New Delhi: Reaching out to a large electorate ahead of the Lok Sabha polls, the Modi government Friday announced a cash dole for small farmers, a mega pension scheme for the unorganised sector and doubled the threshold income tax exemption limit to Rs 5,00,000.
Presenting the interim 2019-20 union budget in Parliament, Finance Minister Piyush Goyal said Rs 6,000 per year cash support will be given to small and marginal farmers that will cost the exchequer Rs 75,000 crore annually, in a bid to provide relief to distressed farm sector.
It must be added here that the Naveen Patnaik-led BJD government in Odisha had announced the ‘KALIA’ scheme a few days back in which Rs 25,000 will be transferred to the bank account of the farmers in phases. The Centre must have taken serious note of the developments and followed on the BJD government’s footsteps.
Under the scheme rolled out by the Centre and called ‘Pradhan Mantri Kisan Samman Nidhi’, Rs 6,000 will be transferred into bank accounts of farmers holding up to two hectares of land in three equal installments.
Goyal said it will benefit 12 crore farmers and will be implemented from this fiscal itself. He said Rs 20,000 crore have been provided for current fiscal and also announced allocation of Rs 75,000 crore for the next fiscal.
Unveiling the mega pension yojna for the unorganized sector workers that will benefit 10 crore people, Goyal said they will get assured monthly pension of Rs 3,000 after reaching the age of 60 years.
“We are launching Pradhan Mantri Shram Yogi Mandhan today. The scheme will provide assured monthly pension of Rs 3,000, with contribution of 100 rupees per month, for workers in unorganised sector after 60 years of age,” Goyal said.
Goyal informed the House that the government will also provide a matching contribution of Rs 100 for every unorganised worker covered under the scheme.
In a major relief for the middle class, Goyal proposed to double the threshold income tax exemption limit to Rs 5,00,000 and increased the standard deduction from the existing Rs 40,000 to Rs 50,000.
The announcement was greeted with thumping of desks by Prime Minister Narendra Modi and members of the treasury benches. The proposal will benefit three crore middle class tax payers, Goyal said. Doubling the threshold exemption limit is expected to cost the exchequer Rs 18,500 crore.
Goyal further said an individual having an income of Rs 6.5 lakh per annum will not be required to pay any tax provided he invests in the specified tax saving schemes of the government. The TDS threshold on interest from bank, post office deposits was also raised from Rs 10,000 to Rs 40,000.
“This is not just an ‘Interim Budget’, this is a vehicle for the developmental transformation of the nation,” Goyal asserted.
Goyal also announced also announced a hike in the Defence budget to over rupees three lakh crore. Goyal also said that the current account deficit will is likely to be 2.5% of the GDP this year.
Salient features
More than Rs 3 lakh crore for defence
Minimum 14% revenue of GST to states by Central government
Custom duty abolished from 36 Capital Goods
Full rebate up to Rs 5 lakh annual income after all deductions
Standard deduction increased from Rs 40,000 to Rs 50,000
Ceiling Limit of TDS u/s 194A increased from Rs 10,000 to Rs 40,000 for women
Ceiling Limit of TDS u/s 194I increasedd from Rs 180,000 to Rs 240,000
Free gratuity limit increased to Rs 20 lakh from Rs 10 lakh
Rs 6,000 per annum to be given to every farmer having up to 2 hectare land. Applicable from September 2018. Amount will be transferred in 3 installments
State share increased to 42%
Rs 60,000 crore for MGNREGA
Rs 1.7 lakh crore to ensure food for all
2% interest subvention for farmers pursuing animal husbandry
2% interest subvention for farmers affected by natural calamities and additional 3% interest subvention for timely payment
Pradhan Mantri Shram Yogi Mandhan will provide assured monthly pension of Rs 3,000 with contribution of Rs 100 per month for workers in unorganized sector after 60 years of age
26 weeks of Maternity Leave to empower the women
2 lakh seats will increase for the reservation of 10%
PTI
