The Union Budget for the fiscal year 2024–25 will be presented in the Parliament on February 1 by Union Finance Minister Nirmala Sitharaman.
Given that the Lok Sabha elections are scheduled for early next year, the finance minister will present the interim budget, instead of a full-year budget, at a joint session of the Rajya Sabha and Lok Sabha without making any significant announcements.
Previously, acting Finance Minister Piyush Goyal had delivered the interim budget ahead of the 2019 general elections. It was Goyal's first ever budget, filling in for Arun Jaitley who was unwell at that time. Minister Goyal announced some concessions in direct taxes, in what has been seen as a departure from convention. In the past, governments gearing up for an election have refrained from announcing major income tax changes.
Here are the key highlights from Finance Minister Piyush Goyal's Interim Budget 2019-20:
- Direct Tax Proposals
- No income tax for income up to Rs 6.5 lakh (Rs 5 lakh + Rs 1.5 lakh under 80C of the Income Tax Act)
- More than Rs. 23,000 crore tax relief to 3 crore middle class taxpayers
- Standard Deduction raised to Rs. 50,000 from Rs. 40,000
- TDS threshold raised from Rs. 10,000 to Rs. 40,000 on interest earned on bank/post office deposits - Economy
- Fiscal deficit pegged at 3.4 percent of GDP for 2019-20
- Total expenditure increased by over 13 percent to Rs.27,84,200 crore in 2019-20 BE
- Capital Expenditure for 2019-20 BE estimated at Rs. 3,36,292 crore - Farmers
- 12 crore small and marginal farmers to be provided with assured yearly income of Rs. 6000 per annum under PM-KISAN
- Farmers struck by natural calamities will now receive 2-5 percent interest subvention under insurance scheme
- 2 percent interest subvention to Farmers for Animal husbandry and Fisheries activities; additional 3 percent in case of timely repayment.4. Railways
- Railway capital expenditure raised to Rs 64,586 crore in FY20 from Rs 53,060 crore in FY19
- Operating Ratio expected to improve from 98.4% in 2017-185. Defence - Defence budget to cross Rs 3,00,000 crore for the first time ever
6. Entertainment Industry
- Filmmakers to get access to Single window clearance as well for ease of shooting films
- Regulatory provisions to rely more on self-declaration
- Anti-camcording provision to be introduced to Cinematography Act to combat film privacy7. Workers - Monthly pension of Rs 3,000 for workers in the unorganised sector to be paid out after retirement. Pension scheme to benefit 10 crore workers in the unorganised sector.
- Rs 3000 per month after 60 years of age with an affordable contribution of only Rs 100/55 per month
- Employees' State Insurance eligibility cover limit has been raised to Rs 21,000 per month from Rs 15,000 per month
- Gratuity limit increased from Rs 10 lakh to Rs 30 lakh8. Poor and Backward Classes - 25 percent additional seats in educational institutions to meet the 10 percent reservation for the poor
- All willing households to be provided electricity connections by March 20199. Fishermen
- Separate Department of Fisheries created, 2 percent interest subvention for those in fisheries- To provide Rs 750 crore in FY19 to support animal husbandry and fishing10. MSME and Traders - 2 percent interest subvention on an incremental loan of Rs 1 crore for GST registered SMEs
- Atleast 3 percent of the 25 percent sourcing for the Government undertakings will be from women owned SMEs
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