Interim Budget 2024: What key announcements were made in Interim Budget 2019; Details inside-
Just like this year, the last interim budget was tabled in 2019 by then Finance Minister Piyush Goyal. One of the key announcements that year was concessions in direct taxes.
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Union Finance Minister Nirmala Sitharaman is slated to present the Union Budget for the fiscal year 2024-2025 in Parliament on February 1. Notably, this will be an interim budget and not a full-year budget due to the Lok Sabha elections scheduled in May this year. Read more: What is difference between interim budget and a full-year budget?
Traditionally, union budgets hold significant importance for various stakeholders and the general public. Given the interim budget, there will not be any major announcements by the government as the focus will be emphasized on addressing immediate priorities rather than introducing comprehensive policy measures.
-Individuals with an income of Rs 6.5 lakh (Rs 5 lakh + Rs 1.5 lakh under 80C of the Income Tax Act) were exempted from income tax.
- The standard deduction saw an increase to Rs 50,000 from Rs 40,000. While the TDS (Tax Deducted at Source) threshold on interest earned from bank deposits or post office deposits was raised significantly to Rs 40,000 from Rs 10,000. All this meant that a substantial tax relief of over Rs 23,000 crore was announced for 3 crore middle-class taxpayers.
-25% additional seats in educational institutions to meet the 10% reservation for the poor.
- The PM-KISAN scheme was announced, aiming to provide assured yearly income of ₹6,000 per annum to ₹12 crore to small and marginal farmers.
- Additionally, a 2% interest subvention scheme for farmers involved in animal husbandry and fisheries activities was introduced, with an additional 3% incentive for timely repayment.
- Defence budget crossed Rs 3 lakh crore for the first time ever
6. MSME and Traders
- A 2% interest subvention on an incremental loan of Rs 1 crore for GST-registered SMEs
- At least 3% of the 25% sourcing for the Government undertakings will be from women-owned SMEs
-Renewed Focus on Internal trade; DIPP renamed to Department for Promotion of Industries and Internal trade
7. Labour
- Pradhan Mantri Shram Yogi Maandhan scheme to ensure fixed monthly pension to 10 crore unorganized sector workers
-Rs 3000 per month after 60 years of age with an affordable contribution of only Rs 100/55 per month
Impact on Stock Market
On February 1, 2019, the NIFTY commenced trading at 10,851.35, thus fluctuating throughout the day with a high of 10,983.45 and a low of 10,813.45. Despite the inherent volatility, the index concluded the session with a notable uptick, closing 62.70 points, or 0.58%, higher at 10,893.65.
A similar instance was witnessed in 2019. Before the general elections of 2019, the interim budget was presented by the then acting Finance Minister Piyush Goyal.
While Goyal did not make big-ticket announcements, Budget 2019 had some significant announcements.
1. Personal Laws -
-Individuals with an income of Rs 6.5 lakh (Rs 5 lakh + Rs 1.5 lakh under 80C of the Income Tax Act) were exempted from income tax.
- The standard deduction saw an increase to Rs 50,000 from Rs 40,000. While the TDS (Tax Deducted at Source) threshold on interest earned from bank deposits or post office deposits was raised significantly to Rs 40,000 from Rs 10,000. All this meant that a substantial tax relief of over Rs 23,000 crore was announced for 3 crore middle-class taxpayers.
2. Poor and Backward Classes
-25% additional seats in educational institutions to meet the 10% reservation for the poor.
3. Farmers
- The PM-KISAN scheme was announced, aiming to provide assured yearly income of ₹6,000 per annum to ₹12 crore to small and marginal farmers.
- Additionally, a 2% interest subvention scheme for farmers involved in animal husbandry and fisheries activities was introduced, with an additional 3% incentive for timely repayment.
Also Read: Budget 2024: What is 'halwa ceremony'? Why it is important? What is Lock-In period?
4. Defence
- Defence budget crossed Rs 3 lakh crore for the first time ever
5. Railways
- The capital expenditure of Indian Railways was raised to Rs 64,586 crores in FY20 from Rs 53,060 crores in FY19.
Also Read: Budget 2024: What is Interim Budget? How is it different from Union Budget?
6. MSME and Traders
- A 2% interest subvention on an incremental loan of Rs 1 crore for GST-registered SMEs
- At least 3% of the 25% sourcing for the Government undertakings will be from women-owned SMEs
-Renewed Focus on Internal trade; DIPP renamed to Department for Promotion of Industries and Internal trade
7. Labour
- Pradhan Mantri Shram Yogi Maandhan scheme to ensure fixed monthly pension to 10 crore unorganized sector workers
-Rs 3000 per month after 60 years of age with an affordable contribution of only Rs 100/55 per month
Impact on Stock Market
The interim budget for the year 2019, presented by Piyush Goyal, elicited a positive response from the stock market, with the benchmark NIFTY registering a gain of 0.6% on the Budget day.
On February 1, 2019, the NIFTY commenced trading at 10,851.35, thus fluctuating throughout the day with a high of 10,983.45 and a low of 10,813.45. Despite the inherent volatility, the index concluded the session with a notable uptick, closing 62.70 points, or 0.58%, higher at 10,893.65.