The unveiling of the Mini Budget by Finance Minister Nirmala Sitharaman has ignited a complex interplay of political and economic dynamics, setting the stage for both the impending general elections and the trajectory of India’s economic future. Positioned strategically before the polls, the budget presented a calculated report card of the Modi government’s 10-year tenure, marked by cautious steps and a notable absence of major announcements, especially concerning tax rates, which remained unchanged. The Finance Minister’s address was a balancing act, navigating the delicate terrain of economic stewardship while anticipating the impending electoral battle. The budget, while devoid of grand gestures, continued the government’s emphasis on capital expenditure (capex) as a catalyst for economic growth and job creation. It refrained from making significant fiscal adjustments, maintaining continuity in a time of political transition. With confidence exuding from Sitharaman’s demeanor, she projected an optimistic outlook for the Modi government, expressing a belief that the electorate would acknowledge its ‘stupendous’ work with a resounding mandate in the upcoming Lok Sabha polls. The Finance Minister’s reassurance that a detailed roadmap for Viksit Bharat would be unveiled in the full budget in July sets the stage for more intricate economic strategies to be revealed. Noteworthy among the budget highlights was an 11.1% increase in capex for 2024-25, reaching an ambitious Rs 11.11 lakh crore. The budget’s focus on the four major ‘castes’—‘Garib’ (Poor), ‘Mahilayen’ (Women), ‘Yuva’ (Youth), and ‘Annadata’(Farmer)—reaffirms the government’s commitment to addressing diverse societal needs. The proposed increase in the target for ‘Lakhpati Didi’ and the rooftop solarization scheme demonstrate a pragmatic approach towards addressing both economic and environmental concerns. Prime Minister Narendra Modi lauded the budget as inclusive and innovative, emphasizing its empowerment potential for all four pillars of ‘Viksit Bharat.’ However, opposition parties, including the senior Congress leader P. Chidambaram and other political parties criticized the budget as falling short of addressing critical issues such as unemployment and rising prices. The political discourse surrounding the budget remains polarized, with debates centering on the government’s claims of social justice and economic progress. The allocation of Rs 37,277.74 crore to Jammu and Kashmir for 2024-25, with Rs 35,619.30 crore dedicated to bridging resource gaps, reflects the government’s regional development focus. While the J&K BJP hails the budget as people-friendly, the National Conference deems it disappointing, underscoring a divergence in political perspectives on its impact. The Jammu Chamber of Commerce and Industry’s lukewarm response, citing a lack of relief for the business community, raises questions about the budget’s efficacy in addressing economic concerns at the grassroots level. As the political and economic spheres dissect the nuances of the Mini Budget, it remains to be seen how its measures will resonate with the diverse segments of society and influence the upcoming elections. In this delicate dance between politics and economics, the true impact of the Mini Budget will unfold over time, shaping the contours of India’s socio-economic landscape.
