Interim Budget 2019!!! Analysis by Ride on Finance

Interim Budget 2019!!! Analysis by Ride on Finance

Interim Budget for the year 2019 has been presented by Central Government on 1st of Feb 2019. Piyush Goyal has presented this budget to the nation. Budget is one of the top financial event to be watch by investors and general public as this decides the way nation and economy will go during the year. Government announces there plans and policies for Country.

This budget is very important for the government as this was the last budget of Current Modi Government. There is lot of expectation of nation from this budget and Govt made his full attempt to fulfill that.

Here we are with our full detailed analysis on budget for our readers. For better understanding we have divided the budget among different sectors and also give the impact of that on market and economy.

Taxation Impact

1. Individual taxpayers  having annual taxable income upto Rs. 5 Lakhs will get full rebate u/s 87A. 

This means if you have taxable income of Rs. 5 Lakhs or lower than you don't have to pay the tax.

The one point to note here is if your taxable income increase by even a single Rupee of 5 lakhs one rupee. You have to pay the tax of Rupees 12,500/-

Impact:- Now middle class tax payer will get tax rebate on total taxable income of Rs. 5 Lakhs. So that more saving and more investing.  Plan your finance according to this for the FY: 2019-20

Agriculture Sector key points and impact

1. Rs. 6,000 per annum for the farmers with less than 2 hectares of land. New Scheme "Pradhan Mantri Kisan Samman Nidhi" launched with an outlay of Rs. 75,000 Crore for FY20 to extend direct income tax support at the rate of Rs. 6,000 per year for farmers having cultivable land up- to  2 hectares.

2. A Separate "Department of Fisheries" to be created for providing focused attention to the sector.

3. 2% Interest subvention  to farmers pursuing animal husbandry and fisheries.

4.  Increased allocation for Rashtriya Gokul Mission to Rs. 750 Cr in current year.

Impact of these: All these steps taken by government will work as a booster for the agriculture sector. Fisheries sector will be benefited from getting focussed Department of Fisheries. 

Infra

1. Pradhan Mantri Gram Sadak Yojana- 19000 cr allocated in FY 2020 against Rs. 15000 cr in FY 2019.

2. Capex for Railway at Rs. 1.59 Lakh cr and budgetary allocation at Rs. 64,857 cr in FY20.

Impact: The affect of this will be neutral for Infra sector. Railway stocks will be benefited from the allocation like KEC International, BEML, BHEL, Titagarh wagons etc.

Defence

1. Hiked budget allocation by 7% to Rs. 3 lakh cr. Huge allocation for Defence budget show the commitment of Central government to strengthen the army on all front as the rising challenges from the neighbor countries.

Impact: Defence sector will be boosted by this. Bharat Electronics Limited and Hindustan Aeronautics Limited like stocks will get positive impact of this.

Other key highlights are:-

1. Central government to build 1 lakh villages in next five years.

2. By March 2019, all willing families will get the electricity connection under "Saubhagya Yojana".

3. Rs. 3000/ month pension from age of 60  years  for unorganised sector workers- Pradhan Mantri Shram Yogi Maandhan.

Overall budget is good as per our opinion as this is interim budget presented by Government we can't expect so many things. 

Happy Investing !!! #rideonfinance