Bikky Khosla | 05 Feb, 2019
presented the Interim Union Budget for 2019-20 in Parliament last week, and as
was expected, the shadow of the general election fell squarely on it. There are
a number of schemes for all sections of population across social segments, and the
most striking among them include, first the farm income
support scheme that intends to transfer Rs 6,000 a year to farmers, and second the
announcement of tax rebate for income earners below Rs 5 lakh.
doubt, the budget clearly reflects the efforts by the government to woo rural and
urban middle-class voters and farmers. But from an economic point of view too, it
is good to see its efforts to support those segments, including the farm
sector, which have long been reeling under pressure. Additionally, the Budget
proposal to introduce a mega
pension scheme for the unorganised sector workers is also a welcome one.
As far as
the MSME sector is concerned, in a welcome step the Interim Budget announced a
2 percent interest subvention for loans up to Rs 1 crore for GST-registered business
enterprises. No doubt, the decision will be a big support for the sector.
Additionally, there is a reduction in corporate tax from 30 percent to 25
percent. Steps like 3 percent tax benefit on women-owned MSMEs and extension of
maternity leaves to 26 weeks are also noteworthy.
Budget--though too much politically oriented--overall seems to be good. It
is pro-farmer and pro-middle class. Economy watchers view that the Budget will provide a significant impetus to consumption spending in the economy,
which in turn will help demand creation, manufacturing upturn and overall
economic growth. But we all know implementation of these measures depends
on whether NDA will come to power again or not.
invite your opinions.