The first Union Budget of Modi 3.0, presented by Union Finance Minister Nirmala Sitharaman, is a nuanced mix of policy consistency, fiscal prudence, and a refreshing and zealous job push. In the last few years, the budgets of the Modi government have followed a pattern: heavy capital expenditure and high welfare spending, while keeping growth targets robust and the fiscal deficit in check. The latest budget has retained all those elements while expanding into newer zones. The biggest beneficiary of this budget is the youth, with an unprecedented push to create skills and job opportunities.
Empowering Youth
Empowering the youth and fulfilling their dreams is at the heart of the Modi government. The Budget for Viksit Bharat continues the government's trend of placing the aspirations of the youth at the centre of policymaking. With the Prime Minister's package of five schemes and initiatives for employment and skilling with an outlay of Rs 2 lakh crore for our 4.1 crore youth, the budget demonstrates a clear commitment to building a future-ready workforce. The government's emphasis on education, employment, and skilling underscores a forward-looking approach that aligns with the goals of Viksit Bharat. By investing in the youth, the government is not only addressing immediate needs but also building the foundation for a prosperous and resilient future. This budget reflects a visionary roadmap that leverages the potential of the young population to drive national growth and development.
Economic Stability Amid Global Uncertainties
Despite global economic uncertainties, including elevated asset prices, political instability, and shipping disruptions, India's economic growth remains a beacon of stability. India's inflation remains low and stable, moving towards the 4% target, with core inflation (non-food, non-fuel) currently at 3.1%. Proactive government steps to ensure adequate market supplies of perishable goods have contributed significantly to this stability.
Inclusivity at the Heart of the Budget
The Modi government has placed a strong emphasis on inclusive growth, focusing on four major segments of society: 'Garib' (poor), 'Mahilayen' (women), 'Yuva' (youth), and 'Annadata' (farmers). Administrative actions for the approval and implementation of various schemes announced in the interim budget are well underway, with necessary allocations made to ensure their success.
Transforming Agriculture and Rural Development
Agriculture and rural development are pivotal areas in this budget. An allocation of ₹1.52 lakh crore has been made for agriculture and related sectors. Agricultural production and productivity are prioritised, with 109 varieties of 32 high-yielding and climate-resilient crops set for release. Agricultural research will be comprehensively reviewed to emphasise the development of climate-friendly crops. Mission-mode production, storage, and marketing of crops like pulses and oilseeds will be strengthened.
To increase productivity and reduce input costs, one million farmers will be linked to natural farming in the next two years. Natural farming will also positively impact the health of the earth, the health of the common people, and the climate. To ensure fair prices for farmers, MSP rates are being continuously increased, with at least 50% profit on the cost being added to MSP.
Empowering Women and Tribals
The budget sets a target to make 3 crore Lakhpati Didi, bringing revolutionary changes in the lives of women. An allocation of ₹2.66 lakh crore has been made for rural development, including rural infrastructure. Under the Pradhan Mantri Awas Yojana, 3 crore houses will be built, both in rural and urban areas.
For women and girls, ₹3 lakh crore has been allocated for various schemes. PM Janjati Unnat Gramme Abhiyan is a new scheme targeting tribal-majority areas and aspirational districts, aiming to benefit 5 crore tribal people in 63,000 villages. Steps will be taken for complete coverage of tribal families in aspirational districts and tribal-dominated villages to improve their socio-economic condition.
Fostering Small Businesses and Eastern Region Development
The government will step up the implementation of schemes supporting economic activities by craftsmen, artisans, self-help groups, scheduled castes, scheduled tribes, women entrepreneurs, and street vendors, such as PM Vishwakarma, PM SVANidhi, National Livelihood Missions, and Stand-Up India. The Purvodaya plan will foster the all-round development of the eastern region, covering Bihar, Jharkhand, West Bengal, Odisha, and Andhra Pradesh, making the region an engine to attain Viksit Bharat.
Supporting MSMEs and Infrastructure Development
The budget gives special attention to MSMEs and manufacturing, particularly labour-intensive manufacturing. A self-financing guarantee fund will provide each applicant with a guarantee covering up to ₹100 crore. Significant investment in infrastructure has had a strong multiplier effect on the economy. The government will maintain strong fiscal support for infrastructure over the next five years, with ₹11,11,111 crore allocated for capital expenditure, which is 3.4% of our GDP.
Boosting Start-ups
To bolster the Indian start-up ecosystem and boost the entrepreneurial spirit, angel tax for all classes of investors has been abolished. Social security benefits have also been improved, with the deduction of expenditure by employers towards NPS proposed to be increased from 10% to 14% of the employee's salary.
Simplifying the New Tax Regime
The new tax regime has been simplified with significant changes that benefit both salaried employees and pensioners. The standard deduction for salaried employees has been increased from ₹50,000 to ₹75,000, offering greater relief and boosting disposable income. Additionally, the deduction on family pensions for pensioners has been increased from ₹15,000 to ₹25,000, providing more financial support for retirees. These measures ensure more money in the hands of the common people, making the tax system more equitable and supportive of all segments of society.
In all, the Modi government has presented a comprehensive, all-encompassing, and inclusive budget embodying social justice. This budget provides a roadmap for India in 2047, moving the Indian economy towards a golden future. In just 10 years since 2014, India has become the fifth-largest economy in the world and is on the path to becoming the third-largest.
The Union Budget 2024-25 underscores the Modi government's commitment to inclusive and sustainable growth. By balancing high capital expenditure with robust welfare spending, the government is paving the way for a resilient and thriving economy. The focus on employment, skilling, MSMEs, and the middle class, combined with initiatives for rural development and support for start-ups, positions India for continued economic growth and development. The government's vision for a Viksit Bharat (developed India) is clear, and this budget is a significant step towards realising that dream.
(The author is national spokesperson, BJP)
Disclaimer: These are the personal opinions of the author