LIVE TV
ZEE Business
ZEE BUSINESS
हिंदी में पढ़ें  हिंदी में पढ़ें
Live TV
Live TV
  • Home
  • Personal Finance
    • PPF
    • Mutual Funds
    • Income tax
    • EPFO
    • Income Tax Calculator
    • Personal Loan Calculator
    • Car Loan Calculator
    • Home Loan Calculator
    • SIP calculator
    • SWP Calculator
    • MF Returns Calculator
    • Lumpsum Calculator
  • India
    • Companies
    • Property
    • Startups
    • Uidai
  • Economy
    • Aviation
  • Tech
    • Mobiles
    • Apps
  • Auto
    • Cars
    • Bikes
  • Markets
    • Commodities
    • Currency
  • Jobs
  • Indian Railways
  • World
    • Economy
    • Politics
    • Markets
  • videos
  • photos
  • Authors
  • More ...
    • VIDEOS
    • PHOTOS
Read in App
Business News » India News

On Feb 1, will it be an interim budget or vote-on-account?

Going by recent history, however, interim budgets have been passed thrice since 2000, and according to a market research firm, the upcoming one might be the last opportunity for the BJP-led NDA government to "woo a larger section of the society" by altering both taxes and outlays on schemes.

  • Twitter
  • Facebook
  • Linkedin
  • whatapp
  • View in App
On Feb 1, will it be an interim budget or vote-on-account?
"If the budget proposes populist schemes, it will become difficult for the new government if it is led by another political party to withdraw these," he explained. PTI
Written By: IANS
Updated: Mon, Jan 28, 2019
01:13 pm
New Delhi, IANS
RELATED NEWS
IRCTC, Railways news: Shatabdi, Duronto Express, Humsafar trains to start operations on these routes from April 10 IRCTC, Railways news: Shatabdi, Duronto Express, Humsafar trains to start operations on these routes from April 10
MASSIVE achievement by Railways: Highest ever 5900 kms electrification done this year, says Piyush Goyal MASSIVE achievement by Railways: Highest ever 5900 kms electrification done this year, says Piyush Goyal
Delhi-Kotdwar special train flagged off! Check timings, stoppages and other details Delhi-Kotdwar special train flagged off! Check timings, stoppages and other details
AMAZING PICS! Piyush Goyal shares images of Sir M. Visvesvaraya Terminal of Bengaluru, Karnataka AMAZING PICS! Piyush Goyal shares images of Sir M. Visvesvaraya Terminal of Bengaluru, Karnataka
Vande Bharat, Tejas Express and more! 153 new train services launched in 2019-20, confirms Railways Minister Piyush Goyal Vande Bharat, Tejas Express and more! 153 new train services launched in 2019-20, confirms Railways Minister Piyush Goyal

Will there be an interim budget or a vote-on-account on February 1. While the suspense on who will present it has ended with Piyush Goyal again being given additional charge of the Finance Ministry, with general elections round the corner, intense speculation continues about the final shape of the document he will unveil.

This speculation is about the nature of the upcoming budget -- on whether it would be a simple vote-on-account to be passed by Parliament to permit government expenditure in the transition period or whether Goyal will go beyond that by presenting full estimates of both revenue and expenditure as well as policy measures.

While an incoming government has the freedom to change the estimates in the interim budget when it presents the final budget after taking office, outgoing governments in India have generally followed the convention of avoiding major policy announcements or taxation proposals in the interim budget.

Going by recent history, however, interim budgets have been passed thrice since 2000, and according to a market research firm, the upcoming one might be the last opportunity for the BJP-led NDA government to "woo a larger section of the society" by altering both taxes and outlays on schemes.

"After the failed budget promise of enhanced procurement of crops through a revised Minimum Support Price (MSP) formula in 2018-19, announcements made on February 1, 2019 will be the last opportunity for the government to woo a larger section of society through an interim budget, as against a vote-on-account, by altering both taxes and outlays on schemes," said a report last week by JM Financial Institutional Securities.

With the general elections due in April-May, the government is looking at making available cheap loans and free accidental insurance to small businesses, a segment that bore the brunt of the demonetisation of November 2016, an official source here said, requesting anonymity.

The GST Council doubled the exemption threshold for small businesses from Rs 20 lakh to Rs 40 lakh. Besides, the threshold limit for eligibility under the GST Composition Scheme, which has been raised to Rs 1.5 crore from Rs 1 crore, is due to apply from the 2019-20 fiscal beginning April 1.

Such sops would follow major relief measures taken earlier this month to benefit the micro, small and medium enterprises (MSME) sector, currently plagued by liquidity and other issues.

According to former Jawaharlal Nehru University economics professor Arun Kumar, though it would be unethical to present an interim budget with major policy proposals, there is also the matter of the Presidential address to the Budget Session whereby the government makes its vision statement.

"If the budget proposes populist schemes, it will become difficult for the new government if it is led by another political party to withdraw these," he explained.

According to noted economist Ashok Desai, who was Chief Consultant to the Finance Ministry (1991-93), the outgoing government cannot make any tax proposals or policy changes.

"With the elections around the corner, what the government can do is make incremental outlays for existing schemes, but cannot announce new schemes," Desai said.

Watch This Zee Business Video

"In this situation, it is the states which have more liberty in announcing populist schemes through their state budgets," he added.

Economist Nagesh Kumar felt there is a likelihood of higher outlays being proposed on schemes for the rural sector and small businesses, which "is not necessarily a bad thing" because it would boost consumption demand, especially at a time of slowdown in private investment.

Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.

TAGS:
Piyush Goyal2019 budget
RELATED NEWS
IRCTC, Railways news: Shatabdi, Duronto Express, Humsafar trains to start operations on these routes from April 10 IRCTC, Railways news: Shatabdi, Duronto Express, Humsafar trains to start operations on these routes from April 10
MASSIVE achievement by Railways: Highest ever 5900 kms electrification done this year, says Piyush Goyal MASSIVE achievement by Railways: Highest ever 5900 kms electrification done this year, says Piyush Goyal
Delhi-Kotdwar special train flagged off! Check timings, stoppages and other details Delhi-Kotdwar special train flagged off! Check timings, stoppages and other details
AMAZING PICS! Piyush Goyal shares images of Sir M. Visvesvaraya Terminal of Bengaluru, Karnataka AMAZING PICS! Piyush Goyal shares images of Sir M. Visvesvaraya Terminal of Bengaluru, Karnataka
Vande Bharat, Tejas Express and more! 153 new train services launched in 2019-20, confirms Railways Minister Piyush Goyal Vande Bharat, Tejas Express and more! 153 new train services launched in 2019-20, confirms Railways Minister Piyush Goyal

LATEST NEWS

KVS Class 1 Admission List 2021-22 Postponed: First selection and waiting list was to be released tomorrow, revised dates to be notified soon - check all details here

Rajasthan School News Today: After West Bengal and Haryana, Rajasthan announces advance summer vacations for the schools from TODAY - check all details here

Anil Singhvi’s Strategy April 22: Day support zone for trading on Nifty is 14,175-14,250 & Bank Nifty is 30,725-30,800

PUBG Mobile 1.4 update: Check global version beta update APK download link for worldwide users

JPMorgan on Aurobindo Pharma stock re-rating trigger and target price

Covid 19 symptoms: What is the right oxygen saturation level, when should you see a doctor—EXPLAINED

​Maharashtra govt comes out with new precautionary measures - check list of restrictions here

Sensex rallies 375 pts; Nifty tops 14,400

Realme 8 5G smartphone launched in India at THIS price - Check camera, specifications, features and more

Ola Electric to set up one lakh charging points in 400 cities

  • India News
  • World News
  • Companies News
  • Market News
  • Personal Finance News
  • Technology News
  • Automobile News
  • Small Business News
  • Income Tax Calculator
  • Live TV
  • Videos
  • Photos
  • Author
  • Rss Feed
  • Advertise with us
  • Privacy Policy
  • Legal Disclaimer

Latest Trending Updates

  • EPFO
  • Budget 2020
  • Income Tax Return
  • Auto Expo 2020
  • Home Loan
  • Business News

Trending Topics

  • Income Tax
  • income Tax Calculator
  • 7th Pay Commission
  • Reserve Bank of India
  • GST
  • Latest Business News

Follow us on

zeebiz
zeebiz

Partner Sites

  • Zee News
  • Hindi News
  • Marathi News
  • Bengali News
  • Tamil News
  • Malayalam News
  • Gujarati News
  • Telugu News
  • Kannada News
  • DNA
  • WION
Copyright © Zee Media Corporation Ltd. All rights reserved