Union Budget 2016-17: Will it revive the rural economy?4 min read 29 Feb 2016, 05:58 PM IST
Arun Jaitley's budget speech gives the impression that the govt wants to revive rural economy but the numbers need to be read carefully to assess its intent
The budget for 2016-17 comes in the context of a fragile economic situation. It is not just the stress in the rural economy, which has seen a decline in real wages as well as lower farm incomes in the wake of back-to-back droughts. There’s also the slowdown in manufacturing and the stress in public sector banks due to increasing non-performing assets. Together, they meant that the government was required to step up and deliver to revive the economy. While the budget speech gives the impression that the government is serious about reviving the rural economy, the numbers need to be read carefully to assess the government’s intent.