INTERIM BUDGET 2019

Submitted by: Vinit Gavhade

Roll no. : IC2K14-88
 India Interim Budget 2019 was presented by The
Hon’ble Finance Minister on 1 February 2019.
Being the interim budget, and with
parliamentary elections due in April-May'19, no
legislative measures for change in tax structure
is proposed at present. While, on the
administrative side, a number of initiatives have
been taken to improve compliance, augment
revenue collections and streamline tax payer
services. The object of this interim budget is to
continue the existing rates of income-tax for the
financial year 2019-2020 and to provide certain
reassurance to taxpayers and to make alterations
in certain enactments, which are discussed in
following slides. The said proposals will be
efficacious after the Finance Bill, 2019 receives
the assent of the Hon’ble President of India.
HERE ARE SOME OF THE BIGGEST HIGHLIGHTS
–
 Small Farmers to get Rs. 6,000 every year
 Rs. 6,000 will be transferred directly to the bank
accounts of farmers with land holdings of less than 2
hectares. Goyal said that this initiative would benefit
12 crore small and marginal farmers, and will help
them “earn a respectable living”. The initiative will
cost an estimated Rs. 75,000 crores.
 Rs. 3,000 per month assured pension for
unorganized sector workers
 The Government will provide assured monthly
pension for workers in the unorganized sector for
senior citizens. As per the scheme, senior citizens will
receive Rs. 3,000 per month with Rs. 100
contribution, and will benefit 10 crore workers. Goyal
uttered that it “may become the world’s biggest
pension scheme in coming five years”.
 Gratuity Limit increased from Rs. 10 lakh to Rs.
30 lakh
 The tax-free gratuity limit has been hiked to Rs. 30
lakh this year, after being already doubled to Rs. 20
lakh in the private sector last March. Employees who
have finished at least five years in an organisation
which has a workforce of 10 employees or more are
liable for the welfare under the Payment of Gratuity
Act, 1972.
 No tax on income upto Rs. 5 lakh p.a.
 Middle-income taxpayers have a reason to rejoice, as
the government has now implemented a full tax
rebate for workers with an annual income of upto Rs.
5 lakh. Persons with gross income up to 6.5 lakh Rs.
will not require to pay any tax or revenues if they
make investments in provident funds and prescribed
equities. Earlier in 2014, the tax redemption limit
was enhanced from Rs. 2 lakh to Rs. 2.5 lakh.

 Defence Budget Increased to Rs. 3 lakh
crore
 For the first time, the centre has increased the
defence budget to Rs. 3 lakh crore, the highest so
far. The government has already disbursed Rs.
35,000 crore under the scheme One Rank, One
Pension (OROP) . Goyal also announced that
additional funds will be provided to the defence,
if required for border security.

 Agriculture/Farm sector
 Total allocation for the Agriculture sector has
seen an increase of 73% over 2018-19 (Revised
estimate).
 The Government announced the Pradhan Mantri
Kisan Samman Nidhi (PMKISAN) scheme, which
will provide a guaranteed income of INR 6,000
per year to small and marginal farmers. This will
comprise an annual outlay of INR 75,000 crore,
which is around 0.36% of the GDP (2019-20
Budget estimate).
 Interest endowment of 2% was announced for
farmers affected by natural calamities. An
additional 3% relaxation will be given for timely
repayment of loans.The launched Scheme has
also been drawn-out to farmers engaged in
animal husbandry and fishery-related activities,
and availing loans through Kisan Credit Cards
 Implications:
 The declaration about financial support will
provide some relief to farmers and will address to
some extent issues faced in the farm sector.
Interest subsidy schemes will improve the credit
uptake and address farmers’ loan related stress.
In total, the announcement for the farm sector is
expected to boost rural consumption and demand.
 VISION FOR NEXT DECADE
 India is poised to become a US$ 5 trillion economy in
the next 5 years and aspires to become a US$ 10
trillion economy in the next 8 years thereafter. The
Government has laid down 10 dimensions to make
India a modern, technology driven, high growth,
equitable and transparent society .
 1. Build physical as well as social infrastructure and
to provide ease of living.
 2. Create a digital India reaching every sector of the
economy, every corner of the country and impacting
the life of all Indians.
 3. India a pollution free nation with green Mother
Earth and blue skies.
 4. Mounting rural industrialization using modern
digital technologies to generate massive employment.
 5. sustaining and nourishing life and efficient use of water
in irrigation using micro-irrigation techniques,Nation with
Clean rivers, with safe drinking water to all Indians.
 6. Develop and grow India’s coastline and ocean waters
powering India’s development and growth.
 7. Aiming at the outer skies, develop space programmes.
 8. Make India self-sufficient in food, exporting to the world
to meet their food needs and producing food in the most
organic way.
 9. Aim at healthy society with an environment of health
assurance and the support of necessary health
infrastructure.
 10. Transform India into a Minimum Government
Maximum Governance nation with support of Team India.
Other Aspects – Page 3 of 3 India is poised to become a
US$ 5 trillion economy in the next 5 years and aspires to
become a US$ 10 trillion economy in the next 8 years
thereafter.
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