Indian government courts rural voters in last budget before election
- Prime Minister Narendra Modi’s ruling alliance is facing discontent over depressed farm incomes and doubts over whether his policies are creating enough jobs
With opinion polls suggesting that Modi’s Bharatiya Janata Party (BJP) could lose its parliamentary majority in an election that must be held by May, the government delivered a budget to shore up support in the countryside, where two-thirds of Indians live, and among the urban, salary-earning middle class.
The interim budget for 2019/2020 offered direct cash support to poor farmers and allocated more funds for a rural jobs guarantee scheme and rural development, like building roads and homes.
Vying with an opposition that has also trumpeted budget-straining populist plans to win support from poorer voters, the government said it would launch a pension scheme for people working in India’s vast unorganised sector.
India is solidly back on track and marching towards growth and prosperity
The budget proposals also reduced the burden for the middle class, by raising the income tax threshold from 250,000 rupees to 500,000. Many of the measures were aimed at putting money into pockets quickly.