Nirmala Sitharaman on February 1
Finance Minister Nirmala Sitharaman on February 1, 2023 presented India’s budget, which was worth ₹45,03,097 crore.
The interim budget will be presented in the Parliament by Finance Minister Nirmala Sitharaman on February 1, 2024. Since this year is an election year, the interim budget will comprise government expenditures before the election time. The main budget will be presented, most likely in July when the new government will be formed. The interim budget will be the sixth budget for Nirmala Sitharaman.
Here’s the recap of the budget presented last year:
- Nirmala Sitharaman on February 1, 2023 presented India’s budget, which was worth ₹45,03,097 crore. Out of the total expenditure of the budget, the revenue expenditure was estimated to be ₹35,02,136 crore.
- During the speech, she said that the purpose of the budget was to have strong public finances and a strong financial sector as well.
- Nominal GDP for 2023/24 was estimated to grow 10.5 per cent year-on-year to ₹3,01,75,000 crore rupees ($3.69 trillion) in 2023/24.
- The budget targeted a fiscal deficit of 5.9 per cent of GDP for 2023/24 compared to 6.4 per cent for the current fiscal year.
- The finance minister expected India’s economic growth to be 6-6.8 per cent in 2023/24.
- The spending target in the budget was raised 7.5 per cent to ₹4503000 crore for 2023/24.
- Capital spending was seen to rise by 33 per cent to ₹1000000 crore for 2023/24 as the finance minister proposed to hike capital outlay for railways by 48 per cent to ₹240000 crore in 2023/24.
- The finance minister also proposed to hike outlays for road transport by 24.4 per cent to ₹270000 crore in 2023/24 from revised ₹217000 crore in 2022/23
- The Total defence outlays in the budget was raised to ₹594000 crore against the revised ₹585000 crore for 2022/23.
- The education budget was raised to ₹113000 crore rupees for 2023/24 vs ₹99900 crore in 2022/23 while the Health budget was raised to ₹88950 crore for 2023/24 vs ₹70940 crore in 2022/23.
Historical Significance of Budget 2024
Morarji Desai, as the finance minister, presented five annual budgets and one interim budget from 1959 to 1964, holding the record for the highest number of budgets presented by any finance minister. Arun Jaitley, who assumed the Finance Ministry following the ascension of the Narendra Modi government in 2014, presented five consecutive budgets from 2014-15 to 2018-19. In February 2019, Piyush Goyal presented the interim budget for the fiscal year 2019-20.
Nirmala Sitharaman’s consecutive budget presentations since July 2019 have solidified her position as India’s first full-time woman finance minister. Notably, she became the second woman to present the budget after Indira Gandhi, who delivered the budget for the financial year 1970-71.
Interim Budget: A Prelude to the Future
Interim budgets are typically presented when general elections are impending. The new government, expected to form around June, will subsequently introduce the final budget for the fiscal year 2024-2025 in July, regardless of whether the incoming government is new or re-elected. Thus, the interim budget serves as a prelude to the future policies and measures that the government intends to implement.
Highlights of Budget 2024
Strengthening the Economy
The budget aims to revitalize the Indian economy by focusing on various key areas. One of the primary objectives is to boost economic growth and create employment opportunities through strategic investments. The government plans to allocate significant funds for infrastructure development, technological advancements, and skill enhancement programs.
Tax Reforms and Simplification
To promote ease of doing business and attract foreign investments, the budget proposes comprehensive tax reforms and simplification. The government intends to streamline the tax structure, reduce tax burdens, and introduce incentives for businesses and individuals. These measures are aimed at stimulating economic growth and encouraging entrepreneurship.
Thrust on Agriculture and Rural Development
Recognizing the importance of agriculture in India’s economy, the budget emphasizes agricultural reforms and rural development. The government plans to enhance farmers’ income by implementing various schemes, including providing access to credit, improving irrigation facilities, and promoting sustainable farming practices. Additionally, investments in rural infrastructure and the development of agro-based industries are expected to create employment opportunities and boost the rural economy.
Boosting Manufacturing and Make in India
The budget places a strong emphasis on the manufacturing sector and the Make in India initiative. The government aims to attract domestic and foreign investments in manufacturing by offering tax incentives, simplifying regulations, and providing a conducive business environment. The promotion of indigenous industries and the creation of robust supply chains are key priorities to strengthen India’s position as a global manufacturing hub.
Innovation and Technology
Recognizing the need for innovation and technological advancements, the budget focuses on fostering research and development in various sectors. The government plans to establish innovation hubs, promote startups, and provide financial support for technological innovation. Embracing emerging technologies such as artificial intelligence, blockchain, and the Internet of Things is crucial for India’s economic growth and competitiveness on the global stage.
Healthcare and Social Welfare
The budget allocates significant funds for healthcare and social welfare programs to ensure inclusive growth. The government aims to strengthen the healthcare infrastructure, improve access to quality healthcare services, and enhance the affordability of essential drugs and treatments. Social welfare schemes, such as education and skill development initiatives, are also prioritized to uplift marginalized sections of society and provide equal opportunities for all.
Environmental Sustainability
Addressing the concerns of climate change and environmental degradation, the budget emphasizes sustainable development practices. The government plans to promote renewable energy sources, implement green initiatives, and invest in environmentally friendly infrastructure. Encouraging sustainable business practices and reducing carbon emissions are integral to India’s commitment to combating climate change and achieving sustainable development goals.
Fiscal Discipline and Governance
Ensuring fiscal discipline and good governance remains a key focus of the budget. The government aims to streamline public expenditure, reduce wastage, and promote transparency and accountability in public finances. Strengthening financial institutions, enhancing regulatory frameworks, and curbing corruption are critical for creating a conducive environment for economic growth and development.
Conclusion
Budget 2024 is a significant milestone in India’s economic journey, marking Finance Minister Nirmala Sitharaman’s sixth consecutive budget presentation. The budget focuses on strengthening the economy, promoting tax reforms, boosting agriculture and rural development, encouraging manufacturing and technology, improving healthcare and social welfare, embracing environmental sustainability, and ensuring fiscal discipline and good governance. These measures are aimed at driving economic growth, creating employment opportunities, and fostering inclusive development. As India progresses on its path to becoming a global economic powerhouse, Budget 2024 sets the stage for a brighter and more prosperous future
