New Delhi, 1st February 2019: The Interim Budget announced by the finance ministry appears to be good budget with a mix of populist and pragmatic statements.
The Associated Chambers of Commerce and Industry of India (ASSOCHAM) have welcomed the union budget announced today by the finance minister, Shri Piyush Goyal. The Union Budget has given people from mostly all sectors something to cheer about.
The government has laid a lot of emphases on the farm sector and has announced 2 percent interest subvention to promote animal husbandry and fisheries sector.
B.K Goenka, President, ASSOCHAM explained that India is an agrarian economy and has the largest number of people depending on it. “The PM Kisan Samman Nidhi where Rs 6000 assured income benefit would be provided to all farmers with land holding of less than 2 hectares would encourage small farmers to continue in the field.” “An additional 3 percent interest subvention to farmers repay loans on time would also encourage timely repayment of bank loans,” he added.
While Dr. Niranjan Hiranandani senior Vice President, ASSOCHAM explained that “It is a directional budget with a clear intent of doing good to all the sections of the economy and the society, be it farmers, the industry and the common man.” He shared “I am surprised to see how the Finance Minister has brought a slew of measures without ushering into an additional tax regime or caps. Indeed, he has presented ambitious programmes without widening the fiscal deficit.”
He quoted “Its encouraging to note the Government’s 10-point dynamic vision to build India of future. Initiatives to diffuse farmers’ distress, labour reforms, boost to SMEs and MSMEs, push to ‘Housing for All’ by giving extension by another year under section 80 IBA, boost to the infrastructure sector and relaxations to individuals through tax reliefs will empower each element of the economy. Liquidity is an issue in the economy and in the real estate sector too. We expect the Government to address the concern to make all these reforms effective to ensure ease-of-doing the business and ease-of-living”.
Budget Reaction: Mr B K Goenka, President, ASSOCHAM
Interim Budget aims at wooing middle class tax payers, farmers: B K Goenka, President, ASSOCHAM
The finance minister, Piyush Goyal in his interim vote of account budget presented today announced sops that would benefit people from several walks of the society. Right from the farmer, to the worker from the unorganised sector to the middle class tax payer, everyone would have something to cheer upon.
The farm sector which has the largest number of people dependent on it is the biggest beneficiary. The finance minster announced the launch of the The PM Kisan Samman Nidhi where Rs 6,000 assured income benefit would be provided to all farmers with a land holding of less than 2 hectares. The amount would be provided in three equal installments within effect from December 2018. He also announced interest subvention of 2 percent to farmers hit by natural calamities. An additional 3 percent interest subvention would be further provided if they repay the loan on time, thus taking the subvention to 5 percent, said Mr. Goenka .
For the worker in the unorganized sector, the finance ministry has announced the creation of a Mega pension scheme- Pradhan Mantri Shram Yogi Mandhan, which would give an assured pension of Rs 3000 per month to a worker from an unorganised sector on his completion of 60 years. The worker needs to contribute Rs 100 per month.
The tax payer who has been bearing the burden of all schemes run by the government has also got something to cheer from the interim budget. People with income upto Rs 5 lakhs would be exempted from paying taxes. The salary earners with income upto Rs 6,50,000 and making investments would be exempted from paying taxes. The standard deduction amount reintroduced last year has also witnessed a 25 percent increase. The amount has gone up from the earlier Rs 40,000 to Rs 50,000 now. People owning second homes and were paying tax on the notional rent would also be exempted from paying taxes now, added President Chief.
Steps have also been taken to simplify the tax payment system. Income tax return refund would be processed in the record span of 24 hours and the refund amount would be issued simultaneously.