Interim Buget 2019 - Who wins, loses
February 2, 2019
The interim Budget of Prime Minister Narendra Modi is likely to boost the government's popularity ahead of the national elections months away.
There were some big announcements like an income support scheme for farmers and a new pension program for workers. There are also some measures that will make the lower middle class happy.
The interim Budget was delivered by Finance Minister Piyush Goyal in the absence of Arun Jaitley, who is in the United States for medical treatment.
Here are the list of winners and losers.
- Farmers - The government has announced a Rs 75,000-crore farm income support program. Farmers with less than two hectares of land will receive Rs. 6,000 a year. each year. This will help 120 million farmers.
- Tax payers - Income tax payers earning up to Rs. 5 lakh will get a full tax rebate. Those earning up to Rs 6,50,000 will not need to pay tax if they invest in the country's provident funds and prescribed equities.
- Rural India - More spending on animal husbandry and fisheries.
- Workers - Pension program for India's informal sector workers with income below Rs. 15,000.
- Real Estate - New measures have been announced to encourage home-buying. Goyal promised a home for every person in India.
- Bond holders - Bond holders could get hit if Moody's or S&P downgrade the country's credit rating.
- Opposition - With so many goodies for farmers, the middle class and businesses, the opposition parties will be affected regardless of whether or not the government implements these promises.
- Farm labourers - Labourers who work on farms but don't own any land will not benefit from the government's big spending plan for farmers.
- Defense - Only Rs. 3.05 lakh crore has been allocated which is not enough.