Budget 2019 was presented today amongst a thumping uproar in the parliament by the Bharatiya Janata Party. Union Minister and Interim Finance Minister Piyush Goyal delivered a Budget that was as predicted a populist budget; or in other words, what was expected from the government for long, was fulfilled on many grounds today. The incumbent Bharatiya Janta Party has indeed turned the Interim Budget, which in constitutional propriety is supposed to be only a vote on account for approval on country’s expenditure for the rest of the tenure of the outgoing government, into a full budget.

However, defending big announcements like doubling the Income Tax Exemption Slab, Piyush Goyal stated, “Though as per convention, the main tax proposals will be presented in the regular budget, small taxpayers especially middle class, salary earners, pensioners, and senior citizens need certainty in their minds at the beginning of the year about their taxes. Therefore, proposals, particularly relating to such class of persons should not wait.”

In a poll bound country, Interim Budget 2019 came as treat for the middle class which will be relished for years to come. Upon assuming power back in the year 2014, FM Arun Jaitley had increased the base income tax exemption slab from Rs 2 lac to Rs 2.5 lac. The slab was kept unchanged in the last four budgets of the Modi government. However, the acting Finance Minister Piyush Goyal retreated the middle and salaried class by announcing a restructuring in the prevalent Income Tax Slab rates in the government’s last and sixth budget.

Meeting everyone’s long pending expectations, the Interim Finance Minister proposed doubling the Income tax exemption slab from Rs 2.5 lac to Rs 5 lac.

“Individual taxpayers having taxable annual income up to Rs 5 lakhs will get full tax rebate and therefore will not be required to pay any income tax. As a result, even persons having gross income up to Rs 6.50 lakhs may not be required to pay any income tax if they make investments in provident funds, specified savings, insurance etc. In fact, with additional deductions such as interest on home loan up to Rs 2 lakh, interest on education loans, National Pension Scheme contributions, medical expenditure on senior citizens etc, persons having even higher income will not have to pay any tax. This will provide tax benefit of Rs 18,500 crore to an estimated 3 crore middle class taxpayers comprising self employed, small business, small traders, salary earners, pensioners and senior citizens,” stated the Finance Minister.

After the Interim Budget 2019 was delivered, Prime Minister Modi lauded the Middle and Salaried class for being the most honest taxpayer base of the country.

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Piyush Goyal too thanked the honest taxpayers for funding the basic necessities that Modi government was able to enable for the marginal section of the society. The Minister stated, “On behalf of all the people of India and our Government, I would first like to thank all our taxpayers for their valuable contribution to nation building and for providing a better life to the poor and marginalized sections of society. Your tax helps provide dignity to our sisters and mothers with toilets and cooking gas connections. Your tax pays for the electricity connections to the poor who lived in darkness for generations. The tax you pay will provide health care to 50 crore brothers and sisters, and children. It is you who is ensuring respect, dignity, and a secure future to our retired jawans through One Rank One Pension. Thank you, taxpayers.”