Budget 2024-25 designed towards Vikasit Bharat
This budget is a futuristic, with long vision to envisage Vikasit Bharat by 2047 by providing enough employment opportunities to the youth, enhancing business opportunities to the existing people, scaling-up the MSME activities by providing stress free loans and establishment of SIDBI branches in industrial clusters, skilling the youth in top 500 companies is a crystal-clear step and pathway towards developed Bharat. — Dr. S. Lingamurthy
23 July, 2024, Hon’ble Finance Minister,Smt. Nirmala Sitaraman7th time in a row presented Union Budget 2024-25, is a futuristic and designed to Vikasit Bharat by 2047 with a focus on four major categories of the society includes farmers, poor, women and the youth. The proposed budget has given the priorities to creation of employment, skilling the large chunk of youth force, enhancing the business and scale up of MSME activities and substantial consideration to the middle class of the society. More than Rs. 48.21 lakh crore budget envisages developed country through outlined nine core priorities includes, productivity and resilience in agriculture, employment & skilling, inclusive human resource development and social justice, manufacturing & services, urban development, energy security, infrastructure, innovation, research & development and next generation reforms.
In the midst of global economic slowdown, political uncertainty, geopolitical issues, India is consistently shown its economic predominance in the globe by maintaining above 6.5 percent GDP growth per annum is due to consistency in targeted goals, continuity in economic reforms, steady focus on the skill development, controlled inflation, increasing ease of doing business rankings, significant increase in CAPEX and focused infrastructure development since 2014 the day Shri Narendra Modi became the Prime Minister of India.
In a continuous momentum of the Government of India’s efforts from last 11 years, 2024-25 proposed budget has targeted creation of dignified employment in the country to cater 1 crore youth in upcoming 5 years. There is a clear message in the budget that through the creation of employment opportunities to the young population the country will embark to Vikasit Bharat. In view of this, the budget specifically allocated budget to the skilling of the youth as well as to provide internship opportunities to 20 lakh youth per year in top 500 companies of the country with Rs. 5000 per month allowance to the students is a path breaking record in the history. It shows the vision and clarity of the budget towards targeted goals. Skilling institutions will also be provided course content & design aligned as per the requirements of the industry in the present context is a remarkable step by the government. Along with this, 1000 industrial training institutions are supposed to be upgraded in hub and spoke arrangements with outcome orientation make sures the certainty in the skill among the youth and working force.
To tackle unemployment problem of the country, the budget also proposed employment linked PLI scheme (Production Linked Incentive Scheme) to the industries. This initiative will certainly bring quality employment and livelihoods to the masses. To scale-up the self-employment or business activity, the budget has increased MUDRA loan opportunities from Rs. 10 lakhs to 20 lakhswithout any guarantee or hardships to TARUN loan successful repaid beneficiaries. In order to address the women participation improvement in economic activity, the budget has proposed worked women hostels in collaboration with industry and establishing creches to the needy at workplace. The budget also proposed more than Rs. 3 lakh crores for the schemes which are benefitting women and girls shows the importance of government towards women participation in the economic activity and their welfare.
One more remarkable announcement in the budget is Purvodaya: ‘Vikas bhi – Virasatbhi’ towards inclusive approach of the country. India is having abundance of natural resources in eastern part of the country which have to be optimally utilised for the benefit of the society as well as economic development of the country. This budget has planned for endowment rich states covering Bihar, Jharkhand, West Bengal, Odisha and Andhra Pradesh for generation of economic opportunities to attain Vikasit Bharat. This initiative brings all round development of the country and bringing more people into economic activity by providing opportunities, this will address the unemployment problem and migration issue too in these mentioned states. Establishing Amritsar Kolkata industrial corridor with development of an industrial node at Gaya will create significant employment opportunities to the youth of this area by putting industries and infrastructure projects.
In order to increase the industrial output, industrial establishments and thereby create a greater number of employment opportunities, this budget also announced 12 industrial corridors under the National Industrial Corridor Development Progrgamme. For the development of MSMEs, credit support to MSMEs during stress period also announced this makes MSMEs to function without any turmoil.
Andhra Pradesh and Bihar
There is an uproar in the parliament when the budget proposed the financial support to the aspiring states such as Andhra Pradesh and Bihar. The Government of India has considered the all-round development of the country towards Vikasit Bharat. Bihar is part of BIMARU state, historically this state has not been developed, and not given importance to the development, therefore, the state has huge problems in terms of unemployment, infrastructure facilities, economic development etc. and Andhra Pradesh state has not give its due investment as per the Andhra Pradesh Reorganization Act after bifurcation of erstwhile Andhra Pradesh state. From last one decade, there is no development activities by any government either TDP for the first five years or YSRCP later, as a result, not significant industries have been set up in this state, infrastructure projects have been ignored by both TDP and YSRCP from last 10 years due to given more importance to the welfare schemes in view of attaining more votes in further elections. This led Andhra Pradesh state considerably backward in terms of infrastructure development, employment creation, etc.
To tackle the pressing problems of Andhra Pradesh and Bihar, this budget has considerably given more importance to create competitive economic system in these states. Financial support of Rs. 15,000 crores have been announced in the budget for Andhra Pradesh, completion of Polavaram Irrigation Project has been ensured which will result in the agriculture development in the state as well as food security of the country. The allotted budget to the Andhra Pradesh will make sure the infrastructural projects such as water, power, railways and roads. Apart from this, the budget also announced two industrial corridors in Andhra Pradesh State in Kopparthy node on the Vishakhapatnam-Chennai Industrial Corridor and Orvakal node on Hyderabad-Bengaluru Industrial Corridor brings economic prosperity and industrial development in the state.
Bihar is also considered to be given boost through the development of cultural aspects and tourism. Development of Vishnupad Temple Corridor and Mahabodhi Temple Corridor boosts tourism development, community development through additional creation of livelihoods in these areas. Along with this Nalanda development will boost tourists and also this budget targeted to reviving the Nalanda University to its glorious stature is appreciable.
In conclusion, this budget is a futuristic, with long vision to envisage Vikasit Bharat by 2047 by providing enough employment opportunities to the youth, enhancing business opportunities to the existing people, scaling-up the MSME activities by providing stress free loans and establishment of SIDBI branches in industrial clusters, skilling the youth in top 500 companies is a crystal-clear step and pathway towards developed Bharat.
The author is Associate Professor of Economics, Central University of Karnataka.
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