Sayeed Muhammad of DOT
Indian’s Finance Minister Piyush Goyal yesterday rolled out his government’s last budget before this year’s national elections, announcing no tax on income up to Rs 5 lakh, a Rs 75,000 crore assured income scheme for small farmers and a mega pension scheme for workers in the unorganised sector.
The moves are meant for wooing the middle class, addressing farm distress and boosting private investment in an effort to shore up the political base of ruling BJP-led national coalition that has been accused by the opposition of not delivering on its promises to the poor, reports the Hindustan Times.
“India is solidly back on track and marching towards growth and prosperity,” Piyush said, asserting that the government had succeeded in “we have broken the back of back-breaking inflation”.
According to him, the Narendra Modi government’s success in controlling inflation had put more money in the hands of people.
“Inflation is a hidden and unfair tax, from 10.1 per cent during 2009-14,” the minister said.
Piyush announced exemption from tax on income of up to Rs 5 lakh per annum, which goes up to Rs 6.5 lakh if the individual tax payers invest Rs 1.5 lakh in provident fund and prescribed equities. He also proposed to increase the standard deduction from the existing Rs 40,000 to Rs 50,000. The proposal will benefit 3 crore middle class tax payers.
The minister said Rs 6,000 per year assured income support will be given to small and marginal farmers having less than two hectares of land. He announced a new fund, ‘Pradhan Mantri Kisan Samman Nidhi’ for disbursement of cash to “vulnerable farmers”.
Around 12 crore farmers will receive Rs 6,000 per annum under the PM Kisan scheme. The money will be transferred into bank accounts of farmers in three equal instalments. The finance minister said Rs 20,000 crore have been provided for current fiscal, 2018-19 under PM Kisan scheme.