FM's Presentation Reflects Positive Transformation In Economy For Future

FM's Presentation Reflects Positive Transformation In Economy For Future

-Budget paints a hopeful picture of India's future, resting on four key pillars: youth, the poor, women, and farmers -The strong fiscal consolidation signals the government's commitment to achieving its medium-term goal of a 4.5% deficit by FY26.

Staff ReporterUpdated: Friday, February 02, 2024, 06:46 AM IST
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Indore (Madhya Pradesh): Finance Minister Nirmala Sitharaman presented an Interim Budget for the 2024-25 fiscal year today, outlining the government's spending plans ahead of the upcoming Lok Sabha elections. The Budget has delivered a surprise on the fiscal front, announcing significantly lower-than-anticipated deficit targets for both the current and upcoming fiscal years. The revised deficit for FY24 stands at 5.8% of GDP, lower than the initial projections of 5.9%. Even more impressive, the FY25 target is set at just 5.1%, well below the expected range of 5.2-5.4%. This strong fiscal consolidation signals the government's commitment to achieving its medium-term goal of a 4.5% deficit by FY26.

This Budget paints a hopeful picture of India's future, resting on four key pillars: youth, the poor, women, and farmers. It aspires to ignite young minds, empower underprivileged families, and cultivate opportunities for all. The whopping allocation of ?11.11 lakh crore towards capital expenditure (capex) demonstrates the government's commitment to infrastructure development, potentially leading to increased job creation and a flourishing economy. Overall, the Budget paints a picture of fiscal discipline and a clear roadmap toward long-term economic stability. Remarkably, this ambitious initiative comes paired with responsible fiscal management, maintaining control over the deficit.

The Budget is focused on maintaining stability, with key allocations aimed at infrastructure development, agriculture, and social welfare. Recognising its crucial role in driving economic growth, the Budget earmarks Rs ?7.5 lakh crore for infrastructure development, potentially generating jobs and stimulating the economy which gives an infrastructural push to the economic development of the nation. The increased allocation should positively impact various industries like construction, steel, and cement, potentially creating employment opportunities.

Reflecting the importance of the agricultural sector, the Budget allocates Rs 1.5 lakh crore, emphasising improved irrigation facilities and farmer support.Demonstrating continued commitment to social programmes, the Budget dedicates Rs.5 lakh crore to schemes like Pradhan Mantri Jan Dhan Yojana, Ujjwala Yojana, and Ayushman Bharat Yojana promoting social welfare. From this allocation farmers can expect improved irrigation facilities and increased support, potentially leading to enhanced agricultural productivity and income. While assessing income tax relief, the Budget maintains the status quo on income tax slabs and rates. Continued funding for existing schemes will benefit vulnerable sections of society, contributing to their inclusive development.

This Budget prioritises continuity and avoids significant policy changes during the election year. Aspiring young entrepreneurs received a major boost in today's Budget with the announcement of a game-changing initiative: a corpus of Rs1 lakh crore offering long-term, interest-free loans for up to 50 years. This innovative move aims to propel the growth of start-ups and youth-led businesses, providing them with much-needed access to capital at favourable terms. The potential impact is significant, fostering innovation, encouraging risk-taking, and fuelling job creation within the rapidly growing Indian start-up ecosystem. This initiative could very well mark a turning point for budding entrepreneurs in the country, empowering them to turn their dreams into reality. Overall, the Budget reflects a very conducive transformation towards a strong economy.

Prof. Kanhaiya Ahuja

Director

School of Economics

Devi Ahilya University, Indore

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