Budget 2019: Modi’s growth mantra! Can schemes for farmers, rural poor ensure a spurt in demand, fuel growth?

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Updated: Feb 02, 2019 11:50 AM

Budget 2019: Finance Minister Piyush Goyal on Friday presented the interim budget for FY20 in Parliament. The budget proposed various schemes for farmers and rural sector.

Budget 2019-20India Union Budget 2019: Allocation of Rs 75,000 crore for FY 2019-20 with additional Rs. 20,000 crore in RE 2018-19.

Budget 2019: Finance Minister Piyush Goyal on Friday presented the interim budget for FY20 in Parliament. The budget proposed various schemes for farmers and rural sector. It comes at a time when the farm distress has compelled the country’s farmers to commit suicide. As per 2012 report nearly 15367 farmers have committed suicides. This is nearly 11 per cent of the total suicides committed in the country.m

Minimum basic income of Rs 6000 per year for 12 crore small and medium farmers-with land holding of less than 2 hectares under PM-KISAN is among the major schemes announced in the budget.

“India’s middle class, small traders and farmers are the lifelines of its economic growth. By catering to these ambitions #Budget2019 infuses hopes for millions of dreams,” Adani Group Chairman and Founder Gautam Adani tweeted.

Also read: Good news! Income Tax rebate limit up at Rs 5 lakh, standard deduction at Rs 50,000

Sharing similar views, Mahindra Group Chairman Anand Mahindra said in a tweet, “I was bracing for a populist, profligate budget driven by ‘election panic.’ I’m just grateful that the reliefs to the key middle class & farmer segments were delivered in a measured way without risking bankruptcy of the economy. This was a controlled, pump-priming exercise…”

Major announcements

Allocation of Rs 75,000 crore for FY 2019-20 with additional Rs. 20,000 crore in RE 2018-19

Allocation for Rashtriya Gokul mission increased to Rs 750 crore

Rashtriya Kamdhenu Ayog  to be established for sustainable genetic up-gradation of the cow resources

New separate Department of Fisheries for welfare of 1.5 crore fishermen and 2 per cent interest subvention to Farmers for Animal husbandry and Fisheries activities; additional 3 per cent in case of timely repayment.

Interest subvention of 2 per cent during disaster will now be provided for the entire period of rescheduling of loan

Assured MSP of minimum 50 per cent to all 22 crops and doubling of Interest subvention in last 5 years

Soil Health card, Neem coated Urea game changer in farm sector

Walmart India President and CEO Krish Iyer also said the Budget rightly focused on the middle class, rural sector and on enhancing farmers’ income.

CII Director General Chandrajit Banerjee told PTI that the Budget for 2019-20 touched the right notes for stimulating demand and growth in the economy. “By strongly addressing the major consuming sections of society such as farmers, the middle class and unorganised sector workers, it aims to stabilise incomes and reduce risks for vulnerable people,” he added.

However, some believe that more could have been allocated in order to tackle problem of farm distress. “The  allocation towards alleviating farm distress at Rs.75000 crore per annum is much less than expected, transfer  expected from RBI is also not unusually high,” Dhiraj Relli, MD & CEO, HDFC Securities.

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