Even with the elections just around the corner, finance minister Nirmala Sitharaman curtailed doling out special schemes but definitely set a road map to make the country developed by 2047. Apart from the several successes that she highlighted of the 10-year NDA rule, a huge commendation must be given to her, for being the first full-time female finance minister. Exuberantly confident to present the full budget post elections, the major focus themes for the interim budget were on four “castes” – garib (poor), mahilayen (women), yuva (youth) and annadata (farmer). She said, “their needs, aspirations, and welfare are the government’s highest priority, because the country progresses, when they progress.”
The Economic Outlook
The budget looks to keep inflation and fiscal deficit under control while extending its purse string in a measured manner. The focus on capital outlay has been continued in a hope that private investment will catch pace and accelerate the India growth story. Infrastructure capex, focus on research, limiting subsidy and shift to net zero have been core ideas and lay a clear path on the road ahead.
The budget snapshot by PRS India:
Expenditure: Expected to spend Rs 47,65,768 crore in 2024-25, 6 per cent higher than the revised estimate of 2023-24. Interest payments account for 25 per cent of the total expenditure, and 40 per cent of revenue receipts.
Receipts: The receipts (other than borrowings) in 2024-25 are estimated to be Rs 30,80,274 crore, about 12 per cent higher than the revised estimate of 2023-24. Tax revenue which forms major part of the receipts is also expected to increase by 12 per cent over the revised estimate for 2023-24.
GDP: The government has estimated a nominal GDP growth rate of 10.5 per cent in 2024-25 (i.e., real growth plus inflation).
Deficits: Revenue deficit in 2024-25 is targeted at 2 per cent of GDP. This is lower than the revised estimate of 2.8 per cent in 2023-24. Fiscal deficit in 2024-25 is targeted at 5.1 per cent of GDP, lower than the revised estimate of 5.8 per cent of GDP in 2023-24.
