The Interim Budget presented by Mr. Piyush Goyal is the last Budget of the NDA government led by Prime Minister Narendra Modi before the Lok Sabha elections due by May 2019. This Budget declared for FY 2019-20 has brought a great deal of satisfaction and plan to various areas of the nation, particularly the white collar class.

Can this budget be the final nail in the coffin to the opposition’s hopes of winning the 2019 election? Let’s find out.

Tax Proposals – Immense relief for Middle Class!

I believe that the tax payers have got a big relief as all tax payers having income upto 5 lakhs can avail the benefit of Rebate. At surface the amount may seem like 5 lakhs, but going further into the details, this is what one needs to understand: 

• Individuals with gross income up to Rs 6.5 lakh will not need to pay any tax if they make investments in provident funds and prescribed equities.
• TDS threshold on rental income raised from Rs 1.8 lakh to Rs 2.4 lakh.
• TDS slab on interest on bank, post office deposits raised to Rs 40,000.
• Exemption on levy of income tax on notional rent on a second self-occupied house is also now proposed. Currently, income tax on notional rent is payable if one has more than one self-occupied house.
• Gratuity limit increased from 10 lakh to 30 lakh rupees

Unorganised Workers – An Integral Population of India

India has approximately 420 million unorganized workers including daily-wage labourers, rag-pickers, rickshaw drivers, and maids who will also benefit from the Pension scheme, Pradhan Mantri Shram Yogi Mandhan. It will provide assured monthly pension of Rs 3000 per month, with the contribution of Rs 100 per month, for workers in unorganized sector after 60 years of age.

Farmers – Our Annadata

Under the scheme Pradhan Mantri Kisan Samman Nidhi (PMKISAN) farmers will get an assured income support from the Modi Govt. Piyush Goyal set up the phase by reporting the PMKISAN will provide a guaranteed salary of Rs 6,000 every year to all agriculturists. Additionally, Kamdhenu Yojna will give advances to dairy animals and hereditary upgradation of cow assets. The move will benefit 12 crore agriculturists.

For the welfare of farmers and for doubling their income, historic decision was taken to increase MSP by 1.5 times the production cost for all 22 crops. 2% interest subvention to the farmers pursuing the activities of animal husbandry and fisheries, who avail loan through Kisan Credit Card. In case of timely repayment of loan, farmers will also get an additional 3% interest subvention.

Defence – Making India Stronger than ever!

The ones who safeguard us have secured a strong place in the Budget. The government has already disbursed Rs 35,000 crore for our soldiers under OROP. For securing our borders and maintaining preparedness, defence Budget has crossed Rs 3 lakh crore mark in FY20.

Rural Push – Because the heart of India lives in its villages

Two-thirds of India’s 1.3 billion people live in rural areas with plenty of measures to boost the rural economy. This population will benefit from budget as:

• 1 lakh Digital villages
• Higher allocation for MNREGA for rural job creation
• 190 billion rupees for the construction of rural roads under Pradhan Mantri Gram Sadak Yojana (PMGSY)

Homebuyers – Owning your own house would be a dream come true

GST on homebuyers needed to come down. Government has set up a Group of Ministers to bring down this burden. A notional rent is applicable to the second house if someone has more than one house, has been waived off, considering the needs of citizens who migrate to for job opportunities, as well as those who have to maintain two houses for family reasons.

Strengthened Govt Schemes

The schemes initiated by PM Modi have been a great success and I believe with this budget allocation there would be more growth in the rural and other areas. 

• As I mentioned earlier, Pradhan Mantri Gram Sadak Yojana (PMGSY) is being allocated Rs.19,000 crore in 2019-20 as against Rs.15,500 crore in 2018-19.
• By March, 2019, all households will be provided with electricity connection. Till now, 143 crore LED bulbs have been provided in a mission mode which has resulted in saving of Rs. 50,000 crore for the poor and middle class.
• The world’s largest healthcare programme, Ayushman Bharat, will provide medical treatment to nearly 50 crore people in the country, around 10 lakh patients have already benefited through free treatment for medical treatment which would have otherwise cost them Rs. 3,000 crore.

Railways – The backbone of India’s Connectivity

Capital support from the budget for Indian Railways is proposed at Rs.64,587 crore in 2019-20. The Railways’ overall capital expenditure programme is of Rs. 1,58,658 crore. The Finance Minister, who is also holding the portfolio of Railway Ministry, announced that the Operating Ratio is expected to improve from 98.4% in 2017-18 to 96.2% in 2018-19 (RE) and further to 95% in 2019-20 (BE).

Overall, I believe this is an expansionary budget which is aimed at expanding the expendable wages of people and family units. It additionally gives an outline to a flourishing economy with arrangements for maintainable and equitable development. With this, the nation will grow in the direction by giving more power to the middle class.

What do you think about this budget? Would love to know your views in the comment section below.