Budget steers clear of announcements focused on poll-bound states

The expectation that the Union Budget for 2022-23 will have a clear message for the states that are going to polls shortly was belied. Finance Minister Nirmala Sitharaman steered clear of any announcements or schemes that could be described outright as inspired by the exigencies of elections.

While there was nothing specifically bearing the imprint of elections, Sitharaman did describe the budget as conscious about the concerns of the youth, women, farmers, the scheduled castes and scheduled tribes, social categories that are alluded to a big way in electoral discourse.

“This budget continues to provide impetus for growth,” Sitharaman said, noting it lays a parallel track of a blueprint for the 'AmritKaal', which is “futuristic and inclusive” and “will directly benefit our youth, women, farmers, the scheduled castes and the scheduled tribes.”

All eyes were on what the budget would have for the farming sector in the light of the anger among the farmers, especially in Punjab and western Uttar Pradesh, with regard to the three contentious farm laws that were eventually withdrawn by the government. Among the highlights of the farm sector-related announcements was payment of minimum support price value of crops procured directly to the accounts of farmers. She said the procurement of wheat in Rabi 2021-22 and the estimated procurement of paddy in Kharif 2021-22 will cover 1,208 lakh metric tonnes of wheat and paddy from 163 lakh farmers and amount to Rs 2.37 lakh crore payment of MSP.

The budget also mentioned plans for use of 'Kisan drones' for crop assessment, digitisation of land records, spraying of insecticides and nutrients. Sitharaman also announced that chemical-free natural farming will be promoted throughout the country, with a focus on farmers’ lands in 5km-wide corridors along river Ganga at the first stage.

There was keen interest with regard to how Sitharaman would deal with the politically crucial issue of unemployment. While there were no big bang announcements on promoting jobs, the finance minister said the productivity-linked incentive schemes in 14 sectors for achieving the vision of Atmanirbhar Bharat have received excellent response, with a potential to create 60 lakh new jobs, and an additional production worth Rs 30 lakh crore during the next five years.

However, with no major announcements being made for the farming sector or with regard to women's empowerment or employment generation, the budget is bound to be criticised strongly by the BJP's rivals, especially in the backdrop of elections. Already, opposition parties have begun criticising the budget for not providing any relief to the farmers, the unemployed youth, women and the socially backward classes.

It is also being pointed out that the government's decision to keep the income tax rates and slabs unchanged comes as a big disappointment for the middle class, especially since a large section of people are dealing with pay cuts and price rise.