Key Allocations for Regional Development and Data Protection in the Union Budget of 2024

The Union Budget 2024, presented by Finance Minister Nirmala Sitharaman, includes critical allocations that are designed to accelerate technological advancements, regional development, and data protection in India. Significant investments in cybersecurity, funding for the Data Protection Board (DPB), and significant development initiatives in Bihar and Andhra Pradesh are among the highlights.

Allocation of the Data Protection Board

The Data Protection Board (DPB) salary expenses for FY25 have been established and covered by the Ministry of Electronics and Information Technology (MeitY) with a sum of ₹2 crore. ₹4 lakh is allocated for capital expenditure, which encompasses fixed assets such as a digital portal, and ₹1.96 crore is allocated for revenue expenditure, which primarily consists of salaries.

The Digital Personal Data Protection Act, which was notified in August 2023, will be operationalized by the DPB, which will be composed of a chairperson and members appointed by the central government. This board is authorized to instruct data fiduciaries to implement remedial or mitigation measures in the event of personal data breaches or to address user complaints.

Increase in Budget for MeitY

MeitY’s budget for FY25 has increased by 52.12%, from ₹14,421.25 crore (RE 2023-24) to ₹21,936.90 crore (BE 2024-25). This is a 2.6% increase from the interim budget that was released in February. A substantial portion of this increase is allocated to production-linked incentive (PLI) programs that are designed to encourage the production of semiconductors and hardware. The PLI for large-scale electronics manufacturing and IT hardware has been raised by 35.96%, from ₹4,559.88 crore (RE 2023-24) to ₹6,200 crore (BE 2024-25).

Improved Cybersecurity Funding The budget for cybersecurity projects increased by 89.75%, from ₹400 crore (RE 2023-24) to ₹759 crore for 2024-25. Nevertheless, the funding for the Computer Emergency Response Team (CERT-In) was reduced by 96%, from ₹218.49 crore to ₹8.54 crore..

In the fiscal year 2024-25, the budget of the National Informatics Centre increased by 12.67%, from ₹1,552 crore (RE FY24) to ₹1,748.64 crore. In contrast, the funding for autonomous bodies under MeitY, such as the Unique Identification Authority of India (UIDAI), decreased by 7.73%, from ₹1,842.5 crore to ₹1,700 crore.

Regional Development: Andhra Pradesh and Bihar

Bihar and Andhra Pradesh, regions that are currently receiving increased attention from the central government, are the focus of the budget’s substantial development initiatives. It allocates ₹26,000 crore for road connectivity initiatives in Bihar under the Purvodaya initiative, which includes the Patna-Purnea Expressway and Buxar-Bhagalpur Expressway.

The Andhra Pradesh Reorganization Act has allocated ₹15,000 crore for regional development in Andhra Pradesh, which includes the construction of Amaravati, the state capital. The government also announced the establishment of a special backward areas fund for Rayalaseema, Prakasam, and North Coastal Andhra, as well as two industrial corridors: Visakhapatnam-Chennai and Hyderabad-Bengaluru.

Implications and Political Reactions

Political leaders have expressed a variety of opinions regarding the budget allocations. The budget was criticized by opposition figures for making “hollow promises,” while allies of the governing party expressed satisfaction. For example, the budget was commended by the Telugu Desam Party (TDP) of Chandrababu Naidu and the Janata Dal (United) (JD(U) of Nitish Kumar, which collectively has 28 MPs. The budget was praised for its ability to address critical regional demands.

Finance Minister Sitharaman underscored the government’s dedication to comprehensive regional development by declaring projects in Bihar, including the construction of new airports, medical colleges, sports infrastructure, and power plants. In addition, ₹38.76 crore has been allocated for the Centralized International Out Router (CIOR) to identify and prevent fraudulent international calls that display Indian numbers.

Projects and Additional Allocations

The National Informatics Centre’s budget has been increased by 12.67% in the budget for 2024-25, from ₹1,552 crore (RE FY24) to ₹1,748.64 crore. Although the Unique Identification Authority of India (UIDAI) continues to be an indispensable component of India’s digital infrastructure, its budget has been reduced by 25%, from ₹800 crore to ₹600 crore.

Additionally, an expedited irrigation benefit program with the objective of preventing and managing floods has been allocated ₹11,500 crore. The Kashi Vishwanath Temple Corridor will serve as the model for the comprehensive development of the Vishnupad Temple at Gaya and the Mahabodhi Temple at Bodh Gaya, thereby transforming them into world-class pilgrim and tourist destinations.

A More Comprehensive Economic Context

The government’s initiative to establish India as a center for semiconductor and hardware production is underscored by the 35.96% increase in PLI for large-scale electronics manufacturing and IT hardware. This increase is part of the broader economic context of these allocations. It is anticipated that the PLI initiatives will enhance India’s position in the global electronics market by reducing reliance on imports and enhancing local manufacturing capabilities.

In general, the Union Budget 2024 establishes a comprehensive strategy to advance India’s technological infrastructure, improve cybersecurity, and foster regional development, with a particular emphasis on Bihar and Andhra Pradesh. The objective of these strategic allocations is to enhance connectivity, promote development, and guarantee a secure and prosperous digital future for the nation.

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