Budget 2024: FM Nirmala Sitharaman will read out the Interim Budget on February 1. As this is the year of General elections, a full-fledged Budget will be tabled after the Lok Sabha elections later this year. After the February 1 presentation, which will be a vote-on-account, it will go to the Parliament for approval. After its approval, the government will be allowed to withdraw money from the Consolidated Fund of India on pro-rata basis to meet expenditure for the April-July period.
Just like this year, the last interim budget was tabled in 2019 by then Finance Minister Piyush Goyal. Goyal was given the additional charge of the finance ministry due to Arun Jaitley's ill health. He presented the interim budget for 2019-20 on February 1, 2019.
While interim Budgets are said to have no major policy changes, Goyal introduced some crucial changes in that year's Interim Budget.
Pradhan Mantri Kisan Samman Nidhi (PM-KISAN) scheme
Goyal introduced Pradhan Mantri KIsan SAmman Nidhi (PM-KISAN) to extend direct income support at the rate of Rs. 6,000 per year to farmer families, having cultivable land upto 2 hectares. The scheme under the Government of India would transfer Rs 2,000 each to the bank accounts of around 12 crore Small and Marginal farmer families, in three equal installments.
While presenting the Interim Budget 2019-20, Goyal said: “Our government is launching a historic programme PM-KISAN with an outlay of Rs 75,000 crore for the FY 2019-20 and Rs 20,000 crore in the Revised Estimates of FY 2018-19." The programme was made effective from December 1, 2018, and the first installment for the period up to March 31, 2019, would be paid during this year itself, Goyal added.
The scheme was launched later that month by Prime Minister Narendra Modi.
Creation of Department of Fisheries
Then FM Goyal said to provide sustained and focused attention towards development of Fisheries, the Government has decided to create a separate Department of Fisheries. Finance Minister said that through the measure, the Government wants to promote further growth over 7% to promote livelihood of about 1.45 crore people dependent on the sector.
The Finance Minister announced 2 per cent interest subvention to the farmers pursuing the activities of animal husbandry and fisheries, who avail loan through Kisan Credit Card. Further, in case of timely repayment of loan, they will also get an additional 3 per cent interest subvention.
Rashtriya Gokul Mission
A sum of Rs 750 crore was allocated for the Rashtriya Gokul Mission. Setting up of Rashtriya Kamdhenu Aayog to upscale sustainable genetic upgradation of cow resources and to enhance production and productivity of cows was announced. The Aayog will also look after effective implementation of laws and welfare schemes for cow.
Pradhan Mantri Shram Yogi Maandhan scheme
The Pradhan Mantri Shram Yogi Maandhan scheme was introduced, offering a pension of Rs 3,000 per month for workers in the unorganised sector after the age of 60.
Railways got Rs 1.58 lakh crore
The Union budget has allocated Rs 1.58 Lakh crore for Indian Railways to expand the railway infrastructure in the country.
In his interim-budget speech, Goyal said Indian Railways witnessed its safest year in the history in 2018-19 and the national carrier was able to remove all unmanned railway crossing across all the broad gauge tracks in the country.
He also outlined the achievements of his government stating that the people of India would soon have world-class train experience through semi-high speed train Vande Bharat Express which is a product of Indian engineering. The minister also hoped that Indian Railways would improve its operating ratio and try to improve it from 98.4% to further 95%.
Social Security Coverage Scheme
A new social security coverage scheme was announced for unorganised sector workers.
Under the scheme, informal sector workers will get assured monthly pension of Rs 3,000 a month on contribution of Rs 100 per month, after they turn 60.
Rural economy
Rs 19,000 crore of budgetary allocation in 2019-20 for construction of rural roads under Gram Sadak yojana.
Rs 60,000 crore allocated for for MNREGA scheme.
Poor and Backward Classes
25% additional seats in educational institutions to meet the 10% reservation for the poor. All willing households to be provided electricity connections by March 2019.
Tax Benefits
Piyush Goyal announced that individual taxpayers having taxable annual income up to Rs 5 lakhs will not be required to pay any income tax.
He said that persons having gross income up to Rs 6.50 lakhs are not required to pay any income tax if they make investments in provident funds, specified savings and insurance etc.
Additional deductions, such as interest on home loan up to Rs 2 lakh, interest on education loans, National Pension Scheme contributions, medical insurance and medical expenditure on senior citizens etc, were also provided for in the Interim Budget 2019-20.
Thus, tax benefit of Rs 18,500 crore is proposed to be provided to an estimated 3 crore middle class and small taxpayers comprising self employed, small business, small traders, salary earners, pensioners and senior citizens.
Benefit of rollover of capital tax gains raised to two residential houses from one earlier; this rollover up to Rs 2 crore can be exercised once in a lifetime.
Income Tax returns to be processed within 24 hours and returns will be paid immediately in next 2 years.
Standard Deduction
For salaried persons, Standard Deduction is being raised from the current Rs 40,000 to Rs 50,000. This will provide additional tax benefit of Rs. 4,700 crore to more than 3 crore salary earners and pensioners.
GST
A Group of Ministers will suggest ways to bring down GST for homebuyers.
GST-registered small and medium businesses registered will be given a 2 per cent interest subvention on loan of Rs 1 crore.
Defence
Defence budget increased to over Rs 3 lakh crore. Goyal announced that the government will provide additional funds if needed.
Rs 35,000 crore disbursed under OROP in the last few years, the budget speech stated.
Entertainment Industry Filmmakers got access to Single window clearance as well for ease of shooting films. An anti-camcording provision was proposed to Cinematography Act to combat film privacy.
Also read: Budget 2024 & FAME III: What can the EV sector expect FM Sitharaman to roll out this year?
Also read: Interim Budget 2024: Capex boost, more funds, and more. What's in store for Railways?