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‘Budget 2020 one of vision and action, will boost jobs’: PM Modi
PM Modi dubbed it a “Jan Jan ka Budget”, or a budget for every person.
Prime Minister Narendra Modi hailed the decade’s first Union budget as one that will boost jobs and financially empowering common people, a day after he said that the Economic Survey, presented on Friday, outlined a strategy to make India a $5 trillion economy.
In a televised statement after Union finance minister Nirmala Sitharaman presented the budget in Lok Sabha on Saturday, Modi said that the budget has both “vision and action” and the unleashed reforms will “ensure speed to the economy, empower every citizen financially, and strengthen the foundations of the economy of this decade”.
He dubbed it a “Jan Jan ka Budget”, or a budget for every person. Modi’s emphasis on jobs -- he outlined the underlying employment opportunities in several of the budget announcements -- comes at a time when political opponents have slammed the National Democratic Alliance (NDA) government for rising unemployment. In 2019, a report of the National Sample Survey Office (NSSO) had stated that India’s unemployment rate hit a 45-year high of 6.1% in 2017-18, triggering widespread criticism of the government’s handling of the economy. The government, however, maintains that the numbers in this survey are not strictly comparable with previous surveys.
The PM pointed out in his address on Saturday that four sectors that are major sources of jobs — agriculture, infrastructure, textiles and technology — have got special emphasis and attention in the budget.
He also linked the tax concessions given to start-ups and real estate firms with more job opportunities for young people. He said that investments will see creation of jobs, and the economy will gain momentum through “historic steps” taken to bring investments.
The PM spoke at length about personal income tax, maintaining that the country’s tax system has started a new journey towards trust from the old days of dispute. “We have decided to decriminalise the lapses which are of a civil nature in our company laws. We will also clearly put in place the rights of a taxpayer through the taxpayers’ charter,” the PM said.
In her budget speech, Sitharaman laid emphasis on “trusting” citizens, including current and future taxpayers. She linked the taxpayers’ charter with Modi’s vision of an improved goal of Ease of Living in India.
Modi maintained that the decision to remove dividend distribution tax (DDT) will leave ~25,000 in the hands of the companies which will be used for fresh investments. He was hopeful that the measures in the budget would lead to more investment because tax concessions have been given for foreign entities as well.
The PM spoke about measures proposed for farmers with the aim of doubling their incomes. “The 16 action points envisaged by the government will help in boosting jobs in the rural sector. While integrated approach in agriculture will add value to horticulture, fisheries and animal husbandry, youth will get new opportunities in fish processing and marketing under the ‘blue economy’,” he said.
Modi also said that the government’s flagship health scheme Ayushman Bharat has been expanded and it would lead to jobs, manufacturing, and improvement in expertise and services. “The human resource of this sector — doctors, nurses, attendants, and also manufacturing of medical devices -- will see a lot of scope.”
He pointed out that even in areas of technology, the government has tried to boost employment. He listed new smart cities, electronic manufacturing, data centre parks, biotechnology and quantum technology as areas where many policy initiatives have been taken.
“This is help us making India as an integral part of the global value chain,” said Modi. Giving a long list of schemes and highlights of the budget, the Prime Minister said: “I am confident that this budget will boost income and investment. It will also boost demand and consumption and give new momentum to financial system and credit flow.”
Opposition parties, however, were unimpressed. “Overall, this budget is lacklustre, and will not get the economy back on track,” said Telugu Desam Party MP Jayadev Galla. The Trinamool’s Derek O’Brien maintained that the budget has reduced the economic crisis to a disaster and Indian economy has shifted from “ICU to ventilator”.
In a series of tweets, Congress chief spokesperson Randeep Singh Surjewala slammed the budget. He tweeted that “the BJP, which believes in two-nation theory, has introdcued two tax systems to divide the taxpayers. This is nothing but a puzzle for the salaried class. They will have to give more tax than the old system.”
