PM Narendra Modi with TDP chief N Chandrababu Naidu and Bihar CM and JD(U) leader Nitish Kumar.
Credit: PTI Photo
New Delhi: The silhouette of the recent electoral reversals outlined the Modi government’s first budget in its third term in office as Finance Minister Nirmala Sitharaman loosened the purse strings to push job growth, enhance support for farmers, and offer tax sops to the middle classes while making special allowances for Andhra Pradesh and Bihar to keep its key allies- TDP and JD(U) in good humor.
“This Budget will empower all sections of the society. It will benefit villages, the poor, and farmers," Prime Minister Narendra Modi said in his reaction to the budget.
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The special employment package announced by the finance minister comprises 3 employment-linked schemes to incentivize job creation topped up with initiatives to enhance women’s participation in the workforce and a centrally sponsored scheme for skill development to “facilitate employment, skilling for 4.1 crore youth over the next five years.”
The budget priorities allude to the altered political paradigm amid the opposition’s newfound aggression in challenging the government’s track record on job creation evident during the protracted campaign for the Lok Sabha polls and the last parliament session.
In making a special mention of the allocations made for Bihar and Andhra Pradesh, the BJP seems to have indulged its key allies Nitish Kumar and Chandrababu Naidu whose support is important for the government’s survival. This messaging also suits the two satraps who have been demanding ‘special status’ and financial aid for their respective states.
Interestingly, the budget speech makes no special references to poll-bound Maharashtra and Haryana where BJP has a lot at stake.
The budget also gives special attention to Medium and Small Scale Industries and labor-intensive manufacturing which Leader of Opposition Rahul Gandhi has alleged were “broken due to demonetization.”
In his first reaction to the budget, Gandhi tweeted on X, saying Modi 3.0 had presented a "Kursi Bachao Budget." He added, "Appease Allies: Hollow promises to them at the cost of other states. Appease Cronies: Benefits to AA with no relief for the common Indian. Copy and Paste: Congress manifesto and previous budgets."
The government has allocated Rs. 10,000 crores for the New Employment Generation Scheme, and a provisioned Rs. 2000 crores for the New Internship Program. An additional Rs. 3,800 crores have been earmarked to provide aid to traditional craftsmen and sculptors under PM Vishwakarma Yojna.
After challenging opposition on ‘revari’ or freebie culture, the ruling BJP has -- both at the center and states -- had to enter the arena of competitive welfarism and guarantee politics.
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Marking a subtle shift in the ruling party’s priority sector, the allocation for PM Modi’s flagship schemes like PM Kisaan Samman Nidhi, Jal Jeevan, and Swach Bharat Mission have plateaued. The overall budget estimates for Rural Development, Agriculture, and allied sectors have gone up by more than Rs. 11,000 crores from the revised estimates for 2023-24.
The government has sought to further rationalize fertilizer subsidies while enhancing the estimated expenditure of food subsidies.
Union Budget 2024 LIVE | Making a record for any Finance Minister, Nirmala Sitharaman presented her 7th consecutive Union Budget on July 23, 2024 under the Modi 3.0 government. This Budget brought tax relief for the middle class, while focusing on jobs through skilling, incentivising employers. Track the latest coverage, live news, in-depth opinions, and analysis only on Deccan Herald. Also follow us on WhatsApp, LinkedIn, X, Facebook, YouTube, and Instagram.