Union Budget 2019-20: 5 things to watch out for

Income tax concessions for individuals, a farm relief package, support for small businesses and possible populist spending measures may be part of the Budget that Finance Minister Piyush Goyal will present today as the government makes a last-ditch attempt to woo voters ahead of the general elections.

Prime Minister Narendra Modi-led government's sixth and final budget before the polls due by May is supposed to be an interim budget or a Vote on Account.

But it is widely expected that Goyal may go beyond seeking Parliament nod for government expenditure for four months of next fiscal and announce sops to woo rural and urban middle-class voters, industry sources and experts said.

Under pressure from a resurgent Congress which is going all out to lure voters with the promise of a minimum income for the poor if voted to power, the government may announce  Universal Basic Income (UBI) scheme in this budget.

UBI will guarantee all citizens enough income to cover their basic needs and would be easier to administer than the current anti-poverty schemes, which are plagued by waste, corruption and abuse.

One of the most talked about issues before the interim budget. To appease the farmers, the government is likely to announce a farm package based on the schemes implemented by Odisha and Madhya Pradesh governments.

This may or may not replace subsidies that the farmer gets but will certainly be aimed at addressing rural distress, which was primarily blamed for BJP's defeat in recent assembly elections in key states.

The farm relief package may cost anywhere between Rs 70,000 crore to Rs 1 lakh crore, according to sources.

An anticipated corporate tax rate cut to 25 percent from 30 percent may be put on hold until after the elections. Higher tax exemptions for the middle class and for small businesses anticipated in this budget. The government may also exempt startups and investors from angel tax.

Expectations are high for the Micro, Small and Medium Enterprises (MSME) sector. The government is likely to announce a package to the boost the sector.

After the successful implementation of Ayushman Bharat, the government is likely to fuel in additional funds into primary healthcare and may announce 5,000 more health centres across the country in the coming interim budget.