(MENAFN - Khaleej Times) Indian Finance Minister Arun Jaitley on Thursday presented his fifth and last full-fledged budget ahead of the 2019 Lok Sabha elections, proposing massive spending on rural infrastructure and healthcare.

The budget, the first after the implementation of the Goods and Services Tax (GST), gave increased focus on boosting agriculture and rural sectors - winning widespread acclaim as "futuristic and growth-oriented" while drawing flak from opposition parties as "populist" with upcoming elections in sight.

For the 27 million non-resident Indians across the world, including 2.8 million in the UAE, who collectively account for the world's largest annual remittance of over $70 billion to their home country, the budget was a total disappointment. NRIs have been expecting baggage allowance reliefs and new retirement and repatriation schemes apart from legal reforms to enable them to own farmland.

Unveiling the budget that allocated a record Rs14.34 trillion for rural infrastructure and unveiled one the world's massive health insurance programmes for around 500 million poor, Jaitley said India's economic growth is projected to surge above eight per cent.

He said India has grown on an average of 7.5 per cent in the first three years of the current government and has become a $2.5 trillion economy.

"We hope to grow at 7.2 to 7.5 per cent in the second half of the current fiscal," Jaitley said in the Lok Sabha. India has already become seventh-largest economy of the world, and is expected to become fifth-largest economy soon.

"We are now a $2.5 trillion economy, and we are firmly on path to achieve eight per cent-plus growth soon."

"While making the proposals in this year's budget, we have been guided by our mission to especially strengthen agriculture, rural development, health, education, employment, MSME (micro, small and medium enterprises) and infrastructure,"

Beside the focus is on strengthening agriculture sector, the government is also focusing on further enhancing 'ease of living' and 'ease of doing business,' Jaitley said. Underscoring government's commitment on welfare of farmers, the minister said the government aims to double farmers' income by 2022.

Jaitley's proposals included a minimum support price of crops, setting up of a ?20 billion fund for developing agricultural markets, allocation of ?2 billion for cultivation and related industry, ?5 billion for "Operation Green" and setting up of state-of-the-art facilities in 42 mega food parks.

The budget has also introduced several new initiatives in the agriculture sector like support to organic farming, increasing allocation for food processing sector, liberalisation for agriculture exports among others. Billed as one of the world's largest healthcare programmes, the launch of National Health Protection Scheme would benefit nearly 100 million families. Under the scheme, families will be provided up to ?500,000 per year for medical needs.

"We are now launching a flagship national health protection scheme that will cover 100 million families. This is one of the largest healthcare programmes in the world aimed at protecting 500 million poor people," Jaitley said, reading his fifth consecutive budget speech in Lok Sabha.

For the education sector, the minister has proposed revitalisation of infrastructure, opening schools for the scheduled tribe populations as well as promoting programmes for teachers, in order to improve quality education for students.

Contrary to widespread expectation, Jaitley kept the income tax rates and slabs unchanged. He introduced a ?40,000 standard deduction for salaried employees and pensioners in lieu of the present exemption in respect of transport and medical expenses. Senior citizens will get higher exemptions on income from interest on bank and post office deposits, health insurance premium and critical illness expense.

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Issac John Associate Business Editor of Khaleej Times, is a well-connected Indian journalist and an economic and financial commentator. He has been in the UAE's mainstream journalism for 35 years, including 23 years with Khaleej Times. A post-graduate in English and graduate in economics, he has won over two dozen awards. Acclaimed for his authentic and insightful analysis of global and regional businesses and economic trends, he is respected for his astute understanding of the local business scene.

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