Union Budget 2019 Live Updates: Full tax rebate for those with an income of up to Rs 5 lakhs
The Budget comes amid reports of high unemployment rate, at 6.1 per cent, the highest in 45 years.
"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," says FM Piyush Goyal.
Piyush Goyal announces full tax rebate for those having an annual income of up to Rs 5 lakhs.
Pradhan mantri kisan samman nidhi scheme has been approved by the government, says piyush goyal. under this new scheme, for farmers with less than 2 hectares, rs 6000 per year, in three instalments will be given.
MGNREGA allocation for fiscal year 2019-20 has been set at rs 60,000 crore, Goyal says in his budget speech. Pradhan Mantri Gram Sadak Yojna for the same fiscal year has been set at Rs 19,000 crore.
Union minister for agriculture, Radha Mohan Singh tells ANI that under the modi government, all the previous budgets have been dedicated to the farmers, and the present interim Budget will also be for the farmers, and that it will "empower them".
mallikarjun kharge: they'll try to introduce populist schemes in the budget keeping an eye on lok sabha polls. 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? pic.twitter.com/rtgedw6ozv— ani (@ani) february 1, 2019
Finance minister Piyush Goyal will present the Modi government's last Budget on the floor of parliament today, February 1. Goyal had replaced Arun Jaitley as finance minister as the latter is in the US for medical treatment. the last Budget, with the general elections barely months away, is widely expected to include sops aimed at everyone. from tax sops directed towards the middle class and corporates, to financial packages aimed at the agrarian sector and small and medium scale enterprises.
Ideally, the interim Budget, presented close to any general election, is mainly a Vote-On-Account needed for the proper functiontioning and everyday needs of the government before a full budget is passed when the new government takes over. But, if reports are to be believed, the Budget today is expected to be a full one.
This Budget can raise the threshold limit of income before income tax kick in, a move that would benefit the middle class primarily, a constituency known to be close to the BJP. As already hinted by the government, this limit can go up from the present Rs 2.5 lakh to Rs 5 lakh. Moreover, the Budget can also include targeted financial packages, including loan waivers, aimed at alleviating the creeping agrarian distress and rising anger against the ruling party from farmers, a point that has been widely exploited by Congress president Rahul Gandhi in his criticisms of the Prime Minister, Narendra Modi.
As news reports have claimed recently, the Budget can also borrow provisions from Telangana's Ryuthu Bandhu scheme under the KCR government, and begin to inject direct investment of upto Rs 15,000 per hectare, targeting small farmers. the Ryuthu Bandhu scheme is widely popular in telangana and has been known to be the main factor behind KCR's stunning electoral victory in the late 2018 Assembly elections.
For small and medium enterprises, the Budget can include easier flow of credit. This particular sector had been especially hit during demonetisation and the gst implemented shortly after, increasing anger amongst traders. Including sops targeting this sector could be one way for the BJP to win back the trading community within its folds, a community that had been traditional supporters of the saffron party.