The Interim Finance Minister Piyush Goyal played a very crucial role in presenting the interim election budget 2019 in parliament announced many big projects, schemes, and several programmes for Indian citizens. People believe that this interim budget likely to boost the government’s popularity ahead of election that is just months away. On this Congress President Rahul Gandhi mounted an attack on the BJP-led government’s last budget, saying the proposal of assured income support of Rs. 6000 a year an ‘insult’ to the intended beneficiaries. He also pointed out the unemployment reports showing a 45-year high indicating the government’s failure.
He also added, “I think it’s an insult to the Indian farmer to turn around and tell him that you are going to give him 17 a day; there couldn’t have been a bigger insult than this, “Mr. Gandhi told reporters. Furthermore, “And as far jobs are concerned, everybody knows that we are on a 45-year –high of unemployment. So, there is a complete failure on these two fronts.”
However, the country’s people applauded the announcements. Let’s take a look at the key highlights of interim election budget 2019 and find out who are the winners and losers.
Election Budget 2019: Benefits to Taxpayers, Farmers, Housing Buyers, and Workers
Is it a desperate move to buy farmers’ votes?
As expected the Modi-led government comes out with a massive plan for the welfare of the country’s farmers and doubling their income. In an announcement, the Finance Minister Piyush Goyal said that government has approved for small and marginal farmers with land of up to 2 hectares.
Under the Pradhan Mantri Kisan Samman Nidhi scheme, the government will support farmers by transferring Rs. 6,000 annually for up to 2 hectares landholding, which will come into their accounts in three installments. Also, the government has taken the decision to historic increase the MSP by 1.5 times the production cost of all 22 crops.
One thing is clear, the agriculture-based companies such as Jain Irrigation Systems, KSB, Shakti Pumps India, JK Agri Genetics, PI Industries, Avanti Feeds, Waterbase, and Kirloskar Brothers could benefit from this.
However, the Yogendra Yadav, president of Swaraj India doesn’t think of it as a benefit. On the contrary, he said, “This is a desperate measure to buy the farmers’ vote by transferring Rs. 2,000 to their accounts before the election… Farmers will surely reject this dishonorable bargain.”
But, comparing to Odisha’s KALIA scheme and Raythu Bandhu, the scheme seems to fall short. Under Pradhan Mantri Kisan Samman Nidhi scheme, farmers are getting only Rs. 6,000/year however under Odisha’s KALIA & Raythu Bandhu; the farmers are getting Rs. 10,000 and Rs. 8,000 a year respectively.
There was a big cheer on the announcement for middle-class taxpayers who are now allowed full tax rebate for taxpayers with a taxable earning of up to 5 lakh rupees. However, the tax slabs remained unchanged for taxpayers with overall taxable income above Rs. 5 lakh.
It is a clear indication that the government’s main focus was to boost the confidence of the middle-class and reduce the financial burden of middle-class taxpayers considering their social needs. With this, nearly 3 crore middle-class taxpayers can benefit from this. And those who are earning around Rs. 6.5 lakh will not need to pay tax, if they invest in PFs, and prescribed equities.
Overall, we can say that this interim election budget 2019 was not only to help farmers and poor people but also middle-class people, in transforming India into a leading nation of the world.
For Real-estate Consumers:
The FM Piyush Goyal announced proposal of affordable housing in order to boost home-buying for people. He also promised a home for every person in the country and proposed to allow investments of as much as Rs. 2 crores from capital gains for buying two residual houses compared to one at present.
Furthermore, he also proposed, “Tax on notional rent on unsold real estate inventory to be levied after 2 years vs. 1 year previously.”
The companies that could benefit from such proposals are DLF, Oberoi Realty, and Prestige Estates Projects among others.
After the FM Goyal’s realty announcements, the BSE real estate index climbed up.
For the benefits of domestic workers of unorganized sectors, FM Piyush Goyal announced to launch the first ever social security scheme. In a brand new pension scheme, the government will provide an assured return of Rs. 3000 on the lines of Atal Pension Yojana, in which a 29-year old domestic worker can enter into this Atal Pension Yojana by paying Rs. 100 per month. For that Govt. provides Rs. 500 crore the pension scheme for domestic workers.