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Budget 2019 highlights

Prime News, Nation, (New Delhi), February 1:-The Government on Friday announced Rs 6,000 per year cash support to small and marginal farmers that will cost the exchequer Rs 75,000 crore annually, in a bid to provide relief to distressed farm sector.

Under the scheme called Pradhan Mantri Kisan Samman Nidhi, Rs 6,000 will be transferred into bank accounts of farmers holding up to 2 hectares of land in three equal instalments.

Announcing the scheme during the Budget speech in Lok Sabha, Finance Minister Piyush Goyal said it will benefit 12 crore farmers and will be implemented from this fiscal itself.

He said Rs 20,000 crore have been provided for current fiscal and also announced allocation of Rs 75,000 crore for the next fiscal.

Defence budget:

The defence budget was increased by 7.81 per cent to Rs 2.95 lakh crore against last years Rs 2.74 lakh crore, belying expectations of a significant hike when the armed forces are facing growing challenge on the borders with both Pakistan and China.

Out of total allocation of Rs 2,95,511 crore for defence budget, Rs 99,947 crore has been set aside for capital outlay to purchase of new weapons, aircraft, warships and other military hardware. The revenue expenditure which includes expenses on payment of salaries and maintenance of establishments has been pegged at Rs 1,95,947 crore.

The allocation has been estimated at around 1.58 per cent of the GDP while the overall defence budget is 12.10 per cent of the total budget of Rs 24,42,213 crore for 2018-19.

The capital allocation for the armed forces is 33.1 per cent of the total expenditure by the government on capital account, which is Rs 3,00,441 crore, the defence ministry said.

Last year, the hike in defence budget was 6.2 per cent compared to allocation in 2016-17. The increase was 9.76 per cent for 2016-17 compared to 2015-16.

The amount for defence pension is an increase of 26.60 per cent over the allocation of Rs 85,740 crore last year.

MNREGA allocation:

Finance Minister said that MNREGA allocation has been set at Rs 60,000 crore to create employment opportunities.

Finance Minister Goel said that Rs 1,70,000 crore has been spent by the government during 2018-19 to bring food at affordable rates to the poor. He added that Rs 60,000 crore has been set aside with regard to the employment guarantee scheme – MNREGA. “If there is a need we will increase the allocation,” Goel said.

Fiscal deficit to be at 3.4% of GDP this year: Goyal

Goyal on Friday said the fiscal deficit will be at 3.4 per cent of GDP this year.

Presenting the Budget for 2019-20 in the Lok Sabha, Goyal also said that current account deficit is likely to be 2.5 per cent of GDP this year.

He further said India attracted USD 239 billion in FDI (foreign direct investment) in the last five years.

“We have liberalised FDI allowing more investment through automatic route,” he said.

Stating that the government had “undertaken path-breaking structural reforms by introducing GST and other reforms”, he said that the NDA government has been able to rein inflation.

No tax for income upto Rs 5 lakh

Finance Minister Piyush Goyal on Friday proposed major income tax rate change for the salaried class by announcing that individual taxpayer earning upto Rs 5 lakh will get full tax rebate.

The Finance Minister said that current account deficit is likely to be 2.5 percent of GDP this year while maintaining that fiscal deficit will be at 3.4 percent of GDP this year.

-(NAV, Inputs: Agencies)

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