Viksit Bharat vs Garib Kalyan, a balancing act
Hindustan TimesInterim budgets are supposed to be just that: No big announcements, no major shifts in policy, a business-as-usual vote on account to ensure continuity in policy. In the second term of the Narendra Modi government, budgets have had to balance two policy and political narratives: Viksit Bharat — a growing, reform-oriented economy, speeding down the 21st-century highway to modernisation with shiny new infrastructure — whilst simultaneously “feeding” the electorally salient Garib Kalyan narrative, with the PM as the sole patron, and provider. Viksit Bharat needs capital expenditure while Garib Kalyan needs more revenue spending on welfare. Revenue expenditure, which accounts for the bulk of government consumption, including welfare, faced the axe — down from 87.5% of total expenditure in the FY 2020 budget to 76.7% for FY 2025. Since 2014, this government has carefully prioritised welfare schemes that offer tangible assets — housing, cash, toilets and food — over diffuse public goods such as health and education.
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