Is Gujarat Model the way forward in the upcoming budget?
Budget for the financial year 2014-15 is expected to have major changes from previous budgets with the formation of a new government at the centre. Prime Minister Narendra Modi served as Chief Minister of Gujarat state for more than a decade and he considers that the Gujarat success model can be implemented at the union level benefiting all the states.
According to previous Gujarat state budgets, crucial importance was given to ‘inclusive growth’ which advanced the state making it economically stronger, prosperous and competitive. Most of the policies which have been proposed in the state of Gujarat facilitates and benefits not just a particular class of people or a particular sector but all classes of people and all sectors.
The comprehensive and inclusive development model which has been followed in Gujarat for the past few years was successful and there is a huge improvement in the overall economic situation of the state. Gross State Domestic Product and Per capita income are the main factors to the economy. These have witnessed a steady increase over the past decade due to major proposals in agriculture, irrigation, and infrastructure sectors.
In the case of infrastructure and development, the yearly budgets of Gujarat state has given high priority on improving the quality of life in both urban and rural areas. Schemes are planned to benefit the minority and backward societies in forest lands, coastal areas and urban poor. Affordable housing scheme was launched in the FY 2013-14 with an overall investment of about Rs 4,400 cr. The Mukhya Mantri Aawas Samrudhi Yojana and Mukhya Mantri Gruh Yojana have played a major role in providing affordable housing to all classes of society. There have been many urban development projects approved such as BRTS, Sabarmati riverfront development, smart cities etc.
On similar lines of development, if Narendra Modi plans to consider the growth model of Gujarat while planning for the union budget of the financial year 2014-15, it is expected that the inclusive growth approach will be followed. The inclusive growth approach in urban development and housing can be shown through providing affordable houses to all classes of society. The previous government has given high priority to Rajiv Awas Yojana and Indira Awas Yojana benefitting the poor classes of society in both urban and rural areas. Now with inclusive approach, one can expect schemes and policies benefiting the common man and neo-middle class societies such as reduction in the interest rates in housing, provision of affordable houses for middle income group people, tax benefits and reduction in interest rates for first home buyers etc. According to a survey conducted by CommonFloor on “Budget Expectations 2014: Realty Sector”, majority of people expect reduction in home loan interest rates and tax in the upcoming budget. Foremost priority is expected to see in provision of affordable homes and infrastructure development facilitating everyone with all the basic facilities.
