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Interim Finance Minister Piyush Goyal on Friday unveiled a modest farm support scheme, under which the government plans to offer income support for marginal farmers at Rs 6,000 per year under a scheme called Kisan Samman Nish.
The scheme will benefit some 12 crore farmers.
The FM set aside Rs 75,000 crore under the scheme.
Commenting on the same, noted economist Swanathana Iyer said the farmer income support scheme looks modest.
“It is less than what’s already operational in Odissa and Telangana, The scheme is fiscally difficult, but manageable,” Iyer said.
The FM also raised allocation under MNREGA to Rs 60,000 crore for FY20.
Another Rs 19,000 crore has been provided under the rural roads scheme for FY20.
The FM also increased allocation under the Gokul Scheme to Rs 750 crore.
The farmer income support scheme will cost Rs 75,000 crore per year, the Finance Minister said.
Expert Take:
Swaminathan IyerIncome support scheme looks modestIt’s less than what’s already operational in TelanaganaRs 20,00 crore farm support to boost NDA’s election campaignFarm support scheme less than what’s operational in OrissaLong-term plans are mere slogansCash in the system now higher than before cash banBiggest ever income-tax gimmickHuge appeal for middle class workersSops for middle class much bigger than those for farmersBudget may help BJP win votes, but the math does not add upYogesh Mehta, MOSLPro poor and low income group will be biggest beneficiaries, farm equipment, consumer, few auto could be in focusLaskhmi IyerFY19 fiscal deficit target at 3.4% in a tough environment ignites hopes for FY20 rationality.Bond yields have hence eased 4-5bps.Sanjay Sanghvi, Khaitan Co.Tax assessments to be done electronically without interface with tax administration is a very good move.Full tax rebate for income up to 5 lakhsHelpful for small taxpayersFor people earning up to 6.50 lakhs a year also fully tax free if Rs 1.50 lakhs invested in prescribed tax saving avenuesHIGHLIGHTS:RURAL AFFAIRS India to allocate Rs 75,000 crore ($10.56 billion) per year to support farmers’ incomes Impact of Rs 20,000 rupee in current fiscal year Vulnerable farmers to receive Rs 6,000 per year under new scheme Government to allocate Rs 60,000 crore for a rural employment scheme in 2019/20 India to allocate Rs 19,000 crore for construction of rural roads in 2019/20 ECONOMICS India’s current account deficit for FY19 seen at 2.5% of GDP Fiscal deficit for FY19 seen at 3.4 % of GDP Goyal says expects other banks on the central bank’s Prompt Corrective Action list to be removed soon
