Budget 2024-25
Presenting a budget of a total outlay of 47.65 lakh crore, Finance Minister Nirmala Sitaraman at the outset highlighted the objectives of the budget. I had given my ideas about the budget two days before its presentation. This budget gives an indication of the economic policy of the government for the next five years. This has many features for the mid term rather than one fiscal year. Contrary to my apprehensions, Nirmala Sitaraman has not succumbed to populism.
As I mentioned earlier and as widely expected, the political compulsions of the coalition government are With the other visible. In the very beginning the finance minister mentioned specifically Bihar and Andhra and gave them special assistance. However, special status will not be given to them. Nitish and Chandra Babu Naidu may now refrain from meddling with the other policies of the government. Election results had shown that middle class is upset with BJP government. To placate them, those in the middle class, who file their income tax returns, have been given some small reduction in Income Tax.
The budget has focused on job creation. Employment Linked Incentives schemes, visualising providing one month salary to newly employed and helping for apprenticeship will create some jobs. More importantly, this steps will create a large group of youth with better employability with skill. This will boost the manufacturing sector.
The Budget focused on provisioning for the agricultural sector, the introduction of schemes related to employment, loan schemes, announcements for financial support to the MSME sector and infrastructural development. Finance minister, in a positive sign, has declared the fiscal deficit projection at 4.9% with a commitment to reducing it down to 4.5%.
The government selectively cut customs duties at the same time making changes in the capital gain taxes for the financial year. In continuity of previous Modi I and II, this time also the capital expenditure continues with 11.1 lakh crore, which is 3.4% of GDP. India is likely to remain fastest growing major economy with GDP growth between 6.5% and 7%.
