From the Mumbai Budget 2020, it appears that the Indian economy is indeed in a phase of an economic slowdown. To accelerate the economy and strengthen it, there is a need for large-scale public investment, so that it can create new employment opportunities in the economy and increase people's purchasing power. The 1,22,000 crore rupees allocated to the Ministry of Rural Development (including a huge amount of 61,500 crores under the MGNREGA i.e. Mahatma Gandhi National Rural Employment Guarantee Act) indicated by the Modi government that the right-wing model of the economy is moving from 'market fundamentalism' to 'Keynesian multiplier'. The Keynesian multiplier theory is the principle of economics under which emphasis is placed on spending for personal consumption. The government spends on its behalf in such a way so that people can get more employment and prosper in society. At present, there is not much emphasis on the pattern of spending.
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We should not forget that the economy has been treated like a secular goddess, because MNREGA, which Prime Minister Narendra Modi once said that they will continue it as 'the living legacy of the failures of the UPA government', today. It has become a symbol of the government of the Bharatiya Janata Party at the Center. The government has also paid full attention to social welfare schemes aimed at the well being of rural India. In the budget of 2020, a provision of Rs 53,700 crore for the welfare of Scheduled Castes and Scheduled Tribes and a provision of Rs 85,000 crore for Scheduled Castes and Other Backward Classes and upliftment of women Provision of Rs. 28,600 crore for special programs related to and provision of Rs. 35,600 for nutrition schemes. This indicates that the countrymen will be able to fill their hungry stomachs.
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Apart from the schemes of the Ministry of Rural Development, the provision of the Health Insurance Scheme under the Ministry of Health by the Modi Government is also a major step in the interest of the poor. It can also be called part of right-wing welfare economics. The government had made a provision of Rs 62,500 crore in the 2019-20 budget for the health sector, which was the highest in its last two financial years, this time has been increased to Rs 69,000 crore. Those who would like to see this budget from an electoral point of view should not be surprised that Rs 1,118 crore has been allocated for the government's popular 'Ujjwala' scheme to deliver LPG gas to poor households. In the first term of the Modi government, the Ujjwala Yojana was seen as a transformational scheme, especially in the social and rural interests, and it was believed that this scheme has contributed extensively in helping the Modi government win again in the 2019 elections.
Sitharaman clarified, 'Will get the benefit of tax exemption on these schemes'