by Harish Gupta, National Editor, Lokmat Group
Modi's imprint on Full “Interim” Budget
Rs one lakh crore to benefit 55 crores in Poll year
Harish Gupta
New Delhi, Feb 1
The imprint of Prime Minister Narendra Modi on the Union Budget 2019-20 was clearly visible. The Modi government has done what no previous government dared do in the past – presented a full budget and yet called it an Interim Budget. Insiders say during one of the interactions with the Finance Minister Piyush Goyal, it was the PM who suggested that “big Bonanza” is needed for the salaried middle class tax-payers to win back the lost ground in urban areas. “Why not double the Exemption limit from Rs 2.50 lakhs to Rs 5 lakhs?” was the poser and Goyal did it exactly the same today.
So what the cost to the exchequer will be Rs 18500 crores plus Rs 4700 crores in other benefits. But it will help BJP win three crores tax payers. It was Prime Minister Modi's big ticket relief to 3 crore Income-Tax payers that stumped the Opposition completely.
Earlier, the dole to farmers was to be to the tune of Rs 10000 per year to farmers owning 5 acres of land. But Modi scaled it down to Rs 6000 per year as he wanted the total relief under Rs one lakh crores to maintain fiscal deficit targets. Thus the 12 crores farmers will get a direct bank transfer cash subsidy to the tune of Rs 75000 crores. Then, 40 crore workers in un-organised sector will benefit from the pension scheme which has been introduced first time. The amount, however, for 40 crores work force, is a mere Rs 500 crores. Its a scheme where every worker will have to chip in Rs 55 per month and centre will match it by paying Rs 55. The government should have allocated Rs 2200 crores. But only Rs 500 crores as government knows such pension accounts can't be opned. Modi also kept in mind his core constituency by setting up Kamdhenu commission for the welfare of cow and allocated Rs 750 crores.
Modi may have tried to woo the distressed farmer, middle class groups and un-organised sector workers and the cow by doling out Rs one lakh crores approximately. The farmers will get the first installment of Rs 2000 cash in their bank account before March 2019 – i.e. merely a month before the polling begins. The huge tax exemption limit will bring down the number of income tax payees from 6 crores to three crores. But riders may be attached when the Full Budget is presented by the government in July.
Any way, its a win win for Modi before the polls.
Ends
