Budget 2019: Experts Take & Congress Reactions on Budget & Farm Support Scheme

Finance Minister Piyush Goyal today unveiled a modest farm support scheme, under it, the government plans to offer income support for marginal farmers at Rs 6,000 per year under a scheme called Kisan Samman Nish.

There is good news for farmers now. As this new scheme will benefit some 12 crore farmers. The FM has set aside Rs 75,000 crore under the scheme.

The FM also raised allocation under MNREGA to Rs 60,000 crore for FY20. Further adding, Rs 19,000 crore under the rural roads scheme for FY20 has also been provided. There is increased allocation under the Gokul Scheme to Rs 750 crore. The farmer income support scheme will cost Rs 75,000 crore per year, according to the Finance Minister.

Modi Government’s this support scheme for farmers has gained momentum in the parties and made party leaders and the experts to comment on the same.

Experts Comments:

1. Swaminathan Iyer:

Economist, Swaminathan Iyer, said the farmer income support scheme looks modest. It is less than what’s already operational in Odisha and Telangana. The scheme is fiscally difficult, but manageable.

According to him, “Long-term plans are mere slogans and cash in the system now higher than before cash ban. It is the biggest ever income-tax gimmick and huge appeal for middle class workers. He said, Sops for middle class much bigger than those for farmers. Budget may help BJP win votes, but the math does not add up.”

2. Yogesh Mehta, MOSL:

He said, “Pro-poor and low-income group will be biggest beneficiaries, farm equipment, consumer, few auto could be in focus.”

3. Laskhmi Iyer:

FY19 fiscal deficit target at 3.4% in a tough environment ignites hopes for FY20 rationality.  Bond yields have hence eased 4-5bps.

4. Sanjay Sanghvi, Khaitan & Co:

He said, “Tax assessments done electronically without interface with tax administration is a very good move. Full tax rebate for income up to 5 lakhs is helpful for small taxpayers. For people earning up to 6.50 lakhs a year also fully tax-free if Rs 1.50 lakh invested in prescribed tax saving avenues.

5. Nilesh Shah, Envision Capital

According to him, this budget will increase the income of farmers and middle-class Indians and will help boost consumption.

Check out what our political leaders including the opposition party have to say on Budget 2019-