Before Union Budget 2019, know these 6 major announcements made in Interim Budget this year
Union Budget 2019: Modi 2.0 government is all set to announce the full budget for this year. With the new Finance Minister, Nirmala Sitharaman; Modi government is expected to deliver a lot this year.
Union Budget 2019: Modi 2.0 government is all set to announce the full budget for this year. With the new Finance Minister, Nirmala Sitharaman; Modi government is expected to deliver a lot this year. However, before proceeding further we should know about the key announcements made in the Interim Budget of 2019. The Interim Budget was announced on Feb 1 before Lok Sabha Elections, which was won by BJP with a massive majority. While there were few key announcements that has raised expectations even higher this time.
Here are the six major announcements made by Modi govt. in Interim Budget 2019:
1. Income tax benefit:
In a major relief to tax payers, interim FM Piyush Goyal announced a full rebate on personal income up to Rs 5 lakh in a year to a 25 per cent hike in standard deduction threshold.
He also announced that the standard deduction would be be raised to Rs 50,000 from Rs 40,000 and the TDS (tax deduction at source) threshold would be raised from Rs 10,000 to Rs 40,000 on interest earned on bank and post office deposits.
2. Monthly pension to unorganised workers:
For workers in the unorganised sector, Pradhan Mantri Shram Yogi Mandhan was announced to provide assured monthly pension of Rs 3,000 per month. Under the scheme, the workers would receive a monthly pension of Rs 3,000 after 60 years of age. A worker who will join the scheme on 29 years of age or above will need to contribute Rs 100 monthly and workers joining at 18 years of age will have to contribute Rs 55 monthly.
3. Relief to farmers:
A scheme - Pradhan Mantri Kisan Samman Nidhi (PM-KISAN) - to provide direct income support of Rs. 6,000 per year to farmers with less than two hectares of land with effect from December 1, 2018, was announced.
The minister also announced expansion of the interest subvention for loans taken under Kisan Credit Card to farmers involved in animal husbandry and fishing.
4. MSME loans:
With an aim to support the MSME sector, the government announced 2 per cent interest subvention for micro, small and medium enterprises (MSMEs) for loans up to Rs 1 crore.
5. Fund allocation for employment:
Budgetary allocation for the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) was increased by Rs. 5,000 crore year-on-year to Rs. 60,000 crore, its highest-ever allocation to the programme since its launch in 2006.
6. Defence budget:
The defence budget of the country crossed Rs 3 lakh crore-mark as the outlay for the armed forces was increased in the interim budget to Rs 3,05,296 crore against last year's revised estimate of Rs 2,85,423 crore -- a hike of 6.96 per cent.
With a vision to expand the country's space programme and sending an Indian astronaut into space by 2022, the government allocated more than Rs. 10,000 crore for space programme in the Interim Budget.