The Government’s vision of making India a developed nation by 2047 (Viksit Bharat) is built on four pillars: Yuva (Youth), Garib (Poor), Mahilayen (Women), and Annadata (Farmers). While this is an ambitious and promising plan, achieving it requires adequate funding, resources, and a strategic action plan. Without these, the dream of “Viksit Bharat” may remain confined to paper.
Let’s analyze the Budget 2025-26 to understand how the Government aims to turn this vision into reality. A budget is not just a financial document—it shapes the future of a nation and reflects the Government’s approach to development. But does this budget address the needs of all sections of society?
For Whom is the Budget Really?
The much-awaited Budget 2025-26 was declared and labeled a “People’s Budget.” But is it truly for the people? A deeper analysis raises questions. According to the State of Inequality in India Report, 90% of Indians earn less than ₹25,000 per month. This highlights a grim reality: the majority of Indians live with minimal income and struggle to make ends meet.
The budget announced relief for those earning up to ₹12 lakh per year. While this may seem like a step forward for the middle class, it benefits only a small section of the population. Meanwhile, indirect taxes—applicable to all income groups—continue to place a disproportionate burden on the poorest.
The reality is stark. While direct tax relief appears to support the middle class, the reliance on indirect taxes, which disproportionately affect low-income households, deepens inequality. This raises an important question: does the budget prioritize the needs of the majority, or does it favour a specific section of society?
Social Welfare and Poverty Alleviation
In 2024-25, ₹2.6 lakh crore was allocated to social welfare schemes. However, the Mahatma Gandhi National Rural Employment Guarantee Act (MNREGA) budget saw a steep cut from ₹89,400 crore in 2023-24 to ₹60,000 crore in 2024-25. By 2025-26, MNREGA allocations dropped further, while the overall social welfare budget was reduced to ₹ 1.9 lakh crore.
The additional ₹ 10,000 crore for skill development programs is a positive move but fails to address the immediate needs of rural labourers. MNREGA has been a lifeline for rural households, and its reduced budget threatens the livelihoods of millions. Other key social welfare schemes like the National Health Mission (NHM), Sarva Shiksha Abhiyan (SSA), and Integrated Child Development Services (ICDS) have also faced cuts, affecting essential services for marginalized communities.
Health and Education
The health budget increased marginally from ₹ 88,956 crore in 2024-25 to ₹ 91,203 crore in 2025-26. The focus on Ayushman Bharat is notable, but challenges like malnutrition, maternal health, and rural healthcare infrastructure remain unresolved.
Education saw a rise in funding from ₹ 1.13 lakh crore in 2024-25 to ₹ 1.22 lakh crore in 2025-26. While skilling and higher education received attention, government schools continue to suffer from poor infrastructure and chronic underfunding. The growing reliance on digital tools for education fails to address the digital divide in rural areas.
Agriculture and Rural Development
The agriculture budget rose from ₹ 1.39 lakh crore in 2024-25 to ₹ 1.5 lakh crore in 2025-26. Positive measures like increased funding for irrigation and a credit guarantee scheme for small farmers are steps forward. However, the stagnant Minimum Support Price (MSP) remains a critical issue. Landless agricultural workers excluded from credit schemes may face severe challenges. Investments in rural infrastructure, including storage and market access, remain inadequate to address systemic issues.
Housing and Urban Development
The budget for affordable housing under the Pradhan Mantri Awas Yojana (PMAY) increased from ₹ 79,000 crore in 2024-25 to ₹ 85,000 crore in 2025-26. While this benefits urban low-income families, it overlooks the housing needs of migrant workers and slum dwellers. Urban planning still lacks an inclusive approach, perpetuating inequality in access to affordable housing.
Jal Jeevan Mission
The Jal Jeevan Mission (JJM) saw a decline in funding, with allocations dropping from ₹ 70,000 crore in 2023-24 to ₹ 60,000 crore in 2024-25 and remaining stagnant in 2025-26. The reduced funding has slowed the program’s implementation, raising concerns in water-scarce rural regions where access to clean drinking water remains a pressing issue.
The Union Budget 2025-26 introduces new schemes and shows incremental progress in skilling and infrastructure. However, it falls short of addressing the immediate needs of India’s marginalized communities. Allocations for critical programs like MNREGA have been reduced. Increases in health, education, and social welfare budgets are inadequate. The budget reflects a growing disconnect between policy priorities and the realities of the poor. Rural employment, affordable healthcare, and quality education remain neglected. This neglect exacerbates inequality and leaves millions struggling to meet basic needs. The focus on ambitious initiatives like digital education and skilling overlooks infrastructural and digital divides. This limits their impact on underprivileged communities. For economic growth to lead to meaningful progress, the Government must empower the underprivileged. It must address inequality and invest significantly in the social sector.
The vision of Viksit Bharat can only be achieved when every individual is empowered. This includes those at the bottom of the social and economic hierarchy. They must be given equal opportunities to lead a dignified life. For India to become a developed nation by 2047, no one should be left behind. The growth and development of every citizen must be prioritized.
(This article is contributed by Soumyashree Mohanty, Research Associate at CYDA)
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Good analysis