Budget 2024: Nirmala Sitharaman’s Sixth Consecutive Budget Will Include Measures For The Economy And A Few Segments.
It Is The Sixth Consecutive Budget For Sitharaman And Could Showcase The Accomplishments Of The Government Over The Last Ten Years. Measures For The Economy And Specific Groups, Such As Women And Farmers, Are Anticipated To Be Included.
Although The Three States That Have Recently Won Elections Have Eased The Pressure For Populist Policies, Sitharaman Is Expected To Continue Fiscal Prudence While Offering Incentives To The Economy’s Engines, Such As Agriculture, To Boost Consumption And Creating Jobs.
The Budget, Which Is Essentially A Vote On Account, Asks Parliament To Approve Necessary Spending For The First Four Months Of The Upcoming Fiscal Year, Which Begins In April. The Interim Budget, Which Acts As A Showpiece Weeks Before The Model Code Of Conduct Goes Into Force, Will Come Before The Regular Budget, Which The Newly Elected Administration Is Expected To Publish In July.
It Is Anticipated That The Forthcoming Budget Will Prioritize Infrastructure, Departing From The Current Practice Of Funding New Populist Initiatives. In Addition, It Will Offer A Chance To Evaluate The Economy’s Fiscal Health In Light Of The Strong Growth In The Economy And Give A Plan For Reaching The Goals Set Forth In The Fiscal Responsibility And Budget Management Act.
Although It Is Likely To Be Reached, The Current Fiscal Year’s Budgeted Fiscal Deficit Of 5.9% Of GDP Is Almost Twice As High As The FRBM Target Of 3%. According To EY, Reaching A Debt-To-GDP Ratio Of 40% May Need Up To 13 Years Of Nominal GDP Growth At A Rate Of 10.5%.
The Government May Provide Subsidies To Women, Unemployed Young, Farmers, And Workers In The Informal Sector In An Effort To Stimulate Domestic Private Consumption, Which Is Predicted To Expand Slowly In FY24. It Will Be Difficult To Reduce The Fiscal Deficit To The Desired Level; PSU Disinvestments, For Example, Would Need To Raise Non-Tax Revenue Significantly.