'PM Narendra Modi believes in systematic changes, not doles'

NEW DELHI: The government eschewed populism in the Budget ahead of a string of state polls to focus instead on the objectives that led to its demonetisation drive and to step up public investment, particularly in agriculture, rural development and infrastructure.

The move to restrict cash transactions beyond Rs 3 lakh, for instance, is aimed at curbing black money and incentivising formal economy, senior officials said. The government was not under pressure to dole out populist measures, they said. “Populist announcements win you praise for a single day. Measures rooted in some social or economic rationale have been preferred,” said one of the officials, who did not wish to be identified. “PM Modi doesn’t believe in doles. He believes in systematic changes that can result in sabka saath, sabka vikas,” he said.

PM Modi said, “The focus of the Budget is on agriculture, rural development and infrastructure, which is also a reflection of the government’s commitment to raise investment and create employment opportunities.”

The Budget also sought to encourage more individual tax payers and small businesses to become tax compliant by reducing personal income tax in the lowest bracket as well as tax for small-scale industries. “The 5% tax relief is to tempt a large number of potential taxpayers to join the tax net,” said another official. The PM also highlighted lowering of taxes on personal income tax and small businesses with a turnover of up to Rs 50 crore. The move appeared to be an attempt to cushion the small businesses after reports that demonetisation hit them hard.