A day after the euphoria of the entire lower middle class getting a tax-free regime in India settled down, an analysis of Budget numbers stashed in bureaucratic documents reveal a depressing picture of the government neglecting critical areas which are important for the welfare of lower classes. One of the macroeconomic indicators that kept policy makers worried in the year was stubborn food inflation. The poor spend around 70 per cent of their monthly income on food. A person in urban areas spends an average 40 per cent of his income on food, while a person in the rural areas spends 48 per cent. The imported inflation, especially in crude oil, pulses and edible oil, could further stoke the food inflation because of weakening rupee, which could require the government intervening in the market to ensure price stability. Nevertheless, finance minister Nirmala Sitharaman has reduced the allocation to food subsidy by 0.89 per cent to Rs 2,03,420 crore in 2025-26 compared to Rs 2,05,250 crore in 2024-25. Similarly, the government has increased its allocation for rural development by a negligible 0.38 per cent or Rs 1,009 crore at Rs 2,66,817 crore in 2025-26 as against Rs 2,65,808 crore in 2024-25. Adjusted to inflation, the allocation for this critical sector has shrunk. Education, which is one of the most important factors to ensure the bright future for the Indians, received a similar fate as it got a mere 2.4 per cent hike in budgetary allocation. Education will get just Rs 3,012 crore extra in 2025-26 at Rs 1,28,650 crore compared to the last year’s Rs 1,25,638 crore. This allocation, adjusted to inflation, goes into the negative zone, leaving government-run education institutions starving for funds and making them incapable of meeting China’s challenge. The allocation for social welfare was increased by 6.28 per cent (Rs 60,052 crore vs. Rs 56,501 crore), and health by 10.11 per cent (Rs 98,311 crore vs Rs 89,287 crore), which barely more or less compensates for the impact of inflation. The North East region, which figures on the top for the BJP leadership, too was neglected with an allocation of Rs 5,915 crore for its development in fiscal 2025-26 compared to `5,900 crore in fiscal 2024-25, which is just an increase of 0.25 per cent. Agriculture and allied activities, which were stated to be one of the top priorities for the Narendra Modi government, received a 12.9 per cent increase in budgetary allocation, though the finance minister has announced several schemes for farmers. The biggest jump in allocation was seen for scientific departments at 70.08 per cent at Rs 55,679 crore compared to Rs 32,736 crore. The focus on increasing government support for research is a plausible decision, especially in the wake of the world embracing new technology. Urban development received a 17.2 per cent jump in allocation at Rs 96,777 crore compared to Rs 82,577 crore, followed by energy getting a 18 per cent jump in allocations.
Source link
