In the recently presented interim budget for the fiscal year 2024-25, the Modi government underscored its commitment to key social welfare schemes aimed at addressing pressing issues such as unemployment, rural development, healthcare, women’s empowerment, and infrastructure. The budget, crucially positioned in an election year, focused on sustaining and enhancing schemes that have been instrumental in shaping the socio-economic landscape of India.
MGNREGA: The Rural Employment Guarantee Scheme, MGNREGA, continues to play a pivotal role in India’s social security framework. Initially initiated by the Congress government, MGNREGA received a notable allocation of Rs 60,000 Cr for FY 24, and this was revised to Rs 86,000 Cr. For the election year FY 25, the scheme has been allocated Rs 86,000 Cr, emphasizing the government’s commitment to providing at least 100 days of wage employment to every rural household engaged in unskilled manual work.
Launched in 2015 with the commitment to deliver affordable housing to both the urban poor and rural homeless by 2022, the scheme received an allocation of Rs 79,590 Cr in FY 24. However, the revised estimate for the scheme decreased to Rs 54,103 Cr. For FY 25, the budget allocates Rs 80,671 Cr. The initiative comprises two components, namely PMAY (Urban) and PMAY (Gramin), emphasizing the promotion of affordable housing for all through subsidy mechanisms.
Ayushman Bharat: The flagship health scheme, Ayushman Bharat, launched in 2018, continues to be a cornerstone of the government’s healthcare initiatives. With the objective of providing health insurance coverage to 500 million underprivileged citizens, the scheme received an allocation of Rs 7,200 Cr for FY 24. The revised estimate for FY 24 is Rs 6,881 Cr, and Rs 7,500 Cr has been allocated for FY 25. Ayushman Bharat remains one of the world’s largest government-funded healthcare programs, offering coverage of up to Rs 5 lakh per family per year for hospitalization.
Mission Shakti: Empowering women and ensuring their safety and dignity are central themes in the Modi government’s policymaking. Launched in 2020, Mission Shakti focuses on women’s empowerment through various initiatives, including One Stop Centres for those affected by violence. The scheme’s allocation has nearly doubled from Rs 1,912 Cr in 2020-21 to Rs 3,143 Cr in 2023-24, with Rs 3,146 Cr allocated for FY 25.
Jal Jeevan Mission: A flagship project aimed at providing safe drinking water through individual tap connections to all rural households by 2024, Jal Jeevan Mission has been allocated Rs 70,000 Cr for FY 24. The revised estimates and the allocation for FY 25 stand at Rs 70,000 Cr and Rs 70,163 Cr, respectively, emphasizing the government’s commitment to achieving the United Nations’ Sustainable Development Goal related to water and sanitation.
Pradhan Mantri Gram Sadak Yojana (PMGSY): The rural roads scheme, PMGSY, is crucial for improving connectivity in rural areas. With an allocation of Rs 19,000 Cr for FY 25 and revised estimates of Rs 17,000 Cr for FY 24, the scheme continues to be instrumental in enhancing infrastructure and connectivity in rural India.
As the Government navigates key challenges such as employment creation and tepid rural demand, the interim budget for 2024-25 reaffirms its dedication to pivotal schemes that address these issues. The allocation of funds to MGNREGA, PMAY, Ayushman Bharat, Mission Shakti, Jal Jeevan Mission, and PMGSY underlines the government’s commitment to holistic development and socio-economic upliftment.
