There is nothing in this budget that you can call populist. For example, the biggest achievement of this budget is 10 trillion allocated for capital expenditure. This represents growth for the third year in a row (of 33% this year) and will create more jobs. So, the focus is on growth with jobs. this also includes 1.3 trillion which will be given to states as 50-year interest-free loans which they will effectively spend as grants. If you look at the effective capital expenditure is 13.7 trillion. this also includes 2.4 trillion has been provided for the Railways, which is nine times the outlay in 2013-14. In rural areas, the allocation of PM Awas Yojana has been increased by 66% 79,000 crores. This will also help in creating employment. Hence, the main focus of this budget is to create more jobs.
when you spend 100 on revenue expenditure, it adds nothing to the economy. But if you spend 100 in capital expenditure, it has a multiplier effect on the economy. During the pandemic, some commented that the government was not putting cash in the hands of the people. However, if you give people cash, they may not want to spend it. But by creating jobs, in a way, we are putting money in the hands of the people. This more effective strategy and focus on capital expenditure has allowed us to weather global headwinds and become the fastest growing large economy in the world. Modi government’s strategy is not to give bailout but to empower people.
Besides, the demand of the middle class for income tax exemption was long pending for five or six years. Also, those earning income under the new tax scheme will not have to pay any tax 7 lakhs a year. So some concessions have been given to the middle class, but these were long standing demands.
Another thing to understand is that this is a futuristic budget. The government wants to make India a digital superpower. The government has given permission to set up three centers of excellence for artificial intelligence. The second important thing is the energy transition to meet global warming goals. 35,000 crore outlay for energy security, net zero objectives and battery energy storage. Hence the focus has been on green development and environment.
Very important provisions have also been made for the farmers in this budget. Government is promoting chemical fertilizer free farming and one crore farmers will adopt natural farming. Ahead, 20 trillion will be provided as agricultural loans. Computerization of primary agricultural cooperatives will be done in the next three years.
There is also a shortage of nurses and paramedical staff in the health system, so 157 new nursing colleges are to be set up. There are also important schemes for senior citizens. The savings plan has to be increased due to the problem of aging that we have started facing. For women, there will be a period of two years where they can deposit the amount and get 7.5% interest.
So I will say again that this budget will create maximum employment. India is the fastest growing economy in the world and every sector of our society has been taken care of in this budget.
There will always be challenges that are unpredictable, such as the Ukraine war. As Chief Economic Advisor V. Ananth Nageswaran put it, there are “known unknowns”. For example, we have planned the budget considering the price of oil as $100 per barrel. But no one knows about the future. But keeping all these things in mind they have taken adequate care. We have been able to deal with crises like the COVID-19 pandemic and the Ukraine war and have done a much better job than other governments during the 2008 financial crisis and other crises Is.
(As told to Shashank Mattoo)
Sushil Kumar Modi is a Rajya Sabha MP, former Deputy Chief Minister of Bihar and former Finance Minister of Bihar
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