- FM Sitharaman presents paperless Budget with a tablet in traditional style pouch.
- Key numbers: fiscal deficit, disinvestment, capital expenditure, tax revenue, borrowing.
- Top focus areas: infrastructure, healthcare, education, jobs, social security, PLI schemes.
- Expectations for Odisha: funding in ports, industrial corridors, power, railways.
- Economic manifesto for PM Modi: focus on infrastructure, fiscal prudence, positive market sentiments.
- Defence sector expectations: increased budget allocations for modernization and veterans’ welfare.
FM Sitharaman’s Arrival and Presentation :
FM Sitharaman presents the paperless budget.
Finance Minister Nirmala Sitharaman arrived at Parliament carrying a tablet covered in a traditional ‘bahi-khata’ pouch to introduce the interim Budget 2024-25 in a paperless mode. This deviation from the classic briefcase represents a new approach to budget presentation. Sitharaman’s creative strategy emphasises the government’s dedication to both digitization and tradition.
Key Numbers to Watch for in the Union Budget 2024
Several crucial figures will be highlighted in the impending pre-election budget:
Fiscal Deficit: With more spending anticipated in an election year, attention moves to the predicted fiscal deficit.
Disinvestment/Privatization: A reasonable aim for disinvestment is expected in the coming fiscal year.
Capital Expenditure: It is critical to maintain the focus on infrastructure development and incentivize states to invest in capital.
Tax Revenue: Strong tax collections, notably for GST and income/corporate tax, are projected to exceed budget forecasts.
Borrowing: Market observers are waiting for the government’s borrowing plans, which are expected to increase capital expenditures and include populist announcements.
Top Focus Areas for the Interim Budget :
Ranen Banerjee of PwC India identifies important target areas for Sitharaman:
Infrastructure: Continued increased funding is required for project completion and economic multiplier benefits.
Healthcare: The focus is on Ayushman Bharat and primary healthcare to ensure a healthy population and economic productivity.
Education: Progress with the New Education Policy and vocational education to improve employability.
Jobs: Increased funding for job-creation initiatives to address the young generation.
Social Security Schemes: Adequate financial provisions for MGNREGA, PM Kisan, and subsidies.
PLI Schemes for Manufacturing: Considerations for increased allocations in industries such as textiles, jewels, and MSME credit guarantees.
Fiscal Management: A 5.3% fiscal deficit for fiscal year 2024-25 is recommended.
Top Focus Areas for the Interim Budget
Ranen Banerjee of PwC India identifies important target areas for Sitharaman:
Expectations for Odisha and Economic Impact
Odisha Minister Pratap Deb expressed hopes for financing in sectors such as ports, industrial corridors, power, and rail. Economic experts anticipate the Union Budget’s influence on several industries, emphasising the importance of infrastructure spending for long-term economic growth.
Economic Strategy and Political Implications.
Economic Manifesto for Prime Minister Modi
The 2018 Union Budget is expected to represent Prime Minister Narendra Modi’s economic policy for the next five years, as elections approach. While focusing on infrastructure investments, the budget seeks to minimise the budgetary deficit and preserve fiscal discipline. This conservative strategy indicates the government’s commitment to long-term economic prosperity.
Positive Market Sentiment :
The stock market opens in the green on Budget Day, indicating optimistic investor confidence. Previous budget days have produced positive returns for investors, demonstrating the market’s expectation of significant developments.
Defence Sector Expectations
With a focus on self-reliance and advanced capabilities, the defence sector expects increasing budget allocations for modernization and veteran welfare. The emphasis on domestic innovation and strategic alliances is critical to strengthening India’s defence capabilities.
Conclusion: A Balanced Approach.
As FM Sitharaman announces the interim Budget, there are high expectations for measures that balance economic growth and budgetary sustainability. The budget is more than just a financial plan; it also reflects the government’s priorities and vision for the future.