Budget '2023' for rural economy ?

source-britanicca

In india agriculture is one of pillars of domestic growth rural economy impacted many times rural economy faced the hardship this is likely to be remain focal point in budget 2023

On 1^st February the budget is going to be introduced this might be somewhat longer given that it will last full stretched budget before 2024 elections, achieving domestic growth is the top priority of this budget .

rural economy is the pillar, we all know government should prioritise the sector by taking some serious norms without getting wasted our time take a look the points .

continuously we see sharp increament in agricultural input cost, mess create by Russia & Ukraine crisis led by cost of diesal, electricity, fodder and animal feed on annual basis agriculture input inflation is double digit for last 20 months from 20.3% to 38.5% in June 22

the urban inflation on average up by 45bps in comparison to rural inflation clothing and footwear food are less affected to inflation

this type of growth in real time wages for rural agriculture and non agriculture working has continue in negative zone over last one year

weather is unpredictable and inconstant has rendered agriculture output more vulnerable as taken by excessive heat waves shivering wheat crop in early 2022 slow prearrangement southwest monsoon in July 22 crops were delayed kharif sowing and continuously harvest and exceptionally heavy rains in oct 22 weighing perishable produce

Demand of rural labour comeoff since then work demand continues to remain above long period average COVID has its more lasting impact with employement provided under NREGS

the positive pace of improvement in CMIE(non government private entity publish reports related to employement) rural index has come off in 2022

COVID comes to end at comfortable level COVID era relief measures are likely to end in 2023 government has already made its order clear by discontinuing the Pradhan mantri garib kalyan anna yajna (free food grain distribution program) dec 22

Rural economy is able to tackle good progress of rabi sowing up 2.9% YoY as of 20^th jan 23 kharif harvest led improvement in cash flow rural inflation hits hard in ongoing moderation in input cost rural economy need a strong boost budget 2023 is palyed a very crucial role in pushing rural growth income jobs and livelihoods by putting rural productive schemes by promoting tech in agricultural practices end attract investment in agri infrastructure

Stoppage of PMGKAY and concurrent provision of free food grains under the NFSA ( national food security act ) for period of 1 year allow to save Rs 1 trillion in 2024 this provide the fiscal support budget 2023 must switch on revenue expenditure by moving towards more productive schemes schemes such as NREGS (national rural employement gurantee scheme) PM awas yojana gramin PM gramin sadak yojana

Overall budget 23 is likely to retain its rural focus on investment and infrastructure creation specified measures were taken to meet the rural economy boost we hope that finance minister take care of fiscal deficit at 5.8% of GDP and further boosting quality of fiscal adjustment

Sources:www.economictimes.com

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