New Delhi, February 1: The final fiscal policy presented by the Narendra Modi government could prove to be a gamechanger in run-up to the 2019 Lok Sabha elections. With the high-stake polls in sight, Interim Finance Minister Piyush Goyal has targeted the two prime sections of the electorate -- the farmers and the middle class.

The farming community, which has been reeling under prolonged agrarian distress, has been wooed with a first-in-its-kind income-based support scheme, promising them Rs 6,000 per year from the Centre to address their cash requirements in the sowing season. Here Are The Highlights of the Interim Budget.

For the middle class, the much-awaited rejig in tax slabs has been announced by the Finance Minister. The impact of polls on the policy design was evident as those earning upto Rs 5 lakh per annum would have to pay no income tax from the next fiscal. Will the sop for farmers, in addition to the tax relief to the salaried class, result in another term for Prime Minister Narendra Modi? The answer will be out in the next 100 days.

Pandora's Box Delights Farmers

"Under Pradhan Mantri Kisan Samman Nidhi, Rs 6,000 per year for each farmer, in three installments, to be transferred directly to farmers' bank accounts, for farmers with less than 2 hectares land holding," Goyal said.

"This initiative will benefit 12 crore small and marginal farmers, at an estimated cost of Rs. 75,000 crore, this will enable farmers to earn a respectable living," he said, adding that Rs 20,000 crore would also be added in the revised estimates of this year as well.

The date for the scheme's implementation has been fixed as December 2018. The first installment will be sent to the farmers in the next few days, the FM added.

In another major sop announced for the agrarian community, the animal husbandry and fisheries farmers will also be provided with the Kisan Credit Card. A 2 per cent interest subvention will be granted, Goyal said, adding that it would be increased to 3 per cent if the repayment is done on time.

In addition to the interest subvention for farmers in the animal husbandry and fisheries sector, the relief measure will also be extended to all among the agrarian class who gets affected by natural calamities.

"In place of rescheduling of crop loans, all farmers severely affected by severe natural calamities will get 2 per cent interest subvention and additional 3 per cent interest subvention upon timely repayment," Goyal announced.

Middle Class Wooed With Revision in Tax Slabs

In a major rejig, the Finance Minister announced that tax slabs from the next fiscal would be revised. The tax exemption limit, which is Rs 2,50,000 at present, will be raised to Rs 5,00,000. "Individual taxpayers with annual income up to 5 lakh rupees to get full tax rebate," he announced.

Further, individuals earning upto Rs 6.5 lakh will also be granted a full tax rebate if they make investments in provident funds and prescribed equities.

The new tax slabs, however, will be implemented from the next fiscal, as the government is barred from introducing the policy change in this Interim Budget -- presented days before the general elections.

Benefits to Unorganised Sector

For the unorganised sector, a "mega pension scheme" has been launched. "The Pradhan Mantri Shram Yogi Mandhan will provide assured monthly pension of 3000 rupees per month, with contribution of 100 rupees per month, for workers in unorganized sector after 60 years of age," Goyal said.

For those workers enrolling in the pension program at 18 years of age, will have to pay a monthly premium of Rs 55, whereas, those enrolling at 29 years of age, will have to pay Rs 100 per month.

For the Organised Sector

The gratuity limit has also been increased from Rs 10 lakh at present to Rs 30 lakh. In case of death of a labourer during the course of service, the bereaved kin would be granted Rs 6 lakh -- up from Rs 2 lakh at present.

The Finance Minister said that the EPFO registrations have shot up in an unprecedented manner in the last two fiscals, signalling the growth of jobs in the organised sector. "High growth and formalization of economy has resulted in increased EPFO membership by 2 crore in last two years," he said.

What is your reaction to Interim Budget 2019-2020?

Achievements on Economic Front

Earlier, Goyal stressed on how the incumbent government had succeeded in combating inflation -- which was a challenging issue when PM Modi took over the reigns from his predecessor in 2014. "Had we not brought inflation under control, each household would had been spending 35-40 per cent more on food and commutation," he told the House.

The Interim FM also highlighted the success of the Centre in narrowing the fiscal deficit, bringing it down from 6 per cent in 2012-13 to 2.5 per cent in 2018-19.

Goyal also stated before the House that the RERA (Real Estate (Regulation and Development) policy has ushered into "transparency" in the real estate sector. The law has safeguarded the interests of crores of investors, he said.

On the non-performing assets (NPA) menace, Goyal said the government is working strenuously to recover the amount from from wilful defaulters. "Almost Rs 3 lakh crore has already been recovered in favour of banks and creditors, big defaulters have also not been spared by our government," he claimed.

For food security, Goyal said, nearly Rs 1,70,000 crore was spent in the year 2018-19 to provide food at affordable rate for the middle and underprivileged class. This is nearly twice the amount (Rs 92,000 crore) spent by the erstwhile government in 2013-14.

(The above story first appeared on LatestLY on Feb 01, 2019 01:16 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).