With the Indian economy emerging as one of the fastest growing ones, it continues to face challenges related to inequality and exclusion. The Union budget 2019-2020 should be seen as an attempt in this direction, rather than painting it as an exercise to realise shortterm electoral gains alone. It is a rather masterful effort to connect India’s longterm socio-economic vision with what the world wants to achieve by 2030. As whatever success could be achieved in the context of the Millennium Development Goals (MDGs) were due to the significant contributions from China, it is widely argued that Sustainable Development Goals (SDGs) cannot be achieved globally without commensurate contribution from India.
It is in this respect that many of the proposed programmes announced in the budget touched upon the issues of empowerment of farmers, strengthening of local manufacturing capacities, enhancing the use of STI and capturing the potential of the blue economy with the promotion of inter-sectoral connect. The proposed Pradhan Mantri Kisan Samman Yojana (PM-KISAN) emerges as an important policy instrument. According to this scheme, a payment of Rs 6,000 per year for farmers holding land up to 2 hectares (5 acres) would be provided through direct benefit transfer (DBT) with retrospective effect from December 1, 2018. Budgetary allocation of Rs 75,000 crore has been made to that effect.
While issues are being raised in terms of the relevance and adequacy of the provisions made in the programme, there are couple of points worth mentioning here. States, as Arun Jaitley has suggested, can build up on what the budget has proposed. For instance, Telangana is providing Rs 8,000 per annum under the Rythu Bandhu Scheme and Odisha is giving a maximum of Rs 12,500 per annum under the Krushak Assistance for Livelihood and Income Augmentation. The proposal in the central budget would be complementing the efforts of the respective states.
There is also a need to point out that under the unfolding World Trade Organization regime of agriculture subsidies, India is continuously facing heat for going beyond 10% aggregate measures of support. The introduction of PM-KISAN may provide a viable proposition whenever we are able to arrive at a permanent solution, as such transfers would be eligible to be counted under the Green Box and hence avoid the tag of trade-distorting subsidies.
The DBT should not be viewed as an exercise in vacuum. It would have to be seen in the light of other important measures, which have emerged in the budget. Special measures were announced for animal husbandry and livestock, which might further supplement the value-addition capacity of farmers. In the budget, allocation has been made for Rashtriya Gokul Mission at Rs 750 crore in the current year itself.
Rashtriya Kamdhenu Aayog will help upscale sustainable genetic upgrade of cow resources and to enhance production and productivity of cows. Another laudable initiative is the setting up of a separate Department of Fisheries for putting in place the desired support for the sector and to tap the potential of the blue economy.
Further, the idea of PM-KISAN would also strengthen the efforts for financial inclusion, as the exercise would entail digitisation of land records and connect them with bank accounts for transfer of funds. Since the proposed 120 million farmers would have to be covered through the Jan Dhan scheme being extended through the public sector banks (PSB), it would simultaneously strengthen the recently recapitalised PSBs.
The budget also stands out with its emphasis on self-reliance in our growth strategy, with emphasis on local manufacturing. The fact that the Vande Bharat Express is fully produced under Make in India and a similar emphasis for medical devices, electric cars, etc, are going to bring in relevant skill upgrades and low-cost delivery in our manufacturing sector. Emphasis on science, technology and innovation and leveraging of artificial intelligence are important features of the budget.
While presenting the budget, Goyal also came out with the vision for the next decade, under a 10-point agenda. Four of them-- exploitation of the blue economy, nurturing rivers and enhancing nutrition, along with making India self-sufficient in food--would provide further resilience to the agriculture sector.
The short-term to medium-term objectives should be juxtaposed along with a long-term view presented by the interim finance minister. Though the list is too long with the 10-point agenda, in my view, it may be refabricated within the framework of Agenda 2030, as enunciated through the SDGs. It is not a coincidence that Goyal also presented a set of development goals as his government's vision for 2030. However, a future indetail exercise may entail a comprehensive mapping of the goals of India's Vision 2030 with the SDGs. Interdependence and cross-sector connect have to be emphasised when we explore sectoral engagements through food and nutrition (SDG 2), coast and oceans (SDG 14), river and water bodies (SDG 6), health (SDG 3), renewable energy (SDG 7), rural industrialisation (SDG 12) and smart cities (SDG 11). Thus the 10-point agenda would eventually help in making India not only free from dirt, but would also help us achieve the long aspired goal of eliminating poverty and minimising inequalities, avoiding exclusions. The Indian commitment to attaining SDGs would also be realised simultaneously.