Budget may be pro-poor, focus on rural growth
SOPS In the wake of setback in byelections, the government seeks to address farm distress, unemployment and boost economic growth JAIPUR: KOTA:The
Chief minister Vasundhara Raje, who also holds the finance portfolio, will on February 12 present her government’s last budget before Rajasthan goes to polls later this year.
Analysts said the budget is expected to be pro-poor and focus on rural growth in the wake of setback in by-elections as the government seeks to address farm distress, unemployment and boost economic growth.
Federation of Indian Chambers of Commerce and Industry, Rajasthan state council chief Atul Sharma said the thrust will be on agriculture and allied areas to boost rural income and the other major focus will be schemes meant for poor.
“We may see new rural schemes such as irrigation projects to boost farm income,” he said.
The government may increase spending on infrastrucwho ture projects for the benefit of urban residents, Sharma said. “As for urban areas, the government could focus on infrastructure but these schemes take long time to materialize.”
The state’s fiscal deficit that was 3.62% of gross state domestic product in the last financial year was estimated to drop to 3% in the current financial year and the latest numbers will be revealed in the forthcoming budget.
Analysts, however, are not optimistic about the projected fall in fiscal deficit.
“Apart from UDAY scheme, the implementation of the seventh pay commission recommendations will take a toll on the fiscal deficit,” an industrialist, did not wish to be named, said.
“The government will be looking to boost the expenditure and fiscal deficit will not be a constraint as this is the last budget before the elections,” the industrialist said.
Confederation of Indian Industry vice chairman Anil Saboo said the state budget will follow in the footsteps of the Union Budget and measures will be taken for poor.
“As for the revenue generation, borrowing is not a solution as it is unsustainable and will lead to fiscal deficit shooting up. The government should promote tourism sector, which is a cash industry, and micro, small and medium industry that will increase the tax collections,” he said.
“The problem now is that many government schemes are not reaching the beneficiaries on the ground. It could be due to poor implementation by bureaucracy or lack of monitoring.”