Union Budget 2025-26: Economic vision or lack thereof?

Analysis of the Union Budget 2025-26, presented by India's Finance Minister Nirmala Sitharaman, with a sector-wise study of the government's vision for economic growth

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The Squirrels Bureau
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Union Finance Minister Nirmala Sitharaman presented the Union Budget for 2025-26, outlining the government's vision for the country's economic growth and development.

The budget proposals are designed to accelerate growth, secure inclusive development and invigorate private-sector investments, but quite a few issues flagged by the Economic Survey yesterday were left unaddressed.

Key takeaways

Agriculture and rural development*: The budget focuses on spurring agricultural growth and productivity, building rural prosperity, and promoting inclusive growth. The government has proposed several initiatives, including Prime Minister Dhan-Dhaanya Krishi Yojana, to enhance agricultural productivity and improve the lives of farmers.

MSMEs and manufacturing: The budget aims to boost MSMEs and manufacturing, recognizing their critical role in India's economic growth. The government has proposed measures to enhance access to credit, improve competitiveness, and promote innovation.

Investing in people and economy: The budget emphasizes the importance of investing in people, economy, and innovation. The government has proposed initiatives to improve education, healthcare, and skill development, as well as measures to enhance infrastructure development and promote economic growth.

Energy and environment: The budget highlights the government's commitment to sustainable development and energy security. The government has proposed measures to promote renewable energy, improve energy efficiency, and reduce carbon emissions.

Sector-wise analysis

Agriculture: The budget proposes several initiatives to enhance agricultural productivity, including the Prime Minister Dhan-Dhaanya Krishi Yojana. The government has also proposed measures to promote crop diversification, improve irrigation facilities, and enhance post-harvest management.

Manufacturing: The budget aims to boost manufacturing, recognising its critical role in India's economic growth. The government has proposed measures to enhance access to credit, improve competitiveness, and promote innovation.

Infrastructure: The budget emphasises the importance of infrastructure development in promoting economic growth. The government has proposed measures to enhance infrastructure development, including the development of greenfield airports, expansion of railway networks, and improvement of road connectivity.

Education and healthcare: The budget proposes initiatives to improve education and healthcare, including the establishment of new medical colleges, expansion of existing healthcare facilities, and improvement of educational infrastructure.

The government would like people to believe that the Union Budget 2025-26 presents a comprehensive vision for India's economic growth and development. The budget proposals are designed to accelerate growth, secure inclusive development, and invigorate private-sector investments. While the budget has several positive features, its success will depend on effective implementation and monitoring.

Criticisms and concerns

Opposition: Opposition parties have criticised the budget for not doing enough to address the economic slowdown, unemployment, and rural distress.

Economists: Some economists have expressed concerns that the budget may not be able to achieve its growth targets, given the global economic uncertainty and domestic challenges.

The experts on The Squirrels' YouTube channel said, for example, that while the finance minister's speech showed the government's right intent in several sectors that the Economic Survey had marked for better treatment, there wasn't sufficient allocation for each. The budget does not invest in ideas of the future, they said.

Social activists: Social activists have criticised the budget for not allocating sufficient funds for key social sectors, such as education, healthcare, and social welfare.

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