Union Budget adequately addresses the needs : Prof HK Pradhan

Jamshedpur : Prof HK Pradhan, Professor of Finance and Economics, XLRI Jamshedpur has said that the Budget takes the financial inclusion initiatives forward by extending subsidized lending the women-led self-help groups to another 100 districts, charters for the inclusion of unbanked into formal financial sector with giving focus on small savings and credits, targeting savings products for the girl child, and providing pointers for local area banks meeting banking needs of the regions.

The provision of the portability of the provident fund accounts, particularly for the unorganized workers, which along with the existing interoperability of banking channel helps financial inclusion.

However, as has been well known, having basic banking accounts may not work towards financial inclusion and saving unless there significant financial literacy drive and consumer protection framework. The Finance Minister�s observation on strengthening regulatory framework curbing the fraudulent investment operators is important, as is several states Ponzi Schemes floated by unscrupulous elements have siphoned off huge amount of money from the poor.

There is focus on asset creation in the agricultural sector by the providing of long term credit refinancing through cooperative credit structure and Regional rural Banks, enhancing NABARD�s Rural Infrastructure Development Funds(RIDF), enhancing PMGSY allocations, linking MNREGA employment with agricultural sector activities, more investments in rural roads and housing, continuation of the existing interest subvention scheme.

There is provision of Rs 5000 crores for the price stabilization fund helps stabilizing real wages for farm laborers.

There is provision for the small and marginal farmers for building 2000 producers organizations. The emerging producers� cooperatives, where several state governments have also partnered under the National Rural Livelihood Mission(NRLM) support such institutions, , expected to generate livelihood options, by blending various forms credit and other business development services.

The Budget also adequately addresses the needs of the urban poor and the lower middle class by way of affordable and low cost housing, focus on small and marginal enterprises growth and plan for relieving their finance constraints, focus on employment creation and skilling of urban unemployed, significant boost to venture capital and start-up financing, which along with the envisioned city development agenda including smart cities and modernizing mid-sized cities are measures expected to address the massive migration issues to the urban areas.

�I would argue that this is one Budget which promises for both markets and masses, providing infrastructure push to put the growth back on track as well as strengthening an inclusive growth agenda.

The stock market rallied seeing the Finance Minister unleashing a growth friendly budget, which compromises both economic and electoral agenda of the NDA government,� the professor noted.