Skip to main content

Union budget’s blind spot: Big investments, small relief for the poorest

By Dr. Jayant Kumar* 
The ninth Union Budget presented by Nirmala Sitharaman once again places its faith in growth through public investment, fiscal discipline and long-term capacity building. From the perspective of India’s poor and ultra-poor—particularly women, children, the landless and unskilled labour—the budget signals intent but falls short on urgency. Its central promise lies in future gains, while present vulnerabilities remain inadequately addressed.
The increase in capital expenditure to ₹12.2 lakh crore is rightly projected as a pro-poor move. Infrastructure spending is among the few policy tools capable of generating employment for landless and unskilled workers who depend on informal, seasonal and daily-wage labour. Yet experience shows that such employment is often short-lived, contractor-driven and unevenly distributed. In many districts, large infrastructure projects rely increasingly on machinery rather than labour, limiting job creation for the poorest. Without explicit labour-intensity norms or convergence with employment guarantee mechanisms, the capacity of high capital expenditure to stabilise incomes for the landless remains uncertain.
Health allocations of around ₹1.05 lakh crore appear reassuring on paper, but the lived reality of public health delivery tells a more sobering story. Despite flagship insurance and primary healthcare programmes, poor households continue to incur high out-of-pocket expenditure. In many rural and peri-urban areas, primary health centres face chronic shortages of doctors, diagnostics and essential medicines. Women often travel long distances for maternal care, while migrant and unregistered workers frequently find themselves excluded from health insurance coverage due to documentation barriers. Increased allocations, without addressing these structural weaknesses, risk reinforcing a system in which public schemes exist but remain functionally inaccessible to those who need them most.
The story is similar in education. Allocations of about ₹1.39 lakh crore reaffirm commitment, yet children of landless and unskilled workers continue to experience high dropout rates, particularly at the secondary level. Seasonal migration disrupts schooling, and digital learning initiatives have failed to reach households without devices, connectivity or adult support. Despite multiple scholarship and child welfare schemes, delays in disbursement and complex eligibility requirements often dilute impact. For adolescent girls in poor households, economic stress still pushes education behind unpaid care work or early marriage—outcomes that higher budgetary numbers alone cannot reverse.
Women’s livelihoods receive attention through initiatives such as SHE Marts and the continued emphasis on creating “Lakhpati Didis.” While the intent is commendable, past experience with self-help groups and livelihood missions suggests caution. Many women-led enterprises struggle not due to a lack of effort, but because of limited market access, delayed payments, weak procurement linkages and insufficient working capital. In several states, self-help group members remain trapped in low-return activities, recycling small loans without meaningful income growth. Without addressing these bottlenecks, new livelihood platforms risk replicating the same structural constraints under a new label.
More broadly, the limited effectiveness of public and social schemes stems from persistent design and delivery failures. Fragmentation across departments, exclusion errors in beneficiary identification, and an over-reliance on digital platforms have left many of the poorest households—especially migrant labourers, single women and the homeless—outside the effective reach of welfare systems. Benefits are often delayed, partial or unpredictable, reducing their capacity to smooth consumption or protect against shocks. The budget does little to acknowledge, let alone correct, these systemic weaknesses.
Most strikingly, the budget offers no meaningful short-term relief. There is no expansion of direct cash transfers, no additional consumption support and no targeted safety net for landless and unskilled workers facing volatile employment and rising living costs. Growth generated through infrastructure, education and enterprise development will take time to reach households. Hunger, wage loss and indebtedness, however, are immediate realities.
In essence, the budget strengthens the scaffolding of future growth while underestimating the fragility of those at the bottom. For households earning ₹5–8 lakh a year, delayed benefits may be tolerable. For the landless poor, women-headed households and families with young children, it is a precarious wager. A genuinely inclusive budget would have combined long-term investment with meaningful reform of existing schemes and immediate protection for those whose lives are shaped not by projections, but by daily survival.
---
*Former head of program, CASA; former chair of VANI and Credibility Alliance; Based in Delhi

Comments

TRENDING

Swami Vivekananda's views on caste and sexuality were 'painfully' regressive

By Bhaskar Sur* Swami Vivekananda now belongs more to the modern Hindu mythology than reality. It makes a daunting job to discover the real human being who knew unemployment, humiliation of losing a teaching job for 'incompetence', longed in vain for the bliss of a happy conjugal life only to suffer the consequent frustration.

CFA flags ‘welfare retreat’ in Union Budget 2026–27, alleges corporate bias

By Jag Jivan  The advocacy group Centre for Financial Accountability (CFA) has sharply criticised the Union Budget 2026–27 , calling it a “budget sans kartavya” that weakens public welfare while favouring private corporations, even as inequality, climate risks and social distress deepen across the country.

From water scarcity to sustainable livelihoods: The turnaround of Salaiya Maaf

By Bharat Dogra   We were sitting at a central place in Salaiya Maaf village, located in Mahoba district of Uttar Pradesh, for a group discussion when an elderly woman said in an emotional voice, “It is so good that you people came. Land on which nothing grew can now produce good crops.”

When free trade meets unequal fields: The India–US agriculture question

By Vikas Meshram   The proposed trade agreement between India and the United States has triggered intense debate across the country. This agreement is not merely an attempt to expand bilateral trade; it is directly linked to Indian agriculture, the rural economy, democratic processes, and global geopolitics. Free trade agreements (FTAs) may appear attractive on the surface, but the political economy and social consequences behind them are often unequal and controversial. Once again, a fundamental question has surfaced: who will benefit from this agreement, and who will pay its price?

Why Russian oil has emerged as the flashpoint in India–US trade talks

By N.S. Venkataraman*  In recent years, India has entered into trade agreements with several countries, the latest being agreements with the European Union and the United States. While the India–EU trade agreement has been widely viewed in India as mutually beneficial and balanced, the trade agreement with the United States has generated comparatively greater debate and scrutiny.

'Big blow to crores of farmers’: Opposition mounts against US–India trade deal

By A Representative   Farmers’ organisations and political groups have sharply criticised the emerging contours of the US–India trade agreement, warning that it could severely undermine Indian agriculture, depress farm incomes and open the doors to genetically modified (GM) food imports in violation of domestic regulatory safeguards.

Penpa Tsering’s leadership and record under scrutiny amidst Tibetan exile elections

By Tseten Lhundup*  Within the Tibetan exile community, Penpa Tsering is often described as having risen through grassroots engagement. Born in 1967, he comes from an ordinary Tibetan family, pursued higher education at Delhi University in India, and went on to serve as Speaker of the Tibetan Parliament-in-Exile from 2008 to 2016. In 2021, he was elected Sikyong of the Central Tibetan Administration (CTA), becoming the second democratically elected political leader of the administration after Lobsang Sangay. 

From Puri to the State: How Odisha turned the dream of drinkable tap water into policy

By Hans Harelimana Hirwa, Mansee Bal Bhargava   Drinking water directly from the tap is generally associated with developed countries where it is considered safe and potable. Only about 50 countries around the world offer drinkable tap water, with the majority located in Europe and North America, and a few in Asia and Oceania. Iceland, Switzerland, Finland, Germany, and Singapore have the highest-quality tap water, followed by Canada, New Zealand, Japan, the USA, Australia, the UK, Costa Rica, and Chile.

Territorial greed of Trump, Xi Jinping, and Putin could make 2026 toxic

By N.S. Venkataraman*  The year 2025 closed with bloody conflicts across nations and groups, while the United Nations continued to appear ineffective—reduced to a debate forum with little impact on global peace and harmony.