Union Budget 2024-25

Integrating North-East into National Development Agenda

Dr Samudra Gupta Kashyap

Since the NDA government's inception in 2014, the North-East has been accorded substantial priority, being recognised as a potential growth engine for the nation. Prime Minister Shri Narendra Modi has described the region as "Ashta Lakshmi," symbolising the eight manifestations of Lakshmi, the goddess of wealth.  The Prime Minister's forward-looking policies are designed to transform the region into a major contributor to the country's GDP.

This emphasis on the region has consistently been evident in the Union government's recent annual budgets including that of 2024-25. A detailed examination reveals that the North-Eastern states have seen an allocation increase of Rs. 4,035.31 crore in this budget, with a particular focus on infrastructure and surface connectivity receiving the highest priority.

The budget has allocated a total of Rs. 5,900 crore for various central sector schemes and projects in the North-Eastern region. This funding is managed by the Ministry of Development of the North-Eastern Region (MDoNER), which oversees the planning, implementation and monitoring of development initiatives in the area. The Ministry's objective is to expedite the socio-economic development of the North-East to ensure that it achieves growth parity with the rest of the country.

Out of the allocated Rs. 5,900 crore, the North-East Special Infrastructure Development Scheme (NESIDS) has been awarded the largest share of

Rs. 2,491 crore from the Central Pool of Resources for the North-East. Launched by the NDA government in 2017, NESIDS is a fully centrally funded scheme designed to support projects in the North-Eastern states. It focuses on enhancing physical infrastructure such as water supply, power and connectivity to boost tourism, as well as improving social infrastructure in primary and secondary education and health sectors.

This allocation of Rs.5900 crore also includes Rs.2200 crore for the Prime Minister's Development Initiative for North-East Region, PM-DevINE in short. Introduced in the Union Budget of 2022-23, the objectives of PM-DevINE are - (i) Funding infrastructure convergently in the spirit of PM GatiShakti; (ii) Supporting social development projects based on felt needs of the North-East; (iii) Enabling livelihood activities for youth and women; and (iv) Filling the development gaps in various sectors. Some major on-going projects under PM-DevINE are - (a) Construction of Aizawl by-pass worth Rs.500 crore, (b) Construction of new four-lane road in New Shillong township worth Rs.146.79 crore, (c) Gap-funding for two ropeway projects in Sikkim worth Rs. 122 crore, (d) Solar micro-grid for remote habitations in Tripura worth

Rs. 80.79 crore, (e) Livelihood projects in the eastern districts of Nagaland worth Rs.180 crore, and (f) Setting up a Paediatric and Adult Haematolymphoid Cancer treatment centre in Guwahati.

The Union Budget for 2024-25 has allocated Rs.820 crore for various central-sector schemes and projects administered by the North-Eastern Council (NEC). This funding will support initiatives such as the upgrading of key inter-state roads, the development of tourism infrastructure, the establishment of tea blending, packaging and value addition units and the provision of essential services in designated blocks. Additionally, it will fund the construction of hostels for girls and tribal students at various institutions, the creation of Digital Design Labs for livelihood generation, empowerment of marginalised women in Sixth Schedule areas and support for handloom and sericulture projects, among other initiatives.

Despite the region's industrial under-development, there is also a notable deficit in entrepreneurial activities. To address this, the Centre, through the North-Eastern Council, introduced the North-East Entrepreneurship Development Scheme (NEEDS) in 2022. This initiative is designed to assist first-generation entrepreneurs who lack equity, providing support for new projects in micro and small enterprises as well as for the expansion and modernisation of existing units. For the fiscal year 2024-25, the Union Budget has allocated Rs. 174.66 crore for NEEDS.

Additionally, the Budget for 2024-25 includes two special packages for the autonomous councils overseeing the three hill districts of Assam, as outlined in the Sixth Schedule of the Constitution. The Dima Hasao Autonomous Council has been allocated Rs. 60 crore, while the Karbi Anglong Autonomous Council has been allocated Rs.50 crore. Moreover, two central public sector organisations-North-Eastern Handicrafts and Handloom Development Corporation (NEHHDC) and North-Eastern Regional Agricultural Marketing Corporation (NERAMAC) have been allocated Rs. 7.19 crore and Rs. 2 crore respectively. NEHHDC supports 19,176 tribal artisans and weavers across the region, while NERAMAC assists 27,616 farmers, aiding numerous tribal families in the area.

While these allocations are specifically designated for the Ministry for Develop-ment of the North-Eastern Region (MDoNER), it is equally significant that the Union Budget for 2024-25 includes substantial funding for various central government departments and ministries to execute their schemes and programmes in the region. Statement 11 of the Budget's Expenditure Profile, detailed on pages 150 and 151, outlines the distribution of funds across 55 different central departments and ministries, totaling an impressive Rs. 100,893.23 crore. The top ten allocations are as follows: Ministry of Road Transport & Highways (Rs. 19,338.00 crore), Depart-ment of Rural Development (Rs. 9,062.40 crore), Department of Drinking Water & Sanitation (Rs. 7,632.19 crore), Department of School Education & Literacy

(Rs. 7,029.63 crore), Department of Health & Family Welfare (Rs. 6,697.54 crore), Department of Higher Education (Rs. 3,795.69 crore), Ministry of Power (Rs. 3,173.02 crore), Department of Women & Child Development (Rs. 2,733.90 crore), Ministry of Labour & Employment (Rs. 2,191.07 crore) and Ministry of Micro, Small and Medium Enterprises (Rs. 2,187.02 crore).

In addition to the aforementioned top ten allocations, it is important to highlight other significant allocations including: Department of Telecommunications (Rs. 1,910 crore), Ministry of Electronics and Information Technology (Rs. 1,787.13 crore), Department for Promotion of Industry and Internal Trade (Rs. 1,701.55 crore), Ministry of Housing and Urban Affairs (Rs. 1,690.00 crore), Ministry of New and Renewable Energy (Rs. 1,459.43 crore), Ministry of Tribal Affairs (Rs. 1,303.85 crore), Department of Consumer Affairs (Rs. 1,016.90 crore), Department of Food and Public Distribution (Rs. 711.01 crore), Ministry of Defence: Civil (Rs. 655.50 crore) and Department of Agricultural Research and Education (Rs. 587.39 crore). These allocations are expected to significantly enhance the socio-economic conditions of the North-Eastern Region. Further-more, with a focus on financial inclusion and literacy, Finance Minister Smt. Nirmala Sitharaman's announcement in the Budget to establish over 100 new branches of India Post Payment Bank in the region is anticipated to drive additional positive changes in the coming years.

Additionally, the Union Budget for 2024-25 has allocated a substantial Rs. 10,376 crore for various ongoing and new railway projects across the North-Eastern Region, with Rs. 8,300 crore specifically designated for the double-tracking of railway lines.

Located at one of the world's most critical geoseismic junctions, the North-Eastern Region is highly susceptible to floods, riverbank erosion and other natural disasters, including landslides. In this context, the allocation of Rs.11,000 crore in the Union Budget for 2024-25 for flood management-particularly targeting Sikkim and Assam, which have been severely affected by recent floods-deserves particular attention.

Regarding the increasing budgetary allocations to the North-Eastern Region across various sectors, it is noteworthy how connectivity has received significant enhancement in recent years. Over the past decade, four major bridges over the Brahmaputra have been completed and the ambitious project to connect every state capital to the national railway network is approaching completion. The region has seen the construction of an unprecedented length of roads and a revival of waterway transport, significantly boosting its economic and business potential. This represents a transformative improvement in connectivity long sought by the local population. Additionally, eight new airports have been constructed and are now operational, raising the total number of airports in the North-East to 17.

The impact of Partition, which severed the region's road, rail and waterway communications for an extended period, coupled with significant immigration, contributed to the difficulties faced by the NE region. Additionally, the region has experienced a succession of insurgencies, which can be traced to economic underdevelopment and disparities in growth.

However, given that the North-East is pre-dominantly inhabited by tribal communities, increased budgetary allocations to key departments and ministries such as the Ministry of Tribal Affairs, Drinking Water & Sanitation, Rural Development, Food and Public Distribution, Health & Family Welfare, School Education & Literacy and Women & Child Development are anticipated to have a profound and enduring positive impact on the region's population. These enhancements are expected to create more equitable opportunities and play a crucial role in integrating tribal communities into the broader national growth narrative.

(The author is a veteran Guwahati-based journalist and an expert on North-East issues. He is presently the VC of Nagaland University. Feedback on the article can be sent to feedback.employmentnews@gmail.com)

Views expressed are personal.