A ‘feel-good’ Budget for an election year

The Opposition described it a populist Budget. Former Finance Minister P Chidambaram called it an ‘Account for Votes’ and Congress President Rahul Gandhi labelled the announcement to give ₹6,000 through direct transfer to small and marginal farmers with a landholding of up to two hectares, as an “insult” to the Indian farmer, breaking down the amount to a measly ₹17 a day.

Of course it was a populist Budget as it was expected to be in an election year. And those shouting hoarse against the Budget proposals have indeed done the same in the past.

The income support scheme for farmers comes as no surprise after the rude jolt the BJP received in the recent Assembly elections, losing three of its strongholds of Rajasthan, Madhya Pradesh and Chhattisgarh to the Congress, mainly due to the distress in the farm sector.

To announce a loan waiver to farmers, a major promise that helped the Congress to wrest these three States in the Hindi heartland from the BJP, would have been to mimic the Congress. So a direct transfer to farmers, already initiated in Telangana by Chief Minister Chandrashekar Rao, who reaped such a fantastic poll dividend from it in the same batch of Assembly elections, was on the cards.

This will benefit around 12 crore small and marginal farming families and cost the exchequer ₹75,000 crore every year. Once again, like the loan waivers, this is not a structural remedy to what ails our farm sector, but only a band-aid solution. But it is comparatively better in that it benefits all farmers, and not just those who have taken bank loans.

Jai Kisan

An election year or not, those mocking or resenting this Budget proposal or arguing about fiscal discipline, need to have a heart. Just look at the distress on the ground in the agri sector; the parched lands in Maharashtra and elsewhere. And the fact that we have been paying lesser and lesser for our onions and tomatoes, even as petrol and diesel prices went through the roof, before coming down. One can certainly understand the Congress’s heartburn over this ₹6,000 proposal; after all the number of farmers who will benefit is a whopping 12 crore. Translate even a section of this into votes and the Opposition can see the ground slipping beneath its feet.

A war of words has now broken out over this Budget benefit to the farmer kicking in from December 1, 2018. Interim Finance Minister Piyush Goyal has retorted in his post-Budget interviews that while Chidambaram “gave concession in SUVs and luxury cars to benefit the rich”, his government had batted for the farmers and the lower middle classes.

Add another 10 crore

That brings us to another master stroke in the Budget; a pension plan for the unorganised sector workers with a monthly income up to ₹15,000. For a payment of ₹55 (for those joining at 18) or ₹100 (at 29) a month, this scheme guarantees an assured monthly pension of ₹3,000 once the worker turns 60. About 10 crore workers are expected to benefit.

Add this 10 crore to the 12 crore farmers and it adds up to an impressive number, even though no scheme can guarantee 100 per cent returns, and then we have each political party having its dedicated vote banks.

But if you keep the politics aside, no right thinking person can grudge our farmers or workers in the unorganised sectors this tiny benefit. Many of us do pay a monthly pension to our maids or cooks who can no longer work for us, but made our lives so much easier over long years. Would we grudge the government giving them a monthly pension of ₹3,000?

Some may question the timing, but then that is the nature of the beast. Elections have to be won; no political party enters the fray to lose. If you are holding the purse strings, you have the advantage of garnering votes and goodwill through legal measures, which are far superior to political parties slipping currency notes under you door at midnight, as in Tamil Nadu, and elsewhere I’m sure.

If you are in the Opposition, you can only hold press conferences and fling charges. Never mind if you’ve done the same just five years ago.

The “feel good” factor created after this neatly packaged and well-presented Budget, is bound to benefit the BJP in the polls. Though it would have been nice, Mr FM, had you extended the no-tax-till ₹5 lakh-bracket to all taxpayers. But I suppose there will always be another election, and another Budget for that!

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