Budget 2019: Which sector gets what in the interim budget

Ahead of the Lok Sabha elections later this year, finance minister Piyush Goyal presented the interim Budget 2019. Here’s what he had to offer various sectors of the economy.

Finance minister Piyush Goyal on Friday released the interim Budget 2019 and announced a slew of projects and measures. Among the key measures that he announced was the increase in tax exemption limit from 2.5 lakh to Rs 5 lakh for the salaried class.

In his budget, finance minister Piyush Goyal announced a series of changes in the taxation system. (Ajay Aggarwal/HT Photo)

Read: Highlights of Budget 2019

Here are his proposals for different sectors of the Indian economy:

Farmers:

- The government has fixed the minimum support price (MSP) of all 22 crops at a minimum 50 per cent more than the cost.

The government will provide an assured income support to small and marginal farmers under a new programme named Pradhan Mantri KIsan SAmman Nidhi (PM-KISAN). Under this, farmers with cultivable landholdings up to 2 hectares, will get a direct income support of Rs 6,000 per year. This money will be transferred into the farmers’ bank accounts in three instalments of Rs 2,000 each. This programme will entail an annual expenditure of Rs 75,000 crore.

Under the Kisan Credit Card Scheme launched last year, a 2 per cent interest financial support will be provided to farmers pursuing activities of animal husbandry and fisheries, who avail loans through Kisan Credit Card. If the loan is paid off timely, the farmers will also get an additional 3 per cent interest subvention.

National Kamdhenu Ayog for cows has been set up and will get Rs 750 crore for National Gokul Mission.

Labour and Workers Dignity

- Under the 7th Central Pay Commission Report, the New Pension Scheme (NPS) has been liberalised. Under this, keeping the employee’s contribution at 10%, the government has increased its own contribution by 4 per cent, making it 14 per cent.

- The bonus ceiling given to workers has also been increased from Rs 3500 per month to Rs 7000 per month. The ceiling for pay has also been increased from Rs 10,000 per month to Rs 21,000 per month.

- The government has also increased the gratuity payment ceiling from Rs 10 lakh to Rs 20 lakh.

- The ESI’s eligibility cover ceiling has been raised from Rs 15,000 per month to Rs 21,000 per month.

- Minimum pension for every labourer has been fixed at Rs 1,000 per month. In the event of death of a labourer during service, the amount to be paid by EPFO has been enhanced from Rs 2.5 lakh to Rs 6 lakh.

- Under Anganwadi and Asha Yojana honorarium has been enhanced by about 50 per cent for all categories of workers.

Pension scheme for unorganised sector:

- A mega pension scheme namely ‘Pradhan Mantri Shram-Yogi Maandhan’ for the unorganised sector workers will provide pensions to those with monthly income up to Rs 15,000. Under this, an assured monthly pension of Rs 3,000 from the age of 60 years shall be paid on a monthly contribution of a small affordable amount during their working age. An unorganised sector worker joining pension yojana at the age of 29 years will have to contribute only Rs 100 per month till the age of 60 years. A worker joining the pension yojana at 18 years, will have to contribute as little as Rs 55 per month only.

- The Government will deposit a matching amount in the pension account of the worker every month. At least 10 crore labourers and workers in the unorganised sector are expected to benefit from the ‘Pradhan Mantri Shram-Yogi Maandhan’ within next five years. A sum of Rs 500 crore has been allocated for the Scheme.

Defence

- The outlay for defence has been enhanced beyond Rs 3 lakh crore.

Infrastructure development

- Under the Sagarmala programme ports will be developed along the coastal areas of the country for faster handling of import and export cargo.

- With container freight movement beginning on inland waterways from Kolkata to Varanasi, the government is planning to introduce container cargo movement to the North East, by improving navigation capacity of the Brahmaputra river.

Railways

- “Introduction of the first indigenously developed and manufactured semi high-speed “Vande Bharat Express” will give the Indian passengers world class experience with speed, service and safety,” Goyal said.

- The estimated outlay for railways in the budget has been proposed at Rs 64,587 crore in 2019. The Indian Railways’ overall capital expenditure programme is of Rs 1,58,658 crore.

- The Railways Operating Ratio is expected to improve from 98.4 per cent in 2017-18 to 96.2 per cent in 2018-19 and further to 95% in 2019-20.

Connecting Northeast

- The people of North East have also received significant benefits of infrastructure development. Arunachal Pradesh came on the air map recently and Meghalaya, Tripura and Mizoram have come on India’s rail map for the first time.

- In order to provide better rail and air connectivity with the northeast, a budgetary allocation of Rs 58,166 crore has been made. This is a 21 per cent increase over the previous year’s budget.

Digital India Revolution

- Focussing on villages, the government plans to digitise more than 1 lakh villages in the next five years by setting up Common Service Centres (CSCs).

Entertainment

- To promote the entertainment industry - Single window clearance for ease of shooting films, available only to foreigners, is now going to be made available to Indian filmmakers as well.

- The government will also introduce anti-camcording provisions in the Cinematograph Act to control the menace of piracy.

Taxes:

- Full Tax rebate upto 5 lakh annual income after all deductions.

- Standard deduction increased from 40000 to 50000.

- Exemption on tax on second self-occupied house.

- Ceiling Limit of TDS under section 194A has increased from 10000 to 40000.

- Ceiling Limit of TDS under section 194I has increased from 180000 to 240000

- Capital tax Benefit under section 54 has increased from investment in one residential house to two residential houses.

- Benefit under section 80IB has increased to one more year i.e. 2020