New Delhi – India in its first budget after elections this year promised to focus on jobs creation and farmers while offering lavish benefits to key partners of the coalition government.
Finance Minister Niramala Seetharaman unveiling the budget on Tuesday said her multi-party government will spend 22 billion euros until 2029 on schemes to create jobs in a move that will benefit 40 million people.
“Our government is committed to ...all-inclusive development of people, particularly farmers, youth, women and the poor,” she said while laying out a program on a paid internship scheme as part of the employment project.Jobless in India
Jobless inIndia
“This is a disappointing budget. You cannot give employment by just giving internships, argued prominent opposition politician Akhilesh Yadav.
Independent think tank the Centre of Monitoring the Indian Economy estimates the domestic unemployment rate touched 9.2 percent in July, an increase from seven percent in May 2024.
"In this budget, we particularly focus on employment, skilling, micro, small and medium enterprises and the middle class," Seetharaman said, setting aside 16.5 billion euros for the farm sector in India, where some 330 million people are dependent on agriculture.
Bricks & bouquets
India’s largest trade lobby, the Confederation of Indian Industries (CII) gave the thumbs up.
“The document addressed the challenges faced by India with respect to agriculture, environment and research and development,” said top CII executive Vinod Manjila.
Analysts say India’s ruling Bharatiya Janata Party (BJP) suffered an upset in the Apirl-June election because of discontent among jobless youngsters and in economic distress in the farming sector.
Seetharaman said her government, which returned to power for a third term but with the support of two allies, would reduce distress as analysts commented that the budget 2024-2025 reflected political compulsions of the weakened BJP government.
“The budget is the first clear proof that BJP has understood the election message. Not only the numbers down in the Lok Sabha, there are assembly elections coming up in three states, where too the party has vulnerabilities,” The Times of India said Wednesday.
State compulsions
The BJP previously had 303 MPs but it lost 63 seats, falling short by 32 seats after the polls to muster a majority of 272 members required to form a government on its own.
The Hindu nationalist BJP holds office in 13 of India’s 29 states, with its allies ruling in an additional six provinces.
The finance minister promised to cut taxes of large corporations as she jacked up spending to 122 billion euros to build 30 million new homes for the poor, highways, schools, and airports.
“India’s economic growth continues to be the shining exception and will remain so in the years ahead,” she said, reporting an eye-popping growth rate of 8.2 percent in the world's fastest growing major economy in fiscal year ended 31 March.
The budget outlays 530 billion euros in total and includes 29 billion euros for rural programmes and 22 billion euros on employment schemes.
It also offered 4.6 billion euros for new airports, medical colleges, sports utilities and motorways in Bihar and for the development of the capital of Andhra Pradesh.
The BJP government’s survival depends on the support it receives from ruling parties of the two eastern states.
Prime Minister Modi said the budget will focus on India’s burgeoning middle class.
“This budget is for the empowerment of the new middle class. The youth will get unlimited opportunities from this budget. Education and skill will get a new scale from this budget,” said Modi, 73.
“Budget strengthens every section of society. It takes the country's poor, village and farmers on the path of prosperity,” he added.
The main opposition Congress party targeted the budget for setting aside special funds for Andhra Pradesh and Bihar.
“Appease Allies: Hollow promises to them at the cost of other states,” said Rahul Gandhi, India’s newly-appointed leader of the opposition in parliament.
