Finance Minister Nirmala Sitharaman announced a bounty to farmers which are bound to help them to come out of the vicious circle of poverty. This is the right step to achieve the government’s commitment to double farmers’ incomes by 2022. Steps taken to boost the income of farmers include adopting sustainable cropping patterns and bringing in more technology in farming.
As farming depends on the rainfall, and there is uneven rainfall which led to water stress-related issues across the country. The budget has many measures for a hundred water-stressed districts. It has made efforts to tackle the energy crisis. The proposal to expand PM-KUSUM scheme to 20 lakh farmers for setting up stand-alone solar pumps; and a scheme for solar power generation on their fallow/barren lands can help improve agricultural productivity. However, there is a need to extend this facility to all farmers in the country to realise the dream of doubling of farmers’ income by 2022.
Introduction of the village storage scheme to be run by the SHGs is welcome as this will not only offer farmers a good holding capacity and reduce their logistics cost, it will also ensure that women regain their position. A decision to cover all eligible beneficiaries of PM-KISAN under the KCC scheme is also a positive step. The proposal to provide hi-tech transport facilities in the form of refrigerated coaches to carry perishables and milk through Indian Railways (kisan trains) is a welcome move.
But on the other hand, it did not bring cheer to the working class. The proposal to introduce a new and personal income tax has an opportunity cost of opting new simplified personal income tax is forgoing certain deductions and exemptions.
(The writer is deputy director, National Federation of State Cooperative Banks, Vashi, Navi Mumbai)