Finance Minister Piyush Goyal will present the Interim Budget in the Lok Sabha today. The government on Wednesday maintained that the budget will be called “Interim Budget 2019-20” after media reports described the coming exercise as a “General Budget”.
Important reforms were undertaken in the last five years — notably, huge fiscal decentralisation, GST, Insolvency and Bankruptcy Code (IBC) and Ayushman Bharat. But there are huge challenges that lie ahead.
It is largely expected that this budget the government may agree to increase the basic income tax limit. The exemption threshold could go up from the present Rs. 2.5 lakh to Rs. 5 lakh per annum. The corporates have also been clamouring for reducing the peak rate from 30 to 25 per cent.
Although it is a populist measure Government will do good not to waive off farmers loan as it will increase the fiscal burden. But there will be a strong emphasis on alleviating rural stress.
For the stressed micro, small and medium enterprises (MSME) sector, hit badly by the demonetisation decision of 2016 and GST implementation following that, the budget could contain incentives and easier flow of credit.
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