Union Budget 2019: No tax on income up to Rs 5 lakh, PM Narendra Modi hails budget for 'New India'
Piyush Goyal, the interim finance minister, presents the 2019-20 budget to parliament, in the absence of Finance Minister Arun Jaitley, who is currently in the United States for medical treatment.
In a bid to woo farmers, poor and the marginalised, Finance Minister Piyush Goel on Friday announced the higher allocation of funds for their benefit.
Read: Sensex salutes Piyush Goyal's speech
Prime Minister Narendra Modi reacted to the interim budget 2019, PM Modi said, "This is an Interim Budget. This is just a trailer of the budget which, after elections, will take India on the path to development."
Read: What economists think about Budget 2019
While addressing the press conference after his budget speech, Piyush Goyal said, "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."
The Finance Minister made a landmark announcement of providing Rs 6,000 as assured income to poor and marginalised farmers annually, he also said that MNREGA allocation has been set at Rs 60,000 crore to create employment opportunities.
Below we have listed major highlights of the speech of union finance minister Piyush Goyal
Tax gift to middle-class
In attempt to woo voters, FM Piyush Goyal announces No income tax for annual income upto Rs 5 lakh. Piyush Goyal thanks the taxpayers of India. "As per convention, main tax proposals would be presented in the regular budget. For the present, existing tax rates will continue but individuals up to 5 lakh annual income will get full tax rebate"
Read: All you need to know about tax relief in Budget 2019
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.
Around 3 crore middle class taxpayers will get tax exemption due to this measureStandard tax deduction for salaried persons raised from 40,000 rupees to 50,000 rupeesTDS threshold on rental income raised from 1.8 lakh to 2.4 lakh rupees
Watch: Budget 2019 Highlights: How will you be affected? Here is all you need to know
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
For Farmers and Rural sector
Piyush Goyal announced allocation and schemes for cow protection and increasing their productivity.
Under the assured income scheme for farmers, Goyal said nearly 12 crore farmers are expected to benefit. Presenting the Interim Budget during the Budget Session of the Parliament, Finance Minister Goel said that Rs 1,70,000 crore has been spent by the government during 2018-19 to bring food at affordable rates to the poor. He added that Rs 60,000 crore has been set aside with regard to the employment guarantee scheme – MNREGA. “If there is a need we will increase the allocation,” Goel said.
“Targeted expenditure has been made by this government to improve the quality of life of the people in the villages. About 14.80 lakh habitats have been connected with pucca roads and poor children who used to earlier walk through broken lanes have now buses coming to their villages,” Goel said.
The Minister also mentioned that 21 AIIMSs are operating or have been established, 14 of these have been announced since 2014. He added that a new AIIMS will be provided to Haryana. Taking a political dig over the latest Lok Sabha bypoll result where BJP won the Jind seat, Goyal said that “people in the state realise that this government performs.”
Defence budget pegged at Rs 3 lakh crore
The defence Budget for the financial year 2019-20 was on Friday pegged at Rs 3 lakh crore, up by around RS 4,500 crore from the previous fiscal.
Announcing the outlay while presenting the interim Budget in the Lok Sabha, Finance Minister Piyush Goyal said it is the first time that the outlay has touched Rs 3 lakh crore mark.
He said if more funds are required, those will be made available.
The intent is to strengthen the defence of the country, Goyal said.
The defence Budget earmarked in the last fiscal was Rs 2,95,511 crore.
Talking about One Rank, One Pension (OROP), the Finance Minister said Rs 35,000 crore have already been dispersed under this scheme by the present government.
Fiscal deficit
Finance Minister Piyush Goyal on Friday said the fiscal deficit will be at 3.4 per cent of GDP this year.
Presenting the Budget for 2019-20 in the Lok Sabha, Goyal also said that current account deficit is likely to be 2.5 per cent of GDP this year.
He further said India attracted USD 239 billion in FDI (foreign direct investment) in the last five years.
"We have liberalised FDI allowing more investment through automatic route," he said.
For Entertainment industry
A single window clearance for filmmaking to be made available to filmmakers, anti-camcording provision to also to be introduced to Cinematography Act to fight piracy
Allocation for North Eastern Region
Allocation for the north eastern region has been proposed to be increased to Rs 58,166 crore in this year, it will be a 21% rise over the previous year.
Defence Budget
The defence budget has enhanced beyond Rs 3 lakh crore, Goyal infomred.
Pradhan Mantri Matritva Yojana
5% of woman beneficiaries under Pradhan Mantri Mudra Yojana, 26 weeks of maternity leave and the Pradhan Mantri Matritva Yojana, are all empowering women in the country, said FM Piyush Goyal.
Pradhan Mantri Ujjwala Yojana
To ensure cleaner fuel and health assurance, we embarked upon Pradhan Mantri Ujjwala Yojana, a programme to give 8 crore free LPG connections to rural households, 6 crore connections have been given already
One Rank One Pension
"We have already disbursed Rs 35,000 crore for our soldiers under 'One Rank One Pension', substantial hike in military service pay has been announced"
Read: All the big announcements for agricultural sector
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.
To provide assured income support for small and marginal farmers, Pradhan Mantri Kisan Samman Nidhi scheme has been approved, FM had said. Farmer package to cost govt Rs 75,000 crore, he informed the house.
The total Gross GST Revenue collected in the month of January, 2019 has today crossed Rs 1 lakh crore. This has been a significant improvement over collection of Rs 94,725 crore during last month and Rs 89,825 crore during the same month last year, Goyal informed.
The last five years saw India being universally recognized as a bright spot in the world economy; we are the fastest growing large economy in the world economy today, the finance minister has said.
Talking about Non Performing Assets, Piyush Goyal has said that almost 3 lakh crore has already been recovered in favour of banks and creditors, big defaulters have also not been spared by our government.
While presenting the Central Budget FM Piyush Goyal said. "I can confidently say, India is solidly back on track and marching towards growth and prosperity". FM Goyal added that Inflation in December 2018 was 2.1%. Fiscal deficit has been brought down to 3.4% in the revised estimate of 2018-19.
On Swachh Bharat Mission: As a tribute to Mahatma Gandhi, world's largest behavioural change movement Swachh Bharat initiated, more than 98% rural sanitation coverage has been achieved; more than 5.45 lakh villages declared ODF.
On 10% quota to economically poor sections: Efforts have been initiated to bring full representation for economically weak backward classes, by giving them reservation in jobs and education, says Piyush Goyal.
Rs 1,70,000 crore spent for bringing food at affordable rates to poor people, the FM informed the Parliament.
Read: Budget terms you need to know NOW
Piyush Goyal, the interim finance minister, has presented the 2019-20 budget to parliament, in the absence of Finance Minister Arun Jaitley, who is currently in the United States for medical treatment.
Read: Take the Budget quiz to know how much you are aware about the Indian Economy
The Interim Budget, also known as a vote on account, will seek the Parliament’s nod for meeting the expenditure for the first six months of new fiscal—2019-20. A full-fledged Budget will be presented in Parliament once the new Central government is formed after the General Elections, due in March-April.
Read: Where to watch Budget LIVE
As per the standard practice, a vote-on-account or approval for essential government spending for a limited period is taken in an election year and a full-fledged budget is presented by the new government. If the budget date falls few months ahead of polls, then an Interim Budget is presented.
The full-fledged budget is expected to be presented in July, which will be preceded by the tabling of the Economic Survey.
Below are the LIVE updates you need to know.