Sir,
The budget continues to prioritize infrastructure, with substantial funds allocated for highways, railways, and airports. This investment is expected to create new business opportunities, enhance connectivity, and stimulate economic growth
Despite being an election year, the budget has shown fiscal restraint by not introducing new populist schemes. The fiscal deficit is projected to reduce from 5.9% in 2023-24 to 5.1% in 2024-25, which signals a commitment to fiscal management. Significant funds have been allocated for research and development, skill development, and education, aiming to foster innovation and prepare a skilled workforce for the Bl future .
There is a strong emphasis on sustainable development, with investments in renewable energy projects and other green initiatives to meet global sustainability goals
The budget includes rationalization of tax provisions and extensions of certain tax benefits, aiming to enhance compliance and support economic activity.
The nominal GDP growth for 2024-25 is projected at around 10.5%, which, after adjusting for inflation, indicates a subdued real GDP growth rate. This raises concerns about achieving the target of becoming one of the top three global economies by 2027 .
There are significant concerns about the quality of employment being generated. Sectors like agriculture are seeing a return of workers, indicating a lack of productive job opportunities in urban areas. Manufacturing and services sectors are also struggling with productivity issues.
The capital expenditure target for 2023-24 was not met, with actual spending falling short of the budgeted amount. This shortfall can impact long-term growth and development plans.
The budget has seen cuts in essential sectors like health and education, which can have long-term detrimental effects on the population’s well-being and the country’s human capital development .
Overall, while the Interim Budget 2024 sets a positive tone with its focus on infrastructure, innovation, and fiscal discipline, it also faces criticism for its muted GDP growth outlook, employment challenges, and cuts in critical sectors.
Yog Rahi Gupta
Jammu
Sir,
The Indian budget presented stands as a testament to the government’s commitment to fostering economic resilience and growth. This budget, with its emphasis on infrastructure development, digital innovation, and social welfare, aims to navigate the complexities of a post-pandemic economy.
A significant highlight is the substantial allocation for infrastructure projects, which promises to generate employment and stimulate economic activity across various sectors. The focus on digital transformation, particularly the promotion of fintech and start-ups, is a forward-thinking move that could position India as a global tech hub.
Moreover, the budget’s attention to healthcare and education is commendable. Increasing healthcare expenditure is a crucial step towards strengthening our healthcare system, ensuring better preparedness for future health crises.
Similarly, investments in education, particularly in digital learning, will bridge the learning gap exacerbated by the pandemic.
However, concerns about fiscal deficit and debt management remain. While the Government’s borrowing plan is ambitious, ensuring fiscal discipline and transparency will be essential to maintain economic stability.
Overall, this budget reflects a balanced approach, addressing immediate needs while laying the groundwork for long-term prosperity. It’s imperative for all stakeholders to collaborate and ensure these initiatives translate into tangible benefits for the nation.
Pushpa Devi
Akhnoor
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