Spectrum Books - Interim Budget 2024

Interim Budget 2024–25

The finance minister (FM), Nirmala Sitharaman, presented the union budget for the financial year 2024–25 for the sixth consecutive time on February 1, 2024. This was an interim budget, focusing on the achievements of the two back-to-back governments under Prime Minister Narendra Modi over the past decade. The main takeaways from the interim budget are the recap of the government’s achievements in two terms.

The Indian Express (February 2, 2024) reported Moody’s Investors Service affirmation on government’s commitment to fiscal consolidation goals in its interim budget for 2024–25, citing healthy economic growth and a lack of large handouts or increased discretionary spending ahead of the upcoming elections. The Indian government plans to reduce its fiscal deficit by reducing spending as a percentage of gross domestic product (GDP), despite increasing planned infrastructure spending. However, emerging spending needs not included in the budget could limit the government’s ability to meet its deficit target. The budget announced a Rs 11.11 lakh crore spending on infrastructure and vowed to continue reforms. The fiscal deficit in the next financial year is estimated at 5.1 per cent of the GDP, lower than 5.8 per cent in the current fiscal. The government aims to reduce the fiscal deficit below 4.5 per cent by 2025–26.

The Hindu editorial, Road map for fiscal consolidation, by D.K. Srivastava and C. Rangarajan, argued that the budget emphasises on increasing capital expenditures, fiscal correction and consolidation. The buoyancy of tax revenue is 1.33 based on the current year’s budget estimates and nominal GDP growth for 2023–24. The nominal GDP growth for 2024–25 is conservatively estimated at 10.5 per cent. This implies an implicit price deflator-based inflation of 3.3 per cent if assuming a 7 per cent real growth. The revenue projections provide a buffer for future expenditure increases or deficit reductions. The growth rate of capital expenditure is higher at 16.9 per cent compared to the revised estimates. This lower capital expenditure growth is associated with a real GDP growth of 7.3 per cent in 2023–24. It may be possible for a 17 per cent capital expenditure growth in 2024–25 to enable a real GDP growth of 7 per cent, provided private sector investment picks up and the momentum of capital expenditure growth of state governments is maintained. The government’s capital expenditures are not identical with gross fixed capital formation but contribute to increasing capital formation. The central government’s capital expenditures as a proportion of the GDP are budgeted to increase marginally from 3.2 per cent in 2023–24 to 3.4 per cent in 2024–25. For continued growth at 7 per cent, an investment rate of 35 per cent is required, assuming an Increment Capital Output Ratio (ICOR) of five. As per NSO’s first advance estimates for 2023–24, the gross fixed capital formation to GDP ratio at constant prices is 34.9 per cent. If government capital formation falls in 2024–25, private sector investment may have to increase.

In a post-budget interview with Aanchal Magazine and Anil Sasi (The Indian Express), Finance Secretary, T.V. Somanathan, spoke that the budget’s intention to maintain macroeconomic stability may foster a favourable investment climate. The statement is crucial for states as it outlines the devolution amounts and grants, they will receive. The capex for states has been extended for one more year, worth Rs 1.3 lakh crore. This is not a permanent scheme, but it is important for them. The conditionalities may change, but Rs 75,000 crore will be based on reforms, as mentioned in the budget. On taxation, revenue secretary, Sanjay Malhotra emphasised the importance of tax certainty and argued that expecting major changes annually in the budget on the direct tax side is incorrect. He stated that while the 2019 corporate tax cut has resulted in 57 per cent of the increase in corporate tax, he is hopeful of similar traction from the new personal income tax regime.

Arundhati Bhattacharya in The Hindu (February 2, 2024) editorial, An action-oriented Budget, with the mantra of reforming, performing and transforming India, focused on India’s robust growth story, driven by perseverance, ingenuity, and vision. The 2024 Interim Budget is an action-oriented one, focusing on reforming, performing, and transforming the country. It promises to empower the four vulnerable sections of society—the poor, the youth, the farmers, and the womenfolk to realise India’s potential. Increased capital investments will generate employment opportunities and stimulate economic growth. Micro, small, and medium enterprises (MSMEs) are crucial to the economy, with 1.14 lakh start-ups recognised under the ‘Startup India’ initiative in October 2023, creating over 12 lakh jobs. Next-generation reforms will focus on timely finances, relevant technologies, and appropriate training for MSMEs to grow and compete globally. India’s talent basket and diverse population provide immense opportunities for unlocking the potential of its young workforce. A 43 per cent increase in women’s enrolment in science, technology, engineering, and mathematics (STEM) courses is noteworthy. The country’s massive and diverse population provides access to rich artificial intelligence (AI) and innovation datasets. Technology, youth, and innovation are cornerstones of the government’s strategy. The creation of a corpus of one lakh crore with a 50-year interest-free loan is a welcome move. Promoting sustainable growth is a top priority for India, with bold action towards climate change and focus on environment-friendly alternatives like rooftop solar, offshore wind power generation, and biofuels. Women-led initiatives are essential for high resilient growth and sustainable livelihood options for all. Emphasis is placed on health and nutrition programmes for this segment. The budget avoids populist measures and focuses on ensuring India continues on its high-growth trajectory.

Nirmal Jain in his editorial, Prudent as expected with promise of bigger things, in The Hindu (February 2, 2024), pointed out India’s commitment to inclusive growth and a detailed roadmap for a developed India by 2047. The government pledged to provide affordable housing for all, boosting the country’s real estate sector. The government’s core philosophy has been to push capital expenditure, particularly in the infrastructure sector, with its capex nearly trebling in the last four years. Despite significant economic upheavals since the pandemic, the Modi government has managed to remain fiscally prudent and keep the fiscal deficit in check. The government reduced its market borrowing plan for 2024–25, pegging its gross and net market borrowing at Rs 14.13 lakh crore and Rs 11.75 lakh crore, respectively. This is a move to cut back on market borrowings and partner with the private sector to fund India’s infrastructure development. The revenue deficit as a factor of fiscal deficit has been decreasing over the years, indicating that the government is borrowing money to create productive assets rather than fund consumption expenditure. To support India’s young tech entrepreneurs, the government promised to set up a one lakh crore fund for research and development in the tech space. This could mark the start of India’s shift from just a provider of IT engineers to an innovation hub. India is on the verge of something transformational, and the government has taken the right step in that direction.

Nishant Saxena, in The Times of India (February 2, 2024) editorial, Government makes green intent clear in Union Budget 2024–25, emphasises on interim budget focus on the energy sector, signalling a shift towards a more sustainable and environmentally conscious future. It plans to empower 10 million households through rooftop solarisation, providing up to 300 units of free electricity monthly. This initiative is expected to save households up to Rs 15,000–18,000 annually and can be sold to distribution companies. The budget also emphasises the commitment to achieving ‘net zero’ by 2070, with viability gap funding supporting offshore wind energy potential and coal gasification and liquefaction capacity. Mandatory blending of compressed biogas (CBG) in compressed natural gas (CNG) for transport and piped natural gas (PNG) for domestic purposes is set to be phased in, and financial assistance for biomass aggregation machinery is being provided. The government is also expanding and strengthening the electric vehicle (EV) ecosystem, with support for manufacturing and charging infrastructure and incentives to encourage greater adoption of e-buses for public transport networks. This move aligns with the government’s forward-looking strategy, addressing the deficiency of public charging stations. Dr Vinod Chopra from the Bombay Chamber of Commerce & Industries acknowledges the budget’s positive impact on various sectors, emphasising the need for robust policies for exports and ease of doing business (EODB). The budget establishes a robust foundation for environmentally conscious development, positioning India as a global leader in climate action.

Narendar Pani in his editorial, Interim budget’s unwavering focus on poor, in The Times of India (February 2, 2024), pointed out that FM is approach to an interim budget before the general elections reveals her political instincts. She converted the budget speech into an election manifesto, promising several steps towards a ‘Viksit Bharat’, but the interim nature of the budget did not allow her to make allocations for the next year that would reflect any new direction. She made promises for a five-year period, promising to take up two crore more houses under the PM Grameen Awas Yojana over the next five years, giving the impression that return of the National Democratic Alliance (NDA) to power was a done deal. To avoid the powerlessness of an interim budget, she made changes in expenditure before the budget, which increased expenditure in seven areas by up to Rs 1,35,307 crore over budget estimates and financed primarily by cutting expenditure in two areas by Rs 1,04,673 crore. This choice of areas to increase or cut expenditure provides insights into the material aspects of BJP’s political strategy for 2024. High on the list of who the BJP needs to woo are the poor. In Budget 2023–24, the FM had hoped to substantially cut expenditure on Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS), but the revised estimates show that these expectations were soon given up, with the expenditure being 43 per cent higher than what was budgeted. There are also signs that the political messaging of farmers’ agitation is still being heard, with a significant increase in the provision for fertiliser subsidy and an increase of 143 per cent in transfers to the Agriculture Infrastructure Development Fund to finance PM’s scheme for village roads. The government’s centralised election strategy is evident from reduction below budget estimates of expenditure on grants to local bodies, which the BJP does not believe panchayat leaders think matters. The government’s expenditure pattern leading up to the 2024 General Elections suggests that the BJP remains wary of what the poor think, emphasising food and employment for the poor. At the other end of the spectrum, it does not really care what those in power in panchayats think, even as it is convinced that its support among vehicle-using middle class is unshakeable.

The Economic Times editorial, Interim Budget 2024: Decoding for individual taxpayers, by Shalini Jain, argued that the Interim Budget 2024–25 focuses on governance, development and performance (GDP), giving a new meaning to the old abbreviation. Although no significant changes were expected in direct tax rates and exemptions, the salaried class was still hopeful to receive some benefit from the budget to reduce the tax burden. The tax rates remain the same under the new tax regime and the old one, with basic exemption limits of Rs 3 lakh and Rs 2.5 lakh, respectively. Incomes above Rs 15 lakh and Rs 10 lakh are taxed at the highest rate. The interim budget has proposed no change to the basic exemption limit or tax rates, and for income up to Rs 7 lakh (without standard deduction), there is no tax liability under the new tax regime. There was an expectation that the budget may incentivize taxpayers to move to the new tax regime and enhance its acceptance, but no changes have been announced to make the new tax regime more attractive. The average processing time of tax returns reduced from 93 days in FY 2013–14 to 10 days this year. The government committed to improving taxpayer services by withdrawing unverified/disputed direct tax demands up to Rs 25,000 for financial years up to FY 2009–10 and tax demands up to Rs 10,000 for FY2010–11 to FY 2014–15. This withdrawal is expected to benefit one crore taxpayers.

P. Chidambaram, in his editorial, Bullhorn Economics, in The Financial Express (February 11, 2024), argued that the people are becoming tired of the government’s repeated claims over the last ten years, including promises of two crore jobs a year, Rs 15 lakhs in bank accounts, and a USD 5 trillion economy by 2023–24. They remember the promise to double farmers’ incomes, provide houses for every family by 2022, and achieve a USD 5 trillion economy by 2023–24. However, they also know that alleged scamsters who were allowed to leave the country are hale and hearty in the countries of refuge, and none has been extradited to India in the last ten years.

He criticises the FM’s view on significant strides in enhancing real income in rural areas through various initiatives, such as providing basic necessities and financial assistance to farmers. However, the real wages of workers have stagnated between 2017–18 and 2022–23. The PM-Kisan Samman Yojana has provided direct financial assistance to 11.8 crore farmers annually, but the number of beneficiaries has dropped to 8.12 crore as of November 15, 2023. The government’s approach to inflation management is not as effective as the RBI is doing the heavy lifting to push inflation down to 2–4 per cent while the government is testing the upper tolerance limit of 4–6 per cent. Average CPI inflation in the five-year period of 2019–2024 has been 5.6 per cent. Food inflation is 8.7 per cent; milk 5.07 per cent; fruits 11.4 per cent; and vegetables 27.64 per cent. The government’s priority should be ensuring timely and adequate finances, relevant technologies, and appropriate training for micro, small and medium enterprises (MSMEs) to grow and compete globally. Thousands of MSMEs shut shop during the pandemic years for want of support from the government. Government twisted and drastically scaled down the guarantee of Rs 3,00,000 crore of losses in bank loans to a mere Rs 3,00,000 crore of bank loans. Based on available data, it is estimated that about Rs 2,00,000 crore were disbursed. The government claims that seafood export has doubled since 2013–14. However, the doubling in 9 years (Rs 30,627 crore to Rs 64,902 crore) is in current rupee prices. In USD, the increase is only 60 per cent from USD 5,016 million to USD 8,078 million, which yields a modest compound annual growth rate (CAGR) of 5.4 per cent.

The India Today (February 12, 2024) editorial, Interim Union Budget 2024–25, Confidence in continuity, by M.G. Arun, highlights interim budget continuation of the policy measures of the government while adhering to fiscal discipline. The bigger roadmap for a Viksit Bharat would be presented in July, exuding confidence that the present regime will be back in power by then. The FM refrained from announcing any big welfare schemes or tax cuts, focusing on development programmes targeting every household and individual. The budget strikes a balance, prioritising sensibility over populism. Some partymen were disappointed that she did not increase the PM-Kisan Samman Nidhi disbursal amount from the existing Rs 6,000 annually, reform direct tax, or reduce the burden of income tax on the middle class. However, the party’s poll machinery gathered enough pointers to engage with the new constituency created by the BJP beneficiaries. Under the PM Awas Yojana (Grameen), 20 million houses will be built in the next five years, in addition to the 30 million houses already under construction. The Centre will launch a scheme to help deserving sections of the middle class “living in rented houses, or slums, or chawls and unauthorised colonies” to buy or build their own houses.

The Statesman (February 1, 2024) reported three major economic railway corridor programmes to be implemented soon in the Interim Budget 2024–25. These include energy, mineral and cement corridors, port connectivity corridors, and high traffic density corridors. These projects are identified under PM Gati Shakti to improve logistics efficiency and reduce costs. The decongestion of high-traffic corridors will also improve passenger train operations, resulting in safety and higher travel speed for passengers. Together with dedicated freight corridors, these three economic corridor programmes will accelerate GDP growth and reduce logistic costs. The Minister of Railways, Ashwini Vaishnav, announced an unprecedented budget allocation for the railway sector in the interim budget for the financial year 2024–25. The Indian Railways has been allocated a total of Rs 2.52 lakh-crore outlay for the financial year 2024–25. Tamil Nadu received an outstanding outlay of Rs 6,331 crore for rail infrastructure and safety projects, Kerala received an exceptional outlay of Rs 2,744 crore for rail infrastructure and safety projects, and Himachal Pradesh is set to receive Rs 2,681 crore for similar projects. FM also mentioned the expansion of existing airports and development of new airports, stating that the aviation sector has been galvanised in the past ten years. The rollout of air connectivity to tier-two and tier-three cities under the UDAN scheme has been widespread, with five hundred and seventeen new routes carrying 1.3 crore passengers. She also highlighted the need for Metro Rail and NaMo Bharat to be catalysts for urban transformation in large cities focusing on transit-oriented development.

Bhabesh Hazarika, N.R. Bhanumurthy, and Himanshu Gaydhani in The Telegraph (February 3, 2024), article emphasise on gender aspect. Gender budgeting is a fiscal policy tool used by the Indian government to address gender inequalities. It involves gender-sensitive formulation, resource allocation, and continuous monitoring to address vulnerabilities faced by women throughout their life cycle. The gender budget in India is divided into two sections: Part A reflects women-specific schemes, with 100 per cent allocation for women, and Part B reflects pro-women schemes, with at least 30 per cent allocation for women. The total allocation for the 2024–25 fiscal year is projected to be Rs 3,09,690 crore, accounting for 6.5 per cent of the total budgetary outlay. The Ministry of Women and Child Development has been allocated Rs 26,092 crore, with 13 per cent allocated under Part A and 65 per cent earmarked under Part B. The inclusion of the Jal Jeevan Mission (JJM) in Part B of the Gender budget has significantly impacted women’s lives by allocating 48 per cent of the total allocation to women. Six specific schemes account for 61.4 per cent of the total gender budget, with their concentration indicating their pivotal role in shaping overall financial allocation for gender-specific initiatives. However, the absence of monitoring and gender-segregated data on scheme benefits may create ambiguity in categorising schemes within the Gender Budgeting Statement.

The Tribune (February 4, 2024) reported the students’ union, All India Students Association (AISA) dissatisfaction with the interim budget presented by the government ahead of the Lok Sabha elections. The association accused the government of selectively using data and relying on half-truths to showcase the government’s performance over the last decade. They argued that the budget failed to align with the concept of a welfare state, raising concerns about the future of ‘Young India’. The AISA also criticised the Centre for the seven per cent reduction in the education sector’s allocation compared to the revised estimate for 2023–24. Higher education faced a more severe blow, with a 17 per cent decrease, amounting to a cut of Rs 9,600 crore. Critics argue that this shift may force universities towards loan-dependent models, potentially limiting access to education for those who cannot afford it. The AISA also refuted the FM’s claim of opening 390 universities in the last decade, asserting that most of these were private institutions. The budget’s stance on technical education has also drawn criticism, with a substantial reduction of Rs 5,500 crore from the 2023–24 revised estimate.

The Wire, an Indian non-profit news and opinion website, (February 10, 2024) article, The Interim Budget is indifferent to the concerns of Adivasis, by K.C. Adaina and Divya Pradeep, pointed out that the current government’s budget for FY 2024–25 is largely unchanged, with a marginal increase of one per cent in allocation across all schemes for scheduled tribes (STs). This is due to underutilisation of funds, as seen in the revised estimates for the social justice and tribal affairs ministries. The scheme for Economic Empowerment of Denotified/Nomadic/Semi Nomadic (SEED scheme), launched in February 2022, aims to provide livelihood support, health insurance, housing assistance, and competitive exam coaching to Denotified, Nomadic, and Semi-nomadic Tribes. However, the scheme has failed to deliver, with nearly 5,400 online applications received but none approved due to tribe categorisation into SC, ST, and OBCs. The government claimed that it has taken steps for the welfare of the most vulnerable people of the country on a mission mode, recognising the particularly vulnerable tribal groups (PVTGs) who are otherwise rendered invisible in vote bank politics due to their small numbers in the population. However, the recent allocations in the Interim Budget 2024–25 do not match these claims and do not align with the findings of various reports on the socioeconomic status of the marginalised groups. According to the Tribal Development Report, 2022, Adivasis are at the bottom rung of India’s development pyramid. The National Family Health Survey-5 (2019–21) indicates that over 70 per cent of scheduled tribes (STs) lie in the lowest quintiles, and the Ministry of Tribal Affairs in its 2021–22 Annual Report revealed that over 45 per cent of STs were living below the poverty line in rural areas and over 25 per cent in urban areas. The Union Budget 2024–25 remains flat-footed in assessing the educational needs of these communities, with a discernible reduction in budget allocation for scholarships and fellowships. The overall budgetary allocation on education needs to be brought in line with the recommendations of National Education Policy 2020, which advocates six per cent of GDP to be spent on the sector. In the current budget, education was allocated Rs 1,24,638 crore, showing that no effort has been made to ensure quality education for all. Inclusive development cannot be achieved without securing the health and nutrition needs of the Scheduled Tribes. The Rural Health Statistics (2021–22) revealed a shortfall of 9,357 sub-centres, 1,559 primary health centres, and 372 community health centres in tribal areas against the required numbers as of March 31, 2022. Additionally, the Nutritional Status of Children report revealed that over 40 per cent of ST children were stunted, 23 per cent were wasted, and about 39 were underweight compared to ‘Other’ communities at 30 per cent, 17.5 per cent, and 27 per cent, respectively.

Afroz Alam Sahil in his article, What the Interim Budget Spells For Muslims in India, in The Wire (February 2, 2024), started with a recent interview of Prime Minister Modi with the UK-based Financial Times, which inquired about the future of Muslims in India. Modi diverted attention to the economic success of India’s Parsis, whom he characterised as a “religious micro-minority residing in India”. He stated that there is no feeling of discrimination towards religious minorities among the common people associated with Indian secular society. However, animosity towards Muslims is apparent among those aligned with the Hindutva ideology, to which the prime minister himself belongs. This hostility is evident in the daily occurrence of hate crimes and hate speeches. Notably, this sentiment is now reflected in the latest budget for the year 2024–25 of the Ministry of Minority Affairs. This time there seems to be a slight increase in the budget compared to the 38 per cent cut in the year 2023–24. The current budget stands at Rs 3,183.24 crore, a slight uptick from last year’s Rs 3,097.60 crore. However, upon closer examination of the budget details, it is evident that allocations for crucial schemes related to skill development and livelihoods, as well as the educational and social upliftment of minorities, have been reduced this time. The government’s apparent antipathy towards madrasas is clearly visible in the budget. In the year 2023–24, the education scheme for madrasas and minorities was reduced by 93 per cent to Rs 10 crore as compared to the previous year. This time, it has been further reduced to a mere Rs 2 crore. The budget for free coaching and allied schemes for minorities has been reduced to Rs 10 crore this time, compared to Rs 30 crore last year. There also seems to be an intention on the part of the government to dissuade enrolment of children from the minority community in schools, as reflected in the consistent reduction of the budget for pre-matric scholarships for minorities each year. In contrast, initiatives such as Skill Development, Nai Manzil—the Integrated Educational and Livelihood Initiative, Upgrading Skills and Training in Traditional Arts/Crafts for Development (USTTAD), Scheme for Leadership Development of Minority Women, Hamari Dharohar for conservation and protection of culture and heritage of minorities, along with important schemes like support for students clearing prelims conducted by the UPSC, SSC, State Public Service Commissions, etc., have been entirely halted. The budget for Maulana Azad Education Foundation (MAEF) and equity contribution to the National Minorities Development and Finance Corporation (NMDFC) is also zero this time. The funds announced by the central government for the Ministry of Minority Affairs often undergo revisions and, more often than not, reductions. It has been noted that the amount granted is not utilised properly. Recently, many stories of scholarship scams have come to light, with an internal inquiry conducted by the Ministry of Minority Affairs revealing deep-rooted corruption in as many as 830 such institutions, leading to a scam of Rs 144.83 crore in the past five years. Mukhtar Abbas Naqvi, former Minister of Minority Affairs, has acknowledged reports of scams in the scholarship scheme and called for the CBI and states to investigate. The Parliamentary Standing Committee on Social Justice and Empowerment presented a report in the Lok Sabha on February 12, 2021, expressing its opinion on all schemes for minorities in India and raising questions about the working methods of the Ministry of Minority Affairs. The report stated that funds were going to non-existent students from these scholarship schemes, which were meant for children belonging to minorities in six states. The committee deemed the reported cases of misuse “quite troubling.” Further reductions in funds and closure of these schemes could be detrimental to minorities in India, negatively impacting their participation and enrolment, particularly girls and women, who are already facing societal issues.

The Print, a news media platform, (February 7, 2024) reported Congress accusation on the Centre of playing a game of ‘smoke-and-mirrors’ with its interim budget and questioned the government’s performance. Senior Congress leader, Shashi Tharoor, accused the government of “all talk and no action” and dubbed the ruling National Development Account (NDA) as “no data available” to reveal the real situation of poverty and consumption in the country. Tharoor criticised the FM Nirmala Sitharaman’s remarks describing GDP as governance, development, and performance, stating that under the current dispensation, “G” stands for governmental intrusion and tax terrorism, “D” for demographic betrayal, and “P” for poverty continuing. The Congress leader alleged that the demographic dividend is on the cusp of becoming a demographic disaster with the unemployment crisis, K-shaped growth, and the ever-widening schism between the rich and poor. He also criticised the government for its “bloated rhetoric” of Sabka Saath, Sabka Vikas (Together with all, development for all), the illusory promise of inclusive development for all Indians. Tharoor cited unemployment data figures and the suspension of 146 MPs during the last session as examples of democracy suffering through the government’s “arrogant contempt” for institutions. He alleged that laws were being bulldozed according to the government’s whims and fancies without regard for parliamentary procedure. Tharoor also criticised the government’s record in diversity, citing increasing attacks on religious minorities, the ruthless dispensing of ‘bulldozer justice’, mob lynching, communal violence, and more. Tharoor said it is imperative that the House realises the game of “smoke-and-mirrors” that the government is playing with the interim budget, with nearly no redressal of the crises plaguing the economy and affecting the common person. He called for others to show up their shallow rhetoric for what it is: “all talk and no action.” Tharoor also questioned the government’s claim that 25 crore people have been free from multi-dimensional poverty in the last 10 years, stating that there is no basis for judging whether poverty has actually gone down as the finance minister claims. Tharoor also criticised the “rhetoric” surrounding Nari Shakti, stating that while the opposition welcomes the women’s reservation law, they are deeply sceptical about the vague timeline of the government.

The Print (February 8, 2024) reported Congress leader Randeep Singh Surjewala’s criticism for not providing adequate support to farmers in the interim budget. He claimed that the government has failed to fulfil its promise of doubling farmers’ income by 2022 and has not yet introduced a law guaranteeing minimum support price (MSP) to farmers. Surjewala cited the National Crime Records Bureau (NCRB) data to claim that more than one lakh farmers have committed suicide since 2014, but the government is not listening to their pain. Surjewala also criticised the government for not waiving loans of farmers but writing-off loans worth Rs 19.34 lakh crore of defaulters of bank loans. He also criticised the government for not spending about Rs 1 lakh crore from the total budget allocation for the agriculture sector in the last five years. Surjewala also criticised the government for not enacting a law providing MSP guarantee as demanded by the farming community. He argued that the government is not buying enough grain at MSP, and now MSP means “Maximum Suffering for Producers.” In terms of the interim budget, Surjewala claimed that fertiliser subsidy has been reduced by around Rs 25,000 crore for the next financial year. He also pointed out that the rates of Diammonium phosphate (DAP) have gone up to Rs 1,350 per bag from Rs 1,200 per bag, the size of urea bag has been reduced to 45 kg from 50 kg, and the rates of potash have increased to Rs 850 per bag from Rs 450 per bag in the last 10 years.

The Pioneer (February 1, 2024) reported Bahujan Samaj Party (BSP) chief Mayawati’s criticism of the interim budget presented by the National Democratic Alliance government as a “gimmick” and far from ground reality. Mayawati criticised the budget for denying the lives of people suffering from poverty, unemployment, and rising inflation. She added that if the government had truth about the country’s economy and development, over 80 crore people would not have been forced to live in need of free ration. Akash Anand, who was announced as Mayawati’s successor, also attacked the budget, claiming that the biggest economies worldwide are scared of the recession, particularly in India, where decreasing demand remains the main reason for the recession. Anand claimed that the budget did not provide anything for farmers, small-scale industries, or the poor, and that the finance minister had broken ties with the concerns of the middle class. He criticised the union government for ignoring the welfare of the common man in the interim budget.

R. Nagaraj in his Editorial, A political, feel-good statement, in The Hindu, emphasises the larger picture of the interim budget. The budget’s political message of ‘all is well’ suggests a better future, but it overlooks economic facts and potential threats from the global economy. Despite a satisfactory recovery from the COVID-19 pandemic, the employment situation remains grim, with regular salaried employment stagnating over the last five years. Most employment is unpaid family labour, indicating disguised unemployment. Real wages in agriculture have declined, and the benefits of output growth have accrued to those receiving rents, interests, and profits, which is not considered equitable or inclusive. The budget and the economic review show areas of concern, including India’s growing dependence on China for industrial inputs, which has widened the trade deficit and accounted for one-third of India’s trade deficit. Despite initiatives like ‘Make in India’ and ‘Aatmanirbhar Bharat Abhiyaan’, India’s industrial output and investment growth rate have decelerated over the last 5–7 years. The budget presents the achievements of the last decade of this regime, promising to continue, but fails to address issues like unemployment, wage growth, and manufacturing deficiencies. It also overlooks geopolitical threats and strategic risks from China’s dependence on critical inputs, which may not align with long-term national interests.