The Union Budget 2024-25, presented by the Finance Minister, stands as a cautious document prioritising fiscal consolidation and continuity instead of populist measures. The government has opted for a pragmatic approach, balancing its focus on key sectors like infrastructure and social welfare with maintaining a tight grip on the fiscal deficit. The budget allocates a significant Rs 11.11 lakh crore to infrastructure spending, marking an 11% increase. This investment in roads, ports, and airports is crucial for sustaining India’s economic growth and job creation. Further rationalising subsidies is a welcome step towards boosting balanced growth. The government hasn’t neglected its social welfare commitments. The extension of healthcare coverage under Ayushman Bharat to ASHA and Anganwadi workers, the planned increase in medical colleges, and the focus on maternal and child healthcare demonstrate a commendable focus on vulnerable sections of society.
The budget aims to bring down the fiscal deficit to 5.1% of GDP, adhering to the path of fiscal consolidation. This prudent approach is essential for long-term economic stability. Adhering to the fiscal consolidation path is critical for maintaining economic stability. Building 2 crore affordable houses and promoting renewable energy are focus areas. Similarly, the allocation of a corpus for innovation and technology aims to boost research and development. Effectively channelling funds, fostering collaboration between industry and academia, and creating an innovation-friendly ecosystem are the budget focus areas. Developing tourist centres and promoting them globally through strategic marketing and infrastructure development get due focus. Stitching partnerships with the private sector and international organisations will be the targets to enhance the reach and attractiveness of tourist destinations.
The budget undeniably acknowledges the positive economic trajectory India has been on, highlighting robust growth, record FDI inflows, and sustained GDP. These achievements, attributed to the government’s policies, serve as a strong foundation for further progress. In a world grappling with economic turmoil, India’s relative stability is indeed a positive sign, attracting record FDI as a testament to global faith in its economic potential. Recognising the need to sustain this momentum, the budget prioritises a balanced approach. The absence of major tax changes suggests a focus on stability and predictability for businesses. Instead, the emphasis shifts towards infrastructure development and job creation, with a record allocation. The investment in roads, ports, airports, and railways is crucial for long-term economic growth and improving connectivity. The budget also acknowledges emerging challenges. The increase in defence spending reflects the need to address evolving security concerns while maintaining fiscal prudence. The budget underscores the importance of modernising the armed forces by allocating increased funds for the Navy, Air Force, and Army. This investment in cutting-edge technology and equipment is crucial for ensuring national security in a complex geopolitical landscape. Similarly, major flagship schemes like MGNREGA and Ayushman Bharat receive sufficient allocations, demonstrating the government’s commitment to social welfare and rural development. Additionally, the establishment of more medical colleges promises to enhance healthcare access, particularly in underserved areas. The budget recognises the importance of agriculture, animal husbandry, and fisheries in bolstering the rural economy. The focus on milk, poultry, and fish farms is a welcome step towards promoting sustainable livelihoods and improving nutritional outcomes.
The budget’s approach to taxation and resource allocation signifies a commitment to both immediate relief and long-term stability. By avoiding knee-jerk tax increases and focusing on alternative revenue generation and growth-oriented initiatives, the government aims to navigate the economic landscape responsibly and ensure a brighter future for all. It’s important to remember that this is an interim budget, with a more detailed version to follow after the elections. It serves as a stepping stone, outlining the government’s broad priorities. The absence of populist measures suggests a focus on consolidating the gains made in the past five years rather than resorting to short-term populism. The emphasis on reforms, innovation, and inclusivity suggests a strategic approach to economic development..
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