Union Budget 2024-25: Panel Discussion with Eminent Scholars

A panel discussion on the Union Budget 2024-25 was hosted by Vinayaka Mission’s School of Economics and Public Policy (VSEP) on August 3. The event featured experts from Madras Institute of Development Studies (MIDS), Shiv Nadar University, and Goa Institute of Management.

The session was initiated by Dr. Debdulal Thakur, Dean of VSEP, who introduced the panelists. A comprehensive presentation on the key aspects of the Union Budget 2024-25 was delivered by Dr. Shahin Khan, Assistant Professor, VSEP.

Prof. Suresh Babu from MIDS provided a contextual understanding of the budget. The global economy’s turbulence, marked by fluctuations in growth rates, disruptions in supply chains due to the West Asia conflict, and Europe’s economic recovery, was highlighted. The government’s adherence to fiscal consolidation through deficit reduction, robust tax collection, and increased dividends from RBI and PSUs was lauded. However, concerns were raised about the multiplier effects of capital expenditure and its potential to attract private investment. The budget’s shortcomings in addressing employment growth, education, health, and agriculture, particularly in terms of climate resilience, workforce, and gender dimensions, were also pointed out.

Dr. Jaydeep Mukherjee from Shiv Nadar University focused on the budget’s approach to savings and investment. The budget’s emphasis on fiscal consolidation and improved expenditure quality was acknowledged. While public capital expenditure drove recent growth, the need for private sector participation to sustain economic growth and job creation was underscored. The employment-linked incentive (ELI) schemes were seen as having long-term multiplier effects on consumption demand, but their immediate impact on household income was deemed limited. The budget’s modest allocation to the rural and agricultural sector was seen as a step towards reviving rural demand through reforms and skill development. Challenges in boosting investments and low savings rates were highlighted. Some relief provided in the New Pension Scheme for middle-class savings was mentioned.

Dr. Kingshuk Sarkar from Goa Institute of Management analyzed the budget’s focus on employment generation. The emphasis on first-time employment and internship opportunities was noted. Efforts to increase women’s participation in the workforce through skilling programs, educational loans, and the ‘Vatsalya’ scheme were appreciated. However, concerns were raised about the quality of employment generated in recent years, with a predominance of low-wage jobs and self-employment in informal sectors.

A lively question-and-answer session followed the presentations. The event concluded with a vote of thanks by Dr. Debdulal Thakur.

The panel discussion offered a comprehensive analysis of the Union Budget 2024-25, highlighting both its strengths and areas for improvement.