Union Budget 2024-25: A mixed bag for environmental sustainability

Photo: Union Finance Minister Nirmala Sitharaman (X/@nsitharamanoffc)


The Union Budget for 2024-25, presented by finance minister Nirmala Sitharaman on 3 July, has generated a diverse range of responses from stakeholders concerned with environmental sustainability. The budget aims to bolster energy security, including the development of small nuclear energy reactors, and enhance climate resilience by funding research in climate-resistant crops and managing floods in northern states. However, its overall environmental focus has faced criticism for being lacklustre and lacking imagination.

Incremental Gains and Increased Allocations

The budget reflects incremental progress in specific areas of environmental conservation. One of the notable increases is for the National Tiger Conservation Authority, which saw its budget more than double from Rs 15.8 crore in 2023-24 to Rs 35 crore. The Central Pollution Control Board’s budget also increased from Rs 105.70 crore to Rs 113 crore, signalling a commitment to pollution control.

Additionally, the budget for overall pollution control saw an increase from Rs 847 crore to Rs 858.5 crore for 2024-25. The National Coastal Mission received a boost from Rs 43.3 crore to Rs 50 crore, indicating a targeted approach to coastal environmental issues.

Other regulatory bodies also saw marginal increases. For instance, the Central Zoo Authority’s budget rose from Rs 9.9 crore to Rs 12 crore, and the National Biodiversity Authority’s budget increased from Rs 14.1 crore to Rs 16 crore. The Commission for Air Quality Management’s budget grew from Rs 13.1 crore to Rs 16 crore, reflecting continued focus on air quality.

The Govind Ballabh Pant Himalayan Institute of Environment and Development’s funding increased from Rs 32 crore to Rs 35 crore, suggesting an ongoing commitment to specific environmental conservation and oversight areas.

A significant increase was observed in the National Mission for a Green India, which received Rs 170 crore, up by Rs 50 crore from the previous year. The Green India Mission-National Afforestation Programme also saw an increase from Rs 119.43 crore to Rs 170 crore between 2023-24 and 2024-25.

Mixed Responses and Critical Omissions

Despite these positive developments, the budget has faced criticism for several omissions and reductions in critical areas. Notably, no funds were allocated for the Climate Change Action Plan, Research and Development for Conservation and Development, and Forestry Training and Capacity Building Schemes.

The Indian Council of Forestry Research and Education experienced a significant budget reduction, with funding cut from Rs 483.23 crore to Rs 300 crore. Similarly, the Indian Institute of Forest Management’s budget was reduced from Rs 17.25 crore to Rs 13 crore, and the Forestry and Wildlife budget decreased from Rs 839.76 crore to Rs 715.67 crore.

No funds were allocated for the Bhopal gas leak disaster, which had a budget of Rs 126.09 crore in the previous fiscal year. The Andaman and Nicobar Islands Forest Plantation Development Corporation, which received Rs 3.62 crore last year, also did not receive any funding. The Salim Ali Centre for Ornithology and Natural History (SACON) received no funding for the second consecutive year, having received Rs 9 crore in 2022-23.

Concerns from Environmentalists

Many environmentalists have raised concerns about the lack of focus on climate change mitigation and adaptation. While the budget speech emphasised clean energy, with proposals such as using 5-6 per cent biomass in thermal power plants and promoting solar power, critics argue that more comprehensive measures are needed to combat climate change effectively. The absence of funding for climate-resilient infrastructure and capacity building is seen as a major oversight.

Pravat Kumar Shit, an environmentalist, emphasised the importance of preventive measures to mitigate climate-related disasters. “It is important to pay after the loss. But more important than that is to prevent danger. No reflection was seen in the budget. Coastal areas like the Sundarbans are also threatened. Nothing new was heard about that in the budget.”

Finance minister Sitharaman’s announcement of increased allocations for flood-affected states like Uttarakhand, Himachal Pradesh, and Sikkim was seen as insufficient by some experts who argue that the focus should be on preventing such disasters through climate change mitigation measures. Frequent cyclones and rising sea levels are exacerbating challenges in coastal areas like the Sundarbans, yet the budget does not reflect adequate preventive measures.

Biswajit Bera, assistant professor of geography at Sidho-Kanho-Birsha University, emphasised the need for stronger measures to address the impacts of climate change on coastal areas and biodiversity. “Due to climate change, strong cyclones are forming frequently, sea level is rising, water is becoming salty in coastal areas. The impact of which is falling on people’s life at a large rate, loss of biodiversity. Its impact on the UNESCO heritage listed and ecologically sensitive Sundarbans is immense. In this situation, it was necessary to reflect in the budget the work to prevent the effects of coastal environment and climate change.”

A Broader Debate on Environmental Commitment

The mixed response to the budget highlights a broader debate on the government’s commitment to environmental sustainability. While the budget includes incremental increases in funding for certain areas, it also reveals significant cuts and zero allocations for critical projects. This dichotomy raises questions about the overall strategic focus and sufficiency of the ministry’s funding to tackle pressing environmental challenges comprehensively.

Some experts argue that the budget reflects a lacklustre approach that falls short of addressing the urgency of climate change and environmental degradation. “Many feel that there are questions about the authenticity of the Union Finance Minister’s statement, although importance is given to protecting the environment. On the contrary, many complain that the government’s attitude towards the environment in the budget as a whole has emerged,” said an environmentalist.

Others remain cautiously optimistic, recognizing the incremental progress while calling for more robust and comprehensive measures. “Environmentalists say, ‘Industrial use of solar energy is being discussed. It is also necessary to emphasise that. An increase in the tax on plastic imports would have improved the environment. However, climate taxonomy is discussed. That is promising on the one hand.'”

The budget includes tax exemptions on solar panels and components to encourage solar energy production and new announcements in nuclear power generation, indicating a push for clean energy. However, environmentalists argue that more comprehensive actions are needed, such as increasing taxes on plastic imports and emphasising climate taxonomy.

Conclusion: Incremental Steps and Missed Opportunities

The Union Budget 2024-25 presents a nuanced picture of the government’s approach to environmental conservation and climate change. While there are commendable steps towards addressing specific issues like tiger conservation, pollution control, and green missions, significant gaps remain in funding and strategic focus. The debate over the budget underscores the need for a more comprehensive and integrated approach to environmental sustainability, ensuring that policy translates into effective action on the ground.

As India navigates the complex challenges of climate change and environmental degradation, a more strategic and holistic approach will be essential to achieving sustainable development goals. While the 2024-25 Union Budget shows a commitment to certain environmental initiatives, significant gaps remain. Critics call for more robust and imaginative policies to address the complex environmental challenges facing India today.