As expected, the interim Union budget has sought to emphasise grassroots level economic uplift, that should benefit the country in the years to come
Five integrated aquaparks will be setup, a Blue Economy 2.0 plan has been mooted to promote aquaculture.
A new scheme will be launched for strengthening deep-tech technology for the defence sector. Allocation for defence in the interim budget has been increased to Rs 6.21 lakh crores for the financial year 2024-25, from Rs 5.94 lakh crore allocated for the fiscal year 2022-23. The increase is over 4.5 per cent from last year.
Building on the tripling of the capital expenditure outlay in the past four years, resulting in huge multiplier impact on economic growth and employment creation, the outlay for the next year is being increased by 11.1 per cent to Rs 11,11,111 crore. This would be 3.4 per cent of the GDP, said Sitharaman.
An ambitious mission to install rooftop solar plants in for 10 million households all over the country has been planned too. India has a crushing international debt burden due to energy resources imports. . This initiative aims not only to alleviate the burden of electricity expenses on the poor and middle class but also to bolster India’s energy self-reliance. However, the people one general dies not seem to realise the gains from such a project.
The Critique
Experts, though, say that instead of boosting funding for private research, which is largely profit driven, the Centre should have focused on funding research in public universities and agencies.
“They are not providing enough public funding for research in universities. Yet, the government plans to inject money into the private sector,” said C P Rajendran, adjunct professor at the National Institute of Advanced Studies, Bengaluru.
“The number of universities has gone up, but the budget has not kept up,” he added. Sitharaman, in her speech, said that the Centre, in recent years, has set up seven new branches of Indian Institute of Technology (IIT), 16 of Indian Institute of Information Technology (IIT), seven of Indian Institute of Management (IIM), 15 new All India Institute of Medical Sciences institutions (AIIMS) and 390 universities.
“Budget allocation for basic research has been going down. The number of research fellowships has been curtailed. Still, no announcement was made for boosting funding for research in universities and research institutions,” said Dhrubajyoti Mukherjee, president of Kolkata-based non-profit Breakthrough Science Society. “It looks like they are more interested in innovation in corporate companies. It reflects on the outlook of the government,” he added.
Rajendran said the announcement might be to incentivise the private sector to enter public research, citing the government’s plan to involve the private sector in funding the National Research Foundation (NRF). Of the Rs 50,000 crore set aside for NRF between 2023 and 2028, Rs 36,000 crore is expected to come from the private sector. “In the long run, the government wants to step back from funding research and expects the private sector to take the lead,” he added.
Rajendran and Mukherjee both expressed apprehensions that the private sector might prioritise translational research over basic research, potentially undermining scientific exploration.
The University Grants Commission (UGC) has faced a budget cut this year with the Centre reducing its grant by over 60% while the allocation for Indian Institutes of Management (IIMs) has been slashed for the second consecutive year.
The measures announced this year are, expectedly, aimed at creation a pro-poor, pro- smaller industries image that a government needs in an election year, and Sitaraman had tried to deliver just that.