Budget And The People

Budget 2022-23 was presented on 1st February,2022. The Finance Minister said how the country was going to raise its resources to meet the expenditure under different heads. The Government is bent upon focusing on capital expenditure to raise the level of development. Resources to be collected by the Government and the heads under which they are set to be spent are announced on the floor of the Parliament. The Finance Minister spoke for 91 minutes. Her speech was shorter compared to other years. Each time the Finance Minister announced under a particular head, the members in the Treasury Bench were seen thumping their desk. I remember we were punished for thumping our desks during class hours But from the live telecast we saw that the Speaker who is appointed to maintain discipline among the members, did not bang his hammer when the members thumped their desk. So thumping desks is a part of the budget.

The Finance Minister spoke in flawless English. Mebmers of the Lok Sabha were seen listening through their head gear and seeking in the tab on the desk. India has a population of about 130 Million the second highest in the world. It is said that 10 per cent of the population of India can speak English Language, the official language of the country. This means that only about 13 Million people could understand the reason for thumping the desks by the members of the Treasury Bench when the Finance Minister said about about any allocation under any scheme. So 117 Million people could not understand what the Finance Minister said. They are not supposed to understand as their representative is there hearing the speech of the Finance Minister on the Budget presentation day. India's literacy rate is about 74.04 per cent. Therefore, 26.94 per cent of the people are illiterate. While 96.54 Million can know what the budget is about 48.46 Million of the population will not be able to understand. Such number of people are supposed to pay tax and if they do not know about tax to be paid, they will land up paying interest and penalty to the Government.

From the presentation of the Finance Minister it is understood that the Finance Minister should be fit health wise to deliver the speech. So health is of utmost importance. The state, therefore, emphasises on expenditure for health. In the Budget for 2022, amount of expenditure on health is budgeted at Rs 86606 Crore. It is higher by 16 per cent over the previous year being Rs 74602 Crore ( Revised Estimate of Rs 85915 Crore) . The increase on the revised estimate is less than 1 per cent. If 48.46 Million cannot understand the Budget due to illiteracy and 117 Million cannot understand the language in which it is presented ( i.e. English) it is to be seen how much amount has been earmarked to raise the literacy level in the country. Amount earmarked for Education has been allotted Rs 1,04,278 crore which is higher by Rs 11,054 crore over the previous year. For the year 2021-22 amount earmarked for the sector was Rs. 93,223 crore. It was reduced by 6% over the previous year . The revised estimate was Rs 88,002 crore.

The National Education Policy, 2020 (NEP) mentions of public investment on education at 6% of GDP which has not been achieved .

The Economic Survey for the year 2022 states that expenditure on education as percentage of GDP year wise is as follows :

(i) 2019-20: 2.8%

(ii) 2020-21: 3.1% (as per the revised estimate)

( iii) 2021-22: 3.1% (as per the budget estimate)

To meet the target of 6% of GDP , education budget for 2022-23 was required to be almost double allocation of the previous year.

The Budget is each year discussed. Covid -19 has popularised webnairs which have provided scope for discussion across the country among different classes of people. However, the fact remains that we are keeping things in the dark from the people of the country. Unless literacy is spread throughout the country at a speedier rate and the rural population are made to understand things which are applicable to them, the budget remains only a thing to be known by only a section of the population.

Unless literacy is increased and the rural population are taken into account for framing policies the gap in terms of wealth in the society will continue and the budgets will continue to be for the people of the urban area and the exercises will not be effective as the theory of budgeting states.