Budget 2019: Prime Minister Narendra Modi has made some big moves in the election year by announcing an universal income support scheme for small and marginal farmers, a monthly pension scheme of Rs 3,000 per month for 10 crore workers in unorganised sector and several relief measures to middle class and salaried tax payers including the rebate on payment of taxes on annual income of up to Rs 5 lakh.

Under the farm income support scheme called Pradhan Mantri Kisan Samman Nidhi Yojana, all the farmers with a landholding of 2 hectares or less will be eligible to get a fixed farm income support of Rs 6,000 in a year to buy seeds, fertilisers and other inputs. The farm income support will be paid to farmers in three equal installment of Rs 2,000 each to eligible farmers and the cash will be directly transferred to Aadhaar linked bank accounts of eligible farmers. Finance Minister Piyush Goyal has allocated Rs 75,000 crore for this scheme for FY 2019-20.

Given the importance of timely roll out of the scheme ahead of crucial Lok Sabha election, Modi government has decided to implement the scheme retrospectively from December 1, 2018. Finance Minister Piyush Goyal has made a huge allocation of Rs 20,000 under the revised estimates of FY 2018-19 budget for the implementation of Pradhan Mantri Kisan Samman Nidhi Yojana in the ongoing financial year.

Centre to fully fund Pradhan Mantri Kisan Samman Nidhi Yojana

Pradhan Mantri Kisan Samman Nidhi Yojana will benefit 12 crore small and marginal farmers in the country whose land holding is less than 2 hectares. Finance minister Piyush Goyal said it was necessary to support the farmers due to fragmenting of landholdings.

Pradhan Mantri Kisan Samman Nidhi Yojana is fully funded by Government of India unlike Ayushman Bharat which is based on 60:40 contribution by the centre and state that makes it easier for the central government to implement it at the ground level. States can’t drag their feet on implementing the farmer income support scheme in the name of shortage of funds. However, the central government will still be dependent on the state machinery for implementing the scheme.

Relief on interest payments to farmers

Finance Minister Piyush Goyal also extended 2% interest subvention to farmers engaged in fisheries and animal husbandry for the loans raised through Kisan Credit Cards. The government has also announced a simplified application form for Kisan Credit Cards. One per cent additional interest rebate will be given to Kisan Credit Card Holders on timely repayment of loan.

In addition to this, a 2% interest subvention for those farmers have been announced who have borrowed loans and are affected by natural calamities and disasters. Additional 1% interest rebate will be given to these farmers for timely repayment of the loan. These concessions will be applicable throughout the entire period of rescheduled period.

Rs 3,000 monthly pension for 10 crore workers in unorganized sector

In another major announcement aimed at providing social security to the workers in unorganised sector, particularly to domestic workers, Modi government has announced Pradhan Mantri Shram Yogi Mandhan Yojana, which is basically a pension scheme modeled on the lines of Atal Pension Yojana.

Under the scheme, domestic workers and other workers in the unorganized sector will be entitled to get a fixed pension of Rs 3,000 per month after attaining the age of 60 years. A 29 year old worker can enter into the scheme by paying just Rs 100 per month to be eligible to get a pension of Rs 3,000.

Major relief to middle class, upper middle class

In a major relief to the middle class and salaried people, finance minister has proposed that there will be no tax on the income up to Rs 5 lakh a year. He also proposed the standard deduction from Rs 40,000 to Rs 50,000. In a major relief to upper middle class tenants and landlords, the requirement to deduct TDS on payment of rent has been proposed to be increased from Rs 1.8 to Rs 2.4 lakh a year. Concessions on the long term capital gains tax will be extended to two houses worth Rs 1 crore.

Allocation for SC/STs increased substantially

Finance minister Piyush Goyal has allocated Rs 76,801 crore for the welfare of scheduled castes, which is an increase of Rs 14,327 crore or 23% over the amount spent last year as per the revised estimates. Similarly, the government has allocated Rs 50,086 crore against Rs 39,135 crore allocated last year, an increase of 28% as per the budget estimates of last year.