At 11 am on Tuesday, when Nirmala Sitharaman rose to present her seventh consecutive budget -including an interim one - as Finance Minister, she had already earned several distinctions. Following in the footsteps of C.D. Deshmukh in the 1950s and Morarji Desai in the late 1950s and early 1960s, she is the only person to have served in the North Block for over five years and counting. She is also the only full-time woman Finance Minister to hold that post, although Indira Gandhi held the position for about a year while also serving as Prime Minister in 1969-70.
What unfolded in her hour-long speech made these distinctions even more notable. She addressed pressing political, social, and economic issues right from the outset. Her focus on schemes and solutions was so comprehensive that even the principal opposition party, Congress, in its initial remarks, had to move beyond stereotypical criticism and acknowledge the content. They were left either complaining or thanking her for incorporating some of their pre-poll manifesto schemes.
Continuity Meets Change
There was both continuity and change. The Finance Minister avoided making any populist promises or specific announcements for poll-bound states like Maharashtra, Haryana, Jharkhand, and Delhi. Instead, she announced schemes, projects, and incentives for employment generation, skill development, infrastructure development, MSME growth, agricultural growth, startup support, Mudra Yojna benefits, and women empowerment, and provided some tax relief to the salaried middle class.
Employment generation and skill development were key political and social issues, heavily debated during the recent parliamentary elections. It was crucial for the government to address these concerns, which it did by outlining a detailed plan.
Prime Minister Narendra Modi's concept of "Vikas bhi, Virasat bhi" was cleverly integrated with an invitation to the private sector to participate more actively in infrastructure development. Another significant issue was managing the demands of two allies - the Janata Dal (United) (JD-U) in Bihar and the Telugu Desam Party (TDP) in Andhra Pradesh - for granting special category status to their states. Just a day earlier, the Centre had stated in a written reply that there was no existing provision for such status. Political rivals attempted to exploit this statement to create confusion within the ruling NDA ranks. However, in her budget speech, Sitharaman likely pleased the JD(U), the TDP, and many in Bihar and Andhra Pradesh, with a long list of developmental projects, schemes, and grants announced.
A Youth-Oriented Budget
The focus of the Modi 3.0 government's first budget remained on youth and employment generation. "Turning attention to the full year and beyond, in this budget, we particularly focus on employment, skilling, MSMEs, and the middle class. I am happy to announce the Prime Minister's package of five schemes and initiatives to facilitate employment, skilling, and other opportunities for 4.1 crore youth over a five-year period with a central outlay of ₹2 lakh crore. This year, I have made a provision of ₹1.48 lakh crore for education, employment, and skilling," the Finance Minister stated at the beginning of her speech.
She then highlighted the priority groups or communities across the nation mentioned in the interim budget: 'Garib' (Poor), 'Mahilayen' (Women), 'Yuva' (Youth), and 'Annadata' (Farmer).
The budget has been presented in a way that may inspire optimism among the youth. For the first time in recent history, a host of announcements have been made in the annual budget aimed at nurturing the hopes and aspirations of the youth. Here are some highlights:
- To bolster the Indian start-up ecosystem, angel tax for all classes of investors has been abolished
- Scheme to provide one-month wage to all persons entering the workforce in all formal sectors for the first time
- Direct benefit transfer of one-month salary in three instalments to first-time employees registered in the EPFO, up to ₹15,000. The eligibility limit will be a salary of ₹1 lakh per month. The scheme is expected to benefit 210 lakh youth
- Scheme for job creation in manufacturing
- Skilling initiatives in collaboration with state governments and industry. 20 lakh youth will be skilled over a five-year period.
- Internship opportunities in top companies. The government will launch a comprehensive scheme to provide internships in 500 top companies to 1 crore youth over five years, with an internship allowance of Rs 5,000 per month along with one-time assistance of Rs 6,000.
- Financial support for loans up to Rs 10 lakh for higher education in domestic institutions for youth not benefited under any government initiatives. E-vouchers for this purpose will be given directly to 1 lakh students annually for an annual interest subvention of 3% of the loan amount.
- The limit of Mudra loans will be enhanced to ₹20 lakh from the current ₹10 lakh for entrepreneurs who have availed and successfully repaid previous loans under the 'Tarun' category.
Nirmala Sitharaman's 2024 budget speech had a distinctive tone and tenor compared to what is usually heard on such occasions. She has left a mark by standing firm and making significant strides.
(Sanjay Singh is a senior journalist based in Delhi)
Disclaimer: These are the personal opinions of the author
