The Finance Minister seems to be unaware of the increased poverty, inequality, unemployment, malnutrition etc. after Corona.

- Telling evidence that the poor have been forgotten in the budget

- More than 60 percent of India's total wealth is held by the richest five percent of the country

Every finance minister boasts that the policies and programs of his government are focused on the poor. It is also true in a sense because the percentage of poor in India's population is high. Estimates may vary, but if we consider a few indicators like per capita income, unemployment, food consumption, housing, the number of poor in various states will be between 25 and 40 percent.

Two years of pandemic (2020-2022), high retail inflation (6.52 percent) and unemployment (urban 8.10 percent, rural 7.60 percent) have worsened the situation. The beginning of 2023 is ominous. Big companies are laying off thousands of employees. Even among the educated middle class, the unemployment rate continues to be alarming.

Who is poor?

The rising inequality in India has revealed several facts. According to an Oxfam report, more than 60 percent of India's total wealth is held by the richest 5 percent of the country, while the bottom 50 percent of the population owns only 3 percent. In the 2022 Report on Inequality, Chancell, Piketty and others estimated that the bottom fifty percent received only 13 percent of national income. The top 5 to 10 percent (7 to 14 million people) flaunt, spend and enjoy their wealth, providing the 'shine' to the market. The 2023 sales target for a luxury car in the country has been met and it is now only accepting bookings for 2024. The lowest price of this car is Rs 3.15 crore ex-showroom. The buyers of these cars are super rich. The poor comprise the bottom 50 percent of the population.

According to the CMIE report, the total workforce in India is 43 crore. Out of this, the number of people who are employed or looking for employment is 42.23 percent. Which is the lowest in the world. In 7.80 percent households (approximately 2.10 crore households) no person is employed. Of the people who are employed, 30 percent (approximately 13 crore people) are daily wage labourers. Monthly household consumption expenditure is Rs 11000. These families are poor.

Punish the poor in the budget

My question to those who prepared the budget for the financial year 2023-24, what did they do for the poor, what did they give to the bottom 50 percent of the population, how did they give relief to the unemployed and what did they get in the budget for those who do not have enough food. The answers to these questions are in the form of figures in the budget document, some of which are reproduced here.

Bandage died on the stomach

Only if the allocated amount is spent, employment will be created or welfare benefits will be received. If the allocation for the new year is higher than the previous year, it has to be balanced against inflation, in some cases it will be seen that the original allocation is reduced. Every program that directly benefits the poor is under-allocated, and adjusted for inflation, it will appear even less. Apart from this no deduction has been made in GST. (64 percent of the total GST collection is paid by the bottom 50 percent). Taxes or prices of petrol, diesel and LPG have not been reduced. The finance minister seems to be unaware of the increased poverty, inequality, unemployment, malnutrition etc. after Corona.

In his 90-minute budget speech, the finance minister uttered the word poor only twice. The budget has kicked the poor in the stomach.

- Major provisions that could have created employment for the poor and provided relief to them have not adequately utilized the amount allocated in the 2022-23 budget.

                                                              

2022-23 - 2023-24 Budget Estimates-Revised Estimates Rs. in crores

Agriculture and allied activities	83 , 521	76 , 279
P.M. Farmer	68,000 _ _	60,000 _ _
Social welfare	51 , 780	46 , 502
Education	104 , 278	99 , 881
Health	86 , 606	76 , 351
Scheme for Scheduled Castes	8 , 710	7 , 772
Scheme for Scheduled Tribes	4 , 111	3 , 874
minority	1 , 810	530
Weaker Classes	1 , 931	1 , 921

 

- If the consumption of a significant amount is less during the year out of the amount allocated in the budget, the allocated amount is not significant. There has been no change in approach even in FY 2023-24.

2022-23 - 2023-24 revised estimate - Budget estimate Rs. in crores

MGNREGA	89 , 400	60,000 _ _
Fertilizer subsidy	2 , 35 , 220	1 , 75 , 100
Food subsidy	2 , 87 , 194	1 , 97 , 350
Petroleum subsidy	9 , 171	2 , 257
P.M. Health Protection Scheme	8 , 270	3 , 365
National Social Programs	9 , 652	9 , 636
P.M. Nutrition	12 , 800	11 , 600
Atmanirbhar Bharat Yojana	5 , 758	2 , 273