Active Stocks
Thu Mar 28 2024 15:59:33
  1. Tata Steel share price
  2. 155.90 2.00%
  1. ICICI Bank share price
  2. 1,095.75 1.08%
  1. HDFC Bank share price
  2. 1,448.20 0.52%
  1. ITC share price
  2. 428.55 0.13%
  1. Power Grid Corporation Of India share price
  2. 277.05 2.21%
Business News/ Opinion / Columns/  Nothing populist about this budget, with its focus on jobs with growth
BackBack

Nothing populist about this budget, with its focus on jobs with growth

The budget presents a compelling vision and strategy that further solidifies this conviction

Premium

There is nothing that you can call populist about this budget. For instance, the biggest takeaway of this budget is the 10 trillion allocated for capital expenditure. This represents a steep increase (of 33% this year) for the third year in a row and will create more jobs. So, the focus is on growth with jobs. This includes 1.3 trillion which will be given to the states as a 50-year interest-free loan that they will effectively spend as a grant. If you see, the effective capital expenditure is 13.7 trillion. This also includes 2.4 trillion that has been provided for the railways, which is nine times the outlay in 2013-14. In the rural areas, the PM Awas Yojana’s allocation has been increased by 66% to over 79,000 crore. This will also help create employment. So, the main focus of this budget is to create more jobs.

When you spend 100 on revenue expenditure, it does not add anything 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 giving cash in the hands of the people. However, if you give people cash in hand, they may not spend it. But by creating jobs, in a way we are putting money in the hands of people. This is the more effective strategy and the focus on capital expenditure allowed us to face global headwinds and become the world’s fastest growing large economy. The Modi government’s strategy is not to give doles but to empower the people.

Further, the demand of the middle class for income tax rebate was a long pending one, for five or six years. Further, those in the new tax scheme will not pay any tax if they earn under 7 lakh a year. So, some concessions have been given to the middle class, but these were long standing demands.

Another thing to realize is that this is a futuristic budget. The government wants to make India a digital superpower. For artificial intelligence, the government has allowed three centres of excellence to be created. The second important thing is the energy transition to meet the global warming targets, 35,000 crore outlay for energy security, net zero objectives and for battery energy storage. So green growth and the environment have been a focus.

There have also been very important provisions for farmers in this budget. The government is promoting chemical fertiliser-free farming and 10 million farmers will adopt natural farming. Further, 20 trillion will be provided as agricultural credit. Primary agricultural cooperative societies will be computerised in the next three years.

There is also a shortage of nurses and paramedic staff in the healthcare system, so 157 new nursing colleges are to be established. There are also important schemes for senior citizens. The savings scheme is to be enhanced because of the ageing problem we have started facing. For women, there will be a two-year period where they can deposit an amount and receive 7.5% interest.

So, again, I will say that this budget will create more and more jobs. India is the fastest growing economy in the world and this budget has taken care of each and every sector of our society.

There will always be challenges like the Ukraine war that cannot be foreseen. As chief economic adviser V. Anantha Nageswaran put it, there are “known unknowns". For example, we have planned the budget keeping in mind the price of oil as $100 dollars a barrel. But nobody knows about the future. But taking into account all these things, they have taken sufficient care. We have been successful in handling crises like the covid-19 pandemic and the Ukraine war and have done much better than other governments did during the 2008 financial crisis and other crises.

(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

 

Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!

Catch all the Business News, Market News, Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.
More Less
Published: 02 Feb 2023, 12:35 AM IST
Next Story footLogo
Recommended For You
Switch to the Mint app for fast and personalized news - Get App