By K S Tomar
The Indian Union Budget, a cornerstone of the country's economic planning, may serve as a reflection of the government's strategic priorities and vision for the future. According to some experts, under Prime Minister Narendra Modi's leadership, the budget has been targeted to foster economic growth, address social inequalities, and position India as a key player on the global stage. The latest budget, unveiled amidst a backdrop of global economic uncertainty, showcases a balanced approach, combining domestic development with an international outlook.
Prime Minister Modi's vision of a "self-reliant India" (Aatmanirbhar Bharat) is a recurring theme in the budget. This vision emphasizes self-sufficiency in critical sectors such as agriculture, manufacturing, and technology. The budget outlines measures to boost domestic production, support small and medium-sized enterprises (SMEs), and encourage innovation. These initiatives are designed to reduce import dependency and create a robust, self-sustaining economy.
At the same time, the budget reflects Modi's understanding of India's interconnectedness with the global economy. The focus on enhancing India's export competitiveness, attracting foreign direct investment (FDI), and participating in global value chains underscores the dual approach of strengthening domestic capabilities while engaging with the global market. This balanced approach is crucial for India to navigate the challenges and opportunities of an increasingly complex global economic landscape.
The BJP-led central government faces scrutiny over its dealings with opposition-ruled states, which allege discrimination in fund allocation and policy implementation. The budget reveals a sufficient increase in allocations for flagship schemes such as the Pradhan Mantri Awas Yojana (PMAY) and Ayushman Bharat. However, opposition states argue that their share of these funds does not reflect their proportionate needs.
Critics point to inefficiencies in scheme implementation as evidence of discrimination. The Opposition-ruled states have raised concerns about delays and insufficient execution of these schemes. They also argue that central agencies are used to target political rivals, exacerbating feelings of discrimination. With the BJP's political rivals accusing it of manipulating central resources, the government must navigate these complex political dynamics carefully.
The central government should adopt multiple strategies which include, providing detailed reports on fund allocations and expenditures to ensure transparency and address concerns of inequitable distribution. The focus should be on the efficient and timely execution of central schemes, particularly in opposition-ruled states. The Centre must engage in discussions with opposition state governments to address grievances and ensure that their concerns are heard and addressed.
Despite the increased allocation for healthcare in response to the pandemic, many experts argue that the funding is still insufficient given the size and needs of the population. India's healthcare system requires significant investment to improve infrastructure, ensure an adequate supply of medical professionals, and expand access to quality healthcare in rural and underserved areas.
While the budget emphasizes digital education and skill development, it lacks a substantial focus on improving the physical infrastructure of educational institutions. Many schools and colleges in rural and semi-urban areas still operate without basic amenities like clean drinking water, functional toilets, and adequate classrooms. The digital divide also poses a significant challenge, with many students lacking access to the necessary devices and internet connectivity for online education.
While the Union Budget is a comprehensive document designed to address the nation's economic needs, it is not without its shortcomings. The budget did present a robust plan to create new jobs or address the structural issues in the labor market. While there are mentions of skill development and support for MSMEs, these measures may not be sufficient to absorb the aspirations of millions of job seekers entering the workforce annually. The absence of targeted employment schemes or incentives for industries with high job creation potential is a notable gap.
(The writer is a political analyst and senior journalist based in Shimla)
