NEW DELHI: Narendra Modi, who is all set to be sworn in as PM for the third time, on Friday said that middle class and household savings will be among focus areas for his government, while promising to accelerate the pace of development.
Speaking after his election as the leader of NDA, Prime Minister described upper middle class and middle class as the driving force of growth and mentioned them along with the women and the poor as his priority.
“Today, the middle and upper middle class has emerged as a driving force in Bharat’s (India’s) growth story. We will continue to ensure welfare of our people, and will continue to deliver ‘quality of life’ to all,” he said.
In his campaign, Modi had spoken about the 100-day agenda for the new government, some of which will feed into the budget, due to be presented in a few weeks.
“In the next 10 years, good governance, development, quality of life and my personal determination (is) to reduce government interference in people’s life,” Modi said.
The comments point to more steps to channelise savings into the financial sector, adding to the large base of retail investors into the mutual fund space and direct investors in stock markets. Many financial sector experts have argued that it may be time for government and regulators to build upon the JAM (Jan Dhan bank accounts, Aadhaar, Mobile) framework to ensure that money, instead of lying idle, is used to create wealth.
In the election manifesto, BJP had promised better housing facility for the middle class through a reduction in the cost of construction and registration and regulatory changes such as automatic approvals for standard housing designs. Besides, ahead of polls, Modi had announced a new interest subsidy scheme for the urban poor, something that is expected to be implemented after the budget.
Besides, the Sankalp Patra had promised to increase the Ayushman Bharat coverage, while expanding it to include senior citizens too. Seniors will also get doorstep delivery of several government services, it had said.
The party manifesto had also spoken about BJP government’s plan to launch an insurance scheme for traders and small businesses to protect them from accidents, thefts and natural calamities.
During its first two terms, government has argued that several of the initiatives while not targeted at individuals has helped the middle class, including the push for domestic manufacturing and better quality infrastructure.
While there have been demands for reworking the income tax slabs, it is unclear if the Centre will change its strategy on the new tax regime after the budget. Besides, there is expectation of changes in the GST slabs too.