What is budget?
It is the planned estimates of expenditure, collection and distribution of money by the ruling government for a financial year.
“Interim budget 2019” was produced in the parliament by stand in finance minister Piyush Goyal 1st Feb.
“Interim budget” is different from “full budget”.
In an interim budget the vote on account asks for parliament’s approval for incurring expenditure for part of a financial year. The estimates are presented for the whole year. The new administration has the full right to change the estimates fully when the budget is normally present when an election is nearby. Generally, an interim budget is valid for only 2 months.
Some historical facts regarding budget:
- The term ‘budget’ has been derived from the “French word” “bougette”which means leather bag.
- Budget was introduced for the first time in India on April 7, 1860, by East India Company to the British Crown.
- Morarji Desai has presented the budget for maximum 10 times.
- Earlier the time of budget commencement was 5 PM. It was changed by the former finance minister Yashwant Sinha to 11 AM.
- Indira Gandhiwas the first woman Finance Minister to present the budget on February 28, 1970.
- The first union budget of independent India was presented by R.K.Sanmukham chetty on Nov. 26, 1947.
- The first budget of The Republic of India (when Indian Constitution was adopted and British left in fully) was presented by John Matahi.
- The longest budget speech was delivered by Dr. Manmohan Singh during his tenure as Finance Minister in 1991.
- In 2017, the rail budget, which was presented separately for 92 years, got merged with union Budget.
Interim Budget 2019:
- Special attention has been given to Tax payers, farmers, home owners, unorganized worker and Railways.
TAX PAYERS- Although tax slabs has been left unchanged an amendment has been done in section 87 A of the IT Act to increase the rebate Ceiling from Rs 3-5 lakh to 5 lakh.
- Nearly 3 crore tax payers will be benefitted.
- Benefiters will get tax exemption up-to Rs 12000 approx per month.
- Total tax benefit for tax payers is Rs 18,500 crore.
- Those having gross income up-to Rs 6.50 lakhs will also have not to pay tax if they invest money in provident fund, insurance etc.
FARMERS – A new “direct income support” Scheme “Pradhan Mantri Kisan Samman Nidhi” has been announced.
- Under this, Rs 6000 per year will be directly transferred to farmers account in 3 installments. First installment will be given by 31st March.
- Approx 12.50 crore farmers are likely to get benefitted.
- Farmers having less than 2 hectares land will be under this scheme.
- Tax on notational rent for a second home has been exempted.
- It will boost the real state sector.
- A new scheme “Pradhan Mantri Shram Yogi Maandhaan” has been launched for Young unorganized Workers.
- Workers having income of Rs 15000 or less a month will be included in this scheme.
- Rs 500 crore has been allotted for this scheme.
- Rs 3000 will be provided an assured monthly pension after the age of 60.
- The safest year for Railways.
- Unmanned level crossings on board ganged network have been removed.
- Commencement of the first indigenous semi high speed “Train 18”. It is named as “Vande Bharat Express”.
- Railway to get Rs 1.59 lakh crore the highest ever.
- India is now world’s second largest started hub.
- National program on ‘Artificial intelligence’ has been proposed.
- Average monthly tax collection has increased to Rs 97,100 crore per month this financial year compared to the last financial year (2018-19) which was Rs 89,700 per month.
- GST exemption on small business has been doubled from 20 lakhs to 40 lakhs.
- “Rashtria kamdhenu Aayog” will be set up to enhance productivity of cows.
- Rs 750 crore allocation for “Rashtria Gokul Mission”
- Allocation increased by Rs 5000 crore to Rs 60,000 crore this financial year.
- 8 crore free LPG to be distributed under Ujjawala Yojana. 6 crore already distributed.
- To make $10 trillion economy.
- Ease of living.
- Expansion of “Digital India” to energy sector.
- Massive employment under “Make In India”.
- Pollution free rivers.
- Pollution free environment.
- Tax collection almost doubled from 20130-14 to this year. (6.38 lakh crore to 12 lakh crore)