What To Expect From Piyush Goyal’s Interim Budget  

What To Expect From Piyush Goyal's Interim Budget

The Union Finance ministry is all set to announce the Interim Budget for the fiscal year 2019-20, on Friday at 11:00 am. In the absence of Finance Minister Arun Jaitley, Piyush Goyal, Cabinet member, and Interim Finance Minister will present the budget. Interim Finance Minister Piyush Goyal is likely to announce the increased allocation in his budget presentation to Lok Sabha. The Vote on Account is only for three months before the new government presents a full-fledged budget in July. A full financial statement-with expenditure, receipts, and projections for the fiscal year are presented by the outgoing Government in the interim budget announcement.  The last Interim Budget was announced on February 17, 2014, by the then Finance Minister P Chidambaram.

The Budget looks promising for rural development as it is said to be allocating 16% for rural welfare spending. The Government has earmarked Rs.1.3 trillion up from Rs 1.2 trillion in the current fiscal.

The Narendra Modi Government is under pressure to concentrate on the rural areas as more than 2/3rd of India’s population comes is concentrated in its villages. This could help him garner rural votes as well.

Farmers incomes were battered owing to crop damages due to extreme weather conditions and low crop prices and rising costs.

Congress party leader Rahul Gandhi, On Monday, promised that he will provide the poor with universal basic minimum income if his party is brought to power with the elections that are to come. The BJP dismissed this promise stating it was an unaffordable gimmick

Among the many welfare programs run by the ministry of rural development, the highest allocation will be for its flagship rural job guarantee programme, which allows people from the country side to get Government waged work for over 100 days in the year. Around 600 billion rupees is said to be allocated to this program, 9% more than what was earlier. They also plan to give a pay raise  for over 70 million beneficiaries, currently under the job program.

300 billion rupees is being allocated to give financial assistance to over 30 million poor people, including widows and children. This is a threefold increase for the state-run rural welfare program.

Also Read: Goyal To Present Budget 2019