New Delhi: As expected, there is no conflict of perspective between the Modi-led central government and the RSS-inspired economic think-tank Swadesh Jagran Manch (SJM) on the direction of the economy set in the national budget 2025-26.
SJM has expressed satisfaction with the way this budget proposes to meet challenges of the economy amidst concerns being expressed about its health. There was growing apprehension about a slowdown of the economy as compared to the previous fiscal year.
It grew by 5.4 percent in the second quarter of the fiscal year (July-September 2024) after registering an 8.2 percent growth in 2023-24. This was the slowest growth in six quarters than the corresponding period of the previous year.
Sharing the SJM’s reaction, its Delhi-based national co-convener Dr Ashwani Mahajan has termed it as prudent budget entailing, amidst challenges, much needed push to agriculture and health; bridging gap between the rural and urban poor.
He asserted that this budget has tried to balance all concerns and take the economy forward.
It has welcomed a budget announcement for recognizing gig workers, working with e-commerce platforms, registering them with an e-Shram portal and granting them the benefit of health cover, apart from encouragement given to labour intensive sectors.
He elaborated that due to deceleration in GDP growth in last two quarters, depreciating rupee, continuing inflation, decline in consumption, rising trade deficit, declining forex reserves, it was real challenge for the government to spur manufacturing growth, push for self-reliance in agriculture, supporting the farmers and address imbalance in agriculture production, reducing dependence on foreign countries regarding pulses and edible oils.
Also, significant tax relief has been given to middle income taxpayers, and at the same time addressed inflationary concerns. Budget 2025-26 has tried to balance all these concerns and take the economy forward, he asserted.
Push to manufacturing sector: SJM is happy over the push to manufacturing, especially in clean-tech sector, including electric vehicles’ batteries and motors, wind power equipments and other renewable power; MSME Manufacturing Mission, enhanced credit Guarantee for MSME; credit card for micro enterprises, with Rs 5 lakh limit to address their working capital issue; extension of PLI beyond earlier list; and several other measures to improve manufacturing to insulate the country from the Chinese dominance.
For long, the SJM has been demanding a well defined manufacturing policy in the country. The present endeavor of the government will go a long way towards the goal of Atamnirbhar Bharat, he added.
Push to agriculture: The proposed Makhana Board is an exemplary step towards promoting a wonder nutritious agricultural product, of Bihar and can open new vistas for encouraging agriculture products of different other regions.
Recently, the government had also constituted the Turmeric Board, which had for long been demanded by the SJM. since the UPA regime, to address concerns of Telangana turmeric farmers. Push to make India self-reliant in pulses, cotton mission and several other schemes for agriculture are worth appreciating. Raising the limit on Kisan Credit Card too is satisfying, apart from several other measures.
Contrary to the rhetoric of the imperative of shifting population from rural areas, it was pleasing to hear from Finance Minister Nirmala Sitharaman in her budget speech, that migration from rural to urban areas may become an option. It will certainly no longer be a compulsion, with increased incomes in rural areas, thanks to efforts of the government.
Bridging gap between rural and urban: Country has been faced with a big challenge of eroding relative incomes in rural areas vis-a-vis urban areas. It was satisfying when the Economic Survey reported that the gap between MPCE (Monthly Per Capita Expenditure) in rural and urban populations has narrowed from 84 percent to 70 percent. This has been made possible due to increased spending on rural roads, welfare schemes like housing, clean cooking fuel, water, electricity, health care, sanitation and many more. This process needs to be taken forward.
Budget 2025-26 does much more to push rural incomes. Apart from raising the Kisan Credit Card limit, agriculture push, food processing push and many more efforts to raise rural incomes can go a long way to reduce rural urban disparities.
Health Push: Push for health equipment, increasing seats in medical colleges, this budget allocates Rs 98,311 crore for the healthcare sector, signaling a significant push for growth. Key measures like customs duty exemptions on life-saving drugs and the establishment of daycare cancer centres are some of the essential steps, which this budget has made.
