The budget proposal prioritizes long-term economic development through a series of “Next Generation Reforms.” To drive long-term economic growth and job creation, the new budget prioritizes a three-pronged approach. First, a comprehensive Economic Policy Framework will be established to guide future reforms across various sectors. This framework aims to boost productivity by focusing on improvements in land management, labor skills, access to capital, fostering entrepreneurship, and leveraging technology. Second, the central government will collaborate with states to implement these key reforms. To incentivize swift action, significant financial rewards will be offered to states that complete their reform agendas within three years. This collaborative approach ensures a nationwide focus on economic development. Here’s a breakdown of the key areas addressed:
Land Reforms:
Rural: Land records will be digitized and a unique identification number assigned to each plot (ULPIN). This will improve land management, credit access, and agricultural services.
Urban: Land records will be digitized with GIS mapping, streamlining property record administration and tax collection.
Labor Reforms:
Skilling and Employment Services: A one-stop online platform will integrate various government portals to provide easy access to employment and skill development services.
Compliance: Shram Suvidha and Samadhan portals will be revamped to simplify compliance procedures for businesses.
Capital and Entrepreneurship:
Financial Sector Vision: A five-year strategy will be developed to guide the growth and modernization of the financial sector.
Climate Financing: A system will be created to categorize climate-friendly projects, making it easier for them to access funding.
Variable Capital Companies: Legislation will be introduced to streamline financing for aircraft, ships, and private equity investments.
Foreign Investment: Regulations will be simplified to attract foreign investment and promote the use of Indian rupees in overseas transactions.
Other Initiatives:
NPS Vatsalya: A new savings scheme will allow parents and guardians to invest for their minor children, seamlessly transitioning to a regular NPS account upon reaching adulthood.
Digitalization: Efforts to digitize the economy will be intensified, improving access to services and resources for all citizens.
Ease of Doing Business: The Jan Vishwas Bill 2.0 aims to further simplify regulations for businesses. States will be incentivized to implement reforms and digitize processes.
Data Governance: Improved data collection, processing, and management will be facilitated using technology.
New Pension Scheme (NPS): A committee reviewing the NPS is nearing completion. A solution that addresses concerns while maintaining fiscal responsibility is expected.
Fiscal Responsibility:
The budget outlines a commitment to fiscal consolidation. The government aims to reduce the fiscal deficit to below 4.5% of GDP next year and keep it on a declining path over the long term.
This budget sets ambitious goals for economic growth and development through a combination of central and state-level reforms. The focus on improving land records, labor services, access to capital, and digitalization aims to create a more efficient and competitive economy for the future.
The implementation of the above proposals will need new regulations and norms to be adopted and put in to action.
