Page 58 - EW March 2025

Special Report

UNION BUDGET 2025-26
HALF PRESCRIPTION FOR

VIKSIT BHARAT

Constructing enabling infrastructure is a necessary but not sufficient
condition of GDP growth. There's little awareness in the budget that hard
infrastructure requires to be maintained and managed by soft infrastructure
— well-educated and trained human resources to optimise return on
investment

Dilip Thakore

U NION FINANCE MINISTER Nirmala than handing out freebies and grants to EWS (economically

weaker sections) as is the latest fashion of the Centre and
Sitharaman’s eighth consecutive
state governments. Infrastructure development smooths
budget 2025-26 was presented to
Parliament and the nation only
the way for people to fend for themselves rather than rely on
government handouts and largesse. The BJP/NDA govern-
four weeks ago at time of writing,
but it seems to have been totally
forgotten. Because it trod a safe,
locating 30 percent of its annual expenditure — even during
the Covid pandemic years — to infrastructure development.
well-trodden path without any no- ment at the Centre deserves encomiums for persistently al-
table breakthrough proposals. To This strategy — and “taking the capitalist road” — the
the finance minister’s credit, the major thrust continues to open secret of neighbouring China’s astonishing com-
be on capital expenditure for infrastructure development pounded double digit GDP growth for over 20 years (1978-
which has huge multiplier effect, and fiscal rectitude, i.e, 2008), explains India’s quick bounce back to 6 percent-plus
continued reduction of the fiscal deficit necessary to con- yearly GDP growth in the post-Covid era. Yet it’s impor-
tain inflation, a hidden tax that bears down most heavily tant for government and the public to bear in mind that
on poorest and most vulnerable citizens. infrastructure provision is a necessary but not sufficient
Therefore, capital expenditure on infrastructure which condition of GDP growth. Roads, bridges, power stations
suffered a 12 percent shortfall at Rs.13.18 lakh crore as in- and railway tracks also need to be carefully maintained, a
dicated by the revised expenditure in 2024-25 cf. the bud- national failing, but for which our annual economic growth
geted Rs.15.01 lakh crore, has been restored to Rs.15.48 rate would be higher and nearer to the 8 percent per year
lakh crore. This provision of almost 31 percent of the total required to attain the Prime Minister’s Viksit Bharat and
budgeted expenditure in 2025-26, is commendable because $30 trillion GDP (cf. $4 trillion currently) goals set for
investment in roads, highways, ports, power and railways 2047, when India will celebrate its centenary of freedom
enable citizens to conduct their businesses with greater ease from foreign rule. Within the establishment and Indian so-
and contribute to GDP and national wealth growth. Infra- ciety, there’s little regret or shame that the annual GDP of
structure spending is a far better option to help the public neighbouring China has risen to $18 trillion whereas ours

58 EDUCATIONWORLD MARCH 2025