Election year vs Election year: How this year's budget is different from 2019 Interim Budget

Indian Finance Minister Nirmala Sitharaman on Thursday (Feb 1) presented the Interim Budget for the fiscal year 2024, without announcing any major policies or changes in the taxation structure.

During her shortest speech of 58 minutes, Sitharaman underlined the government's commitment to stability in taxation and a strategic approach to encourage economic growth.

The interim budget aims to take care of the fiscal needs of the intervening period until a government is formed after the general elections. A full budget will be presented probably in July.

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But this Interim Budget doesn't include anything major, unlike how it was in 2019 when the Bharatiya Janata Party (BJP)-led government had presented a budget ahead of Lok Sabha polls.

This budget hints at the confidence of the Modi administration ahead of the upcoming polls, as they seem to be certain of scoring a victory in the elections, after which a full budget will be presented.

What were the major announcements of the Interim Budget 2019?

In 2019, the interim budget was tabled by then finance minister Piyush Goyal, who had given the additional charge of the finance ministry due to Arun Jaitley's ill health.

Farmers
Usually, the government doesn't announce anything major in interim budgets, but Goyal introduced some crucial changes in 2019, including an extension to the Pradhan Mantri Kisan Samman Nidhi (PM-KISAN) scheme.

He had said that 120 million small and marginal farmers to be provided with an assured yearly income of Rs 6000 per annum under the scheme. "Our government is launching a historic programme PM-KISAN with an outlay of Rs 75,000 crore for the FY 2019-20 and Rs 20,000 crore in the Revised Estimates of FY 2018-19," Goyal had said.

Assured MSP of minimum 50 per cent to all 22 crops, interest subvention doubled in last five years, and announcements for soil health card, neem-coated urea emerged as a game changer in the farm sector.

Labour
For labourers, the Pradhan Mantri Shram Yogi Maandhan scheme was announced to ensure a fixed monthly pension to 100 million unorganised sector workers. Rs 3000 per month after 60 years of age with an affordable contribution of only Rs 100/55 per month was also announced.

Health
Goyal had said that the 22nd All India Institute of Medical Sciences (AIIMS) was to be set up in the north-western state of Haryana.

Direct Tax proposals
Income up to Rs 5 lakh exempted from Income Tax and more than Rs 23,000 crore tax relief to three million middle-class taxpayers.

Defence
The defence budget crossed Rs 3,00,000 crore for the first time ever.

Railways
Capital support of Rs 64,587 crore was proposed in 2019-20 (BE) from the budget and overall capital expenditure programme to be of Rs 1,58,658 crore.

Poor and Backward Classes
For the underprivileged class, Goyal had said that the "first right on the resources of the country is that of the poor". A 25 per cent additional seats in educational institutions to meet the 10 per cent reservation for the poor.

Entertainment Industry
Goyal had announced that Indian filmmakers will get access to single window clearance as well for ease of shooting films.

Digital Villages
The government had said that it would make 100,000 villages into Digital Villages over the next five years.

(With inputs from agencies)