3 Feb 2026·Source: The Indian Express

4 min

EconomySocial IssuesEDITORIAL

Budget Analysis: Prioritizing Elites Over Addressing Core Societal Needs

The budget is criticized for favoring elites and neglecting essential public needs.

Photo by Towfiqu barbhuiya

The article critiques the current budget, arguing that it is elitist and fails to address the needs of the common people. It suggests that the budget prioritizes the interests of the wealthy and corporations over essential public services and social welfare programs. The author contends that the budget does not adequately address critical issues such as poverty, healthcare, education, and employment.

The focus on tax cuts and incentives for the rich is seen as exacerbating inequality and neglecting the needs of the majority of the population. The article calls for a more equitable and inclusive budget that prioritizes the well-being of all citizens.

UPSC Exam Angles

GS Paper III (Economy): Government Budgeting, Fiscal Policy

Connects to syllabus topics like resource mobilization, inclusive growth, and sustainable development

Potential question types: Statement-based MCQs on budget components, analytical questions on budget's impact on inequality

Visual Insights

Budget Priorities: A Snapshot

Key indicators reflecting the budget's focus and potential impact on different sectors.

Healthcare Budget Allocation: Increase neededN/A
Education Budget Allocation: Increase neededN/A
Poverty Alleviation Budget: Increase neededN/A

More Information

Background

The concept of a budget has evolved significantly over time. Historically, budgets were primarily focused on revenue and expenditure management, ensuring the government had sufficient funds for its operations. The modern budget, however, is a comprehensive document that reflects the government's economic and social priorities. The Fiscal Responsibility and Budget Management (FRBM) Act, 2003 aimed to bring fiscal discipline and reduce the fiscal deficit. Over the years, budget-making has become more complex, incorporating various socio-economic objectives. Initially, budgets were largely administrative exercises. However, with the rise of welfare states, budgets started to include provisions for social welfare programs, infrastructure development, and poverty alleviation. The introduction of Five-Year Plans in India further shaped the budget's focus towards long-term development goals. These plans influenced resource allocation and sectoral priorities. The legal and constitutional framework for the budget in India is primarily governed by Article 112 of the Constitution, which mandates the presentation of the Annual Financial Statement before the Parliament. The budget-making process involves several stages, including preparation by the Ministry of Finance, scrutiny by parliamentary committees, and approval by both houses of Parliament. Various rules and regulations, such as the General Financial Rules, guide the financial management and expenditure control. Comparing India's budget-making process with other countries reveals both similarities and differences. Developed countries often have more sophisticated budgeting techniques, such as outcome-based budgeting, which focuses on the results achieved rather than just the inputs. Developing countries often face challenges in resource mobilization and efficient expenditure management. International organizations like the World Bank and the International Monetary Fund (IMF) play a role in advising and assisting countries in their budget-making processes.

Latest Developments

In recent years, there has been a growing emphasis on making the budget more transparent and participatory. The government has introduced initiatives like pre-budget consultations with various stakeholders, including economists, industry representatives, and civil society organizations. The use of technology has also increased, with online platforms providing access to budget documents and allowing citizens to provide feedback. The Goods and Services Tax (GST) implementation has significantly impacted revenue collection and fiscal federalism. However, there are ongoing debates about the effectiveness of the budget in addressing key socio-economic challenges. Some argue that the budget continues to prioritize certain sectors or groups over others, leading to inequalities. Others point to the need for greater efficiency in public spending and better targeting of social welfare programs. Institutions like NITI Aayog play a crucial role in providing inputs and recommendations for budget formulation, focusing on long-term development goals and sustainable growth. Looking ahead, the budget is expected to play an increasingly important role in achieving India's sustainable development goals and addressing climate change. The government has set ambitious targets for renewable energy, infrastructure development, and poverty reduction. The budget will need to allocate sufficient resources to these areas and ensure effective implementation of related programs. The focus is shifting towards outcome-based budgeting and evidence-based policymaking. Challenges remain in ensuring that the budget is truly inclusive and equitable. There is a need for greater transparency and accountability in public spending, as well as better monitoring and evaluation of program outcomes. Strengthening local governance and empowering communities can also help ensure that resources are allocated effectively and reach those who need them most. The budget needs to be aligned with the principles of social justice and sustainable development.

Frequently Asked Questions

1. What is the central argument of the article regarding the current budget?

The article argues that the current budget prioritizes the interests of the wealthy and corporations, neglecting the needs of the common people and essential public services.

2. According to the article, what critical issues are not adequately addressed in the budget?

The article suggests that the budget does not adequately address critical issues such as poverty, healthcare, education, and employment.

3. What is the Fiscal Responsibility and Budget Management (FRBM) Act, 2003, and why is it relevant in the context of budget analysis?

The Fiscal Responsibility and Budget Management (FRBM) Act, 2003, aims to ensure fiscal discipline and efficient management of public funds. It is relevant because it provides a framework for evaluating the government's budgetary performance and its commitment to fiscal responsibility.

4. What are the potential consequences of prioritizing tax cuts and incentives for the wealthy, as highlighted in the article?

The article suggests that prioritizing tax cuts and incentives for the wealthy can exacerbate inequality and neglect the needs of the majority of the population.

5. How has the concept of a budget evolved over time, according to the provided background context?

Historically, budgets were primarily focused on revenue and expenditure management. However, the modern budget is a comprehensive document that reflects the government's economic and social priorities.

6. What recent developments have aimed to make the budget more transparent and participatory?

Recent developments include pre-budget consultations with various stakeholders and increased use of technology to provide access to budget documents.

7. What kind of budget does the article advocate for?

The article calls for a more equitable and inclusive budget that prioritizes the well-being of all citizens.

8. In the context of the article, how might a UPSC aspirant define 'elitist' budgeting?

An 'elitist' budget, in this context, refers to a budget that disproportionately benefits the wealthy and corporations, often through tax cuts and incentives, while neglecting the needs of the poor and marginalized.

9. What are some potential interview questions that could arise from this article's critique of the budget?

Potential interview questions could include: 'What are the ethical considerations of prioritizing economic growth over social welfare?', 'How can the budget be made more inclusive and equitable?', and 'What are the long-term consequences of neglecting investment in healthcare and education?'

10. Why is this critique of the budget considered a 'high' importance topic?

This critique is considered a 'high' importance topic because it raises fundamental questions about the government's priorities and their impact on social and economic inequality, which are crucial for UPSC aspirants to understand.

Practice Questions (MCQs)

1. Consider the following statements regarding the Fiscal Responsibility and Budget Management (FRBM) Act, 2003: 1. The FRBM Act mandates the central government to reduce the fiscal deficit to 3% of GDP. 2. The Act provides a framework for fiscal discipline and aims to reduce government debt. 3. The FRBM Review Committee was headed by N.K. Singh. Which of the statements given above is/are correct?

A.1 and 2 only
B.2 and 3 only
C.1 and 3 only
D.1, 2 and 3

Show Answer

Answer: D

Statement 1 is CORRECT: The FRBM Act mandates the central government to reduce the fiscal deficit to 3% of GDP. This was a key objective of the Act to ensure fiscal prudence. Statement 2 is CORRECT: The Act provides a legal framework for fiscal discipline and aims to reduce government debt over time. It sets targets for fiscal indicators. Statement 3 is CORRECT: The FRBM Review Committee, which recommended changes to the Act, was indeed headed by N.K. Singh. This committee's recommendations influenced subsequent amendments to the FRBM Act.