Domestic ratings agency India Ratings
Tuesday expects the interim budget to announce an
income support scheme
for the poor which may at least cost the Centre Rs 1.5 trillion per annum or 0.7 percent of the
for the Centre and states combined and is better than any farm loan waivers.
In comments that come a day after Congress promised to roll out an income support scheme if voted to power after the summer elections, the agency said it expects the forthcoming budget to have such a measure.
“The roll-out of income support as a core centrally sponsored scheme is a better option than debt waivers,” it said, adding that the government may announce a relief package for farmers while presenting the vote on account for FY20 in line with the Rythu Bandhu scheme of Telangana.
Stating that agrarian distress is not new and various governments deployed a number of tools to fight the same in the past such as an increase in public spending in rural areas, increasing minimum support price, enhancing agricultural credit and enhanced extension activities, launching the
rural employment guarantee
scheme, writing off farm loans, providing direct income support and/or a combination of the ways.