BUDGET SERIES-BGR REFLECTIONS

BUDGET SERIES-BGR REFLECTIONS

The budget looks to be good for business people (as expected) and salaried class to some extent ( surprise)

When it comes to farm and off farm sectors (rural) though tall claims are made with value loaded statements like farm income will be doubled in 5 years ( last budget also same statement), if we analyze the budget in detail one will come to conclusions that the sector is taken for ride (as expected).

If we look at MGNREGS though the the outlay looks to be highest ever (48000cr) it is just in line with 2016-17 revised expenditure of Rs 47500 cr.

The issue is not really with allocation, it is with how the funds are being spent. States with better mechanism are drawing more funds irrespective of poverty ranking. For example Last year one state draw over Rs 6000 cr as against another state of double the size and most poverty ridden could absorption of Rs 600 Crs.

This clearly shows that the funds are not reaching poorest of poor and if it continues like this the desired results will not be achieved in near future.

Unless until one address these issues and empower states with necessary infra to absorb funds these type of budget exercises will not bear fruits.

Tax reduction to SSI/MSI by 5% looks to be good move, but there is hardly any merit in farm credit allocation , in fact the implementation strategy is missing.

Credit: Farm credit target revised from Rs. 9.5 lakh crore in 2016-17 to Rs. 10 lakh crore in 2017-18. This is not a Government allocation or expenditure but loans have to be given by banks. In any case this is routine – same increases have taken place for several years now. More importantly, not mentioned how this would reach small, marginal and tenant farmers who constitute 86% of farming community.

PMO has to work on it through MOA which is on a nap at present.

BGR

Let us think innovative and bring in positive change.

BGR