After a substantial 14.2 percent hike in the defence budget last year, the government has, for the first time in many years, opted to cut it.
Published Feb 02, 2024 | 7:00 AM ⚊ Updated Feb 02, 2024 | 7:00 AM
Finance Minister Nirmala Sitharaman presented the budget amounting to ₹47,65,768 core, marking a 6.1 percent increase from the revised estimate of ₹44,90,486 crore in the previous year.
Despite this overall rise, there were notable reductions in various government schemes and expenditures.
After a substantial 14.2-percent increase in the defence budget in the preceding year, the government opted to decrease it for the first time in many years.
The defence budget was reduced by 0.25 percent, translating to a drop of ₹1,124 crore.
The current budget estimate for defence stands at ₹4,54,773 crore for the year, in contrast to the revised budget estimate of ₹4,55,897 crore in the previous fiscal year.
In the realm of subsidies, which are crucial for the lower-middle class and impoverished citizens, the government trimmed allocations for fertilisers, food, and petroleum (gas).
The fertiliser subsidy for the financial year 2024-25 has been set at ₹1,64,000 crore, a reduction from ₹1,88,894 crore in 2023-24.
This encompasses a decrease in urea subsidy from ₹1,28,594 crore to ₹1,19,000 crore and a nutrient-based subsidy reduction from ₹60,300 crore to ₹45,000 crore.
Regarding food subsidy, the 2023-24 revised budget was ₹2,12,332 crore, which has now been adjusted to ₹2,05,250 crore.
During her address in Parliament, the finance minister emphasised that as the impoverished population became active participants in the development process, the government’s capacity to support and empower them was also experiencing a significant and manifold enhancement.
“With the pursuit of ‘Sabka Saath’ in these 10 years, the Government has assisted 25 crore people to get freedom from multidimensional poverty. Our Government’s efforts are now getting synergised with the energy and passion of such empowered people. This is truly elevating them from poverty,” said Sitharaman in Parliament during her budget speech.
However, on the flip side, the government was allocating ₹2,05,250 crore for food subsidy through the Pradhan Mantri Garib Kalyan Anna Yojana (PMGKAY).
Nonetheless, there were notable reductions in other areas. For example, assistance to state agencies for intrastate movement of foodgrains and FPS dealers’ margin under the National Food Security Act (NFSA) were trimmed to ₹7,075 crore from the previous allocation of ₹8,532 crore.
In the previous budget, the government had earmarked ₹12,240 crore for the petroleum subsidy, but in the current budget, this allocation has been reduced to ₹11,925 crore.
Despite the government’s emphasis on the Pradhan Mantri Fasal Bima Yojana (PMFBY), the budget for this crop insurance scheme has been decreased from ₹15,000 crore to ₹14,600 crore.
The budget for the Pradhan Mantri Kisan Sampada Yojana has also faced a reduction, dropping from ₹745 crore to ₹729 crore.
The budget allocation for the Pradhan Mantri Annadata Aay Sanrakshan Abhiyan (PM ASHA), designed to ensure fair prices for farmers’ produce, has seen a reduction from ₹2,200 crore to ₹1,738 crore.
Similarly, the commerce and industry sector has experienced a decrease in budget. The revised estimate for the fiscal year 2023-24 was ₹47,350 crore, but has now been reduced to ₹45,958 crore.
Budget cuts extended to the external affairs domain as well, with a reduction from ₹29,122 crore to ₹22,155 crore. This included a decrease in funding for neighbouring countries like Bhutan and Maldives.
Notably, the schemes in Maldives, which received ₹771 crore last year, were scaled down to ₹600 crore, and in Bhutan, where energy projects were initiated with a budget of ₹2,399 crore in 2023-24, the allocation has been reduced to ₹2,069 crore.
Saksham Anganwadi and Poshan 2.0, an Integrated Nutrition Support Programme addressing malnutrition, also witnessed a budget reduction from ₹21,523 crore to ₹21,200 crore.
Funds for the Urban Rejuvenation Mission AMRUT and Smart Cities Mission have been cut from a revised budget of ₹13,200 crore to ₹10,400 crore.
The budget for infrastructure facilities for the judiciary has been reduced from ₹1,061 crore to ₹1,000 crore.
Despite the government’s emphasis on the regional connectivity scheme. connecting smaller airports to major ones, the budget has been reduced from ₹852 crore to ₹502 crore.
The fuel recycle project budget has also seen a reduction from ₹862 crore to ₹805 crore.
Sitharaman in her budget speech said: “Our Government will pay utmost attention to make the eastern region and its people a powerful driver of India’s growth.”
But, the budget for several schemes aimed at the North-East, particularly at a time when the state of Manipur is grappling with unprecedented conflict, has been cut.
The budget for the refund of Central and Integrated GST to industrial units in the North East and Himalayan states has been reduced from ₹1,755 crore to ₹1,382 crore.
The Prime Minister’s Development Initiative for North East Region (PMDevINE) has also witnessed a reduction in its budget, dropping from ₹2,200 crore to ₹2,055 crore.
The budget for the North East Special Infrastructure Development Scheme (NESIDS) has been decreased from ₹2,490 crore to ₹2,381 crore.
Indradhanush Gas Grid Limited (IGGL), a part of the North East Natural Gas Pipeline Grid, has seen its budget slashed from ₹1,300 crore to ₹1,000 crore.
Subsidies, including those for the North Eastern Region, have faced a reduction from ₹1,633 crore to ₹1,200 crore.
