Govt doubled food subsidy and raised fertilizer subsidy, says Sitharaman
By Andalib Akhter
Finance Minister Nirmala Sitharaman today said that the budget balances development need with fiscal prudence. “That is a very difficult balance, it is a very delicately balanced tact,” the FM noted.
She said that government will provide more money to the National Rural Employment Guarantee Scheme (NREGA) beyond the budgeted allocation for the next financial year (FY24) if the need so arises, amid criticism from the opposition that the Centre was cutting funds to the flagship scheme.
Replying to the debate on the Union Budget in the Lok Sabha, Sitharaman said the new personal income tax regime will leave the salaried with a higher disposable income, and that the budget had struck a delicate balance between growth and fiscal discipline.
“NREGA is a demand driven scheme, whenever there is an increase in demand, we have provided and will provide the sums required,” Sitharaman said, adding that the budget estimate (BE) for NREGA for FY24 factors in an economic recovery and a ‘massive increase’ in Pradhan Mantri Awas Yojana rural, and Jal Jeevan Mission.
Sitharaman rejected the Opposition allegation that food subsidy has been cut in the Union Budget 2023-24. Replying to discussion on the Budget in Lok Sabha, the Minister said it has been almost doubled to 1.97 lakh crore rupees. Ms Sitharaman also said that fertilizer subsidy has been raised to 2.25 lakh crore rupees for the current fiscal. She said the agriculture credit target for 2023-24 has also been increased to 20 lakh crore rupees.
The Finance minister said in this budget, the government has tried to balance the requirement of India’s development imperatives within the limit of fiscal prudence. She said, by taking pre-emptive measures and also adhering to monetary policy decisions by the RBI, the government has been able to return to the realm of the tolerance band as defined by the RBI. The Finance Minister said that by taking these measures, the Consumer Price Index came down to below six percent level. She said the new tax regime has been made very attractive.