On the 1st of February 2023, Finance Minister Nirmala Sitharaman presented the Union Budget for the financial year 2023-2024, with 7 priorities identified as focal points for the budget.
Inclusive development was named as the first priority, a possible indication of the significance that the government believes that this issue holds.
Inclusive development is a crucial aspect of economic growth that ensures the benefits of progress are shared equally among all sections of society. It refers to the process of growth that is equitable, and takes into account the needs and concerns of all sections of society.
After highlighting the path to ‘Amrit Kaal’ by means of a technology-driven, and knowledge-based economy, Ms. Sitharaman stated the importance of creating ample opportunities for the citizens of the nation.
The sectors that will benefit from inclusive development, underlined by the motto of ‘Sabka Saath, Sabka Vikas’, are as follows:
1. Agriculture
The government allocated a substantial number of resources towards the development of this sector, with a focus on improving the income of farmers, and increasing their access to markets and technology.
The most prominent scheme under agriculture is the open-source, open-standard digital public infrastructure that is accessible to all farmers. This highlights the path of rapid digitalization that the government has undertaken, over the past few years.
Through this infrastructure, farmers can receive the latest information regarding farming appliances, techniques and technologies, and bridge the gaps of crop uncertainty through involvement of Agri-tech start-ups. In addition to that, an Agriculture Accelerator Fund will be provided by the Government to finance innovative solutions to agricultural problems.
Specific crops such as cotton are given support with ventures, such as PPEs (Public-Private Partnerships) to increase collaboration between farmers, state and private entities. A capital outlay of 2200 crore rupees was allotted to the production of high-quality seeds.
The FM repeatedly stresses on millet production, which she rechristened as ‘Shree Anna.’ Recognizing it as a means for great economic growth for India, she initiated a blueprint to make India a global hub for ‘Shree Anna’ production by promoting the Indian Institute for Millet Research, as a Centre for Excellence. Agricultural credit and fisheries sector received substantial attention and benefits too.
2. Cooperation
The new Ministry of Cooperation was formed in 2021 with the vision of galvanizing cooperative societies, and facilitating development across different sectors.
Continuing with the drive for digitalization, the government plans to initiate computerization of 63,000 Primary Agricultural Credit Societies (PACS) with an investment of Rs 2,516 crore, and preparation for a national cooperative database is underway for country-wide mapping of cooperative societies.
Investment in the Ministry of Cooperation is done to implement the set-up of a massive decentralized storage capacity which will help farmers store their produce, and realize remunerative prices through sale at appropriate times.
3. Health
It was observed that the outlay for health was relatively lesser, compared to previous years in terms of percentage of GDP allocated.
Despite this, some of the prominent schemes include the building of 157 nursing colleges- next to existing 157 medical colleges that have been built since 2014.
On the path to Amrit Kaal, eradication of Sickle Cell Anaemia was listed out as a priority.
Outlays for funds for the Indian Council of Medical Research, pharmaceutical innovation and establishment of new courses in medical devices were also discussed.
4. Education and Skilling
Some of the major schemes from the Education sector include the teachers’ training programme.
Inculcating innovative pedagogy, curriculum transaction, and ICT implementation, it seeks to extend professional career development of teaching faculties in schools, and colleges.
A National Digital Library for children and adolescents will be set-up for facilitating availability of quality books across geographies, languages, genres and levels, and device agnostic accessibility.
5. Social Security
Social protection is another important aspect of Priority 1, and the government has allocated resources towards programs that aim to provide support to the most vulnerable sections of society.
These programs include pension schemes for the elderly, disability benefits, and support for women and children.
The financial minister stated, “We are committed to ensuring that all citizens, particularly the poor and marginalized, have access to the support they need to lead dignified lives. We will take several steps to provide social protection to those who need it, the most.”
Despite these measures, there are some glaring deficiencies in the Budget, especially in the context of inclusive development and the government’s motto of ‘Sabka Saath, Sabka Vikas.’ More measures to address pertinent problems of farmers, such as pricing of food crops, guarantee of minimum social security were absent from the budget.
Another serious issue is the reduced outlay to the MGNREGS (Mahatma Gandhi National Rural Employment Guarantee Scheme), a rural employment initiative by 30% to Rs 61,032.65 crore for 2023-24 in the Union Budget.
The budget also did not address the ongoing problems of unemployed youth in the nation, in a deliberate attempt to hide the government’s shortcomings in the past few years. Unemployment remains a major challenge in India, and the government needs to take more concrete steps and measures to create new jobs, and stimulate economic growth.
Several critics of the budget have pointed to the upcoming 2024 general elections, as the major reason for the initiation of new welfare schemes under the Budget. What this reflects is the refusal to be receptive to shortcomings of governance, and the economy of the nations.
With such omissions in the Budget, it remains to be seen how ‘inclusive’ the Budget’s outlay will be in the coming years.
Written by- Alan Joseph Benny
Edited by- Kushi Mayur