At the Prana Pratishtha ceremony of the Ram Mandir in Ayodhya on January 22, 2024, Prime Minister Modi enunciated his views on the principles of governance and development as “Ram Se Rajya, Dev Se Desh”. On his return to New Delhi the same day, he followed it up by announcing the Pradhan Mantri Suryodaya Yojana, a rooftop solar programme for 1 crore households.
It was an appropriate tribute that a potentially game-changing, decentralised, sustainable solar energy programme for primarily rural households was announced on the day of the consecration of the Suryavanshi Ikshvaku deity. Budget 2024 is the economic blueprint of that philosophy.
The total capital expenditure target for FY 2025 has been set at an auspicious Rs 11.11 lakh crore, an increase of an understandably modest 11.1 percent over the previous year budget. More importantly, however, while its general policy direction of strengthening logistics corridors, transportation, and defence infrastructure has continued, the key takeaway from this budget is its renewed focus on strengthening rural infrastructure – building more houses through the Awas Yojana, the rooftop solar scheme, agricultural storage and warehousing, and fisheries.
From a policy viewpoint, the importance of these announcements lies in their potential for generating jobs and supporting incomes in rural areas over the immediate and medium term through their potentially high multiplier impacts, thereby laying strong foundations for inclusive and secular growth.
Sustainability and the green energy transition, a focus until now primarily of large and big ticket infrastructure projects, is now being taken to the infrastructure development initiative targeted at improving decentralised employment and income in rural areas. The promise of free electricity up to 300 units under the Suryodaya scheme and the potential for net metering income in the future, for example, speak to a future of sustainable decentralised power generation and distribution that could involve low cost storage batteries as the new sustainable energy ecosystem develops.
In summary, while the interim Budget is one more of intent and direction than of significantly increased numbers, it demonstrates the government’s commitment and lays out a clear roadmap for the future. Its continued fiscal prudence even in an election year suggests a firm resolve for achieving its philosophical vision of an inclusive and secular “Ram se Rajya, Dev se Desh” for a Viksit Bharat by 2047.
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