Budget of 2018-’19 will mainly focus on the rural economy and agriculture, finance ministry officials said.
It shows that the government is likely to shift it’s focus to rural development and the farm sector ahead of the next general elections, expected in 2019.
Arvind Subramanian, the government’s chief economic adviser, by the change the survey for 2014-15. Subramanian divided the document into two. The first volume explored various themes of economic development. The second volume reflected on the state of the economy in the traditional format.
Uttar Pradesh- India’s most populous state – can embellishe or scuttle modi’s re- election prospects come 2019. Luring voters without worsening public finances puts Modi’s Bharatiya Janata Party in a sweet spot politically and may also open room for an interest rate cut when the Central Bank meets next week.
” This time the government has been also focusing on agriculture subsidies to increase productivity and yields from cultivation. The Central government launched the direct benefit transfer for fertilisers in various States in the month of October 2017. This ensures that there is no extra burden on farmers as they will continue to get fertilisers at a subsidied rate.
Higher procurement prices for different crops could be offered to farmers following lower output this year. There will be tax reforms, the aide said, referring to corporate demand to lower tax rates.
The first volume of this year’s economic survey, like in previous years, will be a mix of policy advice and academic analysis. It might also provide economic logic for policy decisions the government is likely to announce through the Budget, such as a price support mechanism for farm commodities for which the center current provides a minimum support price but does not buy much of.
Please follow and like us: