and ex-finance minister Manmohan Singh

    01:17 Feb 1

    The whole exercise has turned out to be a damp squib. We've seen one good thing that is tax exemption for the middle class. Rs 6000 in income support for farmers boils down to Rs 500 per month. Is that supposed to enable them to live with the honour and dignity: Shashi Tharoor 

    01:09 Feb 1

    "We have covered all grounds, including job creation. Problems is our statistical mythology is not keeping up with the new realities," MoS, Civil Aviation Jayant Sinha  

    01:08 Feb 1

    Sensex at 36,626.90, up by 370.21 points 

     

    01:04 Feb 1

    "Excellent budget that sits well with our ideology and caters to all sections, kisan, jawan, Gau Mata, even the middle class. As a youth myself, I'm happy and grateful to our FM and Modiji," Poonam Mahajan, BJP MP 

    12:58 Feb 1

    All sections of the society including farmers, middle class, poor and women have been mentioned in this budget. This budget will help achieve the dream of a 'New India': Uttar Pradesh CM Yogi Adityanath 

    12:54 Feb 1
    12:54 Feb 1

    Senior Congress leader Mallikarjun Kharge says, "This is not Budget, it is an election manifesto!" 

    12:48 Feb 1

    FM underlines 10 most important dimensions that will guide the Government in Vision 2030

     

    12:43 Feb 1

    This is not just an Interim Budget, this is a vehicle for the developmental transformation of the nation: FM Piyush Goyal  

    12:14 Feb 1

    Rs 3000 per month pension for workers in unorganized sector, Rs 6000 per year in income support for farmers with under two hectares of land major takeaways so far, says our business correspondent Sunitha Natti. 

    12:14 Feb 1

    Committed to eliminating the scourge of black money; anti-black money measures taken have brought an undisclosed income of about 1.30 lakh crore rupees to the fore; 3.38 lakh shell companies were deregistered: FM

    12:09 Feb 1

    GST has been continuously reduced, resulting in relief of 80,000 crore rupees to consumers; most items of daily use for poor and middle class are now in the 0%-5% tax bracket: FM 

    GST collections in January 2019 has crossed 1 lakh crore rupee
    12:05 Feb 1
    • 99.54% returns have been accepted without any scrutiny.
    • Within almost two years, almost all assessment and verification of I-T returns will be done electronically by an anonymized tax system without any intervention by tax officials.
    • Direct tax collections from 6.38 lakh crore rupees in 2013-14 to almost 12 lakh crore rupees; tax base up from 3.79 crore to 6.85 crore.
    • Simplification of direct tax system will benefit taxpayers; direct tax reduced and tax interface made simpler and faceless to make life easier; resulting in increase in tax collections and return filings. 
    12:02 Feb 1

    Impactful steps taken in reducing tax, bringing benefits for middle class citizens: FM  

    12:01 Feb 1

     Out of 8 crore free LPG connections under Ujjwala scheme, 6 crore connections to poor women have already been provided: FM

    11:59 Feb 1

    Allocation for the North Eastern Region proposed to be increased to 58,166 crore in this year, a 21% rise over previous year: FM 

    11:56 Feb 1

    * Defence budget enhanced beyond Rs 3 lakh crore 

    * Govt disbursed over Rs 35,000 crore for One Pension One  rank

     

    11:48 Feb 1

    75 per cent of woman beneficiaries under PM Mudra Yojana, 26 weeks of maternity leave and Pradhan Mantri Matritva Yojana, are all empowering women: FM 

    11:41 Feb 1

    FM announces launch of a pension scheme Pradhan Mantri Shram Yogi Mandhan, to provide assured monthly pension of 3000 rupees per month, with the contribution of 100 rupees per month, for workers in unorganized sector after 60 years of age.

    11:39 Feb 1

     Gratuity limit increased from 10 lakh to 30 lakh rupees.

    11:37 Feb 1

    Without disturbing the existing reservation system, a 10% reservation for Economically weaker sections in educational institutions and government jobs has been ensured: FM 

     

    11:27 Feb 1

    Ayushman Bharat the world's largest healthcare programme launched to provide medical care to almost 50 crore people, resulting in 3,000 crore savings by poor families: FM 

    11:24 Feb 1

    22nd AIIMS to be set up in Haryana: FM 

    11:22 Feb 1

    It's revisiting the highs time for the government

    And so Piyush Goyal is reeling off "achievements"

    * 1.53 lakh houses connstructed under PM Awas Yojana: FM Shri Piyush Goyal
    * Rs 170000 crore spent for bringing food at affordable rates to poor people
    * Pace of construction of rural roads has been tripled
    * * A 4R - Recognition, Resolution, Recapitalization, Reforms - approach to ensure clean banking

    11:22 Feb 1

    Efforts taken to bring full representation for economically weak backward classes, by giving them reservation in jobs and education: FM 

    11:15 Feb 1

    GST, banking reforms, insolvency code are path-breaking moves

    Massive surge in FDI. The last five years have witnessed a wave of structural reforms. The GST, banking reforms, insolvency code are path-breaking moves, says Piyush Goyal while presenting interim budget.
    11:13 Feb 1
    We have assured a new era of transparency, we have brought the Fugitive offenders to book: Goyal
    11:13 Feb 1

    Bad loans: Close to Rs 3 lakh crore recovered from creditors, claims Piyush Goyal

    Goyal says that a number of measures have been implemented to ensure clean banking including the institution of a "resolution-friendly mechanism" for recovery of bad loans. Claims close to Rs 3 lakh crore has already been recovered.
    11:11 Feb 1
    Inflation in December 2018 was 2.1 per cent. Fiscal deficit has been brought down to 3.4 per cent in the revised estimate of 2018-19: Goyal
    11:10 Feb 1
    Current account deficit expected to be 2.5 per cent of the GDP this year.
    11:09 Feb 1

    Aggressive fiscal deficit target for upcoming year?

    Fiscal deficit likely to be 2.5% in 2019-20, says Piyush Goyal

    11:07 Feb 1
    "India's economy is back on track , we have become the fastest growing economy and we removed policy paralysis that existed," says Goyal.
    11:07 Feb 1

    Markets in the green

     Sensex is up 143 points and NSE is up over 39 points.

    11:04 Feb 1
    We will make a new India by 2022: Goyal
    11:02 Feb 1
    Finance Minister Piyush Goyal begins presentation
    10:40 Feb 1

    Telugu Desam Party MPs protest against Interim Budget

    10:30 Feb 1

    Populist schemes will be introduced keeping an eye on Lok Sabha polls: Mallikarjun Kharge

    Budgets they've presented so far haven’t really benefitted general public. Only ‘Jumlas’ will come out today. They've only 4 months, when will they implement the schemes? 

    10:27 Feb 1

    Union Ministers Swaraj, Rajnath Singh, and Ravi Shankar Prasad arrive at the parliament

    10:26 Feb 1

    Sensex up 100 points on Budget day

    The BSE benchmark Sensex jumps over 100 points ahead of the Union Budget. Top gainers include Hero MotoCorp, HCL Tech, Bharti Airtel, Bajaj Finance and Infosys. Vedanta Corp was the biggest loser on the Index.

    10:21 Feb 1

    Government's sixth budget will empower the farmers: Radha Mohan Singh

    Last five budgets have been dedicated to the farmers, the government's sixth budget will also be for the farmers, it will empower them: Union Minister of Agriculture and Farmers' Welfare Minister Radha Mohan Singh.
    10:13 Feb 1

    Further investment in railways will certainly be increased: Manoj Sinha

    The way the government has increased the investment in railways, from installing CCTV cameras to WiFi, I believe further investment in railways will certainly be increased: Manoj Sinha, minister of state for railways.
    10:02 Feb 1
    09:51 Feb 1

    The printed copies of Budget 2019-20 being security checked by sniffer dog

    09:40 Feb 1

    Income tax exemption threshold to rise?

    Goyal, who stepped in as interim finance minister after Arun Jaitley had to fly to New York for medical treatment, is widely expected to raise income tax exemption thresholds.

    (CLICK HERE TO READ MORE)

    09:36 Feb 1

    Piyush Goyal arrives at the Parliament house

     

     Piyush Goyal will present interim Budget 2019-20 in the Parliament at 11am today.


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