The Finance Minister Mr. Arun Jaitley will surely have the term Bharat on his mind as he will be unveiling the Union Budget for India (2017) this week, after the impact of demonetization. The multilateral agencies have actually lowered the country’s GDP growth estimates for the upcoming financial year to around 6 percent from that of 7.3 percent.
The Finance Minister is more likely to be splurging on agriculture as well as rural India over the middle class. Economists are also foreseeing that agriculture will be registering around 4 percent growth rate during the year 2017-18, as against the average 0.5 percent in the starting 2 years of the Modi Government.
Farmers are more likely to love the Budget 2017. The Finance Minister Mr. Arun Jaitley is now depending on last year’s Bharat Budget for showing results. The top consideration in the government is to mainly better the current INR 9 Lakh farm credit by lessening the interest rate for the farmers. The present policy will be putting the farm credit at 4 percent. The Centre actually bears the rest.
Arun may even go on to lower the rate to close to 2 percent and this will be giving a great relief to the debt-ridden farmers, as per one of the top government sources. Modi has now targeted doubling the farm income by the year 2022. Lately, the reluctance of the states for implementing key reforms has clouded the government’s plan with pessimism.
One of the senior officials from the NITI Aayog stated that the government is now considering the highest level for compensating farmers for loss of income because of many reasons by averaging 3 years prices for specific crops. The Centre may also be compensating the difference in price in case the farmers are actually forced to sell of their produce low.
In the budget, Jaitely may be going selective with the Chief Advisor Mr Arvind Subramanian’s Universal Basic Income Idea by utilizing the yardstick for marginal farmers that own lesser than 3 acres by offering them 3000 as dole. The substantial budgetary allocation for the agricultural research by means of setting up many more Indian agro research institutes, Kisan Vikas Kendra, Indian Agricultural University can be a part of the NDA’s Bharat plan.
The official added that research in the agriculture is of high priority as the value addition and innovation are actually seen as ways to considerably lift the incomes of the people in the rural locations, which in turn can actually boost the economic growth to a much higher trajectory by making sure that there is robust demand in the manufacturing segment.
Jaitley might bring cheer to this demonetization-beleaguered middle class by increasing the tax exemption limit to three lakhs. Even though home buyers will be benefitting from this rise in the home loan interest reduction to two lakhs from INR 1.5 Lakhs/ year, the BJP Government aims to make the brand Bharat shine.