Missed opportunities and oversights

The 2020 Budget speech of Finance Minister Nirmala Sitharaman lasted around 2 hours and 40 minutes. It was her longest speech and she had a lot to talk about. However, in 2021, she wrapped up her announcements in just 1 hour 40 minutes – and it’s safe to say there was a lot more left unsaid than in previous years. Partly because the Narendra Modi-government had already unleashed a slew of measures in response to the COVID-19 pandemic, but also because they seem to be more cautious with their coffers, much to the disappointment of the vast middle-class that was hopeful of seeing job creation opportunities and improved spending power. Nevertheless, the NDA government’s eagle eye spotted an opportunity in four poll-bound states, including Tamil Nadu, West Bengal, Kerala, and Assam, that stood to gain on the infrastructural front, a potential calling card for the government, come election season. What TN bagged in its kitty on Budget Day includes new phases for the Chennai Metro, towards which an amount of Rs 63,246 cr was allocated. An investment of Rs 1.03 lakh cr was also proposed for national highway works in the state, spanning 3,500 km which includes the construction of the Madurai-Kollam economic corridor. A fringe benefit accorded to TN is the allocation to Kerala, towards a 600-km section of the Mumbai-Kanniyakumari corridor. There was a mention of seven textile parks pan-India, of which TN might also be a beneficiary, and a multi-nodal seaweed park and a major fishing harbour to be developed in Chennai. A clear miss as seen by many stakeholders in the policy space was the Centre’s short-sighted approach to the demands of farmers across TN. The need for a one-time farm loan waiver, that farmer associations had been pitching for many years has failed to materialise. A fund to address natural disaster compensation, echoes of which were heard outside of TN as well, found no traction in this year’s Budget. What, instead, has been assured is an increase in credit flow to agriculture from Rs 15 lakh cr to Rs 16.5 lakh cr. The move has gone over the top of the heads of small farmers who may not be the first priority of institutional financiers. The irony is that these announcements are coming when almost five months have passed since the farmers’ protests have begun. And in spite of what leaders might say, the increased credit seems like a measure aimed at appeasing the corporate farming sector and agricultural industries. As far as the state, more specifically, Chennai, one of the de-facto automobile hubs of India is concerned, the narrative built around electrification of vehicles has been dropped during the tabling of the budget. Experts believe that while the scrappage policy is a step in the right direction, there was an immediate requirement to push policy reforms towards the idea of green mobility, EVs, and amping up charging infrastructure, a need exacerbated as a consequence of the pandemic, and the increased health risks accompanying air pollution. The nation’s fiscal deficit for the year 2020-21 was pegged at 9.5 pc by the Finance Minister, while for the approaching financial year, it will be set at 6.5 per cent. Of course, this is not the time to pick holes in what is essentially the biggest accounting exercise conducted in India, after undergoing the pangs of a year-long pandemic. Mending the roof over India’s head requires a far-sighted approach and a focus on the pain points that each state is beset with. One hopes that in the days that follow, a clearer picture emerges that takes into account solutions and reforms that make a difference and more importantly, will be followed through.