This Budget has focused on growth and fiscal consolidation. The fiscal deficit is expected to be 4.9 per cent of GDP for 2024-25, dropping below 5 per cent for 2025-26, with a plan to reduce government debt as a percentage of GDP from 2026-27 onwards. It has measures for skilling, job creation, rural development, consumption, agricultural productivity, inclusive development, and R&D.
Infrastructure spending remains at 3.4 per cent of GDP or Rs 11.1 lakh crore, slightly below expectations, but reflects the government’s commitment to investing in employment, local manufacturing, and economic productivity.
States have been encouraged to support infrastructure with Rs 1.5 lakh crore in interest-free long-term loans, in addition to specific projects for road, tourism, irrigation, and flood mitigation infrastructure.
While the Budget did not address new aspects of asset monetisation, privatisation, EVs, or hydrogen, it includes several positive announcements:
Urban development, including a few large cities and development of certain cities as growth hubs. It envisages reforms to water supply and sanitation for 100 cities, which is the need of the hour.
Exploration, mining, production and recycling of critical minerals and rare earths, given the thrust on energy transition.
A policy for energy transition pathways, to help India achieve its goal of being net zero by 2070. This is to be supplemented by a roadmap for effective transition as it will help track emission targets, instead of just energy efficiency targets.
A policy for pumped storage, given how much it helps reduce intermittency that renewables cause in the grid.
The announcements for research and development of small, modular nuclear reactors that would integrate cleaner nuclear power into the grid, and promote local manufacturing in the reactor and allied sectors, given the complexity of nuclear plants.
Development of the advanced ultra super critical thermal plants by NTPC and BHEL and the development of production capacity for high grade steel and other components to boost manufacturing capabilities in these areas.
Reforms to dispute resolution at the National Company Law Tribunals and reforms to the Insolvency and Bankruptcy code will improve outcomes and dispute resolution.
In summary, the Budget balances well between the focus on growth and fiscal prudence, supplements the various announcements made by the Government over the course of the year and adds an impetus to specific forward looking initiatives, inclusive development and making India an easier place to do business.
Union Budget 2024 LIVE | Making a record for any Finance Minister, Nirmala Sitharaman presented her 7th consecutive Union Budget on July 23, 2024 under the Modi 3.0 government. This Budget brought tax relief for the middle class, while focusing on jobs through skilling, incentivising employers. Track the latest coverage, live news, in-depth opinions, and analysis only on Deccan Herald. Also follow us on WhatsApp, LinkedIn, X, Facebook, YouTube, and Instagram.