COSIA’s comments on Interim Budget 2019
Popular but Progressive Budget
The Interim Budget-2019, commonly seen as ‘Election Budget’ is rather a Progressive Budget. Number of new welfare schemes, enhancement in fund allocations to existing welfare schemes & relief in Tax structure can be attributed to increase in Revenue collection & Tax Base and plugging the drains in the system. The Budget aims at providing relief to a Lower Middle Class and Middle class strata of the society, which has a significant number in the country.
Tax exemption up to Rs. 5,00,000/- income will benefit to the tune of Rs. 13,000/- to an individual which means a lot to a Middle class family. Increase in Standard deductions from 40,000 to 50,000/- and TDS exemptions on deposits to similar amount will benefit salaried class sector. Increase on Bank Interest Deposits Tax exemption from 10000 to 40,000/- will benefit the senior citizens to a great extent.
In Farm sector a minimum assured income of Rs.6,000/-per annum to a small farmer having land up to 2 ha is a good beginning. 5% Interest subvention to Farmers affected by natural calamity & 2% Interest subvention to Animal Husbandry and Fisheries is again a welcome step.
On Manufacturing Sector:
2% Interest subvention to GST registered MSME units availing loan up to 1Cr is a great boost to this sector and can help in generating employment opportunities.
Minimum Pension of Rs.3000/-per month to labor in unorganized sector will be a great relief to otherwise neglected sector.
Increasing in Defense allocation to 3 lac crores and promoting ‘Make In India’ concept will definitely enhance the opportunity for Manufacturing Sector.
As published by Ministry of MSME, Government of India on 13th February, 2019 on pib.nic.in The Cabinet Committee on Economic Affairs, chaire...
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