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Budget 2019 - 20

MINISTRY OF LABOUR AND EMPLOYMENT

Pension for the Unorganised Sector

Announcement in Interim Budget 2019-20

“In addition to the health coverage provided under ‘Ayushman Bharat’ and life & disability coverage provided under ‘Pradhan Mantri Jeevan Jyoti Bima Yojana’ and ‘Pradhan Mantri Suraksha Bima Yojana’, our Government proposes to launch a mega pension Yojana namely 'Pradhan Mantri Shram-Yogi Maandhan' for the unorganised sector workers with monthly income upto Rs. 15,000. This pension yojana shall provide them an assured monthly pension of Rs. 3,000 from the age of 60 years on a monthly contribution of a small affordable amount during their working age.”

Features of the Yojana –

· A worker joining the pension Yojana at 18 years of age, will have to contribute Rs. 55 per month. The amount to be contributed by the worker joining the Yojana at 29 years will be Rs. 100 per month.

· The Govt. will contribute an equal amount in the pension account every month.

· A sum of Rs.500 crore has been allocated for the Scheme.

· It is expected to benefit 10 crore labourers and workers in the unorganised sector.

Is 'Pradhan Mantri Shram-Yogi Maandhan’ an unrealistic promise of “Acche Din”?


MINISTRY OF AGRICULTURE AND FARMER’S WELFARE

1) Income Support Scheme

Announcement in Interim Budget 2019-20

“To provide an assured income support to the small and marginal farmers, our Government is launching a historic programme namely “Pradhan Mantri Kisan Samman Nidhi (PM-KISAN)”. Under this programme, vulnerable landholding farmer families, having cultivable land upto 2 hectares, will be provided direct income support at the rate of Rs.6,000 per year. This income support will be transferred directly into the bank accounts of beneficiary farmers, in three equal instalments of Rs.2,000 each.”

Some Features of this Yojana-

· This programme will be funded by Government of India.

· The programme would be made effective from 1st December 2018 and the first instalment for the period upto 31st March 2019 would be paid during this year itself.

· Estimated outlay for the Yojana is Rs. 75000 crore for the F.Y 2019-20.

· Rs. 20,000 crore has been provided in the revised estimates of FY 2018-19.

2) Minimum Support Price for all crops

Announcement in Interim Budget 2019-20

“With an aim to double the income of farmers, our Government, for the first time in history has fixed the minimum support price (MSP) of all 22 crops at minimum 50% more than the cost.”

The announcement of MSP for all the crops was made in Budget 2018-19 and was left unchanged in the current Budget.

In light of the alarming farm distress, is the Budget announcement of Income Support Scheme a step taken in the right direction?

Is the Govt.’s decision of fixing MSP for all crops fuelling farm distress?


MINISTRY OF RURAL DEVELOPMENT

Highest Ever Allocation to MGNREGA

Announcement in Interim Budget 2019-20

Rs.60,000 crore is being allocated to Mahatma Gandhi National Rural Employment Guarantee Act 2005(MGNREGA) scheme for the F.Y. 2019-20.

Some Features of MGNREGA-

· This is the highest ever allocation to MGNREGA scheme.

· Budget Allocation for this scheme for the FY 2018-19 was Rs.55,000 crore.

· This is the world’s largest Employment Guarantee scheme.

Is the increased allocation to MGNREGA scheme justified?


MINISTRY OF FINANCE

Full Income Tax Rebate for Individuals earning Income upto Rs.5 lakh per annum.

Announcement in Interim Budget 2019-20

“Individual taxpayers having taxable annual income up to Rs. 5 lakhs will get full tax rebate and therefore will not be required to pay any income tax. As a result, even persons having gross income up to Rs. 6.50 lakhs may not be required to pay any income tax if they make investments in provident funds, specified savings, insurance etc.”

Features of the tax relief announced-

· With additional deductions such as Interest on Home Loan up to Rs. 2 lakhs, Interest on Education loans, Medical Insurance, NPS contributions etc. individuals with income higher than Rs. 6.5 lakhs/annum might end up not paying any tax.

· There is also a standard deduction of Rs. 50,000 (updated in this budget) allowed to salaried employees.

· For FY 2018-19, full tax rebate, for Individuals, was applicable for income upto Rs. 3 lakh/annum.

With a number of Social Security Schemes being announced in this Interim Budget alone, questions have been raised regarding Govt.’s ability to generate revenue for successfully implementing these schemes.

Is the govt.’s announcement of Full Tax Relief to Individuals earning upto Rs. 5 lakh/annum justified?

In light of the above, will the government be able to generate enough revenues to sustain such measures of Full Income Tax Rebate?



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