Interim Budget 2019 – Analysis

Interim Budget 2019 - Analysis

Theme :-

  • On 1st February 2019, Interim budget 2019 was presented by Union minister Piyush Goyal.
  • It is not a regular budget, it’s an interim budget. Interim budget is usually presented before General elections. After the elections, newly formed government will present the full budget. This interim budget is roughly for 4 months.

Interim Budget 2019 – Analysis :-

For workers in informal sector :-

  • Pradhan Mantri Shram-Yogi Maandhanpension scheme for employees in informal sector who are earning upto ₹15,000. Assured monthly pension of Rs 3,000, with contribution of 100 rupees per month will be provided for informal sector workers such as street vendors, daily labourers etc.
    • Informal sector is the most neglected sector. According to ‘International Labour Organisation’ (ILO) report of 2018, around 81% of all employed persons in India are in informal sector. This pension scheme will be very helpful for them. This step will also be helpful in formalising the informal economy.

For Farmers :-

  • Pradhan Mantri — Kisan Samman Nidhi scheme – This budget introduced income support program for farmers, through which farmers who own less than 2 hectares of land will get Rs. 6000 per year, through direct transfer to their bank accounts. Around 12 crore farmers will be befitted by this program.
    • Though the amount is very less, it’ll be helpful for farmers considering the agrarian crisis in our country.
    • Direct transfer to accounts is a good step considering the loopholes in passing the welfare benefits to people.
    • Indian agricultural sector needs structural reforms. Instead of taking steps to reform agricultural sector, providing income support seems to be hiding the bigger picture.
    • Only land owners will be befitted by this scheme. Not all farmers own the land, some farmers rent some plots of land in return for a portion of their crop, which is called sharecropping. So, these farmers are not included in this program.
  • All farmers affected by natural calamities will be provided interest subvention of 2% ( meaning – 2% interest amount on loan will be paid by government)
    • This is very helpful for farmers considering the unpredictable monsoon in India.
  • 3% subvention to farmers on timely loan repayment.
    • This encourages debt repayment. It’s much better than playing bad economics of loan waiving schemes.

For the security of country :-

  • Interim budget 2019 allocated 3 lakh crore for the defence sector. This is the biggest ever defence budget.
    • Though the budget is higher than the previous budget, the hike is barely covering the annual inflation of 3.6%.

For the people of middle class :-

  • People who are earning upto 5 lakh per annum need not pay income tax. Earlier the limit was 2.5 lakh per annum.
    • It helps middle class people.
    • The present GDP already has high fiscal deficit at 3.4%. So, reducing the revenue of government may not be a wise step.
  • Tax-free Gratuity limit is hiked from Rs 20 lakh to 30 lakh.
  • TDS on interest income is increased from Rs 10,000 to Rs 40,000 per annum.

Conclusion :-

Interim budget 2019 is prepared to woo most of the Indians to get votes in the coming elections. Generally pre-election interim budget should avoid populist promises. But this budget introduced new schemes and made a sweeping tax changes. This budget is only for 4 months and implementation of any scheme takes time, so there will be an uncertainty on whether these changes will be implemented or not, as the government may change in the coming elections.

But the good thing here is that most of these changes are helpful for public without bankrupting the government. And the next government will most likely keep these changes fearing the backlash from public, especially in it’s first year of the government.

Your Turn…

What is your opinion on this topic? Express your thoughts in the comment section below. Subscribe to our blog to read answers to trending GD topics.

Photo by GotCredit

Copyright @ Group Discussion Ideas.

Subscribe to GD Ideas

Please subscribe to our YouTube channel. You will get good content & we will get a subscriber. It’s a win-win for both of us. 😃

5 comments

  1. positive-as this government is working on the concept ‘sabka sath sabka vikas’ so this interim budget absolutely right direction in the sabka sath sabka vikas because in this interim budget include every aspect like farmers,unorganised workers, women,healt ,poor and backward classes.for farmers finance minister announced a scheme-PM-KISAN (pradhan mantri kisan samman nidhi scheme) in this scheme provide 6000 per annum for that farmers who has less than 2 hectare land in three equal installment 2000 each.for unorganised sector worker pradhan mantri mandhan sheme in this scheme provided rs 3000 per annum as pension and take contribution 55/100 per month.for health announced 22nd AIIMS in haryana last year announced worlds largest healthcare program Ayusman bharat. whose income upto 5 lac that people no need to pay tax this schme helpful for middle classes .for villages he announced one lac digital villages over next five years.so on the above points we can say this interim budget very helpful for middle class. negative-this interim budget totaly politically motivated like he announced scheme for farmers and unorganised labours after left 4 month why these type decision taken before. government already spent 4.5 years these type of decision to get vote of farmers and labours . in pm-kisan scheme he said the sheme is decision in the direction of douwle income of farmers why not implemet swaminathan committe report ,why not implemet msp so this scheme totaly take vote of farmers.another schme for unorganised labour he provide 3000 after 60 years how many labour live after 60 years and how deposit 100/per month if he have no work recently nsso report said highest unemployment last 5 years . so we can say this interim budget totally politically.

  2. Yes, I stand with the interim budget as it will be very beneficial to the informal sector in India..With everything in the world with high price the tax free scheme to the middle class family would be a little relaxation. All the proposed schemes will be helpful if implemented in the full budget.

  3. According to me this interim budget is very good to take care of middle class people. I am very happy government think for unorganized sector . After their working tenure they feel helpless because they are not able to work and they don’t have pension and in this budget government announced unorganized sector people if they will deposit little money say 100/- they will get pension 3000/- per month. Secondly Tax benefit for middle class people upto 5 lakhs they don’t need to pay Taxes. Thirdly Farmers also happy they will get 6000/- per year direct will come to their bank account they don’t need to go to any middle man. Actually election has come I e government announced this budget to get the vote .but whatever it is it’s good for everybody

Join in the Group Discussion...

Your email address will not be published. Required fields are marked *