The forthcoming union budget, to be soon presented in Lok Sabha, should focus on removing rural distress rather than on urban-centric policies. As per recent studies, rural consumption has been on the decline for an extended period of time, and the downward trend needs to be arrested at the earliest, as it is causing unprecedented inequality.
Over the years, higher fuel and food prices have affected rural people more than urban ones. Such a rise has caused a sharp fall in rural income and lowered purchasing power. The magnitude of rural distress can be ascertained by the fact that the ruling National Democratic Alliance (NDA) lost 44 seats in rural India in the recently concluded general elections. Providing relief to millions of underprivileged families living in rural India must be prioritised. It is hoped that Union Finance Minister Nirmala Sitharaman will allocate more funds to ease the plight of the rural people and undertake effective financial measures.
Rural India has been suffering since the outbreak of the COVID-19 pandemic, which stalled the cycle of economic development. The income of the rural people had suffered immensely, with no farming activities for months, along with the return of migrant labourers from cities to the villages. While free rations provided by the government might have lessened some burdens, there is much more to be done, as many are still struggling to earn as much as they had before the pandemic. Moreover, hostile weather conditions such as intense heat or devastating floods have been hampering crop production. Notwithstanding the advice of experts for diversification of crops, farmers are helpless as they do not have enough money to start experimenting with new crops. The forthcoming union budget needs to take note of the situation and stand beside the farmers who have been going through the economic ordeal for quite some time now.
In this context, the recent worldwide survey conducted by Earth 4 All and the Global Commons Alliance have claimed that 68 per cent of people across the world, along with 74 per cent of Indians, strongly support the idea of taxing the super-rich. This measure, if implemented, will likely help the government to overcome the resource crunch considerably.
To ease the burden caused by the pandemic, the government had announced various SOPs for the rich, hoping that the gesture will be reciprocated in the form of new capital investments. But the very idea has fallen flat, as India’s super-rich have used the excess money to manage their books, rather than investing it afresh. With the severity of the pandemic long gone and business activities in full swing again, it is time for the government to withdraw the SOPs announced to help ailing industries. These measures will aid the government in getting adequate funds to address the plight of rural people and reducing economic inequality in the country.