Union Budget 2017: NDA snatches UPA's 'poverty' agenda

New Delhi: The snatching of the “poverty” agenda from the Congress seems to have been completed by the NDA government which has increased the budget for the agriculture and rural development sectors by 24 per cent in a single year with a promise to eliminate poverty from more than 3 lakh villages over the next two years.

“The government will continue to work closely with the farmers and the people in the rural areas to improve their life and environment. This is a non-negotiable agenda for our government,” finance minister Arun Jaitley declared in his budget speech amid thumping of desk by the BJP members.

The total allocation for the rural, agriculture and allied sectors in 2017-18 is Rs 1,87,223 crore, which is 24 per cent higher than the previous year. Stating that the government would start a Mission Antyodaya for poverty alleviation in the country, he said the aim is to make 50,000 gram panchayats poverty-free by 2019. This means, if one gram panchayat has an average six villages, at least 3,00,000 of them will be out of the poverty map.

To bring one crore households out of poverty net by 2019, the 150th birth anniversary of (Mahatma) Gandhiji, is the vision of the government, he added.
Mantri Gram Aawaas Yojana (gramin) has been increased to Rs 23,000 crore from Rs 15,000 crore. Similarly, the allocation for National Rural Livelihood Mission for promotion of skill development has also been increased to '4,500 crore in 2017-18.

In a bid to ensure safe drinking water to over 28,000 arsenic and fluoride affected habitations in the next four years, the government will start a sub-mission of the National Rural Drinking Water Programme.

Mr Jaitley said that masonry training will be provided to 5 lakh persons by 2022, with an immediate target of training at least 20,000 persons by 2017-18. The Ministry also mentioned that Swachh Bharat Mission (Gramin) has made tremendous progress in promoting safe sanitation and ending open defecation.
Sanitation coverage in rural India has gone up from 42 per cent in October 2014 to about 60 per cent.

Open Defecation Free villages are now being given priority for piped water supply, he said. Rural development minister Narendra Singh Tomar said it will be a “game changer” for rural India and will transform Indian villages to become base of the country's growth in coming years.

FMCG firms such as Godrej and Marico have hailed the focused approach of the government to enhance rural spending through welfare schemes like MGNREGA.

Godrej Consumer Products Ltd (GCPL) Managing Director Vivek Gambhir said that reduction in tax slab would leave more money with the consumer to spend and would increase the demand.

“It is largely positive for the FMCG sector, given the strong emphasis on rural stimuli. Focused efforts to boost the agrarian economy and improve agricultural productivity, increased investments in MGNREGA, should augur well for rural consumers,” he said.

According to Marico Managing Director & CEO Saugata Gupta, the increase in spending in rural areas would boost the demand. “The Budget is forward looking, consistent and pragmatic with overall focus on broad-based growth. We expect it to boost consumption, create more jobs especially in the rural and infra sector, given the thrust provided by the government to agriculture, MNREGA, infrastructure and rural productivity,” he said.

Jyothy Labs Joint Managing Director Ullas Kamath said that it has laid a lot of emphasis on middle-class and rural population. “We see substantial demand emerging from tier II & III cities, as the government focus is on enhancing agriculture income, personal hygiene and sanitation.”

Dabur’s CEO Sunil Duggal said hike in MNREGA allocation would generate demand from rural corners. “These, coupled with the skill development initiative, would not just strengthen the hands of the rural poor, but also help put more disposable income in the pockets of the rural consumer and ensure continued rural demand for branded consumer goods,” he said.