Jamaat e Islami seeks 6% of GDP on education, interest-free farm credit in Budget 2016-17

by Abbas Adil

Jamaat-e-Islami Hind, India’s largest socio-religious Muslim organization, has sent some suggestions to the Union Ministry of Finance for the Budget 2016-17. The suggestions are related to social sector, rural development, equity-based financing and interest-free farm credit.

A consultation meeting of national office bearers of the Jamaat and some economists and experts was held here at the Jamaat headquarters. After deliberation on issues related to the National Budget, the meeting adopted a resolution carrying four important suggestions for the Budget 2016-17. A copy of the resolution has been sent to the Union Ministry of Finance.

While appealing for greater allocation to social sectors, Jamaat has suggested allocation of 6% of GDP on education and 3% on healthcare. 

“The ever-increasing role of private sector in education and health-care has led to spiral increase in the cost of these services, taking these facilities out of the reach of the common man. There is the need of taking these services out of PPP mode, increasing the government’s role in their development. We suggest allocation of 6 per cent of GDP on education and 3 per cent of GDP on health-care,” said Jamaat in its two-page letter to the Finance Ministry.

While welcoming the development of urban areas, Jamaat said this development “should not impinge upon rural development.” In order to stop migration from rural to urban areas, Jamaat has suggested some measures.

“By providing primary facilities like electricity, sanitation, education and health-care, the pace of migration from villages to towns and cities may be slowed down. There is every possibility of witnessing U-turn in the migration if this is adopted properly,” said Jamaat.

It urged the central government not to leave this task “to Panchayats or state governments but should show the way by positive indulgence.”

Jamaat has also suggested equity based financing for generating non-debt-based resources within the country.

“We suggest Revenue Sharing Equities financed through small savings. The fund so generated may be applied for national projects like infrastructure developments and the revenues earned after completion of the projects may be shared with the equity-holders…The core idea behind this suggestion is that high quantum of funds may be generated in the country itself. Further, this may go extra miles in increasing enterprise in the nation,” said Jamaat.

 With the number of farmer suicides rising day by day in the country, Jamaat has suggested interest-free farm credit. 

“We propose for interest-free mode of finance for farm credit. The dilemma of farm-credit today is that a number of suicides are attributable to the interest-based loans and in many cases the governments have written off, both principals and compounded interests on the unrecovered loans. Interest-free farm credit may be a solution to the problem,” said Jamaat and urged the central government to consider these suggestions and if found useful it should incorporate them in the upcoming National Budget.

 

You may also like