After an initial fumbling the interim Finance Minister Piyush Goyal came up with a pro farmer, pro middle class budget, which could set the stage for huge political dividends to the ruling dispensation in the upcoming general elections.
Big relief for farmers, middle-class
From farm income support— PM Kisan — involving an outgo of nearly Rs 1 lakh crore in two years, to income tax give away of Rs 18,500 crore to middle class tax payers, Goyal also brought cheer to nearly 10 crore unorganised workers in the form of a monthly pension programme.
The entire budget exercise has been expenditure focused, unleashing a 13.3 per cent jump in the overall expenditure of 2019-20. At the same time, the government is confident of not letting fiscal deficit slip and confident of keeping it at 3.4 per cent of GDP.
For the middle class tax payers the exemption limit has been doubled from Rs 2.5 lakh to Rs 5 lakh for 2019-20 financial year. This will bring relief to over 3 crore taxpayers and effectively mean salaried income up to Rs 7 lakh will go tax-free from FY20.
Analysis: Quick-fix budget pleases market
Vision statement
Goyal ended his speech with envisaging a $10 trillion economy by 2030 and laid out 10 point agenda for the government. The 10 points include building infrastructure, digital India, expanding rural infrastructure, cleaning rivers, healthy India, focus on coastal India and outer sky.
True to its commitment to minorities the Budget has provided a 35 per cent jump in outlay for schedule caste and schedule tribes.
Under PM Kisan poor land holding farmer households will be given an assured income support of Rs 6,000 annually. This scheme comes into being from December 2018 and benefit 12 crore kisan families in India.