Beyond the Headlines: Exploring the Implications of India's 2024 Budget
The Interim Budget 2024–25 was presented to the legislature on 1st February 2024. The clear intentions seem that by 2047, it aims to create a "Viksit Bharat" with inclusive, all-encompassing, and all-round development. The government that is in its final year in office, going through a transition period, or facing general elections presents an interim budget and not an annual budget. The interim budget's goal is to maintain government spending and vital services until the next administration is in place and ready to publish a formal budget.
India's yearly Union Budget is more than just a budget, it's a detailed plan outlining the country's economic course for the next fiscal year. Like every household prepares a monthly budget for themselves, even our government needs to make a budget for themselves. This also applies to the Indian Budget 2024, which reveals a tapestry woven with fiscal measures, policy choices, and a vision for a resilient and dynamic India when we examine its complexities.
Highlights of the Budget 2024
For FY25, nominal GDP growth is anticipated to be 10.5%.
Up from ₹30,000 crores in FY24, the mop-up from central public sector enterprises (CPSEs) disinvestment is estimated at ₹50,000 crores for FY25.
She also revealed that the capital expenditure allocation for the next year would increase by 11% to ₹11.1 lakh crore.
The target for gross tax income in FY25 increased from ₹34.37 lakh crore to ₹38.31 lakh crore, an increase of 11.46%.
Nirmala Sitharaman lowered the budgetary imbalance to 5.8% of the gross domestic product at the federal budget release for the current fiscal year.
Nirmala Sitharaman brought attention to the expansion of Ayushman Bharat healthcare coverage to all ASHA and Anganwadi workers and assistance among many announcements benefiting youth, the destitute, women, and farmers.
43 crore loans sanctioned under PM Mudra Yojana to foster entrepreneurial aspirations. Training of 1.4 crore youth under the Skill India Mission will be provided.
MSP for wheat and rice is to increase by 10%, but for oil seeds and pulses are to be increased by 25%. This is a good indicator of self-dependence on agricultural products rather than importing.
Introduction of terms such as “lakhpati didi” and “drone didi” for women who are part of self-help groups. This will increase the inclusion of women in the economy.
Focus on inclusive regional development of the eastern region, Bihar, Jharkhand, Orissa, etc.
What does it mean for us?
This year's budget has not presented too many drastic changes for us, rather the interim budget is presented to maintain the continuity and flow of the economy. Globalization for us is not an option but a necessity, and contemporary times feel like the peak of globalization.
The government seems to have given direction on some new schemes but the upcoming new government is expected to provide a blueprint after the interim budget. There were 6 strategies on Amrit Kaal whose principle lies on reformation, performance, and transformation. These strategies aim not to provide money but to gain outcomes from investments for achieving Amritkaal.
In terms of growth, in the last 3 years, our GDP has been increasing by 7%, which is good in itself but if we compare it with 2021 it is not a good percentage. When the GDP of the world is not doing well, Indian GDP is way better than other countries. The reason is that our manufacturing sector is doing well. When our manufacturing sector is doing well, our agriculture sector’s performance is low because of low investments. The rate of unemployment is coming down, the rate of NPA is also declining, the provincial coverage ratio has improved, fiscal deficit has come down. Overall, economic activities are back in full swing improving our economy for the better.