India’s Minister of Finance announced a Federal budget on Thursday. As per the new budget unveiled there are a few mainstream giveaways included, which are affordable housing, health plans for millions of poor people, to encourage the voters before the national elections scheduled next year.
Arun Jaitley—the Finance Minister while speaking in the parliament also announced about the liberalization of the agricultural exports, which would be increasing from dollar thirty billion a year to dollar hundred billion, to assist in boosting the crop prices for the farmers. Earlier the export of many agricultural products has been limited by regulations.
The government would also engage in making more than five million inexpensive houses for the poor people in the next fiscal year, which would start from 1st April to 31st March.
He announced that no changes would be made in the personal tax rates.
For helping millions of farmers, Jaitley raised the prices of rice and other such crops to at least fifty percent, higher than the production cost. Prices are presently set up at a twenty percent markup.
Jaitley also increased the target for farm loans by ten percent to more than ten billion rupees which means, dollar one hundred and fifty million.
Thousands of farmers every year in India take their own lives as failed crops forces them to borrow money at high-interest rates for buying seeds, fertilizers and even food for their survival and their cattle. They have to even debt their lands.
This would be the last budget of Prime Minister Narinder Modi’s government, which would be seeking a next five-year tenure in May 2019 national elections. The new government would be deciding upon the full year budget for 2019-20.
The minister also announced a health protection program for hundred million poor families, providing free hospitalization up to rupees five lacs or dollar seven thousand five hundred per person.
He also announced that eight million women would be provided with free connections for liquefied cooking gas, which costs around dollar forty-five dollar a piece. Moreover, forty million poor families would be getting free electricity connections, which costs in the range of dollar twelve and dollar twenty.