Boost for housing but Budget skips the poor

NT Correspondent

New Delhi: Finance Minister Nirmala Sitharaman on Thursday announced a Rs 11.11 lakh crore spending on infrastructure and vowed to continue reforms as she resisted resorting to populist measures in Modi government's last Budget before general elections, instead choosing to stay on the path of cutting deficit while bolstering measures for focus groups.

Her interim budget for fiscal year beginning April 2024 followed the convention to remain a vote on account with no major policy announcement and no changes in income tax rates for individuals and corporates, as well as import duty, but offered amnesty for disputed income tax demands of the period prior to 2014-15 as a relief to small taxpayers.

In her close to an hourlong Budget speech in the Lok Sabha, she listed her government's achievements across sectors in the last 10 years and announced measures to boost tourism, housing and renewable energy.

There is a renewed focus on agriculture/rural economy to course correct to some extent the skewed outcome of the ongoing economic growth even though there was no increase in the amount transferred to farmers under the PM Kisan scheme.

Giving a sneak preview of what will be the Modi government's priority in the third term, if re-elected, she said economic policies that foster and sustain growth, facilitate inclusive development and contribute to generation of resources to power investments will be adopted towards making India a developed country by 2047.

"The next five years will be years of unprecedented development and golden moments to realise the dream of developed India by 2047," she said.

Sitharaman's Budget proposes to cut food, fertiliser and fuel subsidies by 8 per cent in 2024-25 over last year while keeping the allocation for rural employment scheme MGNREGA unchanged.

She announced construction of 2 crore more affordable houses and a scheme for housing for the middle class, formulation of a comprehensive programme for supporting dairy farmers, and enhancing aquaculture productivity to 5 tonnes per hectare.

INTERIM BUDGET IN A NUTSHELL

1. ALLOCATIONS FOR MINISTRIES

• Defence Ministry: f6.1 L Cr
• Ministry of Road Transport & Highways: ?2.78 L Cr
• Ministry of Railways: f2.55 L Cr
• Ministry of Consumer Affairs, Food and Public Distribution: f2.13 L Cr
• Ministry of Home Affairs: f2.03 L Cr
• Ministry of Rural Development: f1.77 L Cr
• Ministry of Chemicals & Fertilizers: f1.68 L Cr Ministry of Communications: f1.37L Cr
• Ministry of Agri & Farmer's Welfare: f1.27 L Cr

2. INFRASTRUCTURE

• Raise capital expenditure by 11.1% to ?11.11 L Cr.
• To launch new housing schemes for the Middle Class.
• To Build & Expand Medical College, Airport & Metros. 

3. HEALTH CARE

• Vaccination for Cervical Cancer
• Launch maternal child healthcare schemes under Ayushman Bharat Scheme
• Ayushman Bharat scheme will be extended to all Asha, Anganwadi workers.

4. RENEWABLE ENERGY

• 1 Cr people to get 300 units of Free Electricity through Rooftop solarisation
• To provide funding to harness offshore Wind Energy for initial capacity of 1 GW.

5. AGRICULTURE & AQUACULTURE

• Focus on Oil Seeds like Soya Bean, Mustard & Sesame Seeds
• Set up 5 integrated Aqua parks to encourage Aquaculture Fishers scheme to help reach Rs 1 lakh cr export target

6. ENERGY

• Blending of compressed Biogas in compressed Natural Gas for domestic use will be a mandate.
• Coal Gasification & Liquefaction capacity of 100 MT by 2030.

7. RURAL DEVELOPMENT

• 2 Cr houses to be built in the next 5 year

8. RAILWAYS

• To build new Energy, Mineral & Cement corridor, Port Connectivity Corridor & High Traffic Density Corridor.