Experts say Budget 2019 will be a boost for manufacturing sector. The Federation of Associations in Maharashtra (FAM) has welcomed the interim budget. It has stated that it is a superb budget for all people in general.
Rajesh Mittal, Managing Director of Greenply Industries Limited, said the budget will be a boost for manufacturing sector.
“In the manufacturing sector, a tax rate of 25 per cent for new manufacturing units will give a great boost to capital investments and the thrust in the budget on real estate and housing sector.
Rs 6,13,980 million allocated for health sector; Ayushman Bharat gets Rs 64,000 million. The health outlay for the upcoming financial year is the highest in the last two financial years and a 16 per cent increase over the 2018-2019 allocation which was Rs 5,28,000 million.
The Interim Budget 2019 has something for everyone. One thing is for sure. Everyone will save around Rs 2,000 because of it as the government has raised the standard deduction threshold for salaried classes and pensioners from Rs 40,000 to Rs 50,000.
Modi government’s Interim Budget ahead of the 2019 Lok Sabha elections turned out to be a direct appeal to over 300 million voters. This is how with his slew of sops aimed at the middle class voter, farmers and workers in the unorganised sector, acting Finance Minister Piyush Goyal hit the ball out of the park with most of his announcements.
Saving the best and the biggest announcement for the end, Piyush Goyal thanked taxpayers and said income upto Rs 5 lakh will be exempted from tax, thus targeting the massive vote bank of over 60 million voters who come under this income bracket.
Over 30 million of the salaried section, pensioners, self-employed and small business owners with a total income of Rs 5 lakh will be benefited with the new tax slabs. Three crore salaried persons and their spouses would add up to a voter base of 6 crore.
Also, those with an income up to Rs 6.5 lakh can do without paying taxes if they make smart investments of Rs 1.5 lakh.
The combined expense of these new rebates will add up to a staggering Rs 1,85,000 million of government revenue.
Interim Budget 2019-20 also raised the standard deduction threshold from Rs 10,000 to Rs 50,000 which will add another Rs 2,080 to Rs 3,588 to the pockets of all salaried professional.
With an eye on the elections, Piyush Goyal continued raining more good news on the middle class with the TDS exemption limit being raised from Rs 10,000 to Rs 40,000 for bank interest on rental income between Rs 1.8 lakh to Rs 2.4 lakh.
For anyone earning more than Rs 5 lakh annually will continue to pay taxes at the prevailing rates – no tax on first Rs 2.5 lakh, 5 per cent on income between Rs 2.5 and 5 lakh, 20 per cent on income between Rs 5 lakh and Rs 10 lakh and 30 per cent on earnings of over Rs 10 lakh.
Aiming at the huge population of senior citizens, a major pension scheme was introduced by Piyush Goyal in his Budget speech. The government now seeks to provide a monthly pension of Rs 3,000 with a contribution of Rs 100 per month for workers in the unorganised sector after 60 years of age.
Over 120 million farmer families were targeted with the Rs 6,000 annual income support that Piyush Goyal promised with only a few months left for the big battle in April-May.
With the growing agrarian crisis across the country and Opposition led by Congress president Rahul Gandhi relentlessly attacking Prime Minister Narendra Modi, it was expected that the Budget will announce some major sops for the farmers ahead of the polls.
Piyush Goyal in his Budget speech on Friday announced an income support for 120 million small and marginal farmers who own less than 2 acre land will get Rs 6,000 directly in their bank accounts in a year. The amount will be credited to their accounts in three instalments and the move is likely to affect around 240 million adult farmers who are eligible to vote.
The Pradhan Mantri Kisan Samman Nidhi though was criticised by Congress president Rahul Gandhi as an insult to farmers, will give at least some relief to the cash starved farmers juggling huge farm loans.
The exercise will come into force starting the current fiscal year and is expected to cost the government Rs 2,00,000 million.
Wooing farmers, an interest subvention of 2 per cent to those pursuing animal husbandry and fisheries and to farmers hit by natural calamities was announced in the Budget. An additional 3 per cent interest subvention will be given to farmers for timely repayment of loans.
Buoyed by the populist Budget and loud desk thumping by BJP MPs in the House, Prime Minister Narendra Modi said the Interim Budget was merely a trailer of what the government plans for the country in the coming days.