R K Shanmukham Chetty presented the first budget of Independent India. It was from 15 August 1947 to 31 March 1948. The budget is prepared by the Government of India. To be precise, it is prepared by the Ministry of Finance after consultations with all the other ministries in respect of their funding requirements. On Budget Day, the Union Budget is presented in the Lok Sabha by the Finance Minister. Four phases are commonly known as budget preparation, approval, execution, and audit stages.
Budget 2019: Great Gift For The Poor, Pension For Maids, Drivers, Plumbers
In a move that can tempt a large number of poor voters to the BJP, Interim Finance Minister Piyush Goyal announced a Mega Pension Scheme for the workers in the unorganized sector. Prime Minister Shram Yogi Manthan will provide a fixed monthly pension of Rs. 3000, Contribution of Rs. 100 per month for the unorganized sector workers after the age of 60 years.
With this step, domestic help, drivers, plumber, electrician, hairdressers and other employees are likely to get low wages under the scheme. The minimum guaranteed pension will benefit 100 million people who receive less than Rs 15,000 monthly salary. The current minimum pension for organized workers is Rs 1,000 per month. The government will spend Rs 500 crores on this scheme.
Budget 2019: Paving Road For Recovery By Reducing Loan Load
Government announces 2% interest provision for farmers facing natural calamities and another 3% relief for repayment of time will help both the afflicted farmers and banks trying to recover loans, experts said.
The default of the form loan is 8.3% of the total non-executed assets of the bank. Banks lend up to Rs 3 lakh to farmers on 7% But effective rates for those affected by disasters and those who pay on time will be 2%. “It is an excellent step for the government to promote payment on time of loans and help the distressed farmers. This will help the banks in recovery, “said PK Joshi, director of South Asia at the International Food Policy Research Institute
Budget 2019: Taxpayers, Farmers To Get A Rs 93,000-cr Boost in Consumption
The budget is properly focused on consumption and rural theme. With the agricultural crisis clearly visible, the allocation for the agricultural sector is likely to bring much-needed relief.
The announcement of the Direct Benefit Scheme will benefit 120 million small and marginal farmers and the Income Tax Department will affect taxpayers with income of less than 30 million. Together, both these schemes will infuse an estimated Rs 93,000 crore into the system, which will lead to consumption and will help the rural economy to some degree. Only those earning up to Rs 5 lakhs pay without taxes, rates are the same for everyone else.
Budget 2019: Only Those With Earning Up To Rs 5 Lakh To Pay Without Taxes, Rates Remain Same For Everyone Else
Union Finance Minister Piyush Goyal has proposed in his interim budget in 2019 that persons having taxable income up to Rs 5 lakh will get full tax rebates under Section 87A of Income Tax Act.
Shalini Jain, partner of EY India, says, “This means that no person having net taxable income up to Rs 5 lakhs will not have to pay any tax. However, any person having net taxable income of more than Rs 5 lakhs will not be able to avail of this tax benefit”.