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Highlights: India unveils Budget 2019 aimed at tackling rural distress ahead of election

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Reuters NEW DELHI
Last Updated : Feb 01 2019 | 12:15 PM IST

By Alasdair Pal

NEW DELHI (Reuters) - India on Friday unveiled an interim budget with giveaways for rural citizens, in what is being seen as a critical test for Prime Minister Narendra Modi, who is facing anger over depressed farm incomes and unemployment with a general election just months away.

Here are the highlights of interim Finance Minister Piyush Goyal's budget for the 2019/20 fiscal year beginning April 1.

RURAL AFFAIRS

- India to allocate 750 billion rupees ($10.56 billion) per year to support farmers' incomes

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- Impact of 200 billion rupees in current fiscal year

- Vulnerable farmers to receive 6,000 rupees per year under new scheme

- Farmers affected by natural disasters to receive 2 percent interest subvention, additional 3 percent if they repay loans on time

- Government to provide 2 percent interest subvention for farmers pursuing animal husbandry, fisheries

- Government to allocate 600 billion rupees for a rural employment scheme in 2019/20

EMPLOYMENT

- India to launch social security coverage for workers in unorganised sector

- New scheme to provide assured monthly pension of 3000 rupees per month, with contribution of 100 rupees per month, for workers in unorganised sector after 60 years of age

- Scheme will benefit 100 million workers in unorganised sector, may become the world's biggest pension scheme for unorganised sector in five years - Goyal

ECONOMICS

- Gross market borrowing seen at 7.04 trillion rupees in 2019/20 - traders citing agencies

- India's current account deficit for 2018/19 seen at 2.5 percent of GDP

- Fiscal deficit for 2018/19 seen at 3.4 percent of GDP

- Goyal says expects other banks on the central bank's Prompt Corrective Action list to be removed soon

- Allocation to India's northeast region proposed to be increased by 21 percent over previous fiscal year

INFRASTRUCTURE AND DEFENCE

- Defence budget raised to beyond 3 trillion rupees in 2019/20

- India to allocate 190 billion rupees for construction of rural roads in 2019/20

- To allocate 645.87 billion rupees for railways capital expenditure in 2019/20

($1 = 71.0420 Indian rupees)

(Complied by by Alasdair Pal; Editing by Krishna N. Das)

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First Published: Feb 01 2019 | 12:10 PM IST

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