Taking the middle path

In its last full Budget before the 2024 General Election, the NDA government has attempted to strike a balance between economic and electoral considerations. With nine states going to the polls this year (including three this month), followed by the bigger battle for the Lok Sabha, the government has reached out to various sections — be it farmers, the salaried, tax-harried middle class or the poorest of the poor. The country’s resilient recovery from the pandemic has offered an opportunity to make all engines of growth press ahead at full steam. The government has again reposed faith in capital expenditure, whose outlay has been increased by 33 per cent to reach Rs 10 lakh crore. The focus is on greater spending and making India more attractive for investors in the post-Covid period.

Amid a global slowdown, India has emerged as the world’s fastest-growing major economy, and it is imperative to maintain the momentum. The government is hopeful that investments and job creation will go hand in hand. However, the situation on the ground is not so promising. The national unemployment rate has hovered around

7-8 per cent during the past 12 months. It’s obvious that various job generation schemes, including the one that links production with incentives, need regular monitoring and better implementation.

The Budget has listed seven long-term priorities — inclusive development, reaching the last mile, infrastructure and investment, unleashing potential, green growth, youth power and the financial sector. The proposed creation of the agriculture accelerator fund to help agri startups shows that the Centre is heavily banking on the time-tested farming sector for economic dividends. The allocation of Rs 35,000 crore for the transition to green fuels is welcome, but the challenge will be to ensure a smooth switchover with adequate reskilling and redistribution of the workforce. The 66 per cent jump in allocation for the Pradhan Mantri Awas Yojana can help improve housing facilities for migrant workers, while the highest ever capital outlay of Rs 2.4 lakh crore for the Railways is another step that will keep growth on the right track. All in all, the Budget has something for everyone, in a large measure or small.