Rural demand gets a Rs 2.66 Lakh Crore boost in Union Budget

Budget 2024

Finance Minister Nirmala Sitharaman announced a slew of measures aimed at boosting rural consumption in the Union Budget presented on Tuesday with an outlay of Rs 2.66 lakh crore across government schemes aimed at boosting rural infrastructure and consumption .

With the new announcements in place, the PM Garib Kalyan Anna Yojana will now stand extended for five years, benefiting more than 80 crore people, the FM said. An additional 3 crore houses under the PM Awas Yojana will be constructed in rural and urban areas across the country, with necessary allocations being made, she added.

The Pradhan Mantri Janjatiya Unnat Gram Abhiyan has been launched to benefit 63,000 villages and 5 crore tribal people. This initiative aims to provide saturation coverage for tribal families in tribal-majority villages and aspirational districts. Phase 4 of the Pradhan Mantri Gram Sadak Yojana (PMGSY) has been announced, which will provide connectivity to 25,000 rural habitations that have become eligible due to population increases.

Under rural land administration, planning and management will be incentivized with appropriate fiscal support within two years. "These actions will also facilitate credit flow and other agricultural services," said the Finance Minister. For farmers, the government announced higher Minimum Support Prices (MSPs) for all major crops a month ago, delivering on the promise of at least a 50% margin over cost.

The Finance Minister also announced a provision of Rs 1.52 lakh crore for agriculture and allied sector.

Rural consumption is expected to grow following the Budget 2024 announcements, which analysts feel will increase discretionary spending. The boost in rural consumption will create demand in the economy. "India’s economic growth continues to be a shining exception amidst global uncertainty. Inflation continues to be low and is moving towards the 4% target," said Sitharaman.