Book Title: Shaping the Future: Innovation, Sustainability, and Inclusive Growth in a Globalized Economy
Editors: Editors: Dr. Shanu Singh, and Dr. Yashmita Awasthi
Student Editor: Krishna Singh Rawat
ISBN: 978-93-7183-006-5
Chapter: 27
DOI: https://doi.org/10.59646/725/27
Authors: Grisha Soni, Shreshtha Nigam, and Dr. Surbhi Srivastava
Abstract
The Union Budgets of India from 2021-22 to 2025-26 show a deliberate transition away from a post-pandemic recovery toward infrastructure-based economic development, while implementing social inclusion and environmental standards. The COVID-19 pandemic, together with worldwide economic downturns and fiscal consolidation requirements mandating a deficit below 4.5% of GDP by 2025-26, has necessitated these budgets to achieve balance across six essential areas, including health infrastructure, inclusive development, MSMEs, clean energy and digital public infrastructure. Social expenditure increases at a nominal level, but GDP shares for health and education remain dormant because health spending now stands at 2.1%. In comparison, the National Health Policy target is 2.5%, and education expenditure is 2.9%, compared to the NEP benchmark of 6%. However, capital expenditure has increased twofold, indicating they will invest their money productively rather than subsidize. This study evaluates shift across thematic areas that cover sectoral trends in health education and nutrition, the infrastructure-capex model, gender-responsive budgeting, climate action, and federalism. The study identifies implementation gaps, including ongoing health problems and low program use, to demonstrate that fair results depend on better governance.