Union finance minister Nirmala Sitharaman on Thursday will present the Interim Budget before India heads to the Lok Sabha 2024 elections. It will be the last budget in the second term of Prime Minister Narendra Modi as he seeks re-election in the months from now.
It will be the interim budget and not a regular one. The full budget for the financial year 2024-25 will only be tabled after the new government is formed after the general elections.
Since it is a vote on account, the finance minister will not make any major policy-related announcements during the budget presentation. The interim budget outlines expenditures and revenues until the formation of a new government. This interim budget helps the government to manage its financial obligations.
During her address to Parliament, President Droupadi Murmu said that India kept up its momentum of being the fastest-growing major economy.
“The year 2023 was a historic year for India when it grew the fastest among major economies despite the global crisis. India grew about 7.5 per cent for two consecutive quarters,” the President stated.
ALSO READ: From Nirmala Sitharaman to TV Somanathan, key faces in ‘team budget’
In its review report, the finance ministry said that the economy of India is projected to grow close to 7 per cent in the financial year 2024-25.
ALSO READ: What to watch out for in Interim Budget ahead of Lok Sabha polls
The strength of domestic demand has driven the economy to a 7 per cent plus growth rate in the couple of years. India’s economy grew 7.2 per cent in 2022-23 and 8.7 per cent in 2021-22. The Indian economy is expected to grow 7.3 per cent in the current financial year 2023-24, remaining the fastest-growing major economy, the report added.
ALSO READ: Interim Budget to focus on Viksit Bharat
What happened in 2023 budget?
In the 2023 budget, Sitharaman had proposed to increase capital expenditure outlay by 33 per cent to ₹10 lakh crore in 2023-24, which would be 3.3 percent of the GDP. It was almost three times the outlay in 2019-20.
Further, the Modi government had proposed to increase the agricultural credit target to ₹20 lakh crore with a focus on animal husbandry, dairy and fisheries. The agriculture sector of the country has been growing at an average annual growth rate of 4.6 per cent in the last six years.
The finance minister had said that the government intends to bring the fiscal deficit below 4.5 per cent of GDP by the financial year 2025-26.
(With agency inputs)