The first Union budget of Modi 2.0 government lays out a roadmap for 2024 with cautious optimism but literally leaves no stone unturned in wooing people. Finance Minister Nirmala Sitharaman calls her budget a
vision document and an honest attempt to reach out to the common man.
When asked at a post-budget appearance on what would be the top pick from the budget, Sitharaman had no hesitation in naming mission ‘Har Ghar Jal’ -- water to all households by 2024. The Finance Minister holds this close to her heart, and rightly so for more than one reasons. If achieved, the Jal Jeevan Mission could be a game-changer for the Narendra Modi government in the 2024 Lok Sabha elections.
The budget adopts a tried-and-tested formula. The government’s ambitious Swachh Bharat mission may have fallen way short of targets, but it got the purchase in the 2019 elections and Modi romped home with a thumping margin. Electricity and gas connections to every household by 2022 and 1.95 crore houses in rural India by the same year are timelines to woo rural India. And these are initiatives that are going to do the trick for BJP.
Ensuring water security and providing access to safe drinking water to all is a huge challenge by any timelines. The government has identified 1,592 blocks in 256 districts across India which are water-critical. Irrespective of the region and the quantum of rainfall, drinking water continues to be an issue in several parts of India. The picture on the ground is very gloomy. The recent Niti Aayog report showed that over 21 cities could have zero groundwater by 2020. There are millions of people around the country who do not have access to potable water. Another impediment could be in States where the BJP is not in power. Differences with the State government could be a serious roadblock.
The FM continues to pursue her government’s vision of doubling farm income by 2022 but doesn’t touch upon improving efficiency in farming. She has gone with the old school of thought and propagated the Zero Budget Natural Farming model. This type of farming involves zero credit for agriculture with no use of chemical fertilizers. However, the FM refrained from touching the burning issue of farmers trapped in debt and those hit by price fluctuation. The distressed farmer will have to be content with the PM’s direct bank subsidy of Rs 6,000 announced ahead of the LS elections.
The FM’s commitment on environment is clearly visible. Sitharaman says future generations ‘will be cursing us for the situation they will be in’. Carrying the green initiatives forward, the FM has slashed GST on electric vehicles while increasing taxes on prices of petrol and diesel. However, the hike in fuel taxes is going to hit the middle class most and will lead to a spike in inflation.
The FM’s announcement that the government was working on a ‘Ghandhipedia’ -- a repository of information about the life and works of Mahatma Gandhi comes as a huge surprise. Surprise, because the RSS themselves have never shown fondness to Gandhian values. BJP candidates openly glorifying Naturam Godshe in the recent elections was testimony of this fact. It remains to be seen how this Ghandipedia will see the light of the day or if this is only to appease ruffled Gandhi sentiments.
Every Finance Minister in recent times tries to break away from trend and bring something new to the table. This time, Sitharaman dumped the traditional budget briefcase and carried budget papers in a four-fold red cloth giving it a desi flavour. The FM said it was time to get rid of the colonial hangover and stick to Indian tradition. A symbolic gesture like this is purely cosmetic and has got nothing to do with the economics of the country. Maybe Sitharaman needed something dramatic to announce her entry as the new FM. But it is bizarre to make a ‘no briefcase sarkar’ statement through this moment of sheer showmanship.
On paper, Sitharaman has touched upon almost all sectors without any big-bang announcements that were expected following Modi’s resounding electoral win. The budget, although promising, adopts a cautious approach with a vision for the future. There is a massive Rs 100 lakh crore allocation for infrastructure. And a vision of 5 trillion dollar economy by 2025 is ambitious. The super-rich are left fuming. Economic slowdown is the major issue and it remains to be seen how the government moves to spur growth. Going ahead, delivery and accountability will be
closely watched.
