Interim Budget falls short on a key promise made by Modi; creating jobs

Interim Budget 2019:

India’s budget provided plenty of giveaways to farmers and middle-class voters, but was short on detail on one of Prime Minister Narendra Modi’s key promises: creating jobs.

The issue has become a politically sensitive one ahead of elections due by May, with the government accused of deliberately withholding the most recent labor report because of the possible bad news it presents. A local newspaper published leaked details of the report a day before the budget, showing the unemployment rate reached a four-decade high of 6.1 per cent in the year to June 2018.

Modi swept to power in May 2014 with the biggest electoral mandate in three decades after promising to create 10 million jobs each year. Finance Minister Piyush Goyal said in his budget speech last week that 20 million “employment opportunities” were added in two years. Yet no official labor survey has been published since 2016, when the unemployment rate was reported at 5 per cent.


 Much of the budget focused on consumer stimulus -- such as the $10.6 billion-plan to pay cash to farmers -- with few specific measures to help boost businesses to create opportunities for about 12 million young people who enter the job market each year...Read More