Amid several challenges such as rising crude prices, uncertainty on revenue collections post GST, upcoming elections, desire to revive the GDP growth and an endeavor to double farm incomes, the government presented a moderately balanced budget, writes Ruchi Agrawal on MoneyControl.com. The focused budgetary measures directed at rural India aim to realize the 2022 goal, and give the desired push in an election year – thereby killing two birds in one shot.
In line with expectations and views, the budget focused on addressing the post-harvest issue to provide relief and bargaining power to the farmer, improve farm incomes and rejuvenate rural demand. Though a lot would depend on the implementation of the schemes, the current allocation indicate a boost to rural incomes which would ripple through to farm inputs and rural consumption.
Despite an improvement in production, income in the hands of the farmers has remained substantially subdued over the past decades. The budget introduced several measures focused on improving the income and demand in rural India which is believed would benefit several companies.