Home / India / Budget 2019 | Budget Tomorrow: It can be a satisfied budget on Friday

Budget 2019 | Budget Tomorrow: It can be a satisfied budget on Friday

NEW DELHI: Minister of Finance Piyush Goyal will present Friday the interim budget in the Lok Sabha, which could be almost a complete budget of the Modi government, prior to the Lok Sabha elections, in which tax subsidies for the middle class and the corporates could are expected, along with an aid package to address agricultural need and the stressed small-scale industrial sector.

Goyal, who is in charge of the financial portfolio instead of Arun Jaitley, who is in the US for medical treatment, is generally expected to break the tradition by crossing a budget for votes by dropping suds into different categories.

Normally, in the run-up to the general election, a mid-term budget is mainly presented to vote for four months for keeping the wheels of official machines for running programs, so that a new government can present a full budget.

Minister without portfolio Arun Jaitley had already indicated that the interim budget may go beyond the traditional "Account-and-Account" because addressing the challenges of agriculture "can not afford to wait".

For the record, the government maintained on Wednesday that the budget will be called "Interim Budget 2019-20" after the media in the media described the next exercise as a "general budget".

The income tax may include an increase of the threshold exemption limit for taxpayers in the middle class, which is considered a large constituency of the BJP. The exemption threshold could rise from the current Rs. 2,5 lakh to Rs. 5 lakh per year. The corporates have also hammered for reducing the peak value from 30 to 25 percent.

After the recent election defeat of the BJP in the Hindi core states of Madhya Pradesh, Rajasthan and Chhattisgarh, the agricultural sector will get good attention from the government because of the stress.

Direct investment support up to Rs. 15,000 per hectare for small and marginal farmers along the lines of a mix of the Kalia scheme in Odisha and the Rythu Bandhu plan in Telangana is generally expected to be announced in the budget, along with interest-free loans and nominal premiums for the crop insurance system.

Another option is to review the Bhavantar scheme, which has been implemented by the former BJP government in Madhya Pradesh, where farmers are compensated for the gap between the minimum support price and the market price. Cold chain and supply logistics for famers will get a boost to help them market their products.

For the stressed micro, small and medium-sized enterprises (MSME), which are severely affected by the demonization decision of 2016 and the introduction of the GST afterwards, the budget could contain incentives and an easier credit flow.

There are concerns that the expected giveaways could lead to the inflation deficit, mainly due to the lack of tax collection, in particular GST revenue.

This is expected to be a major challenge for the government to meet its government deficit target of 3.3 percent of GDP, even if it claims that the deficit would be offset by higher direct tax collections.

The goods and services tax (GST), which this year only twice exceeded the Rs 1 lakh crore brand – in April and October – remained largely moderated for the remainder of the year and in the range of Rs 94,000 crore to Rs 97,000 crore per month against the annual GST collection target of Rs 13.48 lakh crore, which translates into a monthly average target of Rs 1.12 lakh crore.

"Following the failed budget promise of a better purchase of crops through a revised Minimum Support Price Formula (MSP) in 2018-19, announcements that need to be made on February 1, 2019 will be the last chance for the government to create a larger share of society. capture through an interim budget, against an account-for-account, by changing both taxes and spending on schemes, "said a report last week by JM Financial Institutional Securities.

Source link