During the introduction of the first Budget by the NDA government in 2014, the then Finance Minister, Arun Jaitley, assured Parliament that under the leadership of Prime Minister Narendra Modi, the Government would leave no stone unturned in creating a strong and vibrant India. The recent interim Budget for the year 2024-25 serves as clear evidence that the reforms implemented over the past decade have been contributing to the creation of such an India. ‘Modinomics’ has now evolved into a practical economic solution that is driven by the growth pillars of ‘governance, development, and performance’.
In the past decade, the government has placed great emphasis on the welfare of women, youths, and farmers. On the one hand, there has been a strong focus on creating assets through significant capital expenditure, while on the other, there has been a notable increase in the allocation of funds to the Central sector and Centrally sponsored schemes. The budgetary estimate for Central sector schemes in the fiscal year 2024-25 is Rs 1,494,296.45 crores, compared to the revised estimate of Rs 1,446,152.46 crores in the previous fiscal year. This represents an increase of Rs 48,143.99 crores. Similarly, the budgetary estimates for Centrally sponsored schemes during the same period are Rs 501,788.42 crores and Rs 460,614.48 crores respectively. While the previous year’s budget witnessed a record capital expenditure of Rs 10 lakh crores, this interim budget provides an 11.1% increase to Rs 1,111,111 crores. As wealth is being generated through capital expenditure, there is also a simultaneous focus on wealth distribution.
The social sector achievements of the current government are truly commendable. The expenditure for the Ministry of Women and Child Development has reached Rs 26,092.19 crores, which marks an increase of Rs 643.51 crores compared to the previous year. The contributions of the Covid warriors have been acknowledged by including all ASHA and Anganwadi workers under the Ayushman Bharat scheme. Despite the Youth Ministry’s allocation being only Rs 3,442.32 crores, the significant support provided to start-ups will undoubtedly have a substantial impact on youth employment generation. According to the World Health Organisation, the crude cervical cancer incidence per 100,000 women in India is 18.7, and the cervical cancer mortality to incidence ratio is 0.62. Cervical cancer is also the third most common cancer in India. Therefore, the initiative to detect and immunize at an early stage, as announced in this budget, is a unique step towards women’s health. The overall allocation for the National Health Mission is set at Rs 38,183 crores. There is a slight decrease in the funding for Saksham Anganwadi and POSHAN 2.0 compared to the previous year’s revised estimates, amounting to Rs 323.13 crores. Considering India’s increasing immunization drive, this allocation may appear relatively lower. However, as this budget is an interim budget, the amount is expected to increase significantly in the full budget next year.
The government’s current task is to address the increasing fiscal deficit, which currently stands at 5.8%, and also fulfil our renewable energy commitments made during the Glasgow summit at COP 26. The official announcement of rooftop solar plants is expected to enhance our renewable energy production and generate additional income for over one crore households. There is a growing optimism within the treasury bench regarding the work accomplished in the past few years.
The allocation to the higher education sector has decreased, while there has been an increased allocation to the department of school education and literacy for the BY 2024-25, as compared to the RE 2023-24. This is aimed at fully implementing the national educational policy and giving more emphasis to primary education and learning. With India successfully lifting nearly 250 million people out of poverty and conducting the world’s largest Direct Benefit Transfer (DBT) exercise, this Budget reflects the achievements of the past ten years.
Unlike previous election years, where the Budget was often driven by populism, this Budget relies more on the fulfilment of past promises.
Adarsh Kuniyillam is a parliamentary and policy analyst.