Prime Minister Narendra Modi’s December 31 address to the nation was seen by many as a “mini” Budget speech as he announced a number of sops for different sections of the society. Critics wondered what else Finance Minister Arun Jaitley would announce in his Budget Speech on February 1. Modi’s speech after the end of 50-day demonetisation deadline on December 30 had disappointed many as the PM didn’t speak much about the cash crunch and how long it would take to
Modi’s speech after the end of 50-day demonetisation deadline on December 30 had disappointed many as the PM didn’t speak much about the cash crunch and how long it would take to the situation to normalise. Modi’s speech attracted some sharp reactions from Opposition leaders. West Bengal Chief Minister Mamata Banerjee called it “the end of demonetisation” and “start of deModitisation”. AAP chief Arvind Kejriwal called the speech “boring”. With Jaitley set to present Union Budget 2017-18 today, let us take a look at what PM Modi had announced for the common man on December 31, with the hope Jaitley may provide some more
With Jaitley set to present Union Budget 2017-18 today, let us take a look at what PM Modi had announced for the common man on December 31. Hope Jaitley may provide some more succour to the people.
Pradhan Mantri Awaas Yojana in urban areas:
Loans of up to Rs 9 lakh taken in 2017, will receive interest subvention of 4 per cent. Loans of up to Rs 12 lakh taken in 2017, will receive interest subvention of 3 per cent.
The number of houses being built for the poor, under the Pradhan Mantri Awaas Yojana in rural areas, is being increased by 33 per cent.
For the neo middle and middle class in rural areas: Loans of up to Rs 2 lakh taken in 2017, for new housing, or extension of housing in rural areas, will receive an interest subvention of 3 per cent.
During demonetisation, Rabi sowing is up by 6 per cent compared to last year. Fertilizer off take is up by 9 per cent.
“Farmers who have taken loans for the Rabi crop from District Cooperative Central Banks and Primary Societies, will not have to pay interest on such loans for a period of 60 days.
Farmers who have paid interest during the last two months will receive these amounts back, directly into their bank accounts.”
Arrangements are being made to provide farmers even better access to loans from cooperative banks and societies. NABARD created a fund of Rs 21,000 crore last month (November 2016). Now, Government is adding Rs 20,000 crore more to this. The loss that NABARD suffers by giving loans to cooperative banks and societies at low interest rates, shall be borne by the Government of India.
Three crore farmers who have Kisan Credit Cards, will be given RuPay debit cards within three months. Kisan Credit Cards were launched in 1998, but so far, it was essential to go to a bank, to use them. Now, farmers will have RuPay Debit Cards, which they can use anywhere.
Government of India underwrites loans given by banks to small businesses through a trust. So far, loans were covered up to one crore rupees. This limit is now being enhanced to Rs 2 crore.
Earlier the scheme only covered bank loans. Hereafter it will cover loans given by NBFCs as well. This decision will enable better access to credit for small shop-owners and small enterprises. Government has also asked banks to raise the credit limit for small industry from 20 per cent of turnover to 25 per cent.
Banks have also been asked to increase working capital loans from 20 per cent of turnover to 30 per cent, for enterprises that transact digitally.
Tax relief for small businesses:
Income of businesses with turnover of up to Rs 2 crore was calculated at 8% of the turnover. Now, for such businesses income from digital transactions will be calculated at 6%. This will effectively reduce their tax liability by 25%.
Scheme for pregnant women:
We are introducing a nation-wide scheme for financial assistance to pregnant women. 6000 rupees will be transferred directly to the bank accounts of pregnant women who undergo institutional delivery and vaccinate their children…
So far, pregnant women in 53 districts were being given financial assistance of 4000 rupees, under a pilot project.
For senior citizens: Under the scheme, senior citizens will receive a fixed interest rate of 8 per cent for a period of 10 years, on deposits up to Rs 7.5 lakh. The interest will be paid monthly.