Arun Jaitley’s second full-year Budget has come on expected lines — a powerful thrust on increased allocation to infrastructure, agriculture and rural development with a clear inclusive agenda. What is remarkable is the dexterity with which the FM has managed to hold on to the long-term FRBM target of 3.5 per cent fiscal deficit in FY17.
The 9 pillars outlined by the Finance Minister at the beginning of his Budget speech clearly outlined the government’s priorities. With a 15.3 per cent increase in Plan Expenditure and outlay of ₹2.21 lakh crore for infrastructure, the intent is apparent: using public investment in infrastructure to boost economic growth. With a “quantum jump” in funds to ₹2.87 lakh crore for village panchayats, enhanced credit of ₹9 lakh crore to the farm sector and interest subvention and a clear boost to irrigation and crop insurance, the Budget stands out for its pro-agrarian and pro-rural intent.
While a ₹38,500 crore outlay for MNREGA is the highest ever for the rural employment scheme, the ₹9,000 crore outlay for Swachch Bharat Abhiyan highlights the government’s commitment to one of its flagship schemes.