Criticism
The Union Budget has been criticized for not increasing spending on key welfare programs that support the country’s marginalized populations.
Funding for major welfare schemes like MGNREGA (rural employment) and NFSA (food subsidies) has decreased as a percentage of GDP since 2014-15, except during the COVID-19 pandemic.
NFSA’s allocation dropped from 0.72% to 0.63% of GDP.
MGNREGA’s allocation fell from 0.29% to 0.26% of GDP.
Neglect of Vulnerable Groups
No increase in funding for support to widows, elderly, and disabled individuals, despite its allocation having halved since 2014-15.
Pensions under this scheme have been stagnant at ₹200 for the elderly and ₹300 for widows since 2006.
Malnutrition and Education
The budget for child nutrition programs like Saksham Anganwadi and Poshan 2.0 has declined from 0.13% to 0.06% of GDP.
Mid-Day Meal Program: Funding for school meals has halved since 2014-15, despite its success in improving school attendance and nutrition.
The share of GDP allocated to education has fallen from 0.37% in 2014-15 to 0.22% this year.
Health Budget
The health budget share has slightly increased from 0.25% to 0.28% of GDP, but remains insufficient given high out-of-pocket health expenses.
Overall Welfare Spending
Total budget allocations for welfare and essential services have decreased from 2.1% of GDP in 2014-15 to 1.53% this year
Impact of Tax Cuts
The government’s tax cuts, which have led to a loss of over ₹8 lakh crore in revenue, have reduced funds available for welfare spending.
Human Development
India’s Human Development Index rank is low, reflecting poor welfare outcomes compared to previous times.
Comparison with Previous Government
The previous UPA government is noted for increasing welfare spending over time and introducing new welfare schemes.
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