The much-awaited Narendra Modi government’s first full Budget will be presented on February 28, 2015. A strong and reform oriented budget will boost the Modi government and BJP’s decisive Lok Sabha win in last May. The new government will also look to infuse additional funds to the schemes started during the current and previous UPA government. Economic expert Dinesh Verma speaks on the popular schemes taken up by both the current NDA and previous UPA governments.
The Mahatma Gandhi Rural Employment Guarantee Act (MNREGA) is the biggest and one of the poplar scheme initiated by the UPA government. But it is expected; the new NDA government can reduce the funds allocated for the mega project and bring in some new policies in it. The proper implementation and financial irregularities were major issues in the project.
The Pradhan Mantri Jan Dhan Yojana is a good initiative taken up by the new government. It will benefit the poor across the nation. But the scheme should be implemented to make it a success.
In a way, the government has just added some features to the Direct Benefit Transfer. But, these are very early days’ for the scheme. The government needs to fill its loopholes in the scheme. The government now need to develop the infrastructure of banks across the country, especially in rural areas.
The government can take up some new steps to implement the dream scheme of PM Modi, “Make in India”. It can bring in policies to improve the qualities in the domestic market and to boost the small and medium scale industries. Also the micro and small scale industries have closed down in large extent and need to revive. Small scale entrepreneurs are the need of the hour to boost the slumping economy.
The government can bring in new policies to boost skill development, provide credits to micro scale industries, developing qualities, rationalisation on duty for medium scale industries and many more. The government has to also put a check on foreign goods, so that local manufactures can get their market share.
As per the new government, the new formulated Niti Aayog will work on federal basis as the states were not getting their true participation in formulating policies in the old system.
Now, the states will have proper participation and large chuck in the tax share also, as it will works as Team India. Now the states will have free hand to take their own decision, rather than depending on the Centre. But, in a way its old wine in new bottle.
There are many questions to be answered by the new government. Will the government take populist steps to woo the voters or it will take some hard decisions to boost the economy? Will the government will fulfil its promises given during the pre-poll campaigns or it will give bitter medicine again? All our questions will be answered, after FM Arun Jaitley will open his black briefcase on Saturday.