Union Minister for Finance & Corporate Affairs Nirmala Sitharaman chairs the first Pre-Budget Consultations with leading economists in connection with the forthcoming General Budget 2024-25, in New Delhi, Wednesday, June 19, 2024.
Credit: PTI Photo
New Delhi: Finance Minister Nirmala Sitharaman on Wednesday kicked off the consultation process for the union budget 2024-25, which is likely to be presented in parliament in the second half of July.
Sitharaman held a consultation meeting with leading economists. It was the first among a series of customary consultation meetings held ahead of the presentation of a union budget.
During the meeting, economists emphasised on the need for further boosting capital expenditure and reducing fiscal deficit.
In the interim budget presented in February, Sitharaman proposed to lower the fiscal deficit from an estimated 5.8 per cent of GDP in 2023-24 to 5.1 per cent in 2024-25 and further down to 4.5 per cent in 2025-26.
The fiscal deficit has been kept under control despite a substantial boost to the capital expenditure. The government capital expenditure was proposed to be boosted to Rs 11.11 lakh crore in 2024-25 from Rs 9.5 lakh crore in the previous year.
A windfall dividend of Rs 2.1 lakh crore from the Reserve Bank of India (RBI) gives space for further boosting capital expenditure and reducing the fiscal deficit.
Talking to reporters after the meeting, National Co-convener of Swadeshi Jagaran Manch Ashwani Mahajan said employment also remained an important issue of discussion.
“It is very much in the discussion, that capex has driven or helped to drive the growth of the economy, which should be sustained,” said Nagesh Kumar, Director, the Institute of Studies in Industrial Development.