Budget 2024: Calibrated Vote on Account for the last Man standing by Government 365

What has Budget 24-25 brought for the Bharat’s Annadaata - the ones who feed Bharat- her farmers, her peasants, her people involved in the agrarian economy?

What is meant by four castes as stated by the Budget 2024-2025 and their relevance in making Bharat a developed Economy?

Why Budget 2024 brings hope not only to the bottom 10% of Bharat as well as to the large emerging Middle Class of the country?

The Backdrop

Through the years since independence, Budget and budgetary announcements were seen as a mega event, where industry moles and intermediaries and industry influencers who used to be part of the coterie, would influence the decisions of the government, for a few to profiteer from it.

In the last 10 years or so, the Budget has become largely a non-event on account of a simple fact, the government of Bharat now is working 365 days and keeping in mind the weakest link of the economy and thus, as and when the link needs aid, assistance or support, the relief, the reprieve, the facilitation is immediate rather than waiting for the D-day.

Enough examples of the same have been seen with the government talking and taking initiatives through the years, whether it’s Covid relief, demonetization GST implementation or any other transformation that has changed the situation, tangent or the trajectory of Bharat’s economy.

Budget is now becoming a methodology to update and keep the citizens, its federation and taxpayers abreast, of the government's initiatives, government’s income, expenses and finances for the forthcoming year in the form of a brief report card.

From Being a Sarkar to being a Sewak

In continuation of this tradition Feb 1st 2024, Vote on Account, (Budget for 3 months till the newly elected government takes over) elucidated the prominent actions and the result of such actions which benefited Bharat and endeavoured to create an egalitarian Bharat.

The Plan, the Process and the Progress

1. One of the issues economists, Leftists and Wokes always had was that pre-Lok Sabha elections, governments, take populist measures to appease the vulnerable in the economy and dole out freebies, to gain votes.

The Finance Minister, on the contrary, didn’t dole out any handout or giveaway and on the contrary ensured that fiscal deficit, was reduced, thereby reducing market borrowing of the government, giving space or more room to the private sector to borrow at cheaper rates negating any crowding out effect.

The Fiscal deficit earlier was estimated at 5.9% of the GDP and now has been revised to 5.8% for FY 24. For FY 25, the street was expecting a deficit of 5.3% keeping in mind the aggressive Bharat Building and Re-building program, the government has undertaken.

Despite monumental infrastructure outlay, the fiscal deficit has been brought down to 5.1% of the GDP. By FY26, the government will deliver its promise of sticking to the plan of the FRBM Act and will bring the fiscal deficit to 4.5%

2. Big themes were presented in Vote on Account 2025-

In the finance minister's words, the focus was directed towards 4 castes that need to be worked upon intensely for Bharat to emerge as Vishwa Guru and become developed in the next 23 years by 2047, the Poor, The Youth, The Women folk and the agriculturists. Significant schemes and efforts have been ascertained in the Budget across all aspects to improve the contribution of these segments towards nation-building.

3 Facets that emerge strongly from the Budget 2025 are as follows

-Capex on Infra Creation
- Housing for all
-Agrarian economy


a. Capex on Infra Creation -Infra Outlay in FY 21, the year of Covid was ~Rs 4.11 lac crores and this has been increasing by a third every year. In FY 25, this spend will jump to 11.11 lac crores, a mammoth swing of ~ 2.7 X in 4 years.

The government understands that Infra spend creates a multiplier effect and sustains its effect and impact on the economy and propels all other sectors for the next 3-4 years.

Thus government of Bharat is ensuring that when the world is going through challenging times due to higher interest rates, global conflicts and regional uncertainties, Bharat remains buoyant by quality expenditure benefitting everyone. Past endeavours of the government are unclouded with the clear fact that the income rise for a common Bhartiya has been nothing short of stunning whose real income has jumped on average by 50% in the last 10 years.

This is in alignment and spirit with Goswami Tulsidas’s words


Meaning:

Sant Tulsidas ji says, that the king or the administration or the government should collect taxes from the people like Sun.

The way the Sun unknowingly draws water from the earth and no one realizes it, but everyone is happy to see the same water collected in the form of clouds and rained down.

Similarly, taxes should be collected in a manner that it should not pinch, the common man and then return it back with a multiplier effect to the society, community and the country for its well-being.

This capex will be used to create energy, minerals and cement corridors, ensuring Atmanirbharta and upliftment of the remotest corner of Bharat.
As Bharat is growing, its younger population and their aspirations are rising and thus part of these funds will be utilized to construct corridors having high traffic density as well the ones that enable port connectivity. Exports and Tourism will surely multiply from these measures.

b. Housing for all – 3 Crore houses have been built by the government under the PM Awas Yojana (PMAY) in the last 10 years and the government has expedited the forthcoming construction with another 2 crore houses to be built in the next 5 years under PMAY - Grameen.

This will benefit financial institutions providing loans, cement, paints, steel, tiles, hosiery, furniture, and consumer durables thereby improving the standard of living for a common Bhartiya as well as mobilizing demand.

For FY 25, the government has allocated a whooping Rs 80,671 Crores towards PMAY. Additionally, a new scheme will be launched in the subsequent budget post-election for the urban middle class and the urban under affordable housing segment.

With the government's promise of electrification of every household, the consumption of electricity has moved up and thus this budget provides 300 units of free electricity through solarisation to every household.

c. Agrigarian Economy – The government has augmented the budget for the rural economy by 12% to Rs 1.71 lack crores with allocation to MGNREGS, Lakhpati Didi, National Livelihood Mission-Ajeevika, Pradhan Mantri Gram Sadak Yojna etc.


3. This budget also shows continuity with tax rates remaining the same and tax benefits to start-ups and investments made by sovereign wealth or pension funds as tax exemption on certain income of some IFSC units are expiring on 31.03.2024 to be extended till next fiscal year-end.

From the economic, market and long-term thinking perspective budget has made the right moves bringing forth social, economic, and geographical inclusivity ensuring social justice for one and all.

Thus Siddhartha Rastogi says, that this budget has cracked open the hopes of all the privileged who have been hobnobbing in the corridors of power and ensuring that the common man has his last laugh and that too loud.