Jaitley showered all the largess on farmers, poor people, rural households and people who are living on margin.
Finance minister Arun Jaitley switched over to Hindi in between while delivering his last full budget speech for this government. It was a strong indication of BJP’s recent strategy shift from urban to rural. Jaitley showered all the largess on farmers, poor people, rural households and people who are living on margin. All the catchy slogans of previous years - Start Up India, Make in India, Stand up India conveniently gave way to farm reforms, discovery of the maximum MSP (Minimum Support Price), Housing for All and Modicare. His address in Hindi was heard loud in hinterland but the eerie drop silence on urban landscape could not be broken by announcement of making 99 smart cities which are already in the process. The Rs 5 lakh health cover for 10 crore families and housing for all - both for rural as well as urban poor - look not more than ice candies hanging in air. More so as FM has not mentioned from where Rs 25,000 crore will come to provide healthcare to 50 crore people or 10 crore families.
The implementation of GST has cut down time he would have spent on tweaking indirect taxes. But then he spoke on indirect employment without making any big announcement on job creation. The government is depending on MSMEs below Rs 250 crore turnover to reinvest and create job opportunities the money they are likely to save after FM reduced the Corporate Tax on from 30% to 25%.
The Gujarat election results have shown the mirror to BJP. And this budgetary exercise is just a last ditch effort to win poor votes which flocked together for BJP in UP elections post demonetisation but looked frittering away in Gujarat elections post GST with smaller companies phasing out in price war.
The FM also seems to have deliberately missed out on any announcement on farm waiver. This mega announcement is likely to take centre stage somewhere close to 2019 elections. BJP knows the heart of vote lies in hinterland as even after 70 years of independence and record industrial growth, still 60% population is dependent on agriculture.
The author is Resident Director of PHD Chamber of Commerce who has worked with The Economic Times, The Times of India and Hindustan Times.
Striking a balance
- Government’s plan to open one medical college for every three Lok Sabha constituency is another welcoming move. In totality, Budget — 2018 can be termed as a fine balance between populist majors to woo voters and meeting the developing and job creation agenda of the government.
- Team Modi-Jaitely has managed it well in balancing populist demands, the need to support economic growth and Prime Minister Narendra Modi’s focus on fiscal discipline
- and reforms.
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