Back1995-96: Pre-poll budget
1 min read
28 Jan 2020, 01:03 AM IST
The general election which followed the budget led to the defeat of the Congress govt, even though economic growth had accelerated post structural reforms unleashed in 1991
PremiumHistorically budgets fall in two buckets. Those that are situational—dominated by an unravelling challenge and hence largely reactionary—and the few out-of-the-box essays seeking to reset the economic agenda. Mint picks 10 budgets which stand out for one or the other of these reasons.
This budget presented by finance minister Manmohan Singh was his fifth consecutive one. The general election which followed the budget led to the defeat of the Congress govt, even though economic growth had accelerated post structural reforms unleashed in 1991.
- The budget incorporated the recommendations of the 10th Finance Commission by including interest recoveries and penalties in the divisible pool of income tax.
- A new Rural Development Infrastructure Fund was set up under Nabard with an estimated corpus of ₹2,000 cr to encourage and facilitate completion of ongoing projects.
- The National Social Assistance Scheme was introduced that included minimum old-age pension and pre-natal and post-natal maternity care for the general welfare of the rural poor.
- Anti-inflation strategy included reducing excise duties on consumer goods, allowing for easy imports of essential consumer goods and controlling budget and fiscal deficits.
- A five-year tax holiday was provided to companies investing in infrastructure in highways, expressways and new bridges, airports, ports and rapid mass transport systems.
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Published: 28 Jan 2020, 01:02 AM IST
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