INSUBCONTINENT EXCLUSIVE:
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Mr Modi (c) has tried to woo voters with this year's budget
With India's general election just months away, the annual budget was all about Prime Minister Narendra Modi trying to resell his 2014
The question is will it work, asks economist Vivek Kaul
Around an hour into his speech, finance minister Piyush Goyal spoke about a recent Bollywood film, Uri: The Surgical Strike
It celebrates the Indian army's strikes in 2016 against suspected militants in Pakistan-administered Kashmir
He said while watching the film he'd been impressed with the audience's passionate reaction, reportedly inspired by the movie's overt
If there was any doubt this was an election-minded budget, it was put to rest by Mr Goyal's reference to Uri
India's budget, the last before the next government is elected, offered something for almost everyone - from distressed farmers to its
vast informal workforce to a growing middle class
The biggest announcement was an income support scheme for farmers with cultivable land of up to two hectares (4.9 acres) - they will receive
At an estimated cost of $2.8bn, it will benefit nearly 120 million small and marginal farming households or 600 million people
That is a significant portion of the voting population and a little less than half of the Indian population, which will make this the
world's biggest income support scheme
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The budget includes a massive income support scheme for farmers
Although Mr Goyal did not say so, this is an attempt to tackle India's agrarian crisis
Agriculture has been blighted by a depleting water table, shrinking farms and declining productivity for decades, while farmers struggle to
repay debt to banks and money lenders
But the problem lies in determining eligibility as land records across large parts of India are not always reliable
Rahul Gandhi, leader of the main opposition Congress party, has also proposed a similar scheme, if elected to power
Mr Goyal also proposed a pension scheme for India's informal workers, who he said numbered 420 million
It will only target those with a monthly income of $210 or more and is contributory - so they would have to set aside a minimum amount each
month, which the government will match
It would certainly help a workforce with almost no rights or benefits, but the trouble is that most unorganised workers are paid in cash
And their income varies as many work as contract labour on farms or construction sites
So it would be hard to decide who is eligible
The important question is who will pay for these schemes Image copyrightGetty ImagesImage caption
India's small middle
class will likely pay for the new schemes
In economics, there is no free lunch
Someone has to foot the bill and often that is in the form of higher taxes
That someone is likely to be India's middle class
The budget offered goodies to them as well
Those earning up to $7,013 will not have to pay any income tax (the limit was $3,506 earlier).A positive change, which will be a relief to
all tax payers, is that the government is working on processing income tax returns and initiating refunds within 24 hours
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Finance minister Piyush Goyal (centre) did not make clear who will fund his plans
But this did not stop Mr Modi's Bharatiya Janata Party (BJP) from turning the budget presentation into a political performance
In his speech, Mr Goyal made a point thanking Mr Modi many times and listed the achievements of his party
BJP members even began chanting "Modi" mid-way through the speech.In the run-up to the 2014 elections, Mr Modi had campaigned for a better
India, using the slogan "acche din aane waale hain" (happy days are about to come) and promising to create jobs.Image copyrightGetty
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Agrarian distress has sparked several farmers' protests
But five years later, a
leaked government report shows unemployment levels have reached a 46-year high under Mr Modi
It remains to be seen whether Indians will believe Mr Modi's story of hope again
And it's worth remembering this is an interim budget that will remain in effect only until the election, which is expected in April or May
The newly elected government will have to ratify the schemes in its budget later this year.Vivek Kaul is an economist and the author of the
