Disappointing First budget, Modi govt fails to inspire the nation

By Mukesh Devrari 

Never in the history of India has such a dull budget been presented by any finance minister. The BJP government began its third term with this budget, yet it offers nothing substantial to anyone. It is a widely held belief that the middle class supports the BJP because of its emphasis on economic development, rather than relying on distributing freebies to gain votes during elections. The BJP has historically championed globalization, liberalization, and privatization. In fact, this commitment cost them the 2004 election. Since then, no government has dared to speak openly about the Ministry of Disinvestment.

There was hope that the BJP would provide some relief to taxpayers. Salaried individuals, who form the backbone of India's taxpayer base, expected reduced tax rates. Unfortunately, this budget failed to meet their expectations, leaving the BJP’s largest support base — the middle class — deeply disappointed.

India is an aspirational nation. It has a vast young population, much of which is still struggling to meet basic needs. Poverty, unemployment, low wages, inflation, poor infrastructure, inadequate civic amenities, expensive healthcare and higher education, and the poor state of primary education are everyday realities for many. Despite these challenges, there remains a strong belief among Indians that this century belongs to them. They take personal pride in large-scale national projects that symbolize India's rise on the global stage.

India dreams of the world’s largest bridges, tallest buildings, biggest factories, longest expressways, and grandest airports and ports. It also needs world-class universities and hospitals. Yet, this budget failed to announce any such visionary project. The BJP could have proposed the construction of the world’s largest hospital in Delhi, or the densest metro network, or the most advanced university — projects that would have inspired the nation and instilled belief that India's time has come. But it offered nothing of that sort.

Unfortunately, Modi has continued to offer piecemeal solutions to India’s deep-rooted problems. It is time the nation learns from past failures. India's fortunes will not change by covering up systemic flaws. One of the biggest flaws is our tendency to avoid confronting problems directly, resorting instead to short-term solutions. This mindset underlies many of the nation’s chronic issues.

Unemployment is currently the most pressing issue, affecting every state and union territory. We are witnessing distressing images of thousands of educated youth lining up for a handful of private-sector jobs in Gujarat and Maharashtra. While mainstream media may downplay the crisis, social media is bringing these harsh realities into the public eye.

So what has the BJP done in this budget to address unemployment? A straightforward solution would be to direct all Public Sector Undertakings (PSUs) and banks to fill their vacant positions, potentially creating over a million high-quality jobs for young Indians. Additionally, the government could incentivize private companies to hire young people by covering their first year’s salary — a policy that would help make them job-ready. Instead, the government chose a piecemeal approach: offering internships that pay a meager ₹6,000 per month.

Another transformative step could have been to simplify access to government loans for higher education in STEM fields or to launch new businesses. By offering collateral-free loans of up to ₹1 crore, the government could enable thousands of youth to pursue education or entrepreneurship. While some of this investment might not yield returns, many enterprising individuals would successfully create self-employment opportunities. The process should be simple, and the government should guarantee the loans to reduce risk for banks.