FATE Analysis of Union Budget 2025-26: A Needonomics Perspective

GG News Bureau
New Delhi, 19th Jan. By Prof. Madan Mohan Goel, Former Vice-Chancellor

As Finance Minister (FM) Nirmala Sitharaman prepares to present the second full budget of the Modi 3.0 government on February 1, 2025, the eNM Research Lab Global Centre for Needonomics undertakes a FATE (Future Anticipated Trends and Events) Analysis of Union Budget 2025-26. This analysis is grounded in the principles of the Needonomics School of Thought, emphasizing national interest and responsible fiscal planning.

Reflections on Union Budget 2024-25

The Union Budget 2024-25, with total allocations of Rs 4820512 crore (Revenue expenditure: Rs 3709401 crore; Capital expenditure: Rs 1111111 crore), laid necessary but insufficient groundwork for India’s journey towards becoming a Viksit Bharat by 2047, including Haryana. A pressing concern remains the fiscal deficit, which stood at 4.9% of GDP (Rs 1613312 crore), failing to meet the Fiscal Responsibility and Budget Management (FRBM) Act target of below 3%.

The budget highlighted unsustainable fiscal dynamics, with 19% of every rupee spent on non-productive interest payments and 27% sourced from loans and liabilities. Such a structure increases the economic burden on the nation and underscores the urgency of adopting Gita-based Needonomics as a guiding philosophy.

Needonomics: A Blueprint for Viksit Bharat

The Needonomics School of Thought emphasizes mindful consumption (needo-consumption), responsible production (needo-production), equitable distribution (needo-distribution), and altruistic trade (needo-trade). This framework aligns with the vision of inclusive growth and sustainable development for achieving Viksit Bharat by 2047. Key recommendations for Union Budget 2025-26 include:

1. Skill Development for Youth

The youth should be equipped with market-relevant skills that contribute not only to economic growth but also to societal well-being. Emphasizing skill development and creating employment opportunities is essential for harnessing the demographic dividend.

2. Leveraging the Education Cess for NEP Implementation

To address financial challenges faced by states in implementing the National Education Policy (NEP), the education cess collected from taxpayers must be utilized effectively. Transparent and targeted allocation will ensure holistic and equitable educational reforms.

3. Promoting Mindful Consumption

For a healthy economy with a 6.5-7% growth rate, stakeholders must embrace mindful consumption. Consumers, producers, and policymakers should shift from a culture of careless or excessive consumption to need-based economic behavior.

4. Enhancing Domestic Savings

India’s domestic savings rate lags by 10% compared to China, necessitating a cultural shift towards a needo-saving mindset. Higher savings will enable greater investments, reduce dependence on foreign capital, and bolster economic resilience.

5. Adopting a Rainbow Revolution in Agriculture

A farmer-friendly federal strategy must include:

• Increasing agricultural productivity,
• Expanding agro-product processing,
• Boosting exports of agricultural goods. This “rainbow revolution” will ensure inclusive growth and rural prosperity.

6. Streamlining Public Expenditure

Reducing the compliance burden and adopting Dr. B.R. Ambedkar’s canons of public expenditure—faithfulness, wisdom, and economy in execution—are crucial for enhancing efficiency and transparency in governance.

Fiscal Discipline and Equity

Greater emphasis on reducing fiscal deficits, enhancing domestic savings, and ensuring equitable resource distribution is imperative. The government must prioritize reducing non-productive expenditures, curbing borrowing dependencies, and fostering a culture of fiscal prudence.

Competing with China

To compete effectively with China, India must:

• Increase its domestic savings rate,
• Focus on exports driven by value addition,
• Strengthen infrastructure and ease of doing business.

Towards Needo-Happiness and Needo-Health

Achieving Viksit Bharat by 2047 requires a holistic approach to well-being. Policies must prioritize the masses over the classes, fostering needo-happiness and needo-health. This includes mental and physical health initiatives, supported by spiritual and ethical education rooted in the Gita’s teachings.

Conclusion

The Union Budget 2025-26 presents an opportunity to align fiscal policies with the principles of Needonomics, creating a roadmap for sustainable and inclusive growth. By adopting mindful consumption, responsible fiscal management, and equitable resource allocation, India can pave the way for a resilient and prosperous future as Viksit Bharat by 2047.