Significantly, on the eve of the budget, a leaked report of the National Sample Survey Office’s (NSSO) job survey for 2017-18 showed that unemployment has surged to over 6 per cent in 2017-18, the highest since 1972-73. The unemployment numbers set off a political firestorm with the Congress and BJP trading barbs.
While Niti Aayog called it a “draft report,” former acting National Statistical Commission (NSC) Chairman P C Mohanan, who resigned earlier this week because the report wasn’t released, rebutted the claim and told The Indian Express that this was the “final report” and it needed no further approval.
The unemployment rate stood at 7.8 per cent in urban areas as compared with 5.3 per cent in rural areas, while the labour force participation rate, which is the proportion of population working or seeking jobs, declined to 36.9 per cent in 2017-18 from 39.5 per cent in 2011-12, the report said.
The rate of joblessness among rural males in the age group 15-29 jumped more than three times to 17.4 per cent in 2017-18 compared to 5 per cent in 2011-12, while the unemployment rate of rural females in the same age bracket stood at 13.6 per cent compared to 4.8 per cent during the same time period.
Union Minister Arun Jaitley slammed the Congress over its remarks on the interim budget. "What did the UPA do in their 10 years in power? A one time loan waiver of 70,000 crores. Only 52,000 crores were waived off & CAG report was that out of that Rs 52000 crore a significant part of money went to traders and businessmen & not to farmers," ANI quoted him as saying.
Jaitley is away in New York for medical treatment. In his absence, Piyush Goyal was given the charge of the finance ministry.
monthly limit of free stories.
with an Express account.
Responding to the opposition's charge that government's scheme to support farmers translates just to Rs 500 per month, interim finance minister Piyush Goyal said the scheme has been introduced as a 'supplementary income'. "They are our 'anndaata' and provide us food security. Sitting over here it is very difficult to imagine how important this Rs 6000 is in the life of a small farmer," the interim finance minister told ANI.
Union Home Minister Rajnath Singh hailed the interim Budget as historic which he said is not only development friendly but also pays special attention to the middle class, farmers, workers in unorganised sector and the other vulnerable sections of our society.
Congratulating the Prime Minister Narendra Modi and the interim Finance Minister Piyush Goyal, Singh said that the announcement of exemption from income tax to people with income up to Rs 5 lakh and another Rs 1.5 lakh in investments totalling Rs 6.5 lakh will have a major impact on the lives of the middle class in general and salaried class in particular.
All Indian Kisan Sabha (AIKS) Maharashtra general secretary Ajit Nawale said the central government's announcement of giving Rs 500 per month to farmers owning land less than five acres is a cruel joke. "The condition of less than five acres land has also deprived many farmers from availing the benefits of the scheme. The farmers who have more than five acres but non-irrigated land with less income and are distressed due to the farm loans have been completely kept out of the scheme," he said.
"The farmers were expecting the budgetary allocations for the complete farm loan waiver and for the minimum support price. Besides, the farmers were also hoping for some relief to deal with natural calamities such as drought and irrigation. It was felt that the BJP's defeat in the recent state elections might force it to take some concrete steps in the budget on these issues. Sadly, it hasn't happened and has disappointed farmers again," Nawale added.
For years, many initiatives have been initiated for farmers but sadly, lot of farmers never came under the ambit of these schemes. The PM Kisan Nidhi will help those farmers who have under 5 acres of land. This scheme is a historic step for farmer welfare.
We have taken care of the animal husbandry sector, fisheries in the budget: PM Modi
Over 12 crore farmers and their families, over 3 crores salaried professionals and their families will gain, thanks to the budget. It is good to see more people being removed from the shackles of poverty. Our Neo-middle class is rising and so are their dreams: PM Modi
From housing to healthcare, several aspects have been touched in the budget. The development initiatives of the NDA government have touched several lives: PM Modi
Union minister Ramdas Athawale is known for his impromptu delivery of poems and couplets. On Friday, when Finance Minister Piyush Goyal was concluding his Budget speech with a couplet in Lok Sabha, Athawale was on his feet eager to recite a poem. He was, however, asked by BJP ministers not to disturb Goyal during his speech.
Thrice, Athawale also drew the attention of Congress president Rahul Gandhi during the Budget when Goyal announced sops for middle class and farmers.
(PTI)
Finance Minister Piyush Goyal presented the interim Budget 2019 in the Lok Sabha Friday. He announced some major announcements, including income support for marginal farmers and a full tax rebate for the salaried class for those with an income of up to Rs 5 lakh. Read the full text here
Piyush Goyal: Those sitting in AC rooms cannot understand the plight of the small farmers. Keeping this in mind, we have introduced Pradhan Mantri Kisan Samman Nidhi scheme. This is a historic decision.
I congratulate the Prime Minister and Finance Minister for this historic Interim Budget which is not only development friendly but also pays special attention to the middle class, farmers, workers in unorganised sector and other vulnerable sections of our society.
The announcement of exemption from income tax to people with income up to Rs 5 lakh and another Rs 1.5 lakh in investments totalling Rs 6.5 lakh will have a major impact in the lives of middle class in general and salaried class in particular.
The money being doled out by the government is for elections. I say directly that they are paying bribe to voters, alleges Congress leader Kharge.
Gene Fang, Associate Managing Director, Sovereign Risk Group, Moody’s Investors Service, weighs in on fiscal deficit targets.
"Budget proposes new expenditures ahead of elections, pressuring fiscal consolidation efforts. The announced central government deficit targets of 3.4 % for the fiscal year ending March 2019 and 3.4% for the fiscal year ending March 2020, are in line with our expectations.
No new policies to increase revenues were announced, while a number of expenditure measures were announced that will increase outlays and put pressure on the government’s ability to meet its fiscal deficit target. Ongoing slippage from the government’s budgeted fiscal deficit targets over the past two years, and our expectation that the government will face challenges meeting its target again this coming fiscal year (ending March 2020) does not bode well for medium term fiscal consolidation. We view this continued slippage as credit negative for the sovereign.
India’s high debt burden remains its biggest credit challenge and is not expected to diminish rapidly. India’s low income levels lead to significant development spending needs and constrain the scope of tax base broadening. Policies aimed at promoting expenditure efficiency through rationalization of government schemes and better-targeted delivery, including through direct income transfer schemes, are credit positive when implemented effectively. However, their effects will take time to bear fruit. Increased fiscal outlays as a result of the introduction of a new direct income support scheme for farmers and subsidized agriculture loans are likely to boost the rural economy through consumption in the near-term, but will have a fiscal cost," he told The Indian Express.
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Former Union Finance Minister P Chidambaram said it was not a vote on account, it was an account for votes.
Similarly, in a stinging attack on PM Modi, the Congress party said: "PM Modi can make all the grand announcements he wants but his history of lies has already lost him the trust of farmers."
Economist and former member of the state’s planning commission Prof HM Desarda weighs on the income support scheme for farmers.
"Rs 6,000 per year to small farmers is basically the government of the day trying to place a band-aid on a cancer. It is too trivial and too populist to be meaningful. Even if this is an interim budget, if they wanted to do something genuine, they could have. Rs 500 per month is not a viable assistance at current prices, a family cannot survive for even a day on that sum. This is an election handout and gimmick. The MSP for 22 crops also is a joke because everybody knows that market prices are currently the lowest for any season in the recent past," he told The Indian Express.
Echoing his views, Dr Ashok Dhawale, national president of the All India Kisan Sabha, told IE:
"The Rs 6000 per year is actually worse than a lollipop. At Rs 500 a month or Rs 15 a day, this is an utter betrayal of the farmers of India. Rs 15 per day will provide a cup of tea. Much worse, this is an effort to skirt the main issue of the farmers’ agitations over the last couple of years — a complete loan waiver and remunerative price for farm produce at 1.5 times the cost of production. These were both promises made by this government in 2014, which remain unfulfilled for nearly five years. And now this is a jumla ahead of elections. But the farm community will not fall prey to this, on the contrary they will be extremely angry at this insult and betrayal. The struggle continues."
-- The Budget expands spending while pragmatically sticking to fiscal prudence
-- The Budget is unquestionably Pro-Growth, Fiscally prudent, Pro-Farmer, Pro-Poor and strengthens the purchasing power of the Indian Middle Class.
-- Between 2014-19, every Budget has given significant relief to the Middle Class
Neeru Ahuja, Partner, Deloitte, tels ANI: We all were expecting it, If we add up all the things then people with an annual income around Rs 7.5 lakh won’t have to pay tax. It wasn’t the full budget, it was interim budget, so I would give it a 8/8.5 out of 10.
The market has responded positively to today's interim budget announcements. Sensex at 36,626.90 , up by 370.21 points.
Acting FM Goyal ends his speech. He will be addressing a press conference at 1.30 pm today.
# Standard tax deduction for salaried persons raised from Rs 40,000 to Rs 50,000
# TDS threshold on interest on bank and post office deposits raised from Rs 10,000 to Rs 40,000
# TDS threshold on rental income raised from Rs 1.8 lakh to Rs 2.4 lakh
Piyush Goyal briefly stopped his speech after announcing the full tax rebate as it was met with thunderous applause from the treasury benches, with some lawmakers chanting 'Modi, Modi'.
On behalf of all the people of India and our Government, thank all our taxpayers for their valuable contribution to nation-building and for providing a better quality of life to poor and marginalized.
Proposals relating to pensioners, middle class and salaried members should not wait as they seek certainty in their minds. The existing income tax rates to continue. However, those with income of up to Rs 5 lakh per year will get full tax rebate. Individuals with gross income up to 6.5 lakh rupees will not need to pay any tax if they make investments in provident funds and prescribed equities: Goyal
Fiscal deficit at 3.4 % of GDP. We could have taken more steps to consolidate it but the farmers' income support scheme meant that the fiscal target rose. Had we excluded this then the fiscal deficit would have been 3.3 per cent for current year and 3.1 per cent for next year: Goyal
We aspire to become a trillion dollar economy in the next eight years...our youth will lead India's digital economy, creating startups and jobs. India of the future will drive in electric cars: Goyal
GST has been continuously reduced, resulting in relief of Rs 80,000 crore to consumers. Most items of daily use for poor and middle class are now in the 0%-5% tax bracket: Goyal
No relaxation on income tax rates for the salaried class this year.
Direct tax collections from 6.38 lakh crore rupees in 2013-14 to almost 12 lakh crore rupees; tax base up from 3.79 crore to 6.85 crore. 99.54% of all I-T returns online have been accepted without scrutiny. Within almost two years, almost all assessment and verification of IT returns will be done electronically by an anonymized tax system without any intervention by tax officials: Goyal
Gone beyond incremental growth in infra, to attain transformative achievements. India is the fastest highway developer in the whole world, 27 kms of highways built each day, projects stuck for decades completed: Goyal
Safest year in Indian history. All unmanned level crossings on broad guage have been eliminated. Vande Bharat Express (Train 18) will provide speed, service and safety and will give a boost to Make in India: Goyal
Defence budget enhanced beyond 3 lakh crore rupees. Will provide additional funds if need arises: Goyal
India's youth have turned job creators from job seekers, India has become the second largest hub for startups: Goyal
To ensure cleaner fuel and health assurance, six crore free LPG connections distributed far under the PM Ujjwala Yojana scheme: FM
Mega Pension Yojana, namely Pradhan Mantri Shram Yogi Mandhan, to provide assured monthly pension of 3000 rupees per month, with contribution of 100 rupees per month, for workers in unorganized sector after 60 years of age: FM
This move will benefit 10 crore workers in unorganised sector, may become the world's biggest pension scheme for unorganised sector in five years, he added.
There are 12.56 crore marginal and small farmers having less than 2 hectares (5 acre) holdings. If Rs 6,000 is paid to each farmer, the total outlay will be Rs 75,360 crore. The budget scheme is a modification of the Rythu Bandhu scheme of Telangana government, which provides assistance on per-acre basis (Rs 8,000 per acre per year) without any holding size limit. What Goyal has announced is a flat Rs 6,000 benefit to all marginal and small farmers.
And there is more for marginal farmers. The acting FM announced 2 per cent interest subvention to farmers pursuing animal husbandry and fisheries. And all farmers severely affected by severe natural calamities will get 2% interest subvention and additional 3% interest subvention upon timely repayment of crop loans.
To help farmers with small landholdings. Pradhan Mantri Kisan SammanNidhi will offer direct income support of Rs 6,000 per year. The payments will be made in three instalments. This will save them from falling into a debt trap and help in procuring seeds and fertilisers. The money will be transferred to farmers' bank accounts, for those with less than two hectares land holding. This move will cost the exchequer Rs 75,000 cr: Goyal
Healthcare has seen a massive scale-up. 10 lakh people treated under Ayushman Bharat. Lower costs of stents and knee implants have helped people. The scheme resulted in Rs 3000 cr savings for households. Have announced 14 new AIIMS from 2014: Piyush Goyal
Rs 60,000 crore set aside for MGNREGA and Rs 19,000 crore for Pradhan Mantri Gram Sadak Yojana,. 1.53 lakh houses constructed in last five years under Pradhan Mantri Awas Yojana
From empty promises in the past, targeted expenditure has been undertaken to improve quality of life in villages; we aim to bring development, preserving the soul of villages: FM
Number of measures implemented to ensure clean banking, a resolution friendly mechanism has been instituted for recovery of non-performing loans. Close to 3 lakh crore already recovered in favour of banks and creditors, big defaulters too not spared by our government. Confident that given the pace of reforms in banking sector, other banks too will recover: Piyush Goyal
We have ushered in a new era of transparency. The Real Estate regulation ACt and Benami Act has transformed the real estate sector. We conduct a transparent auction of natural resources like coal and spectrum We have walked the talk: Piyush Goyal
We brought the average inflation is to 4.6 per cent, lower than any government. Had we not controlled inflation our families would have been spending close to 40 per cent more on essentials. The fiscal deficit has been brought down to 3.4 per cent as the revised estimates show. Current account deficit to be contained to 2.5 per cent: Piyush Goyal.
I can proudly say that India is back on track and marching towards growth and prosperity.... We are moving towards a new India by 2022... an India which is clean and healthy. Where everyone has a house, toilets and electricity. Where farmers income has doubled. (This sparks a huge uproar from the opposition benches.)
Piyush Goyal begins his speech by wishing Union Miniter Arun Jaitley a speedy recovery.
The Lok Sabha has convened. Acting FM Piyush Goyal rises from his seat to present the budget amid Opposition ruckus.
Union Minister Radha Mohan Singh dropped a huge hint on what to expect from today's interim budget. Speaking to news agency ANI, the Union Miniter for Agriculture and Farmers' Welfare said: "The last five budgets have been dedicated to the farmers, the government's sixth budget will also be for the farmers, it will empower them."
Meanwhile, the Sensex is up by 151.44 points and currently is at 36,408.13. Buoyed by expectations that this interim budget will have something big for the country's farmers, share prices of fertiliser companies are in the green.
The Leader of the Congress in Lok Sabha, Mallikarjun Kharge, who earlier warned the government against presenting a full-fledged budget, offers some harsh assessment. "They'll try to introduce populist schemes in the Budget keeping an eye on Lok Sabha polls. Budgets they've presented so far haven’t really benefitted general public. Only ‘Jumlas’ will come out today. They've only 4 months when will they implement the schemes?" he told news agency ANI.
In protest against the Centre for not granting special status to Andhra Pradesh, the TDP is observing today as a Black Day. The party's lawmakers arrived dressed in all-black.
A Bloomberg survey notes that economists expect the government to increase its fiscal deficit target to 3.5 per cent of GDP from 3.3 per cent, at the risk of damping market sentiment. The fiscal deficit is the gap between expenditure and revenue. A higher percentage of fiscal deficit forces the government to borrow from financial institutions, with expenditure exceeding revenue.
Before arriving at Parliament, acting FM Piyush Goyal and his colleagues from the finance ministry swung by the Rashtrapati Bhavan for tea. It is a tradition, according to the President of India official twitter handle. Below are more pictures from the meeting.
Below are rows and rows of copies of the budget published in English and Hindi. It is interesting to note that the BJP government in Goa recently saved on tonnes and tonnes of paper by distributing tablets to lawmakers that contained soft copies of the state budget.
JNU economics professor Jayati Ghosh, in an opinion piece that appeared in The Indian Express on Thursday, argues why delay in official statistics has dire consequences for addressing job crisis. "Attack on official statistics is obviously important because it denies citizens access to reliable data on what is going on in the economy and assess the government’s performance," she writes.
Click here to read the full piece.