Model Answer
0 min readIntroduction
The Union Budget 2017-18, presented against the backdrop of demonetization and a slowing global economy, aimed to revitalize the Indian economy and propel it towards sustainable growth. The overarching theme of ‘Transform, Energize and Clean India’ (TECI) encapsulated the government’s vision for a New India. This budget sought to achieve this through a focus on infrastructure development, rural transformation, fiscal discipline, and promoting digital economy, while simultaneously addressing environmental concerns. The budget’s success hinged on effective implementation and achieving the projected economic outcomes.
Transforming India: Infrastructure Development
The budget prioritized infrastructure development as a key driver of economic transformation. Several measures were proposed:
- Increased Infrastructure Spending: Allocation for infrastructure was significantly increased to ₹3.96 lakh crore (approximately 12.6% increase from the previous year). This included investments in roads, railways, and ports.
- Bharatmala Pariyojana: The launch of Bharatmala Pariyojana, a massive highway construction project, aimed to improve connectivity across the country. It focused on optimizing efficiency of freight and passenger movement.
- Railway Modernization: A substantial allocation was made for railway modernization, including track renewal, electrification, and signaling upgrades. The focus was on enhancing safety and capacity.
- Airport Development: Emphasis was placed on developing regional connectivity through the UDAN scheme (Ude Desh ka Aam Nagrik), aiming to make air travel affordable and accessible.
Energizing India: Rural Transformation & Employment
The budget aimed to energize the rural economy and create employment opportunities:
- Increased Rural Credit: The target for agricultural credit was increased to ₹10 lakh crore, providing farmers with access to affordable finance.
- Dairy Processing Infrastructure Fund: A dedicated fund was established to support dairy processing infrastructure, boosting the rural economy and farmer incomes.
- Micro, Small and Medium Enterprises (MSME) Sector: Several measures were announced to support the MSME sector, including reduced tax rates for small businesses and easier access to credit.
- Deendayal Antyodaya Yojana-National Rural Livelihood Mission (DAY-NRLM): Continued support for DAY-NRLM to empower women self-help groups and promote rural entrepreneurship.
- Pradhan Mantri Kaushal Vikas Yojana (PMKVY): Allocation for skill development programs like PMKVY was increased to enhance employability of the youth.
Cleaning India: Environmental Sustainability & Fiscal Responsibility
The budget addressed environmental sustainability and fiscal responsibility through the following measures:
- Swachh Bharat Mission: Continued allocation for the Swachh Bharat Mission, focusing on improving sanitation and waste management.
- National Clean Air Programme (NCAP): Though formally launched later, the budget laid the groundwork for addressing air pollution through increased funding for environmental monitoring and control.
- Electric Vehicles (EVs): Incentives were proposed to promote the adoption of electric vehicles, aiming to reduce pollution and dependence on fossil fuels.
- Fiscal Consolidation: The budget reaffirmed the government’s commitment to fiscal consolidation, aiming to reduce the fiscal deficit to 3.2% of GDP.
- Digital Transactions: Promotion of digital transactions through BHIM app and other platforms to enhance transparency and reduce black money.
| Objective | Key Measures | Expected Outcome |
|---|---|---|
| Transform | Infrastructure spending, Bharatmala, Railway modernization | Improved connectivity, economic growth |
| Energize | Rural credit, Dairy fund, MSME support, PMKVY | Increased rural incomes, employment generation |
| Clean | Swachh Bharat, NCAP groundwork, EV incentives, Fiscal Consolidation | Environmental sustainability, reduced pollution, fiscal discipline |
Conclusion
The Union Budget 2017-18 presented a comprehensive roadmap for ‘Transforming, Energizing and Cleaning India’. While the budgetary allocations and policy initiatives were ambitious, their success depended on efficient implementation, effective monitoring, and addressing potential challenges like land acquisition and environmental clearances. The budget’s emphasis on infrastructure, rural development, and fiscal discipline laid a foundation for sustainable economic growth and a cleaner, more prosperous India. However, the long-term impact would be contingent on sustained commitment and adaptive policy-making.
Answer Length
This is a comprehensive model answer for learning purposes and may exceed the word limit. In the exam, always adhere to the prescribed word count.