In a landmark address to parliament, India’s Finance Minister, Nirmala Sitharaman, announced on Thursday a comprehensive budget for the fiscal year 2024/25, marking the government’s last budget presentation before the upcoming national election in May.
Sitharaman highlighted the profound transformation of the Indian economy, emphasizing the government’s commitment to improving conditions for marginalized groups, including the poor, women, youth, and farmers. The Finance Minister set the stage for the unveiling of welfare schemes targeting these sectors, addressing concerns over weak wage growth and high inflation affecting lower-income earners, particularly in rural areas.
Experts anticipate an emphasis on cash schemes for the poor as Sitharaman aims to alleviate economic challenges faced by vulnerable populations. The interim budget for 2024/25 is considered an economic manifesto for Prime Minister Narendra Modi’s ruling party, providing insights into the government’s plans for fiscal consolidation, borrowings, and future taxation policies.
“The economy has undergone a profound transformation,” declared Sitharaman amidst applause, with the budget being closely watched as an indicator of the government’s economic priorities.
Despite India’s robust economic growth forecasted at a record-breaking 7.3% for the financial year ending March 31, 2024, concerns persist regarding weak consumption, which constitutes nearly 60% of the GDP, growing at just over 4%. Analysts suggest that while Modi leads the election race with significant popular support, the government faces challenges in addressing these economic weak spots.
As the market eagerly awaits details on fiscal policies, borrowings, and potential taxation changes, Sitharaman’s budget announcement will shape the economic landscape and provide crucial insights into the ruling party’s vision for India’s economic future.
01st Feb 2024
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