Why Budget 2019-20 caters to the aspirations of urban people
The EU budget, presented by Finance Minister Nirmala Setharaman, connects economic growth to 8%. The goal is to reach $ 5 trillion (5 kW) of GDP by 2024. This will leap 100% from the current GDP figures of $ 2.5 trillion. The issue is how India is achieving this growth.
Investment in cities is an important area to ensure development in the country. Currently, 66% of GDP and around 90% of the total government revenue, while only 33% of the population live in cities. However, it is expected that by 2032, there will be 600 million (600 million) cities in India.
Therefore, any desire to achieve high growth and high goals should be kept in mind in this aspect of “development” in the cities. There are many factors that promote development in the cities. Earth plays an important role.
The IT industry is another area that contributes to the development of cities. However, to make the cities sustainable for development, there must be a mandatory level of infrastructure.
For example, if the traffic starts to fall, people like to find another destination. Likewise, if the city is unable to provide safe drinking water, or if it is unable to manage waste and sanitation, then people will flee outside the city.
To maintain the city’s development, the budget plays an important role. Works as an instrument to ensure that urban development is sustainable.
The Government of India is providing an incentive for urban development through some of its pilot programs and other projects like Smart City Mission (SCM), Atal Yuva Renovation and Urbanization Mission (AMRUT), Swachh Bharat Mission (SBM) etc.
There is no doubt that cities also have their own development mechanisms, but most of the cities are not able to fulfill the heads of expenditure in the city’s governments through their own resources, do not mention the mobility of capital formation.
Let’s take a look at what the EU budget has set for these plans and what they will provide in the future. To achieve high growth rate, high allocation should be in the urban development sector.
However, according to budget figures on the proportion of GDP spending, urban growth is still stable at 0.23%. This means that there will be less expenditure on urban development in 2019-2020.
With less revised estimates and fiscal deficit of more than 3%, there will be less marks on urban development. How and where this deduction will take place, and only time will tell.
Let’s take a look at how the past years have been spent on urban development. More than 5,000 projects (mainly infrastructure) were small and large, under various urban development schemes developed in the last four years.
However, only 897 projects are under implementation. Since the announcement of SCM, amount of Rs. 14,847 crore has been pumped, though the target investment was more than 2 crores.
This is approximately 7% of the required investment. It should be emphasized that in the Smart Cities Mission Center, BJP Government is one of the main programs.
With this history of the past, the government announced an investment of Rs 100 crore in the next five years. I.e. 20 rupees per khh per year The big part of this investment will be to build roads in the cities.
The budget is adopted to make the environment favorable for such investment through a set of measures. In the Isle of Doing Business Index, the government has claimed its superior credibility.
It is to attract private investment, especially in cities. Even in the past, for SCM and many other schemes, PPP was still a model which was postponed. To attract private investment, the government is proud to create an enabling environment. However, the final record otherwise indicates.
Under various schemes and projects in cities, it should have been 21% of private investment. However, only 15% of your 21% private investment has been in the last few years. However, the budget still has high hopes for private investment in cities.
The flow of private investment in cities has been directed primarily to the development related to the network, which is to establish a “leadership center” in smart cities rather than building infrastructure.
Hardly any city has been selected under the work of Smart Cities for Green Area Project.
As the table clearly shows, only minor increase in allocation has been noticed and keeping in mind the inflation rate and revised estimates after tax collection, there will not be any positive effect.
Under PMAY, budget allocation for the economically weaker sections (EWS) and low income group (LIG) has been reduced from Rs. 1,000 crore to Rs. 600 crores.