The Union government has also cut the budget for the Pradhan Mantri Ayushman Bharat Health Infrastructure Mission (PMABHIM) by ₹1,000 crore.
Published Jul 24, 2024 | 11:00 AM ⚊ Updated Oct 10, 2024 | 8:29 PM
Key schemes witnesses significant drop in Union Budget 2024. (Supplied)
Finance Minister Nirmala Sitharaman presented the Budget for 2024-25 on Tuesday, 23 July, marking her seventh consecutive presentation and surpassing the record of former Prime Minister Morarji Desai.
Even though FM Sitaraman now holds the record for presenting the most budgets in a row, Desai still holds the record for the most number of budgets presented— 10. P Chidambaram presented nine Budgets.
On Tuesday, the budget estimate of ₹48.21 lakh crore was presented, with some centrally sponsored schemes facing cuts. The Smart Cities Mission, launched with much fanfare in 2015, was supposed to have been completed by 2020.
A sharp cut in allocation of ₹5,600 crore was announced on Tuesday: “In the 2024-25 budget, the government allocated a mere ₹2,400 crore for the Smart Cities Mission. In the previous fiscal year, the budgetary allocation was ₹8,000 crore,” the Finance Ministry said in a release.
The main objective of the Smart Cities Mission is to promote cities that provide core infrastructure, a clean and sustainable environment, and a decent quality of life to citizens through the application of smart solutions.
Despite reiterating in the budget that one of the government’s top priorities is employment and skilling, the Union government has reduced grants for the Skill Acquisition and Knowledge Awareness for Livelihood Promotion (SANKALP) scheme by ₹100.08 crore. In 2023-24, the government allocated ₹488.08 crore for the SANKALP scheme. For the ongoing fiscal year 2024-25, the government has allocated only ₹380 crore.
The scheme aims to improve short-term skill training both qualitatively and quantitatively by strengthening institutions, enhancing market connectivity, and including marginalized sections of society.
Similarly, despite emphasizing that one of the government’s four focus areas is “Women”, the Union government has reduced the budget for the Scheme for Safety of Women (Safe City Projects) by a significant ₹885.56 crore.
“In the 2024-25 budget, the government allocated ₹214.44 crore. In the previous fiscal year, the government had allocated ₹1,100 crore,” the finance department stated.
This scheme aims to enable equal opportunities for participation and development for women, necessitating adequate safety measures for women in cities.
The Union government has also cut the budget for the Pradhan Mantri Ayushman Bharat Health Infrastructure Mission (PMABHIM) by ₹1,000 crore.
The Ministry of Finance stated: “In 2023-24, ₹4,200 crore was allocated for the PMABHIM. For the 2024-25 fiscal year, the allocation for the same scheme stands at ₹3,200 crore, which is ₹1,000 crore less than the previous budget.”
Under the PM-ABHIM, the focus will be on developing the capacities of health systems and institutions across all levels — primary, secondary, and tertiary — to prepare health systems to respond effectively to current and future pandemics and disasters.
The Union government has also cut grants by nearly 80 percent for the Education Scheme for Madrasas and Minorities. According to the Union Finance Ministry: “In the 2023-24 budget, ₹10 crore was allocated for the Education Scheme for Madrasas and Minorities. In the 2024-25 budget, a mere ₹2 crore was allocated for the scheme, marking an 80 percent reduction.”
Additionally, the Union government reduced grants for the Atal Vayo Abhyuday Yojana (AVYAY) by ₹445.11 crore. “In 2024-25, the Union government allocated just ₹260 crore for the AVYAY, whereas the budgetary allocation was ₹705.11 crore in the 2023-24 fiscal,” according to the Ministry of Finance.
The Atal Vayo Abhyuday Yojana (AVYAY) is a holistic initiative designed to empower and support senior citizens, acknowledging their significant contributions to society. This scheme aims to promote their overall well-being, social inclusion, and active participation in all aspects of life, thereby recognizing and valuing their experience and wisdom.
While Union Finance Minister Nirmala Sitharaman reiterated that one of their main focuses is on farmers, the Union government reduced grants for the National Mission on Natural Farming by ₹93.36 crore.
“In the 2024-25 fiscal budget, the government allocated ₹365.64 crore, whereas in the 2023-24 fiscal budget, the government had allocated ₹459 crore for the same scheme,” according to the Ministry of Finance.
“To motivate farmers to adopt chemical-free farming and enhance the reach of natural farming, the Union government introduced the National Mission on Natural Farming.”
The Union government has also reduced grants for the Integrated Development of Wildlife Habitats (IDWH) and Conservation of Natural Resources and Ecosystems (CNRE).
“In the 2024-25 budget, the government has allocated ₹450 crore and ₹43.50 crore for Integrated Development of Wildlife Habitats and Conservation of Natural Resources and Ecosystems, respectively.”
“In the previous fiscal year 2023-24, the government had allocated ₹491.80 crore and ₹47 crore for IDWH and CNRE, respectively,” according to the Ministry of Finance.
The Union Ministry has also reduced the budget for Human Resources for Health and Medical Education from ₹ 6,500 crore to ₹1,274.79 crore.
This budget includes salaries for doctors, nurses, pharmacists, community health workers (ASHAs), and other medical staff. It also covers the development of new human resources in the medical field. Central institutions like AIIMS depend heavily on this component of the budget.
The government has cut down hugely on subsidies and loans given to the farmers. The Crop Insurance which was revised at ₹15,000 crore in the previous financial year has been reduced by ₹400 crore to ₹14,600 crore.
The Union government has also reduced the budget for the fertilizer subsidy. The overall fertilizer subsidy has been reduced from ₹1,88,893.80 crore (RE) to ₹1,63,999.80 crore. Specifically, the urea subsidy has been cut from ₹1,28,594.00 crore to ₹1,19,000.00 crore, and the Nutrient Based Subsidy has been reduced from ₹60,300.00 crore to ₹45,000.00 crore.
The Union government has also reduced the budget for the food subsidy, decreasing it from ₹2,12,332.00 crore (RE) to ₹2,05,250.01 crore.
The Union government has also reduced the budget for the LPG subsidy, cutting it from ₹12,240.00 crore to ₹11,925.01 crore.
The Regional Connectivity Scheme (RCS), also known as UDAN (Ude Desh ka Aam Nagrik), is an initiative by the Ministry of Civil Aviation in India aimed at making air travel affordable and widespread.
Launched in 2016, UDAN focuses on connecting smaller towns and cities with major cities through flights. The scheme seeks to enhance regional air connectivity by providing financial incentives, infrastructural support, and other measures to airlines and airport operators.
However, the government has now reduced its budget from ₹1,244.07 crore to ₹502 crore.
Additionally, despite Prime Minister Narendra Modi’s announcement before the Telangana elections for the establishment of a Turmeric Board, the government has not allocated any budget for this board.
The budget reductions across various programs and schemes have been notable.
Prime Minister Employment Generation Programme (PMEGP): The budget for PMEGP has been reduced from ₹2,958.22 crore (RE) to ₹2,300.00 crore. This programme aims to create employment opportunities by providing financial assistance to micro and small enterprises.
Guarantee Emergency Credit Line (GECL): The budget for the GECL facility, which supports eligible MSME borrowers, has been reduced from ₹14,000 crore to ₹9,812.93 crore. This facility was introduced to provide additional credit support to MSMEs during times of economic distress.
Scholarships for Higher Education for Young Achievers Scheme (SHREYAS): The budget for SHREYAS, which provides scholarships for OBCs and EBCs, has been cut from ₹180 crore to ₹150 crore. This scheme aims to support students from marginalized communities in pursuing higher education.
(Edited by Rosamma Thomas)
