What Lies Ahead in the Union Budget 2024-2025?
The Indian Union Budget stands unique every year on the coveted date of February 1 and is awaited with a lot of curiosity, as it is an annual event outlining the government's well-thought-out expenditure plan for the ensuing fiscal. This year, the Union Budget for 2024-25 is slated for presentation in Parliament on July 23, 2024, at 11 am. Finance Minister Nirmala Sitharaman is poised to make history as the first to present six consecutive budgets in independent India, surpassing Morarji Desai's record set from 1959 to 1963.
With the Union Budget 2024 on the horizon, the hopes are that changes in its form continued from the last few years, whose budgets had barely stretched beyond altering direct tax rates. The Finance Minister is all geared to announce vision and strategies in the direction of 'Viksit Bharat'. Indians are expecting the third consecutive term of the government in power and the delivery of the Union Budget in the backdrop of general elections. The forthcoming budget is likely anticipated to focus on increasing investments in manufacturing, building resilient infrastructure, generating employment, supporting agriculture, maintaining tax stability through innovative means, and promoting entrepreneurship. Thus, it is likely to support with the G-20 agenda aimed at addressing tax-related challenges postured by a swiftly digitizing economy. In efforts to enhance tax payment ease and reduce litigation, thus encouraging manufacturing and private investments while fortifying overall compliance
India's Path to Development
The Interim Budget 2024, themed 'Roadmap for Viksit Bharat 2047', presents a vision for inclusive expansion, aiming to change India into a developed nation by 2047. Structured around the pillars of 'Garib' (Poor), 'Mahilayen' (Women), 'Yuva' (Youth), and 'Annadata' (Farmers), the budget outlines initiatives to strengthen the country’s infrastructure across physical, digital, and social sectors. Key proposals include the introduction of Digital Public Infrastructure (DPI) to enhance financial inclusion, expanding the GST base, and establishing a Global Integrated Financial Hub (GIFT IFSC) to attract international capital. The 'Garib Kalyan, Desh ka Kalyan' program has resulted in significant savings through Direct Benefit Transfer (DBT), aiding millions and lifting 25 crore people out of poverty. Youth empowerment efforts include extensive skill training and financial support through the PM Mudra Yojana.
In agriculture, the budget announces direct financial assistance for farmers, expanded crop insurance coverage, and the integration of agricultural markets via eNAM. Women empowerment initiatives have increased access to financial resources and educational opportunities, with a focus on boosting enrollment in higher education and STEM fields. The budget also emphasizes sustainable development under 'Amrit Kaal as Kartavya Kaal', targeting 'Net Zero' emissions by 2070 and promoting green energy solutions. These efforts are supported by urban transformation projects, healthcare enhancements, and comprehensive support for the agriculture and food processing sectors, highlighting the budget's comprehensive approach to national development.
Will India's Record Capital Investment Spark A New Era Of Economic Growth?
While presenting Interim Union Budget 2024-25 in Parliament on the 1st February, the Union Finance Minister, Smt. Nirmala Sitharaman, points at an increase of 11.1 percent in capital expenditure to Rs 11,11,111 crore, which is 3.4 percent of GDP. This will help escalate what basically is tripling the expenditure over the same period of the past four years with a view to generating economic growth and boosting employment opportunity. First Advance Estimates, real GDP growth for FY23-24 at 7.3 percent, is in congruence to the revision done upwards by RBI and the IMF. In the face of adversities presented by the global economy, the fundamentals of the Indian economy remain strong, ushering the IMF to project India along with the other two largest economies by 2027. GST collections crossed the Rs1.65 lakh crores mark in December 2023, thus indicating growth at a fast clip of formalization in the economy and further gain in growth momentum. Besides, the Budget has estimated the total receipts at Rs 30.80 lakh crore and expenditure aggregating Rs 47.66 lakh crore for the year 2024-25, apart from countrywide substantial earmarks towards state capital expenditure and ambitious targets on fiscal consolidation. This is an initiative that targets all fronts and keeps in mind the guiding principles: poverty reduction, empowerment through schemes like PM Mudra Yojana, and sector-specific interventions in order to meet goals for sustainable growth.
Did India's 2024 Budget Meet Industry Expectations?
We all know this is an election year, and therefore, this year's budget is being dealt with as an Interim Budget. Normally, these kinds of budgets include announcements of a foundational nature, but experts caution against expecting major new things to come out of interim budgets.
Industry leaders reacted mixed to the Union Budget of 2024 post the presentation of the Interim Union Budget in the Parliament on 1st February for the year 2024-2025.
Varun Babbar, Managing Director - India and SAARC, Qlik, says, "As we anticipate the new government under Prime Minister Modi, we expect strong backing for the 'Viksit Bharat' initiative a vision introduced for accelerating the nation's development and promoting economic inclusivity. This transformation requires placing technology at its core. Prioritizing the adoption of digital technologies across critical sectors, especially governance, will encourage inclusivity and efficiency in delivering social and welfare schemes".
Final Note
As India prepares for the Union Budget 2024-2025 amidst expectations of continued economic momentum, the nation stands poised at the threshold of transformative change, guided by strategic investments and visionary policies.
