Left Menu
Development News Edition

Budget to reflect Modi government commitment towards farmers and fiscal concerns, says report

Devdiscourse News Desk | New Delhi | Updated: 25-01-2019 19:42 IST | Created: 25-01-2019 17:50 IST
Budget to reflect Modi government commitment towards farmers and fiscal concerns, says report

The interim budget may be the last chance for the Modi government to "woo and win" a large section of society facing agri challenges but the actual package will reflect its commitment towards the farmers vis-a-vis fiscal consolidation, a report said. "The cost of the widely expected farm package would provide important signals about the government's credibility for implementation for the same and/or its commitment to fiscal consolidation," JM Financial Institutional Securities said in its report on Friday.

After the failed budget promise of enhanced procurement through a revised minimum support price (MSP) formula in 2018-19, the government, as hinted by Union Minister Arun Jaitley, may go beyond a mere vote on account as tackling agricultural challenges "can't afford to wait". JM Financial has predicted a major slippage in the fiscal deficit target. It sees the central government's fiscal deficit at 3.5 percent of the GDP instead of the 3.3 percent target this fiscal. For 2019-20, it sees fiscal deficit at 3.2 percent as against the government's target of 3.1 percent.

Citing media reports suggesting a plan anywhere between Rs 70,000 and Rs 2,30,000 crore, JM Financial said the government may find "announce, but don't allocate" a lucrative option but it may finally allocate a part of the cost to convince the voters of its intent. This could consist largely of subsumed existing agri-schemes such as crop insurance, interest subsidy for short term credit to farmers, market intervention scheme and price support scheme, green revolution, per drop per crop and a price stabilization fund in FY20, it said.

"The allocation for which stood at Rs 47,600 crore in FY19. This means that the incremental burden on Centre's finances would be lower in FY20. Further, with pick up in GST revenues and possible higher devolution by the 15th Finance Commission to states, the burden of the roll-out of the complete scheme could be passed to states from FY21," the report said.

While a vote on account seeks approval for the expenditure side only, an interim budget can alter taxes as well. Since 2000, interim budgets have been passed thrice. JM Financial has not considered food subsidy as it is under the National Food Security Act, fertilizer subsidy which is paid directly to the companies and establishment expenditure under agri-related ministries, it said.



Post-COVID-19 Nigeria needs a robust Health Management Information System to handle high disease burden

Nigeria is among a few countries that conceptualised a health management information system HMIS in the early 90s but implementation has been a challenge till date. Besides COVID-19, the country has a huge burden of communicable and non-com...

Morocco COVID-19 response: A fragile health system and the deteriorating situation

Learning from its European neighbors, Morocco imposed drastic measures from the initial stages of the COVID-19 outbreak to try to contain its spread. The strategy worked for a few months but the cases have surged after mid-June. In this sit...

COVID-19: Argentina’s health system inefficiencies exaggerate flaws of health information system

You can recover from a drop in the GDP, but you cant recover from death, was the straightforward mindset of Argentinas President Alberto Fernndez and defined the countrys response to COVID-19. The South American nation imposed a strict...

Rwanda’s COVID-19 response commendable but health information system needs improvement

Rwanda is consistently working to improve its health information system from many years. However, it is primarily dependent on the collection and reporting of health data on a monthly basis. Besides, evaluation studies on Rwandas HIS publis...


Latest News

Dispute at Sarva Seva Sangh: Vidrohi lodges police complaint

Mahadev Vidrohi, who was removed as president of the Sarva Seva Sangh, apex body of Gandhian institutes in the country, two days ago, lodged a police complaint on Friday that he was stopped from entering his office. On the other hand, Avina...

Florida restaurants can now operate with no restrictions, governor says

Florida Governor Ron DeSantis lifted COVID-19 restrictions on restaurants as he announced the state would enter Phase 3 of reopening on Friday.I think that this will be very very important to the industry and it also will be a recognition t...

Judges skeptical of Trump's arguments over tax returns

A federal appeals court on Friday expressed deep skepticism toward Donald Trumps arguments against letting Manhattans top prosecutor obtain his tax returns in connection with a criminal probe into the U.S. president and his businesses. With...

White House slams FBI chief Wray over voter fraud testimony

FBI Director Christopher Wray faced criticism from the White House for the second time in a week on Friday when President Donald Trumps chief of staff questioned his ability to detect voter fraud as the November election draws near. Wray to...

Give Feedback