Arun Jaitley hints at raising Rs 500 a month cash support to farmers in future

Agencies
February 3, 2019

New York, Feb 3: Union Minister Arun Jaitley on Sunday hinted that the Rs 500 a month cash dole to small farmers may be increased in the future as the government's resources grow and said states can top up this amount with their own income support schemes.

He also slammed Congress president Rahul Gandhi for ridiculing the scheme announced in the Interim Budget for 2019-20 by equating it to Rs 17 a day dole, saying the opposition leader must "grow up" and realise that he is contesting a national election and not a college union poll.

The plan to give Rs 6,000 cash to 12 crore small and marginal farmers every year together with government schemes for giving them a house, subsidised food, free healthcare and hospitalisation, free sanitation, electricity, roads, gas connections, twice the amount of credit at very cheap rate are all aimed at addressing farm distress, Jaitley told PTI in an interview.

"This is the first year where it (farmer income support scheme) has begun. I am sure as the government resources improve, this can be increased," he said.

On nearly 15 crore landless farmers being left out of the scheme, he said they have rural employment guarantee scheme MNREGA plus other benefits for the rural population.

"What is the biggest thing that the Congress claims that they ever did? (UPA regime Finance Minister) P Chidambaram announced a Rs 70,000 crore farm loan waiver... (but) actual distributed was only Rs 52,000 crore. (Also), CAG said a large part of that money went to traders and businessmen and converted itself into a fraud," he said.

The present government, he said, is "starting off over and above the lakhs of crores we are putting into rural areas."

"We are starting off with Rs 75,000 crore a year and I foresee this amount increasing in the years to come. And if the states top it up, some states have already started with the scheme, I think the others must emulate them, it will increase," he added.

Jaitley, who is here for medical treatment, said the state governments too have a responsibility to address farm distress by bringing their own income support schemes.

"Some state governments have started it," he said. "So my advise to what I call the 'Nawabs of Negativity' is ask your own state governments to top it off with their own income support schemes. Ideally, like the GST, this is a case where all political parties must defy party lines and in the spirit of cooperative federalism, have a Centre plus state scheme."

He said most of the central schemes are divided into 60:40 ratio, so "let us enhance this to 60:40 in the spirit of cooperative federalism" and instead of "giving criticism, let the states give 40 (per cent)."

"In addition to the fertiliser subsidy - another big amount, the healthcare, cheap ration, over a dozen other things you are spending on. This is just an add-on, this (income support) is not something being thrown in the air. The Congress doesn't understand it because it did nothing," he said.

On Gandhi's criticism of the Budget proposal, Jaitley said, "I think he needs to grow up. He must realise that he is contesting a national election not a college union one."

On his predecessor P Chidambaram's criticism that the interim budget was an "account for vote" and not a 'Vote on Account', he said, "I have no problem with monies being spent on either of these two accounts. But I have a serious problem when monies go into personal accounts."

Taking on the Congress, he said the comments by the leaders of the principal opposition party and "some other compulsive contrarians" indicate that they have a complete lack of understanding of the subject.

"Others have been in power much longer than we have been and did nothing. There is a real problem in India, both with regard to the urban-rural divide, which is reflective of the quality of life available in rural areas, and the state of agriculture. You have to look at both these issues compositely," he said.

Jaitley, who had to give up charge of the finance ministry to undergo medical treatment just weeks before the budget was presented, said the Congress gave just slogans like 'Garibi Hatao' (remove poverty) but delivered very little.

Dwelling on the steps taken by the BJP-led NDA government since coming to power in 2014 to address farm sector distress, he said the Centre adopted a two-pronged approach of raising rural infrastructure spend and raising farm incomes.

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News Network
June 19,2020

New Delhi, Jun 19: Petrol price on Friday was hiked by 56 paise per litre and diesel by 63 paise a litre, taking the cumulative increase in rates to Rs 7.11 and Rs 7.67 per litre respectively in less than two weeks.

Petrol price in Delhi was hiked to Rs 78.37 per litre from Rs 77.81, while diesel rates were increased to Rs 77.06 a litre from Rs 76.43, according to a price notification of state oil marketing companies.

Rates have been increased across the country and vary from state to state depending on the incidence of local sales tax or VAT.

This is the 13th daily increase in rates in a row since oil companies on June 7 restarted revising prices in line with costs, after ending an 82-day hiatus in rate revision.

In 13 hikes, petrol price has gone up by Rs 7.11 per litre and diesel by Rs 7.67 a litre.

The freeze in rates was imposed in mid-March soon after the government hiked excise duty on petrol and diesel to shore up additional finances.

Oil PSUs Indian Oil Corp (IOC), Bharat Petroleum Corp Ltd (BPCL) and Hindustan Petroleum Corp Ltd (HPCL) instead of passing on the excise duty hikes to customers adjusted them against the fall in the retail rates that was warranted because of fall in international oil prices to two decade low.

International oil prices have since rebounded and oil firms are now adjusting retail rates in line with them.

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Agencies
August 6,2020

Mumbai, Aug 6: Former Reserve Bank of India governor Raghuram Rajan said on Thursday that overly focusing on what sovereign rating agencies think can take one's eyes off what needs to be done for the economy.

"It is also important to convince both domestic and international investors that after the crisis associated with the pandemic is over, we will return to fiscal responsibility over the medium term, and the government should do more to convince them of that," Rajan told the Global Markets Forum.

India was placed under one of the strictest lockdowns in the world in late March for more than two months to stem the spread of the coronavirus, but cases have continued to rise steadily since the government eased restrictions in June, stymieing hopes of an economic recovery.

The government has announced several initiatives to help the poor and small- and medium-size businesses, but actual cash outgo from the government's measures has been estimated at just about 1% of GDP.

Several attribute the fiscal prudence to fear of a downgrade after Moody's cut India's rating and outlook in early June followed closely by a change in outlook from Fitch.

The central bank on its part too has reduced the key lending rate by 115 basis points on top of the 135 bps last year and is widely expected to cut rates by another 25 bps later on Thursday.

"The RBI and government have certainly been cooperating, but it seems like it is elsewhere, the ball is in the government's court to do more," Rajan said.

He said the RBI needs to focus on whether credit is reaching the stressed areas of the economy and also if the viable firms were able to access credit and not the unviable ones.

"And I think that's where it has to focus its attentions, because resources, as you well know, are limited in India today."

Recently analysts, however, have cited the growing possibility the RBI may prefer to pause and cut rates only at its October meeting.

Government officials too have suggested the possibility of any more fiscal stimulus being announced, would only come in the second half of the fiscal year, once a recovery has taken root and coronavirus cases have peaked.

"What India should focus on at this point is protecting its economic capabilities, so that when it has dealt with the virus it can go resume activity in a reasonable way. That should be the focus," Rajan said.

"And if it does that, there is no reason why the rating agencies will not see that as an appropriate policy".

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News Network
May 11,2020

May 11: Congress leader Rahul Gandhi on Monday said many states were amending labour laws, but the fight against the novel coronavirus pandemic cannot be an excuse to exploit workers, suppress their voice and crush their human rights.

Gandhi said there cannot be any compromise on the basic principles by allowing unsafe workplaces.

"Many states are amending labour laws. We are together fighting against corona, but this cannot be an excuse to crush human rights, allow unsafe workplaces, exploit workers and suppress their voice," he said.

"There cannot be any compromise on these basic principles," he added.

Congress leader Jairam Ramesh also said it would be dangerous and disastrous to loosen labour, land and environment laws in the name of economic revival and stimulus.

"In the name of economic revival and stimulus, it will be dangerous and disastrous to loosen labour, land and environmental laws and regulations as the Modi govt is planning.

"The first steps have already been taken. This is a quack remedy like demonetisation," Ramesh tweeted.

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