The annual budget, which has been referred to as the financial plan of a country in many instances, is actually about social welfare, economic policy, and political desires. The budget is more arithmetical concerning revenues and expenditure; also, it is a story that shows the government’s priorities. As a result, this has become an economic powerhouse on a global scale, with Union Budget 2024 planning for “Viksit Bharat” touching on these areas: agricultural reforms, manufacturing impetus, job creation initiatives, youth skills development programs, support for MSMEs as well as urban infrastructure development.
Its fiscal discipline makes the budget stand out most prominently. Though the current fiscal deficit stands at 4.9%, there are plans to bring it down further to 4.5% next year. In order to ensure balanced fiscal policy and target resources effectively into the preferred sectors while still maintaining fiscal stability. There have been no details regarding how the budgetary approach has been planned, but it can be categorized into four main sets: Garib’, meaning poor people; 'Mahilayen', meaning women; ‘Yuva’, meaning young people; and ‘Annadata’, meaning farmers.
A massive allocation of Rs 1.48 lakh crore towards development is being contemplated. A number of key initiatives include pro-growth fiscal policy, stability in the process of securing India's energy supply as well as its sustainability, which includes a roadmap for energy transition, augmenting electricity storage capacities, the development of nuclear and thermal power technologies, and the introduction of carbon market regulations for heavy industries. Spending on social sector programs such as MGNRGEA, Samagra Shiksha, Ayushman Bharat, old age pension, widow pension, Swasthya Suraksha—all have gone down over the past few years. This is why India’s inequality is notably worse: India is always caught up in abysmal health; poor teaching and learning; living in bad housing without plumbing; malnutrition; high child mortality rates. The middle class, however, remains at the same point of hope and desire for another year. One-third of our population lives less than 100 rupees every day. They are paying for this through regular purchases, thereby subsidizing government through “Aam aadmi,” who pays GST and heavy taxation while only favored ones under the scheme get subsidized. Although it has been widely lauded by many for its simplicity, including a uniform long-term capital gains tax rate of 12.5% on almost all asset classes except unlisted debentures after indexation removal, it has been criticized in some quarters that now seems like an inheritance tax on property transactions.
The portion of the budget that goes to agriculture has remained unchanged at about 3.1 percent of the total budget. From September, the general prices rise by no more than 6%, but food prices in India by June 2024 increase up to 9.4%. According to the World Hunger Index (WHI), which ranks among 125 countries, India still occupies the 111th position. Thus, there is an overall increase in prices of many goods due to rising food inflation. The percentages for flagship programs like Pradhan Mantri Fasal Bima Yojana and Pradhan Mantri Kisan Samman Nidhi have shrunk as a fraction of the total budget through FY25. At the same time, other measures to boost agricultural productivity and efficiency in supply chains are being contemplated. Allocation as targeted under Rs 1.52 lakh crore towards agriculture will be given, while doing away with this program will result in the demarcation of these resources for unproductive use only. To increase yields and fortify resilience to climate vagaries To attain the above objectives entails promotion of new crop varieties, natural farming, and digitization tools for farming, among others. These have played significant roles in safeguarding stable prices and economic welfare.
Indian job creation remains a top priority as the all-India unemployment rate stands at 9.2% in June 2024. The government aims to simplify incentive schemes and strengthen labor-intensive sectors through strategic investments that will enhance employment generation in these areas. A skilled workforce is instrumental in India's leap to a developed economy, and it has provided 2 lakh crore rupees for generating employment to boost employment and skilling through three new schemes, namely, incentives for first-time job seekers, job creation in manufacturing, and employer support. This large investment of Rs. 3 lakh crore being made by the government in women and girls testifies to its concerns toward social welfare. These have been campaigns for increasing female labor force participation, empowering women with relevant skills and opportunities, and thus helping drive economic growth. Infrastructure is a prime driver of growth, and major investments are marked for creating more transportation networks, mainly rural connectivity, enhancement of water resources management, and disaster mitigation.
It's pretty evident that India really stands at the crossroads.It is the leveraging of this demographic dividend that shall surely set India firmly on the global scene. Union Budget 2024 would present a roadmap for India's march to a developed nation. The fiscal and enterprise commitment goes very well with the vision of Amrit Kaal.
-Harshata Gotephode
No comments:
Post a Comment