Ahead of the Budget presentation by Union Minister Piyush Goyal, junior finance minister Shiv Pratap Shukla hinted at populist measures. "The Narendra Modi government is a popular government, it will take care of all," the Minister of State for Finance told reporters. Shiv Pratap Shukla added, however, that the government would do whatever it could within the limits of a vote-on-account, which is mandated before a general election. "It is an interim budget, so whatever is possible within that, we will do," said the minister. (LIVE Budget Updates)
The interim budget is widely expected to feature big announcements ahead of the national election, due by May. It is the last chance for the ruling Bharatiya Janata Party (BJP) to win over the masses, especially sections like farmers and the middle class, after it lost three major states - Madhya Pradesh, Rajasthan and Chhattisgarh -- in last month's elections.
The government may announce a cash handout and a monthly income programme for farmers and tax relief.
A cash relief package for the farmer - announced by the government earlier - could run to at least Rs. 1 lakh crore, according to news agency Reuters.
(Also read: Five economic challenges faced by government for Interim Budget 2019)
On Thursday, the government went into damage control mode as a yet-to-be-released report said on unemployment was at a four-decade high in 2017-18.
The government is expected to ease the fiscal deficit target from 3.3 per cent of GDP for 2018-19.
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