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India puts focus on boosting growth, jobs

New Delhi - More consultative approach being followed by the finance ministry, PMO

India's finance ministry and the PMO will be extrapolating suggestions and consultations from experts, the industry and citizens on sectors and segments that are in need of urgent attention in the budget to help the economy recover from a 17-quarter-low of 5.8 per cent growth, and a 45-year-high 6.1 per cent unemployment rate.
Official sources said a more consultative approach is being followed by the ministry and the PMO over these issues to tackle the slowdown and higher allocations wherever needed will be provided over and above the what was provided in the interim budget.
Last week, Prime Minister Narendra Modi appointed two new cabinet committees to tackle economy and jobs: A cabinet committee on investment and growth to suggest steps to push growth momentum in the economy and increase investment in key economic sectors like infrastructure and agriculture; and a 10-member cabinet committee on employment and skill development is to explore ways to create more jobs.
The sources also pointed out the recent government decision for extending the benefits under the PM-Kisan scheme to all farming households in the country and for a new pension scheme for 50 million farmers. The PM-Kisan scheme is now extended to all 145 million farmers costing Rs870 billion a year and a pension scheme of over Rs100 billion already announced announced for 50 million farmers.
The PMO has also sought proposals on key measures for budget 2019-20 and the ministries were asked to send issues on allocations for the budget. The Union Budget will be presented on July 5.
The Housing for All by 2022, rural job scheme MGNREGA where more jobs could be included in the list, higher allocations for education and skilling are under special focus by Prime Minister's Office.
The extrapolation would be on key areas where the focus would be more to create income and jobs and beat sectoral slowdowns - exports revival, higher requirements under the market intervention scheme and price support scheme; food subsidy under the National Food Security Act; investments in financial institutions; construction of land railways; and the National Rural Health Mission and Pradhan Mantri Jan Arogya Yojana, said the sources.
Looking at the job scene, the PMO's importance could also be special funds to the labour ministry for offering incentives to employers to offer apprenticeships and providing training to reskill existing the workforce to meet industry demands. The road, highways and shipping as infrastructure sector will be provided for creating assets and employment through the PPP model in the budget as it is a focus area for the PMO.
Finance Minister Nirmala Sitharaman has called a meeting of leading industry chambers - CII, Ficci and Assocham - on June 11. Citizens have also been asked to send their comments by June 20.
These chambers have already submitted their presentations on budgets to the ministry.
The previous NDA government had presented an interim budget and had announced on February 1 that major announcements will be made in the regular budget.
The Economic Survey for 2019-20 will be tabled on July 4, followed by the presentation of the Budget on the next day.