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Nirmala Sitharaman definitely aims to increase more women participation in the economy through gender budgeting. The minister said that the government has supported and encouraged women entrepreneurship, opines Dr. Navodita, reviewing the Union Budget. A Different Truths exclusive.
The budget was meant to be one with maximum governance, minimum government but here’s a reality check on what it was and what it wasn’t? Did the budget mean women empowerment, did it make us more ‘socially responsible’ citizens, did it move our country towards greater economic development, did it mean more inclusive growth and more importantly, did it mean a more sustainable growth for the country?
Gender Budgeting
First things first, the first full-time woman finance minister had the onus on her to do something for women – she says two mega initiatives of Ujjwala Yojana and Saubhagya Yojana have transformed the lives of women in every rural family and dramatically improved their ease of living. Nirmala Sitharaman definitely aims to increase more women participation in the economy through gender budgeting. The minister said that the government has supported and encouraged women entrepreneurship through various schemes such as MUDRA, Stand Up India and Self-Help Groups (SHGs). In order to further encourage women enterprise, the budget has a proposal to expand the women SHG interest subvention programme to all districts.
Sitharaman told Live Mint, “The role of women is a very sweet story in India’s growth, particularly in the rural economy. The government wishes to encourage and facilitate the role of women in India’s growth story.”
Some women activists from Centre for Social Research argue that often lot gets said about the wellbeing of women, but little gets implemented. Ranjana Kumari, a social activist, says that budgets allocated are often not utilised and the same gets spent on other projects.
Some women activists from Centre for Social Research argue that often lot gets said about the wellbeing of women, but little gets implemented. Ranjana Kumari, a social activist, says that budgets allocated are often not utilised and the same gets spent on other projects. Women’s empowerment is not a priority in most state budgets either. For example, the budget for implementation of the Protection of Women from Domestic Violence Act, 2005 is low all across India.” She adds that in order to ensure gender justice, all policies should be allocated with adequate budget and implementation should be taken up strictly. Issues like eradicating maternal mortality, infant child mortality should be the highest priority.
Social Capital
Additionally, in her maiden budget, the FM proposed allowing listing of social enterprises, bodies working for social welfare in social stock exchange under SEBI’s guidance. She said an Electronic Fundraising Platform (EFP) to be created for social and voluntary organisations to raise capital, debt and mutual fund. Social Stock Exchanges (SSE) already exist in the UK, Canada, Singapore, South Africa, Brazil, Jamaica and Kenya. This will enable investors to make impact investments.
She said an Electronic Fundraising Platform (EFP) to be created for social and voluntary organisations to raise capital, debt and mutual fund. Social Stock Exchanges (SSE) already exist in the UK, Canada, Singapore, South Africa, Brazil, Jamaica and Kenya. This will enable investors to make impact investments.
FM said, “It is time to take our capital markets closer to the masses and meet various social welfare objectives, related to inclusive growth and financial inclusion.”
In other countries such social stock exchanges allow companies operating in sectors such as health, environment and transportation to raise risk capital. Market experts say SEBI could allow companies with proven track record to access public capital through this platform.
Green Budget
Along with these innovative moves by the finance minister, this budget has also made concessions for a ‘green budget’ so that there is more room for sustainable growth and leeway for encouraging and promoting ‘green measures’ towards a healthy economy. She has taken several initiatives for promoting electric vehicles, reducing air pollution and encouraging afforestation. She allocated Rs. 460 crores for pollution control schemes including National Clean Air Programme (NCAP) with a vision for ‘pollution-free India with green Mother Earth and blue skies.
She allocated Rs. 460 crores for pollution control schemes including National Clean Air Programme (NCAP) with a vision for ‘pollution-free India with green Mother Earth and blue skies.
Sitharaman proposed lowering of GST on electric vehicles (EV) from 12 to five percent. Also, to make them affordable to consumers, the government will provide additional income tax deduction of Rs. 1.5 lakh on the interest paid on the loans taken to purchase EVs.
The budget also throws important light on some of these:
- Fiscal deficit down to 3.3% from 3.4%
- No income tax for annual income upto Rs. 5 Lakh
- Aadhar & PAN interchangeable for filing IT return
- Steps to provide relief from scrutiny for startups
- Massive programme for railway station modernisation
- Railways to be encouraged to invest more in suburban railways
- National Sports Education Board for development of sportspersons
- Propose Aadhar cards for NRIs with Indian passports
- New National Education Policy to transform education system
- National Research Foundation to fund, coordinate, promote research
- Expand ‘Swachh Bharat’ to undertake solid waste management in villages
- BharatNet to aim at internet connectivity in local bodies
- Steps to attract foreign students to India for higher education
- Develop 75, 000 skilled entrepreneurs in agro-rural industries
- See rapid urbanisation as an opportunity rather than a challenge
- Comprehensive restructuring of National Highways Programme
- ‘Har ghar jal’ for all rural homes
- 100% FDI to be permitted for insurance intermediaries
- Examine further opening of FDI in aviation, media, animation, insurance
Thus, we see that although the budget was one with a ‘gaon, gareeb, kisan’ focus where the government seems to follow the mantra of reform, perform, transform, we are yet to wait and watch how well the policies get implemented…
Thus, we see that although the budget was one with a ‘gaon, gareeb, kisan’ focus where the government seems to follow the mantra of reform, perform, transform, we are yet to wait and watch how well the policies get implemented and how efficiently do these important budgetary allocations find the right implementation so the benefit of these policies may reach the ever-growing population of this country. The steps taken by the government maybe hailed as laudatory, yet it all boils down to effective implementation, which is a challenge ahead.
Photo from the Internet
