The Union Budget 2024, presented by Finance Minister Nirmala Sitharaman on July 23, 2024, marks a significant milestone in the Modi government’s third term. This budget, the first under the new administration, sets the tone for the next five years and aims to steer India towards a path of sustainable development and inclusive growth.
The budget maintains a focus on fiscal prudence, with the fiscal deficit target set at 5.1% of GDP for FY 2024-25, down from 5.63% in the previous year. This commitment to fiscal responsibility is crucial in the face of global economic challenges and will help strengthen India’s macroeconomic stability.
The Economic Survey, tabled in Parliament a day before the budget, projects India’s GDP growth to range between 6.5% and 7% for FY 2024-25. While this is lower than the 8.2% growth estimated for the previous year, it reflects the government’s realistic assessment of the economic landscape and its determination to navigate through the headwinds.
One of the most notable aspects of the budget is the proposed changes to the personal income tax regime. The government has announced an increase in the basic exemption limit, providing much-needed relief to the middle class. Additionally, the rationalization of the capital gains taxation structure is expected to boost investor sentiment and encourage long-term investments.
The budget also introduces employment-linked incentives to promote job creation, a critical priority given the country’s demographic dividend. By incentivizing businesses to create more jobs, the government aims to address the unemployment challenge and empower the youth.
Recognizing the importance of social welfare, the budget allocates significant resources to key sectors such as healthcare, education, and rural development. The increased focus on these areas reflects the government’s commitment to ensuring that the benefits of growth reach all segments of society.
The budget also includes measures to support the agricultural sector, including enhanced funding for irrigation projects and crop insurance schemes. These initiatives are crucial in ensuring food security and improving the livelihood of farmers, who form a significant portion of the population.
Infrastructure development remains a key priority in the budget, with allocations for projects in sectors such as roads, railways, and urban development. The government’s focus on improving connectivity and reducing logistics costs will enhance the country’s competitiveness and attract investments.
Sustainability also features prominently in the budget, with allocations for renewable energy projects and initiatives to promote green technologies. These measures align with the government’s commitment to combating climate change and ensuring a sustainable future for generations to come.
While the budget presents a balanced approach to growth and inclusion, it also faces some challenges and concerns. The reduction in the allocation for the census, from ₹3,768 crore in 2021-22 to ₹1,309.46 crore in 2024-25, raises questions about the government’s commitment to data-driven policymaking.
Additionally, the budget’s impact on the common man remains to be seen. While the tax relief and social welfare measures are welcome, their effective implementation and the timely delivery of benefits will be crucial in ensuring that the budget’s objectives are met.
Budget 2024 sets the stage for the Modi government’s third term, showcasing its vision for a prosperous and inclusive India. By striking a balance between fiscal prudence, economic growth, and social welfare, the budget lays the foundation for a more equitable and sustainable future.
However, the true test of the budget’s success will lie in its effective implementation and the government’s ability to address the challenges that may arise in the coming years. With a clear roadmap and a commitment to good governance, the Modi administration has the opportunity to build on the progress made in its previous terms and take India to new heights of development and prosperity.
