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India Budget 2017: Promise to boost rural spending | India Budget 2017: Promise to boost rural spending |
(35 minutes later) | |
India's government has unveiled its annual budget, with promises to boost rural spending and pull more people out of poverty. | |
It comes months after the controversial withdrawal of high value banknotes which caused chaos in the economy, hurting farmers and the poor most. | It comes months after the controversial withdrawal of high value banknotes which caused chaos in the economy, hurting farmers and the poor most. |
Finance Minister Arun Jaitley allocated funds to bring more irrigation, roads, electricity and sanitation to villages. | Finance Minister Arun Jaitley allocated funds to bring more irrigation, roads, electricity and sanitation to villages. |
Farmers would also have more access to credit, he said. | Farmers would also have more access to credit, he said. |
The government also plans to spend a record $7.09bn (£5.69bn) on a scheme which guarantees every rural household 100 days of work each year. | |
Overall rural and farm spending would be increased by 24% as part of the government's plan to double farm incomes over five years, Mr Jaitley added. | |
"He (Mr Jaitley) focused on the rural side more, and he has recognised that demonetisation had brought some hardship to people, said Samrat Dasgupta, chief of Esquire Capital Investment Advisors. | |
"He's trying to mitigate that as much as possible, with some rural schemes and reduction in taxation for low income people." | |
Other proposals announced in the budget speech included: | |
'Bright spot' | 'Bright spot' |
India's economy is expected to grow by 6.5% in the year to March 2017, down from 7.6% the previous financial year, a key economic report revealed ahead of the budget. | |
However, the country was a "bright spot" in the world economy, Mr Jaitley said, adding that the impact on growth from the government's cash crackdown would wear off soon. | |
He said the currency ban was a "a bold and decisive measure" and would leaded to larger GDP, more tax revenues and a cleaner economy. | He said the currency ban was a "a bold and decisive measure" and would leaded to larger GDP, more tax revenues and a cleaner economy. |
The dramatic move to scrap 500 ($7.60) and 1,000 rupee notes was intended to crack down on corruption and so-called black money or illegal cash holdings. | The dramatic move to scrap 500 ($7.60) and 1,000 rupee notes was intended to crack down on corruption and so-called black money or illegal cash holdings. |
But the Economic Survey, released on Tuesday and written by the government's chief economic adviser, admitted the rupee withdrawal had been bad for economy. in the short term. | But the Economic Survey, released on Tuesday and written by the government's chief economic adviser, admitted the rupee withdrawal had been bad for economy. in the short term. |