Part 2 | NAMO 2.0 Growth & Existing Uncertainties Influence On Budget 2023-24
10 Jan 2023 17:32:53
(This is a three-part series article written by our Author Dinakar Lanka about his analysis of Budget 2023)
Apart from the programs and projects as stipulated in NAMO 1.0 of my previous Article Budget 2023 Special Part 1, Namo 2.0 Union Government post-2019 has been prioritized for structural reforms in NBFC, MSME, Banking, Textile, and Automobile sectors to strengthen them from the external and internal factors along with the plan of 100 Lack crore infrastructure projects as announced by PM Narendra Modi on 15th August 2019 from the Red Fort, under National Infrastructure Pipeline ( NIP ).
Union Government is very clearly issued guidelines for a financial plan on 6,835 eligible Projects for 111 Lack Crores under PM Gatishakti Yojana in the next 5 Years as Union Government Share for 39%, State Government Share for 40% and Private Participation for 21% respectively. PM Narendra Modi-led Union Government intends to kick start the PM Gatishakti Yojana Projects by providing initial financial assistance with an aim to showcase the Bharat as a modern technological Infrastructure driven space in the globe with the assistance of State Government as per the requirements of each and every respective state as per their priority within the eligible projects as stipulated under various sectors by the Union Government.
Prime Minister Narendra Modi intends through Gati Shakti Plan a conducive atmosphere to attract investments and improve in qualitative infrastructure for better living standards among the public and expected additional growth of our country's economy from 4% to 5% by 2025, that facilities reach 5 trillion USD economy and stands 3rd largest economy in the world. In this process, Union Government had given priority to Sagaramala and Bharathmala projects along with all other sectors. All these reforms and Infrastructure Projects were well planned before Covid19 impacted by the present Union Government under the leadership of Prime Minister Narendra Modi. But, these Projects have been useful in strengthening the economy of our Nation post Covid19 and next 5 to 10 years to create huge employment opportunities.
Prime Minister Narendra Modi after winning his second term in 2019 with a strong determination to provide safe drinking water to every household in rural India on the 75th Independence Day 15th August 2019 under the Jal Jeevan Mission by the Department of Drinking Water and Sanitation under the Union Ministry of Water with the scheme of "Har Gar Jal" as a policy to provide safe drinking water directly to the 100% household through the tap by the end of 2024, the action was initiated. The estimated cost of this scheme for the entire country was estimated to be Rs 3.50 lakh crore, which is being executed by the state governments with a joint 50 : 50 contribution from the Centre and the States.
Also Read: Part 1 | NAMO 1.0 Governance Influence Will Exist On Budget 2023-24
At the time of the initiation of this scheme, there are 19.36 crore rural households in the country, out of which only 3.24 crore households i.e. 16.72% have access to safe drinking water through taps in the village. So far, 10.65 crore households in the entire country are getting safe drinking water through taps. Today the scheme is ahead towards the target of 55.23% of rural households across the country by providing an additional 7.45 crore households safe drinking water through the tap as of 10th December 2022 at 9.10 pm. As per the existing pace of implementation of the Har Gar Jal Program, It will be achieved 100% objective by the year 2024-2025.
As we know that 21 Lack Crore worth of the Atmanirbhar Bharath Package effectively handled Lockdown 1.0 and Lockdown 2.0 of the Covid-19 uncertainty with minimum damage than anticipated in terms of the human loss as well as the impact on the economy. Most particularly, 80 Crore people have been assisted with Gharibh Kalyan Anna Yojana for 21 months. The rice worth Rs 1,07,635 crore and Rs 1,30,560 crore had assisted to the entire country for free in the years 2020-21 and 2021-22 respectively and free rice worth 39,996 crores has given to the whole country till 12 July 2022 of the current financial year 2022 -23 and Gharibh Kalyan Anna Yojana duration has extended for next 12 months also as per the recent Union Cabinet decision.
In addition to this, 42 Crore poor and needy people had benefited from the financial assistance for Rs. 68,820 Crores including Direct Cash Benefit Transfer Rs 500/- per month for 3 months for 20.65 Crore Jandhan accounts of the Women. Narendra Modi-led Union Government has released Total Food subsidy for Rs. 9,80,948 Crores since 2019 - 20 till 30th June, 2022 of the current financial year. In addition to this, funds infused through RBI for safeguarding MSME, NBFC, Banks and Financial Institutions, Farmers, Industries as well as reforms in Company Laws, Labour Laws etc simultaneously.
Infrastructure Projects, such as Roads by NHAI, Railway lines along with the project works of Sagaramala and Bharath Mala were carried at higher pace of speed during the Lock downs by the Union Government to provide the employment opportunities during the uncertainties of Covid19 and thereafter, But more than 50% of these projects costs have been escalating above 22% due time over run due to various reasons and then additional burden needs to consider for their completion. Apart from this, in addition to the Budget, additional funds for Rs 40,000 Crores allocated for MNREGA for the benefit of migrated labour across the Nation, still this program has been considered as priority for the rural employment opportunity.
In the history of Bharath, During the Lockdown of the pandemic, up to 60 Lack Hackers and Street Vendors had applied for interest subsidy on loan through PM Svanidhi Yojana, out of which nearly 45 Lack beneficiaries Loans had sanctioned and disbursed around 39 Lack individual Loans till now, in which repaid loans will be categorised up to 15 Lack as of now, this scheme is successful and it requires to extend for next few years. At the same time, Atmanirbha Vaccination to counter the Covid19 for saving the lives of the billions of the citizens of our Nation and Countries around the world stand Bharath as the Global Leader. Prime Minister Narendra Modi took a responsibility to offer free vaccination for all the people for 220 crore doses till now in our Nation, It may cost around 35,000 Crores additional expenditure on Union Government, It seems to be the process of vaccination will be continued by encouraging to offer the booster doses since the Corona uncertainty has not yet completes as the situation appears in China.
Monetisation and Disinvestment become ongoing policies of the Union Government to procure the resources for the meaningful application of funds for the Gatishkati Yojana and other Infrastructure projects. After privatization of Air India, definitely, Union Government looks for a speedy Disinvestment process of all nonstrategic PSUs. As far as NHAI is concerned, the Length of National Highways has been raised by more than 55% over the last 8 years when compared with the length of the highways from independence to till 2014. As on April 2014, the total length of the highways was 91,287 KMs since Independence and it has now extended nearly to 1,45,000 KMs as on 31st September 2022. Already, Prime Minister Narendra Modi had inaugurated 4 line 296 KMs and Project cost of Rs. 7,667 Crores Bhundekhand Expressway on 16th July, 2022 and Delhi - Mumbai Express way with a length of 1350 KMs 8 line road, Costs One Lack Crore will be inaugurated by the end of the present financial year.
In addition to this, Surat to Chennai Expressway construction is in progress with a length of 6 line 1,271 KMs, Costs around 50,000 Crores to complete it by 2025 with a aim to connectivity of National Highway Road form North to South of our Country in a stretch. As per the information, Union Government requires more than 11 Lack crores to complete the existing highway projects in the coming 5 years. Apart from this, Railways, Airports and Seaports Infrastructure facilities growth also moving ahead for next 10 Years. Hence, Monetisation and Disinvestment is inevitable source of funds along with all other traditional methods for the execution of the future Infrastructure projects.
On the one hand, Value of human lives and on the other hand, safeguarding the Economy during the pandemic and thereafter had been handled efficiently simultaneously by Prime Minister Narendra Modi though political comments adversely propagated by the opponent with Political Toolkits. We have been impacted our economy post Covid19 Global slow down as impacts the forecasted Growth of all economies due to uncontrolled huge inflation raises the cost of living of the people, all major economies have been registered adverse Growth rate.
Also Read: Budget 2023 Part 3 | Inclusiveness Is The Priority
In these circumstances, Russia and Ukraine wars has been disrupted the supply chain of goods and services for Europe and Asia significantly. Despite of all these odds, India has been forecasted at 7% Growth rate with 6.9% inflation by the International and Domestic rating agencies along with the IMF for the current financial year 2022 - 23, this Growth rate is highest among the Top seven economies in the world.
As per the expert's view, the Upcoming Budget 2023 - 24 needs the consideration of existing programs and projects as explained in my previous Article Budget 2023 Special Part 1, and the new programs and projects as explained above in this Article together along with the current uncertainties across the Globe are vital for the future of our country. Further, there are a few special considerations that will be impacted the Upcoming Budget 2023 - 24, such as, uncontrolled International crude oil prices and Inflation are crucial for the depreciation of the Rupee to the Dollar, important to note that the appreciation of Rupee to Non-US currencies is a positive indication as our currency is stronger than many other major currencies.
At this juncture, there is a huge benefit will be expected after the introduction of the Rupee as a modem of International Transactions Exchange and acceptance for the Rupee has been increasing day by day. Hence, the Upcoming Budget 2023 - 24 will be crucial towards the Right Direction for the Country in the current scenario of existing and new programs and projects as intended by Prime Minister Narendra Modi keeping in view of all the uncertainties as explained earlier in this article including the new variant Coronavirus spreads across China.
Apart from the programs and projects as stipulated in NAMO 1.0 of my previous Article Budget 2023 Special Part 1, Namo 2.0 Union Government post-2019 has been prioritized for structural reforms in NBFC, MSME, Banking, Textile, and Automobile sectors to strengthen them from the external and internal factors along with the plan of 100 Lack crore infrastructure projects as announced by PM Narendra Modi on 15th August 2019 from the Red Fort, under National Infrastructure Pipeline ( NIP ).
Union Government is very clearly issued guidelines for a financial plan on 6,835 eligible Projects for 111 Lack Crores under PM Gatishakti Yojana in the next 5 Years as Union Government Share for 39%, State Government Share for 40% and Private Participation for 21% respectively. PM Narendra Modi-led Union Government intends to kick start the PM Gatishakti Yojana Projects by providing initial financial assistance with an aim to showcase the Bharat as a modern technological Infrastructure driven space in the globe with the assistance of State Government as per the requirements of each and every respective state as per their priority within the eligible projects as stipulated under various sectors by the Union Government.
Prime Minister Narendra Modi intends through Gati Shakti Plan a conducive atmosphere to attract investments and improve in qualitative infrastructure for better living standards among the public and expected additional growth of our country's economy from 4% to 5% by 2025, that facilities reach 5 trillion USD economy and stands 3rd largest economy in the world. In this process, Union Government had given priority to Sagaramala and Bharathmala projects along with all other sectors. All these reforms and Infrastructure Projects were well planned before Covid19 impacted by the present Union Government under the leadership of Prime Minister Narendra Modi. But, these Projects have been useful in strengthening the economy of our Nation post Covid19 and next 5 to 10 years to create huge employment opportunities.
Prime Minister Narendra Modi after winning his second term in 2019 with a strong determination to provide safe drinking water to every household in rural India on the 75th Independence Day 15th August 2019 under the Jal Jeevan Mission by the Department of Drinking Water and Sanitation under the Union Ministry of Water with the scheme of "Har Gar Jal" as a policy to provide safe drinking water directly to the 100% household through the tap by the end of 2024, the action was initiated. The estimated cost of this scheme for the entire country was estimated to be Rs 3.50 lakh crore, which is being executed by the state governments with a joint 50 : 50 contribution from the Centre and the States.
Also Read: Part 1 | NAMO 1.0 Governance Influence Will Exist On Budget 2023-24
At the time of the initiation of this scheme, there are 19.36 crore rural households in the country, out of which only 3.24 crore households i.e. 16.72% have access to safe drinking water through taps in the village. So far, 10.65 crore households in the entire country are getting safe drinking water through taps. Today the scheme is ahead towards the target of 55.23% of rural households across the country by providing an additional 7.45 crore households safe drinking water through the tap as of 10th December 2022 at 9.10 pm. As per the existing pace of implementation of the Har Gar Jal Program, It will be achieved 100% objective by the year 2024-2025.
As we know that 21 Lack Crore worth of the Atmanirbhar Bharath Package effectively handled Lockdown 1.0 and Lockdown 2.0 of the Covid-19 uncertainty with minimum damage than anticipated in terms of the human loss as well as the impact on the economy. Most particularly, 80 Crore people have been assisted with Gharibh Kalyan Anna Yojana for 21 months. The rice worth Rs 1,07,635 crore and Rs 1,30,560 crore had assisted to the entire country for free in the years 2020-21 and 2021-22 respectively and free rice worth 39,996 crores has given to the whole country till 12 July 2022 of the current financial year 2022 -23 and Gharibh Kalyan Anna Yojana duration has extended for next 12 months also as per the recent Union Cabinet decision.
In addition to this, 42 Crore poor and needy people had benefited from the financial assistance for Rs. 68,820 Crores including Direct Cash Benefit Transfer Rs 500/- per month for 3 months for 20.65 Crore Jandhan accounts of the Women. Narendra Modi-led Union Government has released Total Food subsidy for Rs. 9,80,948 Crores since 2019 - 20 till 30th June, 2022 of the current financial year. In addition to this, funds infused through RBI for safeguarding MSME, NBFC, Banks and Financial Institutions, Farmers, Industries as well as reforms in Company Laws, Labour Laws etc simultaneously.
Infrastructure Projects, such as Roads by NHAI, Railway lines along with the project works of Sagaramala and Bharath Mala were carried at higher pace of speed during the Lock downs by the Union Government to provide the employment opportunities during the uncertainties of Covid19 and thereafter, But more than 50% of these projects costs have been escalating above 22% due time over run due to various reasons and then additional burden needs to consider for their completion. Apart from this, in addition to the Budget, additional funds for Rs 40,000 Crores allocated for MNREGA for the benefit of migrated labour across the Nation, still this program has been considered as priority for the rural employment opportunity.
In the history of Bharath, During the Lockdown of the pandemic, up to 60 Lack Hackers and Street Vendors had applied for interest subsidy on loan through PM Svanidhi Yojana, out of which nearly 45 Lack beneficiaries Loans had sanctioned and disbursed around 39 Lack individual Loans till now, in which repaid loans will be categorised up to 15 Lack as of now, this scheme is successful and it requires to extend for next few years. At the same time, Atmanirbha Vaccination to counter the Covid19 for saving the lives of the billions of the citizens of our Nation and Countries around the world stand Bharath as the Global Leader. Prime Minister Narendra Modi took a responsibility to offer free vaccination for all the people for 220 crore doses till now in our Nation, It may cost around 35,000 Crores additional expenditure on Union Government, It seems to be the process of vaccination will be continued by encouraging to offer the booster doses since the Corona uncertainty has not yet completes as the situation appears in China.
Monetisation and Disinvestment become ongoing policies of the Union Government to procure the resources for the meaningful application of funds for the Gatishkati Yojana and other Infrastructure projects. After privatization of Air India, definitely, Union Government looks for a speedy Disinvestment process of all nonstrategic PSUs. As far as NHAI is concerned, the Length of National Highways has been raised by more than 55% over the last 8 years when compared with the length of the highways from independence to till 2014. As on April 2014, the total length of the highways was 91,287 KMs since Independence and it has now extended nearly to 1,45,000 KMs as on 31st September 2022. Already, Prime Minister Narendra Modi had inaugurated 4 line 296 KMs and Project cost of Rs. 7,667 Crores Bhundekhand Expressway on 16th July, 2022 and Delhi - Mumbai Express way with a length of 1350 KMs 8 line road, Costs One Lack Crore will be inaugurated by the end of the present financial year.
In addition to this, Surat to Chennai Expressway construction is in progress with a length of 6 line 1,271 KMs, Costs around 50,000 Crores to complete it by 2025 with a aim to connectivity of National Highway Road form North to South of our Country in a stretch. As per the information, Union Government requires more than 11 Lack crores to complete the existing highway projects in the coming 5 years. Apart from this, Railways, Airports and Seaports Infrastructure facilities growth also moving ahead for next 10 Years. Hence, Monetisation and Disinvestment is inevitable source of funds along with all other traditional methods for the execution of the future Infrastructure projects.
On the one hand, Value of human lives and on the other hand, safeguarding the Economy during the pandemic and thereafter had been handled efficiently simultaneously by Prime Minister Narendra Modi though political comments adversely propagated by the opponent with Political Toolkits. We have been impacted our economy post Covid19 Global slow down as impacts the forecasted Growth of all economies due to uncontrolled huge inflation raises the cost of living of the people, all major economies have been registered adverse Growth rate.
Also Read: Budget 2023 Part 3 | Inclusiveness Is The Priority
In these circumstances, Russia and Ukraine wars has been disrupted the supply chain of goods and services for Europe and Asia significantly. Despite of all these odds, India has been forecasted at 7% Growth rate with 6.9% inflation by the International and Domestic rating agencies along with the IMF for the current financial year 2022 - 23, this Growth rate is highest among the Top seven economies in the world.
As per the expert's view, the Upcoming Budget 2023 - 24 needs the consideration of existing programs and projects as explained in my previous Article Budget 2023 Special Part 1, and the new programs and projects as explained above in this Article together along with the current uncertainties across the Globe are vital for the future of our country. Further, there are a few special considerations that will be impacted the Upcoming Budget 2023 - 24, such as, uncontrolled International crude oil prices and Inflation are crucial for the depreciation of the Rupee to the Dollar, important to note that the appreciation of Rupee to Non-US currencies is a positive indication as our currency is stronger than many other major currencies.
At this juncture, there is a huge benefit will be expected after the introduction of the Rupee as a modem of International Transactions Exchange and acceptance for the Rupee has been increasing day by day. Hence, the Upcoming Budget 2023 - 24 will be crucial towards the Right Direction for the Country in the current scenario of existing and new programs and projects as intended by Prime Minister Narendra Modi keeping in view of all the uncertainties as explained earlier in this article including the new variant Coronavirus spreads across China.