Each financial year starts with a budget, which is prepared and approved before it begins. This is a constitutional necessity that charts out the financial strategy of the country or state for that year to achieve its various goals and is therefore exercised religiously by the center and also by the states individually. But this all-important subject doesn’t generate much interest in the common people, owing to the use of complex financial terms and jargon and their implications, which put the common man off.
However, understanding the budget is beneficial for people in many ways. Devendra Fadnavis is a rare type of politician who is not only an expert in budgeting and analyzing the budget but also keen on educating people to understand a budget and benefit from the provisions or avert financial risks. His book ‘Arthsankalp’ explains the technicalities of budgeting and how to read a budget.
Why is it important for the common man to understand budget analyses?
Almost 70% of the population struggles to manage their expenses within their earnings. Paying monthly bills, meeting medical expenses, maintaining the status quo, and still saving sufficiently for rainy days – a family man is always bogged down with varied financial pressures. Following the union budget and making good use of the provisions related to taxation, savings, and investments, one can have better control over managing their finances and achieving goals. In all, the benefits can be summed up as:
- Gives a 360° view of one’s financial standing
- Allows one to align their monthly expenses
- Enables one to fulfill their financial goals
- Helps save for a rainy day
- Curbs excessive borrowing
- Reduces money-related stress
Passionate about studying and analyzing budget since his formative years
Understanding the intricacies of the state and union budgets and explaining them to common people in layman’s words is something Devendra Fadnavis has always enjoyed since his early years. Even the leaders from his opponent parties acknowledge his skill and knowledge, acquired through a rigorous self-teaching regimen, and even consult him at times during debates on budgets. His book “How to Understand and Read the State Budget’’ is a guide to an ordinary man on the budgetary concept and understanding the implications.
A peep into his formative years shows that Devendra’s well-wishers included the late Congress leader Shrikant Jichkar, a former minister in the Rajiv Gandhi cabinet, who spoke highly of the young BJP corporator’s knowledge of economic matters.
After every budget, Jichkar used to analyze it for the public at an auditorium in Nagpur. Devendra never missed the event despite his ideological opposition to Jichkar’s politics.
After Jichkar’s death in an accident in 2003, Devendra on his own came forward to continue his legacy by holding the event every year.
His book अर्थसंकल्प म्हणजे नेमके काय? or What exactly is the budget?
The budget is not limited to the speech of the Finance Minister and debates in the media. Most of the focus of these debates is on provisions to major sectors and taxes that visibly impact the lives of people. There is much more to budgets. The budget is the most important policy document of any government indicating its intent and priorities. This book helps in understanding how to read the budget.
This book explains in an easy-to-understand manner the what’s, the why’s, and the how’s of the various financial tools and their usages in preparing the budget and helps the readers understand the goals of the Finance Minister and how she plans to achieve them. As the Union Finance Minister Smt. Nirmala Sitaraman puts it in her forewords for the book, “The budget is the most important policy document of any government indicating its intent and priorities. The book helps in understanding how to read the budget.”
She also wrote, “The Indian Constitution has created a definite system of checks and balances that guides the process of budget making and its sanctioning. The Comptroller and Auditor General of India has given a definite structure for maintaining the accounts. Devendra has explained these processes in layman’s language in this book. It is very important to understand these processes, especially for those working in social and political spaces. Knowledge of these processes would give them an edge in understanding when and where are the opportunities to raise their concerns and what are the means to do it.” This book serves as a basic guide for those who wish to get into further research and analysis with respect to the budget and policies of the government.
Highly acknowledged for his budget analyses
Many members benefited from Devendra Ji’s book. Several of the complex terms were clarified in Marathi. When in opposition, Devendra Fadnavis used to speak on a project in the Vidhan Sabha, his speech would contain pointed queries about justifying the budget allocation and expected output, such as how many people have profited from government schemes, how much was spent, and so on. Because of his remarks, the administration had to explain it with the same details. He had done such an in-depth study of the budget that even opposition members wouldn’t miss his addressing of the state budget.
Finding traces of scams from the government figures in the budget.
Because of his objective analyses of the budget allocations and project development, Fadnavis, when in opposition, discovered evidence of fraud in the water resources department. The government then had to release a white paper on irrigation. Similarly, Fadnavis also raised questions relating to Vidarbha’s backwardness. At times, he advised the administration on the right allocation of funds.
After his five-year tenure as Chief Minister, Devendra ji was the Leader of Opposition in the state for two and a half years. During this period, he would put the Maha Vikas Aghadi government in check. During the Corona period, when the state’s economy was in the doldrums, Fadnavis had taken the government to task for its wasteful expenditure and irregularities. Two and a half years later, Devendra Fadnavis returned to power. He held the posts of deputy chief minister and finance minister.
In 2023, he presented not only the first budget of his life as Finance Minister but also the first budget of the Amrit Kaal of the country. The budget is based on five pillars. The first Amrit was Sustainable Agriculture – Prosperous Farmers, the second Amrit was Inclusive Development of all sections of society including Women, Tribals, Backward Classes, and OBCs, the third Amrit was Infrastructure Development through Capital Investment, the fourth Amrit was Employment Generation and the fifth Amrit was Eco-friendly Development.
As the Finance Minister, Devendra Fadnavis launched many new schemes. At the same time, the benefits of some schemes have been directly transferred to the farmers’ accounts. One of them is the NaMo Kisan Maha Samman Nidhi Yojana, through which the state government deposits Rs 6,000 to the farmers’ accounts as per the scheme of the central government so that the farmers get Rs 12,000 jointly from the central and state governments. Crop insurance has been provided to farmers for just Rs 1. Along with this, social welfare schemes like River Link Project, Marathwada Water Grid Project, Lekand Ladki Scheme for girls, and 50 percent concession in ST tickets for women were launched.