Budget 2016: Budget responds to country's challenges, says Devendra Fadnavis

Stressing that finance minister Arun Jaitley's budget was striking a balance between various growth trajectories and aiming at inclusive development, chief minister Devendra Fadnavis said that its investment thrust was on urban and rural infrastructure.

"This is a budget which understands the challenges before the country and responds to it," said Fadnavis while speaking during the discussion on budget 2016-17 organised by Zee24Taas and Maharashtra Chamber of Commerce, Industry and Agriculture (MACCIA) on Monday. The session was moderated by Dr Uday Nirgudkar, editor-in-chief, dna and Zee24Taas. Entrepreneurs, businessmen and economic experts were also part of the discussion.

"The developmental process is fast, but there is a constant outcry that a large section of society is being left out of it. This section is large... rain-fed agriculture, problems arising out of such cultivation, the obstacles faced by these farmers, the stress on the rural economy. A question mark was being put on whether all these things are part of the growth story. The finance minister has underlined that the main role, not just part of it, will be rural development and agriculture development," he added.

Fadnavis said that the budget had broken out from the "this side or that side concept" of previous budgets which either focussed on rural or agricultural development at the cost of other growth trajectories. The investment on infrastructure would ensure that while the growth story would continue, those outside its ambit earlier would get an important place in it.

"We have given to the poor but not taken anything away from anybody. We have not taken away anything from the middle-class in the budget. On the contrary, to ensure houses for the middle-class, the budget has given concessions to houses up to 600 sq ft," said Fadnavis, adding that "the beauty of this budget is that it has not extracted from anybody but given a lot."

"The thrust of the investment in the budget is on infrastructure, both rural and urban... the quality of investment is important. Considering this, investment in roads, housing, basic infrastructure, electricity, has two benefits, it creates growth and employment. This investment has returns," noted Fadnavis, adding that returns would now be seen in economic and social sectors.

This consumption would create skills, jobs and opportunities in rural India and serve as an alternative to agriculture.

"The biggest question before Maharashtra is that of rain-fed farming," said Fadnavis, adding that the budget had more allocations for roads and irrigation, which were crucial for the state. Maharashtra's Jalyukta Shivar programme had served as a reference point for the prime minister irrigation scheme during discussions with the Niti Aayog. The increased FDI in food processing would help the state.

Former Maharashtra finance minister and senior NCP leader Jayant Patil said that the budget was "a lost opportunity... a small attempt to pacify those sectors that are going against it (government)" and opined that the budget amounted to "cosmetic surgery."