Interim Budget 2024-25 Aims for Future-Centric Development
In an optimistic move, the interim budget for 2024-25 has highlighted the Indian government’s confidence in the country’s economic growth. Finance Minister Nirmala Sitharaman presented a concise budget speech, deviating from the lengthy tradition of previous budgets. This focused approach demonstrates the government’s commitment to efficient governance.
While adhering to the limitations of an interim budget, Sitharaman emphasized the robust health of the Indian economy. She projected higher earnings for the government without any tax rate hikes and anticipated lower borrowing targets for the next fiscal year. The budget also included a visionary proposal for a long-term research and development fund, aimed at supporting startups and technology-based units for up to fifty years. These initiatives serve as grants rather than loans, showcasing the government’s aspirations for India to become a leader in cutting-edge technologies.
Despite maintaining the tax structure and ambitious capital expenditure levels, Sitharaman expects a significant reduction in the fiscal deficit. The projected fiscal deficit for 2023-24 is better than anticipated, at 5.8% of GDP, and is set to further decrease to 5.1% in 2024-25. Lower borrowing requirements for the next year have already resulted in softened bond markets, as investors anticipate softer interest rates.
To address the development needs of various segments of the population, the budget focuses on four key areas: the poor, the youth, women, and farmers. Sitharaman acknowledges that all governments prioritize the development of the poor, and the current government aims to move away from entitlement policies and involve the poor in the overall development process. The budget also emphasizes women’s entitlements, capitalizing on the fact that half of the population consists of women. For the youth, the budget highlights initiatives aiming to improve education and skills training, though it does not directly address the issue of youth unemployment.
Farmers, a critical section of society, receive attention through the institution of an electronic national farm products trading platform and improved schemes for crop insurance. These measures aim to empower farmers by providing direct market access and protecting them against uncertainties.
Overall, the interim budget for 2024-25 aims for a future-centric approach to development, with a focus on technology, research, and inclusive growth. The government’s goal is to maintain a high growth trajectory, which will enable increased capital expenditure while reducing the fiscal deficit. It is vital for the government to ensure that its policies support and sustain the resilience of the Indian economy. By doing so, India can continue its growth journey and overcome the challenges posed by past governance decisions.
