INTERIM BUDGET 2019 CRITICAL ANALYSIS SUBMITTED BY, SNIGDHA VIDUSHI
INTRODUCTION Pointers: Budget Expenditure is Rs.27,84,200 crores Total Receipts (without considering borrowing) is only Rs.20,80,201 crores The borrowings and other liabilities are Rs. 7,03,999 crores Interest Payments are Rs. 6,65,061 crore Disinvestment target is Rs.90,000 crore Amount dedicated to Capital Expenditure is only Rs.3,36,293 crore (12%) Tax Revenue is Rs.17,05,046 crore (meets only 61% of expenditure) Revenue receipts less than revenue expenditure by Rs. 4,70,214 crore
AGRICULTURAL SECTOR HIGHS Total allocation for agricultural sector has been increased by 73% of 2018-19. PMKSN(PM Kisan Samman Nidhi Yojana), involving a total outlay of Rs. 75000 crore, assures Rs. 6000 income support for small and marginal farmers having land upto 2 hectares. 2% interest subvention for farmers affected by natural calamities. 3% interest subvention for timely repayment of loans. 2% interest subvention to farmers pursuing animal husbandry and fishery jobs through KCC(Kisan Credit Card). Kamdhenu scheme for animal husbandry which would further increase milk production. MSPs hiked by 50 per cent for all 22 crops in order to support farmer’s incomes. LOWS × Landless agricultural labourers lie outside the net of PMKSN scheme. × The PMKSN scheme is far less comprehensive than the Rs 8,000 per acre given by the Telangana government to farmers, or the Odisha KALIA scheme giving Rs 10,000-12,500 to not only farm owners but also tenants, sharecroppers and landless workers. × Close to 65% of the agricultural workers are women, however only 13% of them are landowners. The PMKSNY is unlikely to benefit them. × The Pradhan Mantri Krishi Sinchayee Yojana (Irrigation Scheme) has always been underfunded, its allocation has seen no rise since its implementation in 2014-’15. The budget estimate for 2019-’20 for the scheme shows just a Rs 100-crore rise over last year’s budget. × No emphasis on building and creating a strong agricultural infrastructure which forms the backbone for sustainable agriculture.
INDUSTRIAL SECTOR HIGHS • Reforms aimed mostly at MSMEs. • 2% interest rebate for MSMEs registered under GST for loans up to INR 1 crore. • Requirement of sourcing by government enterprises from SMEs increased up to 25%, of which, at least 3% to be sourced from women-led SMEs. • Government E-procurement Marketplace (GeM) platform extended to Central Public Sector Enterprises, giving MSMEs access to a larger market, thereby making them more competitive. • Domestic companies with a turnover upto 250 Crore during FY 2016-17, continue to enjoy a reduced tax rate of 25%. The base year has been changed to FY 17-18. • In order to support exports and domestic manufacturing, duty free import of 36 capital goods has been allowed and the customs logistics is being fully digitized to enhance trade.
- Winter '17
- Prof Natwar Lal