Budget highlights 2019: More and more people are finding the virtue of paying taxes, Piyush Goyal said.
Union minister Piyush Goyal presented the election year Interim Budget in parliament today and announced major relief for farmers and individual taxpayers. This was the last Interim Budget of the NDA government led by Prime Minister Narendra Modi before the Lok Sabha elections due by May. With the Lok Sabha election just months away, the government kept the budget focussed on immediate relief such as easing income tax rules, favourable loan terms for small businesses, farm loan waiver and even direct cash transfers to small farmers. The government said it will send Rs 6,000 to small farmers directly into their bank accounts in a scheme that will be funded 100 per cent by the centre. The programme will cost Rs 75,000 crore. Piyush Goyal's turn to reveal the contents of the Union Budget briefcase in the crucial national election year came after Finance Minister Arun Jaitley had to go on leave and fly to the US for treatment. Yesterday, the government said its estimate of Gross Domestic Product (GDP) growth for fiscal 2018 was 7.2 per cent, significantly higher than 6.7 per cent earlier.
In an interview with news agency ANI, Arun Jaitley hit out the opposition for "shedding crocodile tears" for farmers and said they opposition parties can top up the central scheme. He added that it not the responsibility of only the federal govt.
Here are the Budget highlights 2019; it was presented by Union Minister Piyush Goyal:
Piyush Goyal to NDTV
- Every tax rupee collected is being spent on welfare of India
- The vision behind the budget has been PM Narendra Modi's
- PM Modi has been a compassionate leader. His focus has been a better quality of life and ease of living for the people
- It has been a pattern to focus on the marginalized, deprived, the neo-middle class
Piyush Goyal speaks to NDTV about government's interim budget
Prime Minister Narendra Modi's government has always focused on giving respect and dignity to the weakest sections. He has been a compassionate leader. His focus has been a better quality of life and ease of living for the people.
Yashwant Sinha speaks to NDTV:
The economy has been badly affected on a number of factors. Economy is not growing at 7%. Centre has revised growth rate for the demonetization year.
The government's own agency that is saying there have been job losses but it is suppressing the data
Key Points From Arun Jaitley's interview:
- India's middle class has been vastly strengthened over the past few years
- The productivity of the Indian farmer has gone up significantly
- Income support not loan waivers are never a solution to the farmers' problems
- Please don't shed crocodile tears today for farmers. If opposition also has several governments, let them announce similar schemes
Arun Jaitley speaks to news agency ANI:
What did the UPA do in their 10 years in power? A one time loan waiver of 70,000 crores. Only 52,000 crores were waived off & CAG report was that out of that Rs 52000 crore a significant part of money went to traders and businessmen and not to farmers.
Jharkhand Chief Minister Raghubar Das on Union budget
This budget reflects Prime Minister Narendra Modi's 'Sab ka Saath Sab ka Vikas' vision, keeping the poor, labourers, youth, women, farmers and rural development as focus areas
Union Budget 2019: "Budget Disappoints Delhi," Says Arvind Kejriwal
"Final jumla of Modi govt: it's interim budget too completely disappoints Delhi. Our share in central taxes remains frozen at Rs 325 crore & nothing earmarked for local bodies. Delhi continues to be on its own financially," Delhi Chief Minister Arvind Kejriwal tweeted.
Union Budget 2019: PM Modi Sums Up Interim Budget In Election Year
"India is eradicating poverty at a record pace. It takes care of all sectors and classes. This budget is an important step to strengthen the nation," Prime Minister Narendra Modi said hours after Piyush Goyal presented the Interim Budget.
"In a way, PM Kisan Yojana is the biggest scheme for farmers since Independence... For years, there has been a demand to exempt Rs 5 lakh annual income from tax. We have done it," he added.
"Over 12 crore farmers and their families, over three crores salaried professionals and their families will gain thanks to the Budget for new India. It is good to see more people being removed from the shackles of poverty. Our neo-middle class is rising and so are their dreams," PM Modi said.
"The unorganised sector needed more safeguarding of their interests and the Budget has done so. The PM Shram Yogi Man Dhan Yojana will strengthen their lives. Ayushman Bharat Yojana and social security schemes are also going to touch their lives," PM Modi said.
Union Budget 2019: "Destroyed Lives Of Farmers," Says Rahul Gandhi
"5 years of your incompetence and arrogance has destroyed the lives of our farmers. Giving them Rs 17 a day is an insult to everything they stand and work for," Congress president Rahul Gandhi tweeted. Former finance minister P Chidambaram said that according to his calculations, the direct cash transfer of Rs 6,000 promised by the Modi government comes to Rs 17 per day for a farmer family.
Union Budget 2019: "Government Wanted To Confuse People," Says P Chidambaram
"Every year the allocation for defence grows up, say by 10 per cent or so. There is nothing unusual about it. Some years ago it crossed Rs 1 lakh crore, then it crossed Rs 2 lakh crore... it will grow again next year, very normal," Congress leader P Chidambaram said. "Fishermen have got a department; they have not got money... And according to my calculations it is Rs 17 a day for a farmer family. It's not a vote on account; it's an account for votes."
"While I advocate the use of both Hindi and English as official languages, no one intended them to be used alternatively. Result was people who did not understand English, did not understand half of the budget and people who did not understand Hindi, did not understand the other half. The intention was to confuse people even if for a day," P Chidambaram said.
Union Budget 2019: Piyush Goyal Addresses Media
"Acceptance of more than 99 per cent tax returns without scrutiny is a historic development. The government is working towards the whole nation walking on the path of honesty. Under the new system being developed, income tax assessment will be done in 24 hours," Piyush Goyal said.
Union Budget 2019: Piyush Goyal Sums Up Budget Speech In Press Conference
"We have set up a Rashtriya Kamdhenu Aayog to ensure cows are respected. For this we have allocated Rs 500 crore."
"Many times, people from big khandans (families) don't understand the condition of small farmers from their air-conditioned rooms."
"This budget has many measures for the middle class."
"The record allocation for defence shows the Narendra Modi government's commitment to securing the country."
"Being an Interim Budget, there were several things we wanted to do that we couldn't. But the idea was to take development to every individual."
"Our government has initiated the world's largest behavioural change movement with the Swachh Bharat Mission. India has achieved 98 per cent rural sanitation coverage and as many as 5.45 lack villages have been declared open-defecation free," Piyush Goyal said.
Union Budget 2019: Top 5 Announcements By Piyush Goyal In Election Year
Individual taxpayers with annual income up to Rs. 5 lakh will get full tax rebate. Individuals with gross income up to Rs. 6.5 lakh will not need to pay any tax if they make investments in provident funds and prescribed equities. Around three crore middle class taxpayers will get tax exemption due to this measure. Read more here
"The budget has met the expectations of farmers, labourers and middle class. By bearing a cost of Rs 75,000 crore, the government will implement the Pradhan Mantri Kisan Samman Nidhi scheme. This scheme will also benefit those farmers who do not take loans," BJP president Amit Shah said.
"The whole exercise has turned out to be a damp squib. We've seen one good thing that is tax exemption for the middle class. Rs 6,000 in income support for farmers boils down to Rs 500 per month. Is that supposed to enable them to live with the honour and dignity?" Congress leader Shashi Tharoor said.
"From small and marginal farmers to nomadic communities, and from unorganised labourers to the middle class, Budget 2019 has shown the commitment of PM Narendra Modi's government to the welfare of every section of the society," Union Minister Rajyavardhan Rathore tweeted.
Budget 2019: No Income Tax On Annual Income Up To Rs 5 Lakh
"Individual taxpayers with annual income up to Rs 5 lakh will get full tax rebate. Individuals with gross income up to Rs 6.5 lakh will not need to pay any tax if they make investments in provident funds and prescribed equities. Around three crore middle class taxpayers will get tax exemption due to this measure," Piyush Goyal said.
Union Budget 2019: Fiscal Deficit
The fiscal deficit in 2018-19 would be 3.4 per cent of gross domestic product (GDP), slightly higher than the targeted 3.3 per cent, Piyush Goyal said. The deficit was widely expected to be higher than targeted due to a combination of revenue shortfalls and increased spending ahead of the Lok Sabha election.
"India is solidly back on track and marching towards growth and prosperity," Mr Goyal said as Prime Minister Narendra Modi and BJP lawmakers thumped their desks in appreciation.
Union Budget 2019: Water Resources
"Safe drinking water to all Indians, sustaining and nourishing life, using micro-irrigation techniques are our government's priorities; a long coastline can be pivotal for the economy, using strength of blue economy and Sagar Mala," Piyish Goyal said.
"Oceans and coastlines are the sixth dimensions of our vision for 2030," he said.
Union Budget 2019: Tax Collections, Clampdown On Black Money
"We are committed to eliminating the ills of black money; anti-black money measures taken have brought undisclosed income of about Rs 1.30 lakh crore to the surface; 3.38 lakh shell companies have been deregistered," Piyush Goyal said.
"We are poised to become a $5 trillion economy in the next five years; we aspire to become a $10 trillion economy in the next eight years," he said. "There has been 18 per cent increase in direct tax collections in 2017-18, 1.06 crore people included in tax base; more than 1 crore citizens filed income tax returns for the first time, after demonetisation," Piyush Goyal said.
Union Budget 2019: Allocation For Northeast
"The government has proposed to increase allocation for the northeast region to Rs 58,166 crore this year. It will be a 21 per cent rise over the previous year," Piyush Goyal said.
Union Budget 2019: Tax Rates
"Within the next two years, assessment of all tax returns should be done electronically without any personal interface," Piyush Goyal said. "Direct tax collections up from 6.38 lakh crore in 2013-14 to almost 12 lakh crore; tax base up from 3.79 crore to 6.85 crore. All income tax returns to be processed within 24 hours."
Union Budget 2019: Roads, Transport And Infrastructure
"India is the fastest highway developer in the whole world, 27 km of highways are built each day. Projects stuck for decades have been completed. Sagar Mala will help faster handling of import and export cars," Piyish Goyal said.
"India now has over 100 operational airports. And when there is such progress, it is only natural that jobs are also created. Indian Railways has experienced the safest years in its history. All unmanned level crossings are completely eliminated on broad gauge networks."
Union Budget 2019: Defence Budget
"For the first time, the defence Budget has been raised to over Rs 3 lakh crore," Piyush Goyal said. "Our soldiers who protect our borders are the pride and honour of the nation. In our election manifesto we promised one rank, one pension. We have resolved this and disbursed over Rs 35,000 crore in the last few years for our jawans."
Union Budget 2019: Defence Budget
"For the first time, the defence Budget has been raised to over Rs 3 lakh crore," Piyush Goyal said.
Union Budget 2019: Free Gas Connection For The Poor
"To ensure cleaner fuel and health assurance, we embarked on PM Ujjwala Yojana, a programme to give eight crore free LPG connections to rural households, six crore connections given already," Piyish Goyal said.
"75 per cent of women beneficiaries under PM Mudra Yojana, 26 weeks of maternity leave and Pradhan Mantri Matritva Yojana, are all empowering women," Piyush Goyal said.
Union Budget 2019: Employment
"EPFO shows two crore accounts in two years. This shows formalisation of the economy. When there is such a high growth, jobs are created," Piyush Goyal said. Gratuity limit has been increased from Rs 10 lakh to Rs 20 lakh. Pension scheme for unorganised sector workers with monthly income up to Rs 15,000 will be given. Assured monthly pension of Rs 3,000 after they retire on reaching 60," he said.
"50 per cent of the GDP comes from sweat and toil of 42 crore workers in unorganised sector," Piyush Goyal said.
Union Budget 2019: Programme For Cow Protection
Radhtriya Kamdhenu Aayog to be set up for cows. "The government will never step back from protection of the gau mata," Piyush Goyal said. A 2 per cent interest subvention for animal husbandry, fisheries and farmers have been announced.
"About 12 crore farmer families will benefit from the programme; it will be implemented from December 2018 itself. It will cost the government Rs 75,000 crore annually and the scheme will be 100 per cent funded by the government," Piyush Goyal said.
Union Budget 2019: Rs 6,000 For Small Farmers Directly Into Their Accounts
"The government has made a historic plan called the PM Kishan programme. Those small farmers who have less than two hectares will get a support of Rs 6,000," Piyush Goyal. "It will be transferred directly to the bank accounts of farmers in three instalments of Rs 2,000."
"In 2014, 2.5 crore families were without electricity, living in the 18th century. We have brought electricity to all villages," Piyush Goyal said. "We have also brought the world's largest medical insurance programme, Ayushman Bharat. So far 10 lakh people have got help."
The 22nd AIIMS will be set up in Haryana, the state where my family comes from. Our win there yesterday shows how a good government is run."
"The first right on the nation's resources goes to the poor," Piyush Goyal said. "Rs 60,000 crore was allocated for the MNREGA, and if needed more funds will be given."
Union Budget 2019: Piyush Goyal On RBI
"We told RBI to evaluate all banks and out their actual state in front of the nation. Because of our efforts, restrictions have been lifted on three banks. We ran a corruption-free government," Piyush Goyal said.
"Have brought fiscal deficit for 2018-19 to 3.4 per cent of GDP, current account deficit for 2018-19 seen at 2.5 per cent of GDP," Piyush Goyal said.
Budget 2019: Piyush Goyal On Inflation
Unlike the last government, our government broke the back of back-breaking inflation. Inflation is a hidden tax on the poor. Last five years has seen India being recognised as a bright spot in global economy.
Budget 2019-20 Live Updates: Piyush Goyal Presents Interim Budget In Election Year
Union minister Piyush Goyal is reading out the contents of the Budget 2019 in parliament. This is the last Interim Budget of the NDA government led by Prime Minister Narendra Modi before the Lok Sabha elections due by May.
The economy has logged growth rates of 8.2 per cent and 7.1 per cent in the first and second quarters of fiscal year 2018-19 respectively.
Fiscal deficit - the amount of money by which a government's expenses in a year exceed its revenue - has already crossed the full-year estimate by more than 15 per cent in first nine months of 2018-19.
The government aims to achieve GST collections worth Rs. 12.9 lakh crore in 2018-19. In the first three quarters of 2018-19, GST collections stood at Rs. 8,71,043 crore, official data shows.
Non-performing assets or bad loans remain an issue in the country's banking sector. Twenty one state-run banks in the country - holding two-thirds of assets in the sector - account for the bulk of the record $150-billion (around Rs. 11 lakh crore) of soured loans.
Trade deficit - which occurs when imports exceed exports - widened to $129.9071 billion in first eight months of financial year 2018-19 (April-November), from $106.3734 billion in the corresponding period a year ago, latest RBI data shows.
Budget 2019: Opposition Says Budget May Be Populist
"They will try to introduce populist schemes in the Budget keeping an eye on Lok Sabha polls. Budgets they have presented so far haven't really benefitted general public. Only jumlas will come out today. They have only four months, when will they implement the schemes?" said Mallikarjun Kharge.
PM Modi is facing growing discontent over depressed farm incomes and doubts over whether his policies are creating enough jobs. A report on Thursday quoted a government survey as saying the jobless rate was the highest in at least 45 years, putting further pressure on the government.
Budget 2019: What's In It For Agriculture Sector
"The last five budgets have been dedicated to the farmers, the government's sixth budget will also be for the farmers, it will empower them," Union Minister of Agriculture and Farmers' Welfare Minister Radha Mohan Singh said.
Budget 2019: The Employment Scenario
The government is likely to announcement major programmes to cut down unemployment rate, which a report says was the highest in 45 years. A yet-to-be-released report that says the country's unemployment rate rose to a 45-year-high in 2017-18 is "not verified" and the "veracity of the data is not known", NITI Aayog vice chairman Rajiv Kumar said on Thursday.
Unemployment was higher in the urban areas (7.8 per cent) than in the rural areas (5.3 per cent). The report also says youth unemployment is at "astronomically high" levels of 13 to 27 per cent.
Prime Minister Narendra Modi arrives for a cabinet meeting ahead of presentation of the Interim Budget by Union Minister Piyush Goyal.
Budget 2019: Piyush Goyal Arrives At Parliament
The familiar "red briefcase" made its annual appearance this morning as Union Minister Piyush Goyal smiled for the cameras before presenting the Interim Budget.
Down the years, it has not always been red; the briefcase has been black, tan and brown too. Finance Minister Arun Jaitley held up a tan briefcase in the past. Former prime minister Manmohan Singh, as the finance minister who delivered the iconic 1991 proposals, carried a black bag.
Union Budget 2019: What To Expect For Indian Railways
"The way the government has increased investments in railways, from installing CCTV cameras to Wi-Fi, I believe further investment in railways will certainly be increased," said Manoj Sinha, Minister of State for Railways.
In the Union Budget for fiscal 2019, Finance Minister Arun Jaitley had announced a capital expenditure of Rs 1.48 lakh crore for the Indian Railways.
Union Budget 2019: Central Board Of Direct Taxes Team With Piyush Goyal
The income tax department tweeted a photo of its officials with Union Minister Piyush Goyal as he prepares to present the Interim Budget shortly.
Union Budget 2019: A Closer Look At Farm Crisis
Farmers in Punjab's Bathinda are hoping for the announcement of a comprehensive policy to make agriculture more profitable. Known as the country' food bowl, Punjab has historically produced the highest yields of any Indian farm belt, but a run of crop failures due to whitefly attacks and other natural calamities has pushed scores of farmers to the edge of despair.
Though the state government had rolled out a debt waiver scheme last year, farmers continue to commit suicide.
P Chidambaram was the first finance minister to make significant tax changes in an interim budget. In his February 17, 2014 speech, Mr Chidambaram stated that the economic situation at the time demanded interventions that could not wait for a regular budget.
In the interim budget for 2009-10, the then finance minister Pranab Mukherjee announced a six-month extension to a 2 per cent interest subvention on shipment credit for employment-oriented sectors. That involved an additional financial outgo of Rs. 500 crore.
Budget 2019: The Markets Scene
On Budget day, as the markets opened, the top gainers are:
Hero MotoCorp, Bharti Infratel, Power Grid and M&M
The top losers are:
Vedanta, JSW Steel, ICICI Bank and Sun Pharma
State Bank of India will declare its results this afternoon
Union Budget 2019: Live From Parliament House
Bags containing documents of the Union Budget 2019 being arranged outside Parliament House. Union Minister Piyush Goyal will read out the Budget speech at 11 am. The Interim Budget is the last by the NDA government led by Prime Minister Narendra Modi before the Lok Sabha elections due by May.
Union Budget 2019: Focus On Rural Spending
The Modi government is set to step up rural welfare spending by 16 per cent for the fiscal year beginning April to Rs 1.3 lakh crore, news agency Reuters reported citing two government sources, aiming to boost support in the countryside where more than two-thirds of India's 1.3 billion people live.
The Union Budget 2019, which is interim and is likely to be followed by a full one in July, is expected to project economic growth of around 7.5 per cent for the next financial year, while expanding capital spending on railways, roads, ports by 7-8 per cent, and estimating an increase in revenue of about 15 per cent, officials said.
Budget 2019: Markets Likely To Open On Higher Note
Domestic stock markets are likely to open on a higher note
with the SGX Nifty trading 43.5 points, or 0.4 per cent, higher at 10,898.55 on the Singapore Exchange. The SGX Nifty is an early indicator of the NSE (National Stock Exchange) Nifty in India. On Thursday, the Sensex and Nifty closed 1.87 per cent and 1.68 per cent higher respectively.
Union Minister Piyush Goyal has reached the Ministry of Finance. Mr Goyal is widely expected to replicate a full budget with big announcements to win over the masses ahead of the national election, due by May.
MoS (Finance) Shiv Pratap Shukla seen praying at his residence.
"It is a popular government. It has kept everyone in mind whole making the budget. Being an interim budget, the government will do whatever is possible," he said.
The budget is likely to focus on immediate relief such as easing income tax rules, favourable loan terms for small businesses, farm loan waiver and even direct cash transfers to farmers who are under debt.
This is the Modi government's last Union Budget before the Lok Sabha elections due by May.
The Modi government has said it is not averse to taking risk with fiscal deficit management; in other words, Piyush Goyal may announce heavy cuts in interest rates and favourable loans for small businesses, in addition to a massive farm loan waiver.
These election-year measures are, however, likely to have a ripple effect on fiscal deficit, or the difference between total revenue and total expenditure of the government.
Economists caution that farm loans waivers would widen a fiscal deficit the government has aimed to cap at 3.3 per cent of its Gross Domestic Product (GDP) or Rs 6.24 lakh crore. Even without the farm loan waiver, some credit rating agencies have estimated India's fiscal deficit at Rs 6.67 lakh crore or 3.5 per cent of the GDP, on muted tax collections.
Last week, Moody's Investors Service, which has already forecast a slippage in fiscal deficit to 3.4 per cent in the current fiscal against the budgeted target of 3.3 per cent, warns of further slippage in the fiscal consolidation roadmap that the Modi government has planned.
A year before the Lok Sabha elections in 2019, then finance minister P Chidambaram had announced a massive loan waiver of Rs 60,000 crore, which on hindsight election analysts say was a key factor that helped the UPA under then prime minister Dr Manmohan Singh retain power for another five years. A similar move by the NDA government today cannot be ruled out.
Analysts appear to concur that in the Interim Budget 2019, the NDA government led by Prime Minister Narendra Modi is likely to announce loan waivers worth at least Rs 1 lakh crore. Keeping farmers happy would be a key focus area of the government as it presents its last budget before the Lok Sabha elections due by May. Chances of the government easing income tax rules
are also high.
The Railway Budget 2019 is likely to include major announcements on allocation for high-speed trains. India is moving towards deploying more high-speed trains in busy routes, especially those connecting major cities where revenue potential is very high. New trains may be announced, as has been the practice in every Rail Budget every year.
Advanced railway station facilities such as Wi-Fi connectivity and hygienic catering services are the soft upgrades the government may consider in the Rail Budget.