Higher capex proposal in Union Budget to boost infra development, create jobs: CYSD analysis
By Alisha Sahoo
Bhubaenswar, Feb. 1: The Union Budget 2022-23 tabled in the Parliament on Tuesday has made increased allocation in the capital expenditure – from Rs 6,02,711crore in 2021-22 RE to 7,50,246 crore in 2022-23. This is expected to boost to infrastructure and create employment, a quick Budget analysis by Odisha’s Centre for Youth and Social Development (CYSD) said.
The budget for 2022-23 is estimated at Rs 39, 44,909 crore which is 4.64 % more than the budget 2021-22 RE. The promises sector like natural faming, FPO promotion, incentives for start-ups, 1 lakh crore to assist the states in catalysing overall investments in the economy etc are the welcoming steps. On the other hand the social sectors including farmers are not given priority as expected, the analysis said.
“As we know during this difficult time, rural India suffered from the combination of health and economic shocks and unemployment rates rose. A global report also says that the income of 84 per cent of households in the country declined in 2021. As per, Centre for Monitoring the Indian Economy (CMIE) recorded, unemployment in rural India increased from 7.13 percent in April 2021 to 10.63.. During this period it was observed that MGNREGS has provided buffer for unorganized labour in rural areas during the pandemic. However, budget for MGNREGS is not encouraging, it has reduced by Rs 25,000 crore from 98,000 Cr in 2021-22 RE, to 73,000 crore in the 2022-23 BE. Looking at the demand the minimum wage rate and the number days works should increase to 200 days of work. One of the estimate suggest that Rs 2.6 lakh crore is required to provide 100days employment to the registered job seeker under MGNRGGS . Similarly there is decline in budget for Jobs and Skill Development Rs 2,753 Cr in 2021-22 RE to 2, 688 Cr,” it observed.
It has been a long standing demand to increase the health allocation to address the health sector focusing to primary health care. The current allocation is Rs. 85915 Cr which was Rs. 74602 Cr in 2021-22 BE. Similar the major schemes under health have flat allocation. Under NRHM an amount of Rs 37800 Crore is estimated in 2022-23 which was 37130 crore in 2021-22 BE and Rashtriya Swasthya Bima Yojna Rs 7857 Crore is estimated in 2022-23 which was Rs 6401crore in 2021-22 BE. Looking at the health budget it seems that the long standing demand of allocation for 2.5^GDP has remained unattended.
In the 2021 Global Hunger Index (GHI), India with a score of 27.5 has slipped to 101st out of the 116 countries, from its 2020 position of 94th (out of 107 countries) and is and is behind its neighboring countries i.e. Pakistan, Bangladesh and Nepal. As per the GHI report, the level of hunger in India “alarming”. In such circumstance, schemes like Pradhan Mantri Poshan Abhiyan (PMAY), Pradhan Mantri Gram Sadak Yojna (PMGSY), Saksham Anganwadi and POSHAN 2.0 expected to provide boost the rural economy. Budget 2022-23 shows that allocation towards these schemes has not been substantially increased. An outlay of Rs. 48000 Cr is allocated for PMAY which comprehends a minimal increase by 1.28 percent (during 2021-22 RE it was Rs. 40500 Cr) and PMGSY got an increase budget of 9.4 percent (during 2021-22 RE it was Rs. 13706 Cr and for 2022-23 FY allocation became Rs. 15000 Cr). Likewise, Saksham Anganwadi and POSHAN 2.0 received a minimal increase by 1.3 percent (During 2021-22 FY it was Rs. 20000 Cr and it became Rs. 20263 Cr. For 2022-23 FY).
National education Policy, 2020 demonstrated commitment to the educational reforms and reaffirmed the recommendation of increasing public investment on education to 6 percent of GDP as recommended earlier in NEP in 1968. The current allocation for education budget stands at Rs 104278 crore which was Rs 88002 Cr in 2021-22 RE, with an increase of 18.49 %.
