The session for Interim Budget 2019 will commence with an address to both houses of Parliament by President Ram Nath Kovind. The Interim budget speech shall be delivered by the interim Finance Minister Piyush Goyal that is expected to focus mainly on better Tax measures for middle class men and focus on Farmer’s crisis. This will be the last Budget of the BJP-led NDA government ahead of the General Election.
Besides pushing the controversial citizenship Amendment Bill to Rajyasabha as it was passed by Loksabha in last session, Government is expected to make few big announcements on government’s initiatives for future. It is speculated that Goyal will talk about the tax breaks, reforming the slabs by higher standard deductions or limited concessions on purchase of medical insurance.
- It is also expected that Government shall bring some relief to micro, small and medium enterprises (MSMEs) of the country as RBI has formed new guidelines for debt restructuring of these enterprises.
- It is also speculated that the government believes that MSMEs are major employment generators why is why focusing on MSMEs might impact job creation positively. Recently PM Modi said that all possible measures are taken by the government to boost employment in the country.
- It is observed that Farmer’s Crisis shall be addressed particularly during the Interim budget session and though it has been seen in many tweets of Finance Minister that Farmer’s Loan waivers is not the solution lowering insurance premium and income support is possible. As per media report, Prime Minister’s Office is studying the feasibility of adopting a “One Household One Incentive” policy and directly pay Rs 10,000 annually to each deserving household to purchase seeds, fertilisers and agricultural machinery.
- GST is will be restructured from time to time as there is scope for improvement. Jaitley also mentioned in December last year that 28% slab will soon be phased out except some luxury and sin goods. He further added that in future there could be one single standard rate instead of two standard rates of 12% and 18%. The government might announce something regarding the GST structure in the Interim Budget.
Such speculations are observed for Interim Budget to be commenced from 1st February, 2019 till 13th February, 2019. Though there were confusions about the Budget session that government would announce the Union Budget or the Interim Budget, the Interim FM has clarified that there will be session of Interim Budget commencing from tomorrow.