New Delhi: Union Finance Minister Nirmala Sitharaman rejected the Opposition’s contention that the NDA government has not allocated funds for non-BJP states and has only favoured its allies like JD(U) and TDP. During a Lok Sabha discussion on the 2024-25 Budget, she said that the budgetary process does not necessarily involve naming states, which does not equate to a lack of funding.
Sitharaman pointed to historical Budget speeches where states were not named yet received funds, and criticised Opposition members for misleading campaigns.
“We are not depriving any state. I have been picking up on Budget speeches since 2004-2005, 2005-2006, 2006-2007, 2007-2008 and so on... The Budget of 2004-2005 did not take the name of 17 states. I would like to ask the members of the UPA government at that time - did money not go to those 17 states? Did they stop it?” Sitharaman asked, while responding to comments by Opposition members in the House.
In line with the Prime Minister’s vision, Ms Sitharaman also expressed confidence in the Indian economy, saying that India was the fastest-growing economy globally and has overcome the after-effects of the Covid-19 pandemic due to a heavy capex push. “We shall all work to build Viksit Bharat by the year 2047, the Budget 2024-25 is the first step towards Viksit Bharat,” she said.
She outlined that Rs 11.11 lakh crore is earmarked for capex in the 2024-25 Budget, significantly higher than pre-pandemic levels. Sectors like agriculture, education, and employment have seen increased allocations compared to previous years.
“The expenditure in each sector, contrary to what was argued, has gone up. For instance, agriculture had Rs 0.30 lakh crore in 2013-14 whereas now it has 1.52 lakh crore. It is Rs 8,000 crore more than last year. For education and employment, 0.85 lakh crore was allotted in 2013-14 whereas today it is 1.48 lakh crore, 23 per cent more allocation,” she added.
Sitharaman assured that the government is on track to reduce the fiscal deficit to below 4.5 per cent by 2025-26 from 4.9 per cent targeted for the current fiscal year, down from 5.6 per cent in 2023-24.
“States not being mentioned in the Budget is not such a big issue. They know, they have been presenting the budget for decades. But when it is an ordinary chaiwala, OBC leader who becomes prime minister and handles administration well, you then have a problem. If he is doing well, we'll have to protest,” Sitharaman said.
Sitharaman also dismissed rumours about instability affecting foreign investments and highlighted substantial financial support for Jammu and Kashmir, including Rs 12,000 crore for the local police. “Some forces are working to create this image and we should all fight it together. There's a huge nexus behind this, which is carrying out this conspiracy from the states and even to the Parliament,” she said.
Following her address, the Lok Sabha approved the Rs 48.21 lakh crore Budget for 2024-25 and the Budget for the Union Territory of Jammu and Kashmir.
