Finance Minister Nirmala Sitharaman is expected to present the Union Budget for the 2024-25 fiscal year in the last week of July, according to reports on Sunday. This announcement follows the usual practice of setting the stage for India’s financial planning and economic strategy for the coming year. The budget presentation is a critical event, providing a comprehensive overview of the government’s revenue and expenditure plans, fiscal policies, and economic projections. As the country looks forward to this event, various stakeholders, including businesses, economists, and policymakers, keenly await the details that will shape India’s economic trajectory.
Pre-Budget Consultations and Industry Insights
Before the official budget presentation, Sitharaman is scheduled to hold pre-budget consultations with industry chambers on June 20. These consultations are crucial for gathering insights and recommendations from various sectors of the economy. Industry sources have noted that these discussions will be preceded by a meeting with Revenue Secretary Sanjay Malhotra on June 18. These pre-budget meetings are a customary part of the budget preparation process, allowing the government to understand the challenges and expectations of the business community and other stakeholders. The input gathered during these sessions is vital for formulating policies that address the needs of the economy while balancing growth and stability.
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Modi 3.0 Economic Agenda and Key Focus Areas
The 2024-25 Budget is expected to outline the economic agenda for the third term of the Modi-led NDA government. This agenda will likely focus on measures to stimulate economic growth without exacerbating inflation. The finance minister will also need to identify resources to meet the coalition government’s commitments. A significant aspect of this agenda includes accelerating reforms aimed at transforming India into a USD 5-trillion economy and achieving ‘Viksit Bharat’ status by 2047. The government will likely prioritize sectors such as agriculture, job creation, capital expenditure, and revenue growth to sustain fiscal consolidation. Addressing stress in the agricultural sector, fostering employment opportunities, maintaining capital expenditure momentum, and enhancing revenue are expected to be key policy priorities.
The Reserve Bank of India (RBI) has projected a 7.2 percent growth rate for the Indian economy in the current fiscal year, supported by improving rural demand and moderating inflation. This optimistic projection sets a positive backdrop for the budget, emphasizing the need for strategic initiatives to sustain this growth trajectory. The RBI’s announcement of its highest-ever dividend of ₹2.11 lakh crore for FY24 further bolsters the fiscal outlook, providing the government with additional resources to implement its economic agenda.
Historical Context and Sitharaman’s Record
This budget will mark Nirmala Sitharaman’s seventh consecutive presentation, making her the finance minister with the most consecutive budget presentations, surpassing the record held by Morarji Desai, who presented six consecutive budgets six decades ago. During her tenure, Sitharaman has overseen significant economic reforms and policy initiatives, navigating through challenging economic conditions, including the COVID-19 pandemic. Her experience and leadership have been pivotal in steering the country’s economic policies.
Sitharaman is also notable for being the only woman finance minister to serve two consecutive terms. Her previous budget presentations have included significant initiatives aimed at boosting infrastructure, digital economy, and social welfare. In the interim Budget 2024, presented earlier this year, the government raised the capital expenditure target by 11.1 percent to ₹11.11 lakh crore for the fiscal year starting April 1, representing 3.4 percent of the country’s GDP. This increase in capital expenditure underscores the government’s commitment to infrastructure development and economic growth.
As the nation anticipates the Union Budget for 2024-25, the focus will be on how Finance Minister Nirmala Sitharaman addresses the critical challenges and opportunities facing the Indian economy. The budget will not only outline the government’s fiscal strategy but also set the tone for India’s economic priorities in the coming years. With an emphasis on sustainable growth, fiscal discipline, and inclusive development, the budget aims to pave the way for a prosperous and resilient economy. The upcoming consultations and the insights they provide will be crucial in shaping a budget that meets the aspirations of a diverse and dynamic nation.
