The document provides details about India's interim budget for 2019, including: 1) It highlights several tax relief measures announced in the interim budget such as no income tax for annual earnings up to Rs. 500,000 and increased standard tax deduction. 2) It outlines new schemes introduced for farmers including a pension scheme and increased minimum support prices for crops. 3) It concludes that while the interim budget focuses on populism ahead of elections, long term structural reforms are still needed to resolve challenges facing sectors like agriculture.

1. INTERIM
BUDGET
2019
Jj BUDGET 2019
Presented to-
Dr. Ashok kumar Bansal
Assistant proffesor
School of management
science
Presented by- Aditi thakur
18M.B.AO9O4

2. CONTENTS
• Introduction
• Purpose of budget
• Types of budget
• Importance of budget
• Highlights of the budget
• Conclusion
• references
• Question / answer session

3. BUDGET
• An Estimate costs, revenues ,and resources over a
specified period, reflecting a reading of future financial
condition and goals as it act during a fiscal year
• In simple it is plan how the capital will be spend over a
particular time

4. OBJECTIVES

5. PURPOSE OF BUDGET
• It is benchmark to control on going activites
• To prioritize policies and objectivies
• To establish spending and income raising authority
• To assure optimum use of available resources
• To reduce inequalitie in income and wealth
• Management of public enterprise
• Reducing regional disparities

6. COMPONENTS OF BUDGET
• Revenue budget-
• Revenue budget comprises receipts and expenditure
met from those revenuesthese include both tax
revenue(income tax ,excise duty) Non tax revenues
(interest receipts,profis)
Capital budget-
Receipts of government which create liabilities or reduce
financial assets eg market borrowing loan

8. TYPES OF BUDGET

9. BALANCE BUDGET
Balnce budget
A government budget is said to be a balanced budget in which
government estimated receipts (revenue and capital) are equal to
government estimated expenditure. Let us suppose for the sake of
convenience that the only source of revenue is a lump sum tax. A
balanced budget will then imply that the amount of tax is equal to
the amount of expenditure.

10. MERITS OF BALANCE BUDGET
• Two main merits of a balanced budget are:
• (a) It ensures financial stability and (b) It avoids
wasteful expenditure.

11. UNBALANCED BUDGET
• Unbalanced Budget:
• When government estimated expenditure is either more or less than government estimated
receipts, the budget is said to be an unbalanced budget. It may be either surplus budget or
deficit budget.
• (A) Surplus Budget:
• When government receipts are more than government expenditure in the budget, the
budget is called a surplus budget. In other words, a surplus budget implies a situation
where in government revenue is in excess of government expenditure.
• Symbolically:
• Surplus Budget =
• Estimated Govt. Receipts > Estimated Govt. Expenditure
• A surplus budget shows that government is taking away more money than what it is
pumping in the economic system. As a result, aggregate demand tends to fall which helps
in reducing the price level. Therefore, in times of severe inflation, which arises due to excess
demand, a surplus budget is the appropriate budget. But in situation of deflation and
recession, surplus budget should be avoided. Mind, balanced budget and surplus budget
are rarely used by the government in modern-day world.

12. •
• (b) Deficit Budget:
• When government estimated expenditure exceeds government receipts in the budget, the budget
is said to be a deficit budget. In other words, in a deficit budget, government estimated revenue is
less than estimated expenditure.
Symbolically:
• Deficit Budget = Estimated Govt. Expenditure > Estimated Govt. Receipts
• These days’ popular democratic governments adopt mostly deficit budget to meet the growing
needs of the people. It may be mentioned that Keynes had advocated a deficit budget to remedy
the situation of unemplo3mient and under-employment.
• Government covers the gap either through borrowing or through withdrawals from its reserves.
Thus, a deficit budget implies increase in government liability and fall in its reserves. When an
economy is in under-employment equilibrium due to deficient demand, a deficit budget is a good
remedy to combat recession.

13. INTERIM BUDGET
• when is an interim budget presented?
• The government of the day presents an interim
budget if it does not have the time to present a full
Budget or because national elections may be near. In
the latter situation, propriety demands that the task of
framing the full Budget be left to the incoming
government.

14. WHY IS AN INTERIM BUDGET NEEDED? WHY NOT PRESENT A
FULL BUDGET LATER?
• The budget for the year approved by Parliament gives the
government spending rights only till the end of the
financial year ending March 31. If for any reason the
government is not able to present a full budget before
the financial year ends, it will need parliamentary
authority for incurring expenditure in the new fiscal year
until a full Budget is presented. Through the interim
Budget, Parliament passes a vote-on-account that allows
the government to meet the expenses of the
administration unt ..

15. HOW INTERIM BUDGET IS DIFFERENT FROM
REGULAR BUDGET
• In an interim Budget, the vote-on-account seeks
parliament’s nod for incurring expenditure for part of a
fiscal year. However, the estimates are presented for
the entire year, as is the case with the regular Budget.
However, the incoming government has full freedom
to change the estimates completely when the final
Budget is presented.

16. CAN THE GOVERNMENT LEVY NEW TAXES AND
PROPOSE NEW POLICIES
• constitutionally, the government can make tax
changes in the interim budget. However, the 12
interim budgets since Independence have respected
the fact that the government is a custodian for a few
months and have refrained from announcing big-
ticket changes or new schemes

18. HIGHLIGHTS OF INTERIM BUDGET
• No income tax for earnings up to ₹5 lakh
• Individuals with gross income of up to ₹6.5 lakh need
not pay any tax if they make investments in provident
funds and prescribed equities
• Standard tax deduction for salaried persons raised
from ₹40,000 to ₹50,000
• TDS threshold on interest on bank and post office
deposits raised from ₹10,000 to ₹40,000

19. • DS threshold on rental income increased from ₹1.8 lakh to ₹2.4
lakh
• I-T processing of returns to be done in 24 hours
• Within the next 2 years, all verification of tax returns to be done
electronically without any interface with the taxpayer
• Package of ₹6000 per annum for farmers with less than 2
hectares of land. Scheme to be called Pradhan Mantri Kisan
Samman Nidhi.
• Vande Bharat Express, an indigenously developed semi high-
speed train, to be launched

20. • one lakh digital villages planned in the next five years
• Fund allocation for the Northeast region increased to
₹ 58,166 crore, a 21% rise over last year for
infrastructure development
• Anti-camcord regulations to be introduced in the
Indian Cinematograph Act to prevent piracy and
contact theft of Bollywood films

21. • Single window clearance for Indian filmmakers.
• 25 per cent of sourcing for government projects will be from the
MSMEs, of which three per cent will be from women
entrepreneurs.
• National Artificial Intelligence portal to be developed soon
• ESI cover limit increased to ₹ 21,000. Minimum pension also
increased to ₹ 1000.
• Mega pension scheme for workers in the organised sector with
an income of less than ₹15,000. They will be able to earn ₹
3000 after the age of 60. The scheme will be called Pradhan
Mantri Shramyogi Maan Dhan Yojana.

22. • 2% interest subvention for farmers pursuing animal
husbandry.
• All farmers affected by severe natural calamities to get
2% interest subvention and additional 3% interest
subvention upon timely repayment
• Decision taken to increase MSP (minimum support
price) by 1.5 times the production cost for all 22 crops
• The 22nd AIIMS to come up in Haryan

23. CONCLUSION
• The interim budget may not be replete with drastic changes,
however, it is always a pre-election opportunity for the ruling party
to present an A+ on the government’s economic report card as well
as make promises that all the good things are yet to come.
That this budget will be a populist one is a forgone conclusion,
thanks to the upcoming elections. However, to resolve long-standing
challenges such as the bleeding agricultural sector and bring about
structural changes, will the government focus on “incentivizing”
rather than “subsidizing” things for the common man?
Our hopes remain pinned on the former approach

24. REFERENCES
• https://www.thehindubusinessline.com/economy/bud
get/interim-budget-2019-20-
speech/article26148373.ece
• https://economictimes.indiatimes.com/markets/stocks/
news/interim-budget-just-enjoy-the-ride-its-your-
reality-no-matter-who-you-vote-for/articleshow/6