Population Foundation of India is surprised and disappointed that the Union Budget 2024-25 virtually neglected adequate investment in the health, nutrition, education, and social empowerment of critical demographic groups identified by the government as GYAN—Garib (poor), Yuva (youth), Annadata (farmers), and Nari (women). It was highly unexpected to see health to be missing among the nine top priorities of the government, shared by the finance minister Nirmala Sitharaman in her speech.
“While the government has shown its commitment to economic empowerment of young people and women, it seems to have ignored the need to invest adequately in their health, education, and social well-being,” said Poonam Muttreja, Executive Director of Population Foundation of India. “It has also failed to acknowledge changing population dynamics and the full impact of climate change on people’s health and well-being.”
The Economic Survey 2024-25, released yesterday, highlighted that the Indian economy needs to generate an average of nearly 78.5 lakh jobs annually until 2030 in the non-farm sector to accommodate the rising workforce. This need is reflected in the Union Budget, which focuses on employment, job creation, and economic empowerment of young people. The Finance Minister announced a Prime Minister’s Package of five schemes aimed at facilitating employment and skilling, with an allocation of ₹2 lakh crore. Additionally, a provision of ₹1.48 lakh crore has been made this year for education, employment, and skilling. Several measures have been introduced, including education and skilling loans, three employment-linked incentive schemes, and a focus on first-time employees. However, these measures are primarily centered around incentives for public and private sectors rather than direct job creation, which is a responsibility that the government must not abdicate.
“One of the most concerning findings of the last round of the National Family Health Survey was the poor nutritional outcomes of young people,” said Muttreja. “How can an unhealthy, malnourished population form a productive workforce?”
Also missing in the budget were announcements on any long-term investments in primary and secondary education, essential for sustainable skill development. The loss of jobs in the NGO sector in recent years because of a tighter regulatory landscape also seems to be contrary to the spirit of development across all sectors.
Furthermore, the health sector remains underfunded, neglecting the critical need for healthcare infrastructure and services. The budget of Department of Health and Family Welfare has increased from Rs. 86175 crores in 2023-24 to Rs. 87656 crores in 2024-25. This is an increase of only 1.7% from last year. The budget for National Health Mission has increased from Rs. 29085 crores in 2023-24 to Rs. 36000 crores in 2024-25 (an increase of 24% from last year). The budget for Family Welfare Schemes under Central Sector Schemes/Projects increased from Rs. 516 crores in 2023-24 to Rs.694 crores in 2024-25 (an increase of 34%). This budget line item is used for procurement of contraceptive supplies and payment to ASHAS. Given the introduction of two new contraceptives in the public health system, it remains to be seen whether this will be sufficient.
There have been provisions for setting up working women’s hostels and creches in collaboration with industry to increase women’s workforce participation. The government has allocated ₹3 lakh crore for schemes supporting women and girls, recognizing the government’s commitment to women-led development. But despite the allocation for women’s economic empowerment, there is a lack of targeted initiatives addressing women’s health and well-being. The budget also did little to acknowledge the rapidly growing elderly population in the country and the measures that necessitates.
“India is the most populous country, with the largest young population in the world. For the country to leverage this demographic advantage, holistic investments in the health of this population is imperative. Women constitute half of our population. Comprehensive support for women requires not just economic opportunities but also access to healthcare, especially sexual and reproductive health, nutrition, and social security,” said Muttreja.
The finance minister’s budget speech indicates the government’s priorities. While it’s heartening to see the growing focus on increasing employment, we hope the lack of focus on health was purely inadvertent.
