Focus of Budget 2018-19
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The key focus of the Budget 2018-19 is on
strengthening the rural economy and reviving up growth in the rural sector. To
that end a slew of measures have been announced in the Budget which among other
include higher MSPs for kharif crops, upgradation of rural haats to give
farmers better access to formal mandi, increase in institutional farm credit,
new funds for Fisheries and Animal Husbandry sectors, more fund for
re-structured National Bamboo Mission fund, allocation for deprived irrigation
districts, extension of the facility of Kisan Credit Cards to fisheries and
animal husbandry farmers to help them meet their working capital needs. All
these measures would transform rural India in a big way.
For the benefit of lower and middle
class the measures like increase in loans to Woman Self Help Groups, higher
targets for Ujjwala, Saubhagya in providing free LPG connections, electricity
and toilets have been announced.
These measures, coupled with the mega
health insurance programme for the poor and massive spending on rural
infrastructure, will go a long way in strengthening the rural economy and
boosting consumption in the hinterland.
Among the most important initiatives
in the budget is the health insurance scheme which is set to benefit 100
million households with coverage of Rs. 5 lakh per annum. This is by far, the
world's largest health insurance plan for which government will bear the cost.
Setting up 1.5 lakh Health Wellness Centers spread over all the major panchayats
of the country will bring healthcare to the doorsteps of the rural people.
Several announcements have been made
in the budget in respect of Senior Citizens. Senior citizens will now be
entitled to have a minimum interest of 8% on amount up to Rs.15 lakh under the
Pradhan Mantri Vaya Vandan To jana. No tax will be levied on interest up to Rs.
50,000 on their Bank and Post Office deposits. Besides, relief from Income Tax
has been provided on expenditure up to Rs. 1 lakh incurred on treatment of
serious diseases.
In this budget, the government has
reduced the tax rate for MSME by 5%.They will now have to pay only 25% tax in
place of 30% which was the practice earlier. Credit seeking from the banks and
NBFCs has been eased to ensure the required working capital for MSME
industries. It will give a further impetus to the mission of 'Make in India'.
Special emphasis has been given to
development of infrastructure related to Digital India. Allocation of Rs. 6
lakh crores has been made which is Rs. 1 lakh crore more than the previous
year. These schemes will enhance employment opportunities in our country
manifold.
Lauding the Budget, Prime Minister
Narendra Modi has said that the focus of the budget is on issues ranging from
Agriculture to Infrastructure. It is expected to give a boost to the hopes and
aspirations of 125 crore people of the country and accelerate the development
process.
Finance Minister ended his budget
speech by quoting from Vivekananda's Memoirs of European Travel:"You merge
yourselves in the void and disappear, and let new India arise in your place.
Let her arise - out of the peasant's cottage, grasping the plough; out of the
huts of the fisherman. Let her spring from the grocer's shop, from beside the
oven of the fritter seller. Let her emanate from the factory, from marts, and
from markets. Let her emerge from groves and forests, from hills and mountains
".Truly, an apt quote to conclude the Budget which strives to empower the
informal economy.
Mrinal Abhinav
Assistant Professor (ME)
JIMS, Greater Noida
This budget would be interesting to look into.
ReplyDeleteIngel Soong