Last Updated: February 01, 2024, 15:21 IST
Prime Minister Narendra Modi has led the govt from 2014-24, while Sonia Gandhi-led UPA was in power from 2005 to 2014. (PTI File)
As the PM Modi-led National Democratic Alliance (NDA) completes 10 years, a look at how the budgets in the Bharatiya Janata Party-led regime were different from those during the Sonia Gandhi-led United Progressive Alliance (UPA) regime of 10 years
Prime Minister Narendra Modi, in his speech on the interim budget 2024-25 on Thursday, said that “while keeping fiscal deficit under control, capital expenditure has been given a historic high of Rs 11,11,111 crore”, which in a manner is a “sweet spot”.
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Modi said, “With this, besides building India’s modern infrastructure of the 21st century, innumerable new job opportunities for the youth will be prepared. It has confidence of continuity. It will empower all 4 pillars of Viksit Bharat- Yuva, Garib, Mahila and Kisan. This Budget gives the guarantee of making India a developed nation by 2047.”
“This Budget stresses on empowerment of the poor and the middle class and creation of new employment opportunities for them. It has announced to construct 2 crore more houses for the poor. We aim to have 3 crore ‘Lakhpati Didis’ now. ASHA and Aganwadi workers will also get the benefit of the Ayushman Bharat scheme,” he said.
As the PM Modi-led National Democratic Alliance (NDA) completes 10 years, a look at how the budgets in the Bharatiya Janata Party-led regime were different from those during the Sonia Gandhi-led United Progressive Alliance (UPA) regime of 10 years.
DURING THE CONG-LED UPA REGIME
- In the February 2014 Interim Budget, then Finance Minister P Chidambaram dishonestly pushed 2013-14 payments of subsides on oil and fertilizers (Rs 35,000 crore) to next year to artificially reduce the deficit. This played havoc with cash flow of these companies, destroying growth.
- The plan expenditure was reduced by Rs 80,000 crore to manage deficit, thus killing all productive investment.
- Payments to infrastructure and other companies were brought to a halt, stifling growth.
- Just Rs 8,000 crore was spent in Jan-March 2014 against the usual Rs 85,000 crore.Between 2005 to 2014, the capital expenditure of government had fallen from 23% to mere 14%, leading to joblessness.
DURING THE BJP-LED NDA REGIME
- Transparent budgeting with every payment accounted for and yet maintaining fiscal deficit glide path.
- Capex, unlike in the UPA era of reducing, is on a record high and continuously increasing. Effective overall capex is Rs 15 lakh crore, with Rs 11.1 lakh crore only on infrastructure.
- India is on a high GDP growth, moderate inflation, controlled deficit, record high capex expenditure and declining CAD.
- The last 10 years of NDA have been high growth and high job and employment generating years.
