Union Budget: Why is Centre slow in addressing financial needs of Southern states?

At the time of the Union Budget presentation, the rupee-dollar exchange rate was at an all-time high. The world market was reeling from China's DeepSeek, and the Delhi assembly elections were fiercely contested.

In her eighth budget speech, Finance Minister Nirmala Sitharaman quoted GurajadaApparao: ”Deshamante Matti, adoyiDeshamanteManushuloyi”. This coupled with the Prime Minister's pre-budget statements about the poor and middle class, raised expectations for relief from taxation and inflation, along with measures to alleviate poverty, enhance global competitiveness in business and technology, improve investment returns, and strengthen last-mile infrastructure.

While the budget included numerous announcements, the primary focus was a tax rebate for incomes up to ₹12 lakh. However, the actual impact of this rebate needs careful consideration. Data from the Economic Survey and Periodic Labour Force Survey reveal a concerning rise in youth unemployment and a decline in real wages for both salaried and self-employed individuals. Although an internship program for youth was announced in the previous budget, it was notably absent from this one, both in terms of discussion and allocation.

Strengthening the education system is crucial for global competitiveness and job creation. The persistent brain drain from India and year-on-year decreases in education and research funding pose a significant challenge. While the government continues to announce new IITs, IIMs, and central universities, recruitment of permanent teaching staff is still a far cry, hindering the true potential of these institutions. As per the Kothari Commission, also known as the National Education Commission, a minimum allocation of 6% of the total budget to education is necessary to address these issues.

Meaningful job creation in both the public and private sectors remains insufficient. The tax rebate, though welcome, will likely benefit only around 280 million individuals, leaving a large portion of the population without direct relief. Furthermore, increased GST targets suggest higher indirect taxes. Meaningful relief for the working class can only be achieved through GST reduction rates on essential goods and health services.

The government is quick to quote Southern poets but slow to address the financial needs of Southern states. The Finance Minister should also have considered the following quote by GurajadaApparao:

“Deshamunupreminchumanna

Manchiannadhipenchumanna!

Vottimatalukattipettoyi

Gattimeluthalapetavoyi “

Disclaimer:

Ranadheer B is an employee at an IT company, who like many of his peers, wants changes in policies that suit workers’ needs.

The views and opinions expressed in the article are those of the author and do not reflect the official policy or position of NewsMeter.