Budget 2024: The Union Budget 2024, likely to be presented by Finance Minister Nirmala Sitharaman in early July, is expected to outline the Narendra Modi government‘s vision for the next five years. It will also be closely monitored for the next-generation reforms that the finance minister announced in the interim budget in February.
As Sitharaman returns to North Block, the NDA government is placing a strong emphasis on continuity. Her immediate priority is to prepare the comprehensive budget for FY25, states an ET report.
Sitharaman’s primary objectives will be to maintain high growth rates, make growth more inclusive, and generate employment opportunities. Streamlining the Goods and Services Tax (GST) is expected to be a top priority, along with simplifying tax compliance procedures.
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In FY24, India achieved an impressive growth rate of 8.2%, reinforcing its position as the fastest-growing major economy in the world. The focus will now shift to propelling the country to even higher levels of growth, in accordance with the Viksit Bharat (developed India) vision, while placing greater emphasis on job creation and boosting private investment.
In February, Sitharaman presented a vote on account without any pre-election giveaways, aiming for a fiscal deficit of 5.1% of GDP in FY25. She will face the challenge of managing fiscal pressures within the new coalition government while addressing the growing demand for cash transfers to alleviate rural distress, which has been advocated by opposition parties.
The BJP-led NDA secured 293 seats in the 543-seat lower house of Parliament, with the BJP alone winning 240 seats, falling short of the majority mark of 272.
On Monday, Nirmala Sitharaman, who is serving her second term as finance minister, wasted no time in getting started. She released two tax devolution instalments, amounting to Rs 1,39,751 crore, to 28 states to support their development and capital expenditure, instead of the usual single instalment.
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Shortly after the first meeting of the newly appointed Cabinet on Monday evening, the minister met with finance secretary TV Somanathan and economic affairs secretary Ajay Seth to assess the economic and fiscal condition of the states.
The interim budget for FY25 allocated Rs 12.20 lakh crore for tax devolution. With this release, the total amount devolved in this fiscal year has reached Rs 2,79,500 crore.
Sitharaman, a Rajya Sabha member from Karnataka, has held significant portfolios in the Modi governments, including serving as the defence minister and the minister for commerce and industry with independent charge. According to a statement from the President’s office on Monday, she will also be responsible for the corporate affairs ministry.
During her previous tenure at the finance ministry, Sitharaman, aged 64, navigated the economy through the Covid-19 pandemic by implementing the “Aatmanirbhar (self-reliant) Bharat” package and introducing measures such as production-linked incentive schemes for various sectors while maintaining fiscal prudence. Increasing capital expenditure to support the economy until private investment gained momentum contributed to the strong economic recovery.
