New Delhi – The much-anticipated Union Budget for the fiscal year 2024-25 will be presented on July 23, 2024, by Finance Minister Nirmala Sitharaman. As the first budget of Prime Minister Narendra Modi’s third term, this budget is expected to focus heavily on infrastructure development, targeted spending for key demographics, and addressing critical economic concerns.
Budget Focus and Priorities
The upcoming budget aims to leverage revenue growth and a record dividend from the Reserve Bank of India to boost capital expenditure and support specific target groups, including the middle class, women, and the farm sector. The government is poised to use these resources to not only create infrastructure but also introduce reforms that do not require legislative approval.
“Hon’ble President of India, on the recommendation of the Government of India, has approved the proposal for summoning both Houses of Parliament for the budget session, 2024 from 22nd July, 2024 to 12th August, 2024 (subject to exigencies of parliamentary business). Union Budget 2024-25 will be presented in Lok Sabha on 23rd July, 2024,” announced parliamentary affairs minister Kiren Rijiju.
Economic Context and Government Strategy
With the economy performing well, the government intends to use the budget to announce several reform measures aimed at sustaining growth and addressing structural issues. These measures are expected to enhance resilience and ensure that economic gains are broadly shared.
The Economic Survey, due to be tabled on the opening day of the session, will highlight the achievements of the Modi government during its first two terms and outline focus areas for the future. The government may also unveil its 100-day agenda before the budget, which will integrate into the announcements.
Fiscal Performance and Projections
Sitharaman’s budget presentation will be her seventh consecutive budget, surpassing Morarji Desai’s record of six. The finance minister aims to tackle pressing concerns such as inflation, job creation, income inequality, and regional imbalances. The government has posted a better-than-expected fiscal deficit, closing the last fiscal year with a deficit of 5.6% of GDP against a revised estimate of 5.8%. The current fiscal year targets a 5.1% deficit, which the government is on track to achieve due to robust tax collections.
The budget is also anticipated to introduce tax measures and social security benefits, particularly for the middle class, to ensure that the Indian economy, projected to grow at 7% this year, remains robust and resilient in the medium term.
Conclusion
The Union Budget 2024-25 is set to play a crucial role in shaping India’s economic landscape. With a strong focus on infrastructure and targeted spending, the government aims to drive sustainable growth and address key socio-economic challenges. The parliamentary session, beginning on July 22 and concluding on August 12, will be closely watched for the detailed announcements and reforms.
For continuous updates on the budget and other economic news, stay tuned to Sarhind Times.
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