By?Ashima Makhija
“We run the government, take decisions to fulfil the common man’s need and aspirations. And we are tackling obstacles and marching ahead“, Prime Minister Modi remarked in an interview with the Times of India. He claims that this is the spirit that dominates the process of preparation of the Union Budget.
The Union Budget 2018 is of utmost eminence to the National Democratic Alliance (NDA) regime. This will be the last full-fledged budget of the incumbent government before the 2019 general elections. The Union Budget doesn?t only reflect the plans and objectives of the government with regard to the economic well-being but also underlines the political aspirations of the government. And in its final budget before 2019, it is vital that the Modi government reflects the concerns of the common man. With this budget, the government has to address the urgent pleas of the agricultural sector and the bereaved farmers, the demands of a ?Digital India? and the looming questions of unemployment and lack of infrastructure.
The crucial target areas
The following can be identified as the important target areas for the BJP-led government this time.
Firstly, the agricultural sector, which was one of the key victims of both demonetisation and GST, requires immediate attention and relief. The recurrent droughts and floods in some states, the low MSPs (Minimum Support Prices) of the government, the failed implementation of a price floor, and the growing indebtedness in the farming community have given rise to a lot of dissatisfaction and protests. The farmers constitute an important vote bank and if the BJP wants to consolidate it, the budget must allocate substantial funds to this sector. Finance Minister Jaitley has already said that the agriculture sector is the top priority of the government because the country?s economic growth is not ?justifiable and equitable? unless the benefits are ?clear and evident? in the farm sector.
Secondly, many anticipate the corporate tax cut. The NDA government came to power on the promise of inculcating a pro-business attitude in the government.? In his Budget 2015 speech, Arun Jaitley had proposed cutting the corporate tax rate from 30% to 25% over a period of four years. In 2018, the Modi government faces the pressure of delivering on its promise.
The problem of unemployment has emerged as another chink in the battered armour of PM Modi. Modi promised the creation of 10 million jobs if it came to power in 2014. Although it is an impossible target to reach, the government can still make amends by allocating more funds to employment schemes and labour-intensive industries. According to reports, the government is likely to come up its first National Employment Policy (NEP) to address the crucial issue of job creation.
Another vital issue is that of the income tax exemption limit. Many stakeholders have reportedly recommended that the IT exemption limit should?be raised due to rising inflation and stagnant income.? In the upcoming budget, the Modi government may consider hiking the tax exemption limit from the present ?2.5 lakh per annum to ?3 lakh per annum.
Infrastructure Creation
Above everything else, there have been extensive demands from various sectors for the government to focus on infrastructure creation in 2018. As per an estimate, as much as ?10-15 trillion of annual investment in infrastructure over the next five years will be needed to sustain the desired rate of economic growth. Expectations hover over promises of better IT infrastructure and emphasis on the ?Make in India? project. FM Arun Jaitley and Economics Affairs Secretary Subhash Garg have said that the focus of the government next year will be on boosting the momentum of infrastructure creation. Jaitley also said that while highways and ports have shown satisfactory results, infrastructure development in railways needs to be hurried.
The many-faceted public demands
The public has made loud demands for various sectors and purposes. These include allocation of greater funds for the protection of animal rights. The environmentalists have demanded a stern response to the drastic challenges of depletion and degradation that confront the nation. The Blockchain and Cryptocurrency Committee feels that given the growth in the number of participants in Bitcoin and other cryptocurrencies, it is high time that the government makes its stand known.
Health experts have urged the government to focus on issues like family planning and non-communicable diseases, increase in health expenditure and increase in the accessibility of health insurance. The ASSOCHAM has recommended a shift of focus towards enhancing the outlay for the education sector, along with greater tax relief for higher education under the Goods and Services?Tax (GST).
Wait for the budget
People, industry bodies, and politicos are eagerly awaiting the final budget of the Modi government before the next Lok Sabha elections. It will be presented by the Finance Minister Arun Jaitley on 1st February 2018. This budget will become a major factor in determining BJP?s performance in the upcoming state elections in Meghalaya, Tripura, and Nagaland in February as well as the next general elections, in the long run. It will determine the commitment of the government towards the needs of the people. If Modi wants to retain his popularity as a ?leader of the masses?, then it is vital that the Union Budget 2018 is public-centric and the government shows utmost sincerity and dedication to the objectives highlighted in the budget.
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