The welfare-centric budget of the Union Government for 2018-19 aims at fulfilling most diverse aspirations of widest possible sections of the society and is historically the most pro-poor budget. It would help the country achieve robust and inclusive growth besides bolstering development.
Farmers, rural masses, poor people, women and SC-ST are in focus in the budget. The budget has reasserted government’s resolve to double farmers’ income. In a major boost to farmers, the minimum support price (MSP) for all upcoming Kharif crops has been raised to 1.5 times the cost of production. In case the market prices are lower than the MSP, the government would procure the produce or ensure farmers get their due prices.
Farm Sector
Agricultural market and infra fund with a corpus of Rs 2,000 will be created for 22,000 ‘gramin’ agricultural markets and 585 APMCs. Cluster development model of agricultural commodities and emphasis to encourage organic farming are welcome. Allocation for food processing has been doubled. The Operation Green will produce farmer-producer organisation, logistics, warehousing etc with an allocation of Rs 500 crore. Export of agriculture commodity has been liberalised to tap India’s agricultural exports potential of $100 billion. Agriculture Credit limit has been raised to Rs 11 lakh crore. To boost bamboo sector and animal husbandry, Kisan credit cards will now be extended to fisheries and animal husbandry farmers. A restructured national bamboo mission with a corpus of Rs 1,290 crore would be set up. Rs 10,000 crore are allocated to set up two funds to promote fisheries and animal husbandry.
—PM Narendra Modi”
Ease of Life for Poor
In terms of social welfare and ease of life, gas connections will now be provided to eight crore poor women. In pursuit of ease of life with respect to the energy coverage push, Rs 16,000 crore for PM Saubhagya Yojana is allocated for connecting four crore households with free electricity. It would illuminate four crore households and help achieve social and economic empowerment. There is a target to construct at least 2 crore toilets under Swachh Bharat Mission. Also, under Housing for All by 2022 and PM Awas Yojana (rural), 51 lakh affordable housing units constructed in rural and 50 lakh in urban areas. For boosting economic empowerment, enhance livelihood opportunities and private enterprise, a target for loans to self- help group for women has been increased to Rs 75,000 crore. Allocation to National Livelihood Mission set at Rs 5,750 crore. A total allocation of Rs 14.34 lakh crore from extra and non-budgetary resources has been estimated for housing, infrastructure and livelihood in rural areas. Mudra Yojna lending target has been set at Rs 3 lakh crore. .
For comprehensive social welfare program under the National social assistance program over Rs 9,000 crore have been allocated. Education in the country would now be treated without segmentation from KG till class 12. The FM has announced that by 2022, every block with over 20,000 tribals and over 50 per cent STs will have a special Eklavya school.Government proposes the establishment of 24 medical colleges and two new Schools of Planning and Infrastructure. In a major boost to healthcare and medical education, the FM has pledged to set up at least one medical college for every three parliamentary constituencies. Allocation of Rs 1 lakh crore has been proposed for revitalising and upgrading education sector. Government proposes to set up 1.5 lakh centres under Aayushman Bharat programme to provide health facilities with an allocation of Rs 1,200 crore. Domestic manufacturing and MSME are key to employment generation. For special support to the MSME sector, the FM Arun Jaitley allocated Rs 3,794 crore capital support and industry subsidy by 2022 for the MSME sector.
Infrastructure & Tourism
Mr Jaitley has rightly highlighted the need of Rs 50 lakh crore for the infrastructure sector. He said that construction of a new tunnel at Sera Pass will also work in promoting tourism. A total 10 prominent tourist sites will be upgraded as iconic tourist destinations. The flagship Bharatmala project aims to connect India’s eastern and western ends with a 35,000 km highway and roads network, an outlay was announced to the tune of Rs 5.35 lakh crore under phase 1. For toll payments on highways, Jaitley said that the government will introduce a new system called “pay as you use”. Total capital expenditure for Indian Railways is also set at Rs 1,48,528 crore. A special railway university will also be set up in Vadodara, Gujarat. On the whole, the Budget 2018-19 reflects the Government’s firm commitment to boost investments in Agriculture, Social Sector, Digital Payments, Infrastructure and Employment Generation on the one hand and simultaneously stick to the path of fiscal
rectitude by aiming for a reduction of Fiscal Deficit by 0.2 per cent of GDP over RE 2017-18.
(The writer is a renowned economist and Vice
Chancellor of Pacific University, Udaipur)
– Bhagwati Prakash
