Image used for representational purposes only. (Photo | Shekhar Yadav, EPS)
The Union government will table the Budget for 2024-25 in parliament on July 23. Before it does so, the Narendra Modi-led government might want to look at the people’s verdict at the recent Lok Sabha elections and opt for a course correction. Modi 3.0’s diminished verdict reflected the anguish of a large section of voters at issues such as soaring joblessness, high inflation and unfavourable tax policies. These economic issues are hurting the people and the Budget is a suitable platform to address them in earnest.
The build-up to the full Budget for 2024-25 has, at least, raised hopes that it would deliver on making life easier for the people by leaving more money in their hands. If the government acts on pleas for changes to the income tax slabs, it would give immediate respite to salaried citizens. However, this would not be sufficient, because a number of goods and services have become unaffordable to a growing section of society. Much of a rate rationalisation exercise in the goods and services tax (GST) regime would need to go through the GST Council. However, the government can make a statement in this regard in the Budget and reassure people that the rates would not be solely driven by revenue concerns.
The government has, over the years, been limiting its role in education and healthcare, making tertiary healthcare and higher education out of reach for the masses. If this Budget reverses the trend and the government shows a renewed focus on building quality healthcare and educational institutions, it would help several sectors of the economy and go a long way towards building a Viksit Bharat.
The money spent on social schemes has often been seen with contempt. Not all subsidies to the poor should be derided as freebies—even though the government has succeeded in bringing down the level of extreme poverty, the number in need of such schemes is still huge in the world’s most populous nation. The government has rightly taken pride in spending substantial amounts on infrastructure, but the quality of infrastructure can be given renewed focus with an outcome-oriented approach. The finance minister, when she rises to present the Budget, would do well to shun a fiscal fundamentalist approach. An empathetic touch is called for in this Budget more than a document crammed with arithmetical homilies.
