An Annual Financial Statement in the Article 112 of the Constitution of India is the annual budget of India, which Government presents every year on the first day of February in order to materialize it before the commencement of new financial year in April.
Today, being first day of February, Interim Finance Minister Piyush Goyal, who was given the charge of the finance ministry in absence of Jaitley, presented the last budget of the Modi government in Lok Sabha. An Interim Budget or vote-on-account 2019-2020, which certainly seems to appease the middle class families and farmers as the budget 2019, announces much higher tax rebates then ever and scheme for farmers under which they will get Rs. 6,000 per year under PM Kisan scheme. Farmers having up to 2 hectare of land comes under umbrella of PM Kisan scheme.
Furthermore, Mr. Goyal has announced a 2 per cent interest subvention for farmers who suffered natural calamities, while offering 3 per cent in addition for timely loan payment.
It was added that the government will provide Rs. 750 crore to support animal husbandry and fishing as well as the 2 per cent interest subvention is also applicable for farmers involved in animal husbandry and fishery.
Finance Minister Piyush Goyal announced that the tax-free gratuity limit will be increased from Rs. 20 lakh to 30 lakh.
The most notable highlight of 2019 budget is the full tax rebate upto Rs. 5 lakh annual income after all deductions. It was also added that those individuals who are earning gross income of Rs. 6.5 lakh per year and invested money in savings instruments including 80C, will also be exempt from paying income tax.
Another highlight of the interim budget is exemption of tax on second self-occupied house, earlier, after first property of an individual, second property, whether rented or vacant, was taxed.
The government has allowed tax exemption on notional rent on a second self-occupied home.
Custom duty from 36 Capital Goods has also been abolished in Budget 2019.
Providing a relief to salaried persons, an increase of Rs. 10,000 in the standard deduction has also been announced, from Rs. 40,000 to Rs 50,000 per year.
For unorganised sector employees, the government has announced a Mega Pension Yojana under which Rs. 3000 per month will be provided. Most likely, the Mega Pension Yojana, 'Pradhan Mantri Shram Yogi Mandhan (PMSYM)', will benefit around 10 crore workers in the unorganised sector.
Budget 2019, also allowed three public sector lenders, Bank of India, Bank of Maharashtra and Oriental Bank of Commerce, to exit the Reserve Bank of India’s prompt corrective action(PCA) framework completely.
The Banks were allowed to do so as two out of three brought down their net non-performing asset(NPA) ratio to below the RBI’s threshold and also improved their capital adequacy.
The government has also made a higher budgetary allocation for Education as it was announced that the poor will be provided 25 percent seats in addition in educational institutions to meet the 10% reservation for them in educational institutions and government jobs. However, it was also clarified that this additional 25 percent seats in varsities will be provided without disturbing the existing reservation for SC/ST/Other Backward Classes.
The government has also decided to increase the allocation for National Education Mission to Rs. 38,572 crore in Budget 2019, which was Rs. 32,334 crore in 2018-19.
A new 22nd All India Institute of Medical Sciences (AIIMS) will be set up in the state of Haryana.
The Union government’s interim Budget allocated Rs. 750 crore for cattle under the Rashtriya Gokul Mission (RGM), which aims at conserving indigenous Indian breeds of cattle through selective breeding.
Interim Budget 2019-2020 also promises that the government will convert one lakh villages into digital villages over the next five years, a move which will bridge the rural-urban digital divide and will also open a pathway to new jobs and employment creation. "Digital Infrastructure and digital economy of 2030 will be built upon the successes achieved in recent years in digitisation of government processes and private transactions. Our youth will lead us in this endeavour with innumerable start-ups creating digital India, and millions of jobs in this eco-system,"Mr.Goyal said
The government also proposed to allocate Rs. 60,000 crore for rural employment scheme under the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), for the year 2019-20, ensuring food for everyone.
MGNREGA, an Indian labour law and social security measure that aims to guarantee the 'right to work'.
The Budget 2019-2020, however, was opposed by various leaders of the Congress and other opposition parties including the Trinamool Congress stating it as a political gimmick ahead of Lok-Sabha election whereas the government says that the Interim Budget 2019 is a sustainable measure from its side to help the farmers and the middle class.