The interim Budget for 2024 emerges as a crucial instrument for steering the nation towards inclusive development
As is the case with multiple developing economies across the world, India is faced with wealth inequality, unemployment, existing and persisting gaps in healthcare infrastructure and delivery, and environmental concerns. The Global Multidimensional Poverty Index based on data from 2021/22 finds that 16.4 % of India’s population lives in poverty with 4.2% facing severe poverty.
The Regional Human Development Report 2024 by UNDP finds that the top 10% of the population controls 65% of the nation’s total wealth, underlining stark wealth inequality. The consequences are multi-dimensional – it negatively impacts upward intergenerational mobility and lowers the rate of economic growth.
Lack of jobs has been an area of concern for the country for decades now. While the current unemployment rate for January 2024 is 6.8, unemployment amongst educated youth is concerning. The State of Working India 2023 by Azim Premji University reveals that over 42% of India’s graduates under 25 were unemployed in 2021-22.
Marked by a distinct urban-rural divide, gaps in healthcare services and infrastructure are a major obstacle for people in small towns and rural areas. A large part of India’s population suffers from inaccessibility to quality healthcare – leading to delayed treatments and high out-of-pocket expenditure.
A United Nations report emphasises that approximately 75% of healthcare infrastructure, medical personnel, and other health resources are predominantly located in urban regions, home to merely 27% of the overall population.
The impact of climate change and disasters on both people and the economy has been devastating. India experienced uninsured losses of $32.94 billion from natural disasters between 2018 and 2022. The ramifications of human loss are even more grave and are evident in the 55.9 million displacements from 237 disasters mapped between 2018 – 2022.
The interim budget addresses these issues in a big way.
It presents a comprehensive roadmap for national progress, meticulously designed to touch upon critical facets of development such as women empowerment, job creation, environmental conservation, and poverty alleviation. It aims to address the needs and aspirations of diverse social groups—'Garib' (the poor), 'Mahilayen' (women), 'Yuva' (youth), and 'Annadata' (farmers). This inclusion is notable as it envisages the significance of marginalised social groups in achieving a Viksit Bharat – a developed India by 2047 – marking a century of India’s independence.
The budget prioritises support for the 'Micro, Small, and Medium Enterprises' (MSME) sector with necessary finances, technologies, and training to enhance global competitiveness. The rooftop solarization policy is set to offer employment and entrepreneurial opportunities in technical and supply sectors.
Additionally, the establishment of a separate Department for Fisheries and the expansion of the Pradhan Mantri Matsya Sampada Yojana (PMMSY) underscore efforts to double production and exports in the fisheries sector, aiming to create 55 lakh new jobs and drive inclusive economic progress.
A significant step is the focus on provisions for the inclusion of low-income groups and women. Initiatives like the disbursement of 30 crore Mudra Yojana loans to women entrepreneurs and financial support to 78 lakh street vendors under PM-SVANidhi emphasise the government's focus on enhancing workforce participation and providing earning avenues that drive upward mobility.
The SHG model of development has also proved to be successful – enabling nearly 10 million women to achieve annual incomes of over INR 1 lakh. Capitalising on this success, the goal has been expanded to elevate the target from 2 crore to 3 crore 'lakhpati didis', showcasing a commitment to women's economic empowerment. The budget made notable health sector announcements. The focus on preventive healthcare through the provision of cervical cancer vaccinations for young girls and the integration of various maternal and child health schemes indicate a push towards addressing the specific health needs of vulnerable groups.
The expansion of the Ayushman Bharat scheme to extend healthcare benefits to approximately 1.5 million ASHA workers and Anganwadi workers acknowledges the crucial contribution of these frontline health workers to primary healthcare services. Leverage existing hospital structures for the establishment of more medical colleges, addresses both – the healthcare professional shortage and the surging demand for medical education. This builds on the initiative from April 2023, when the government approved the establishment of 157 nursing colleges, allocating INR 1,570 crore, with the central government contributing INR 1,016 crore.
The budget also provides a concrete pathway to achieving a net-zero economy by 2070. Key measures include funding for offshore wind energy, coal gasification projects to lessen reliance on fossil fuels, support for the electric vehicle ecosystem, and incentives for biomass collection. The budget also promotes bio-manufacturing for eco-friendly materials and climate resilience in the blue economy.
(The author is a prominent voice on social issues; views are personal)
