Economy

Here are the 10 key highlights of finance minister Piyush Goyal's Budget speech

Updated : February 02, 2019 08:52 AM IST

In a major relief to the salaried class, Goyal announced full tax rebate for income up to Rs 5 lakh crore.

The much talked about farm relief package did get a place in the budget announcement with Goyal proposing a farm relief package of Rs 6,000 per year to farmers owning two hectares of land.

The government announced an allocation of Rs 500 crore for a mega pension scheme, Shram Yojana, for the unorganised sector.

Finance minister Piyush Goyal made major announcements in the interim Budget 2019 which included farm relief package, full tax rebate for income up to Rs 5 lakh, pension scheme for the unorganised sector among others.

Below are the 10 key highlights of finance ministry Piyush Goyal's speech:

Reduction in income-tax slab: In a major relief to the salaried class, Goyal announced full tax rebate for income up to Rs 5 lakh crore. Individuals falling under the said tax slab will get full tax rebate. This translates to a benefit of Rs 18,500 crore to more than 3 crore taxpayers.

Farm relief package: The much talked about farm relief package did get a place in the budget announcement with Goyal proposing a farm relief package of Rs 6,000 per year to farmers owning two hectares of land. This, he said, will cost the government Rs 75,000 crore.

Pension Scheme for unorganised sector: The government announced an allocation of Rs 500 crore for a mega pension scheme, Shram Yojana, for the unorganised sector. For those who have reached the retirement age, 60, will get a monthly pension of Rs 3,000.

TDS limit increased: The tax deduction at source (TDS) limit, the government said, will be hiked from Rs 10,000 crore to Rs 40,000 crore on post-office savings.

Gratuity limit increased: The government also increased the gratuity limit from Rs 10 lakh to Rs 30 lakh. Any person who completes 5 years in an organisation is eligible for gratuity.

Fiscal deficit target revised: Goyal, in his speech, said the revised fiscal deficit target for 2018-19 is at 3.4 percent from the earlier 3.3 percent. The current account deficit, he said, will be contained at 2.5 percent.

Capital gains exemption: Capital gains exemption under Section 54 has been increased to Rs 2 crore and will be available on two house properties.

Expenditure: The expenditure target for FY20 is at Rs 27.84 lakh crore while the capital expenditure target is at Rs 3.36 lakh crore.

MGNREGA and Pradhan Mantri Gram Sadak Yojana: An amount of Rs 19,000 crore has been allocated for Pradhan Mantri Gram Sadak Yojana and Rs 60,000 crore for MGNREGA this year.

Divestment target: The government said it is confident to reach the divestment target of Rs 80,000 crore. The target for FY20 has been pegged at Rs 90,000 crore.

For all the key announcements, click here.