BUDGET 2024 - WHAT'S IN THE STORE?

Critical Analysis of Budget 2024: Negative Impact Implications

• Lack of Comprehensive Support for AgricultureDespite the government's acknowledgement of agriculture's importance, the budget does not provide substantial new measures to support farmers beyond the existing Minimum Support Price (MSP) framework. Given the ongoing agrarian distress and the challenges posed by climate change, a more robust agricultural policy could have been beneficial. The focus on urban housing and employment may inadvertently neglect rural economies, which remain critical for overall economic stability.
• ?Inadequate Attention to Health and EducationWhile there is an increase in funding for higher education, the overall allocation for health care remains concerning. The pandemic has highlighted the need for a stronger health infrastructure, yet the budget does not significantly address this sector. Comprehensive health reforms and increased funding could have better prepared the country for future health crises and improved public health outcomes.
• Unemployment Crisis Ignored: With unemployment rates soaring, the budget should have focused on job creation and supporting small and medium-sized enterprises (SMEs). However, there is a glaring absence of concrete measures to stimulate job growth, leaving many young Indians uncertain about their future.
• Education Sector Overlooked: The allocation for education remains insufficient to address the challenges of accessibility and quality. With the digital divide still prevalent, there is a need for significant investment in digital infrastructure and teacher training to ensure equitable education for all.
• Rising Inflation and Cost of Living: The budget fails to provide relief to the common citizen grappling with rising inflation and the high cost of living. There is no substantial plan to control the prices of essential commodities, which continues to burden the middle and lower-income groups.
• Lack of Focus on Renewable Energy: While the world is moving towards sustainable energy solutions, Budget 2024 does not make significant strides in promoting renewable energy sources. India’s commitment to combating climate change appears half-hearted without substantial investment in green energy projects.
• Taxation Policies: The budget’s taxation policies favor the affluent, with no significant relief for the middle class. The lack of progressive taxation measures indicates a bias towards the wealthy, further widening the income disparity in the country.
• Fiscal Responsibility vs. Growth InitiativesThe budget outlines a path toward fiscal consolidation, with a projected fiscal deficit of 5.1% of GDP. However, this commitment raises concerns about the potential stifling of growth initiatives. The balance between maintaining fiscal discipline and investing in growth-oriented projects is delicate. A more aggressive approach to public spending could have stimulated economic recovery more effectively, especially in a post-pandemic context.
• Limited Focus on Small and Medium Enterprises (SMEs)While the budget mentions support for Micro, Small, and Medium Enterprises (MSMEs), specific measures to enhance access to credit and reduce bureaucratic hurdles are lacking. SMEs are vital for job creation and innovation, and a more targeted approach could have catalyzed growth in this sector, particularly in light of the challenges they faced during the pandemic.
• Ignoring Regional Development:

Tamil Nadu: The budget has overlooked the development needs of Tamil Nadu, a state that significantly contributes to India’s GDP. There is no substantial investment in the state’s industrial growth or infrastructure projects, which could have boosted employment and economic development.

Kerala: Kerala’s demand for better healthcare funding and support for its thriving tourism sector has been ignored. The state, which has been a model for social development, deserves more attention to continue its progress in healthcare, education, and sustainable tourism.

Andhra Pradesh: The budget fails to address Andhra Pradesh's critical infrastructure and development needs. Key projects like the Polavaram irrigation project and the development of the new capital city Amaravati have not received the necessary funding, stalling the state’s growth and prosperity.

Impact on the Common Citizen

The budget's impact on the common citizen appears mixed. While tax cuts and increased disposable income may benefit some, the lack of comprehensive support for critical sectors such as agriculture and health could lead to broader socio-economic disparities. The focus on urban-centric policies may alienate rural populations, exacerbating existing inequalities. Moreover, the emphasis on employment schemes is commendable, yet the effectiveness of these initiatives will depend on their implementation and the actual job creation outcomes. The government must ensure that these schemes translate into real opportunities for the youth, rather than remaining as mere announcements.

In summary, Budget 2024 presents a mixed bag of initiatives aimed at stimulating the economy and addressing pressing issues such as employment and housing. However, significant shortcomings, particularly in agriculture, health, and support for SMEs, could undermine its effectiveness. For the budget to resonate with a broad audience and truly benefit the common citizen, a more inclusive approach that addresses these overlooked sectors is essential. The government must prioritize not just fiscal discipline but also holistic growth that encompasses all strata of society.

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