Cabinet slots Union Budget on 1 February, increases wheat prices
What's the story
The Indian government has slated the Union Budget for 1 February, marking a move against a colonial-era tradition of presenting the budget on the last day of February. The Cabinet also approved higher minimum support prices (MSP) for wheat, and raised its prices by Rs.100 per quintal, equivalent to one kilogram. The 6.6% hike comes as the wheat harvest season has just begun.
Information
What is the Union Budget?
The Union Budget is one of the biggest financial announcements by the Indian government. The budget presents estimated figures and expenditures for the next fiscal year and also provides a comprehensive account of all expenses undertaken during the previous year.
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Finance Ministry looking to implement budget plan from 1 April
"We want the entire budgetary exercise to be over and the Finance Bill to be passed and implemented from April 1 onwards rather than June because then the monsoon sets in and effectively, the expenditures start in October," said Arun Jaitley, Finance Minister.
MSP hike
Other winter-grown crops also see a hike
To boost the production of agricultural products such as pulses and oilseeds, the government backed incentives for winter-grown crops such as gram and lentils. The procurement price for gram was raised by 14.3% and for lentils by 16.2%. The hike is much higher than the hike provided over the last two years, and well above the hike proposed by the commission for agricultural costs.