Modi Government’s Interim Budget 2024: A Closer Look

Modi Government’s Interim Budget 2024: A Closer Look

While the regular annual budget is expected later in the year, the interim budget presented by Finance Minister Nirmala Sitharaman on February 1st, 2024, offers a glimpse into the government’s priorities in an election year. Let’s delve deeper into the key aspects of this budget and analyze its potential impact:

Fiscal Consolidation and Stability:

• The budget aims to maintain fiscal discipline by targeting a deficit of 5.1% of GDP for the next fiscal year. This reflects the government’s commitment to financial stability despite the upcoming elections.
• However, some experts argue that the target might be ambitious, considering the potential economic slowdown and rising global uncertainties.

Focus on Infrastructure and Development:

• The budget prioritizes infrastructure development by significantly increasing capital expenditure to ₹11.11 lakh crore. This aims to boost economic growth and create jobs.
• This focus on infrastructure development aligns with the government’s long-term vision of building a robust and modern India.

Rural Development and Agriculture:

• The budget acknowledges the importance of rural development by allocating additional funds to the rural employment scheme (MGNREGS). This move aims to generate rural employment and boost purchasing power in rural areas.
• The continuation of the PM Kisan scheme with direct benefit transfers to farmers signifies the government’s commitment to agricultural sustainability and income support for farmers.

Innovation and Technology:

• Recognizing the importance of innovation in the 21st century, the budget proposes a ₹1 lakh crore corpus fund for research and development. This initiative aims to promote innovation and technological advancements across various sectors.
• This focus on innovation aligns with the government’s vision of making India a global leader in technology and knowledge-based economy.

Other Key Points:

• No major changes were announced in income tax rates, individual or corporate, or customs duty. This suggests a focus on maintaining stability and avoiding significant policy changes in an election year.
• The budget also addresses various social welfare schemes and initiatives, highlighting the government’s commitment to social development and inclusion.

Reactions and Analysis:

The interim budget has received mixed reactions from different stakeholders. Some experts praise its focus on fiscal consolidation and infrastructure development, while others express concerns about the feasibility of achieving the deficit target and the lack of significant policy reforms.

Overall, the interim budget presents a balanced approach, aiming to maintain stability while laying the groundwork for future growth and development. However, its effectiveness in achieving these goals will depend on its implementation and the overall economic scenario in the coming months.

It’s important to remember that this is an interim budget, and the full picture will emerge with the regular annual budget later in the year. Stay tuned for further updates and analysis as more information becomes available.