India’s Finance Minister Nirmala Sitharaman will present the Budget 2024-25 in the Lok Sabha on July 23, marking the first Budget of Prime Minister Narendra Modi’s third term. This historic Budget, expected to feature major social and economic decisions, will be Sitharaman’s seventh consecutive presentation, setting a new record. Key themes include infrastructure development, digital economy, social welfare, and fiscal discipline.
India’s Finance Minister Nirmala Sitharaman is set to present the Budget 2024-25 in the Lok Sabha on July 23, as announced by Parliamentary Affairs Minister Kiren Rijiju on July 5. This presentation marks a significant milestone as it will be the first Budget 2024-25 of Prime Minister Narendra Modi’s third term in office, reflecting the government’s ongoing commitment to economic reform and development.
Historic Context and Significance
The Budget 2024-25 is particularly noteworthy because Nirmala Sitharaman, reappointed as Finance Minister for a second consecutive term, will become the first to present seven Union Budgets in a row, surpassing the record held by Morarji Desai, who presented six consecutive Budgets. This achievement underscores Sitharaman’s central role in shaping India’s economic policy over recent years.
Official Announcements and Expectations
Kiren Rijiju, Parliamentary Affairs Minister, took to X to confirm the schedule, stating, “Hon’ble President of India, on the recommendation of the Government of India, has approved the proposal for summoning both Houses of Parliament for the Budget Session, 2024 from July 22, 2024, to August 12, 2024 (Subject to exigencies of Parliamentary Business). Union Budget 2024-25 will be presented in Lok Sabha on July 23, 2024.”
Major Themes and Anticipations
President Droupadi Murmu has already described the upcoming Budget 2024-25 as ‘historic’ and significant for its ‘major social and economic decisions.’ The interim budget presented in February, ahead of the Lok Sabha elections, set a lower fiscal deficit target of 5.1% of GDP for FY25 and made no changes to the tax slabs in both the old and new regimes, hinting at a stable yet progressive fiscal approach.
Economic and Social Policies
In her address to a joint sitting of Parliament on June 27, Sitharaman emphasized the importance of Budget 2024-25, stating, “This Budget 2024-25 will serve as an effective document of the government’s far-reaching policies and futuristic vision. It will include major economic and social decisions, along with many historic steps. The pace of reforms will be further accelerated, aligning with the aspirations of the people of India for rapid development.”
Key aspects expected in Budget 2024-25 include continued efforts to enhance infrastructure, boost digital economy initiatives, and support sectors such as agriculture, manufacturing, and services. The government’s focus on social welfare schemes, healthcare, and education is also anticipated to be a central theme, reflecting the administration’s commitment to inclusive growth.
Pre-Budget Consultations and Inputs
Towards the end of June, Sitharaman convened a meeting with finance ministers from various states and Union Territories to gather proposals for Budget 2024-25. These consultations are crucial for incorporating diverse perspectives and regional needs into the national financial plan, ensuring that the Budget 2024-25 is comprehensive and representative.
Tax Reforms and Collections
Notably, tax collections have more than doubled over the past decade, a testament to the government’s effective tax administration and compliance measures. The average processing time for tax returns in 2024 was less than ten days, showcasing improvements in efficiency and taxpayer services. These advancements are expected to continue, with potential further simplifications and enhancements in the tax regime in Budget 2024-25.
Fiscal Discipline and Growth
The government’s emphasis on maintaining fiscal discipline while fostering economic growth is likely to be a cornerstone of Budget 2024-25. The previous interim budget’s fiscal deficit target of 5.1% of GDP reflects a balanced approach to managing public finances without stifling growth. Analysts anticipate that the upcoming budget will build on this foundation, introducing measures to stimulate investment, enhance productivity, and create jobs.
Sectoral Focus
Specific sectors such as technology, green energy, and infrastructure are expected to receive significant attention. The government may introduce incentives and policies to boost innovation, support start-ups, and accelerate the transition to a greener economy. Infrastructure development, including urban planning, transportation, and rural connectivity, will likely be highlighted to support long-term economic growth.
As India eagerly anticipates the presentation of Budget 2024-25, the government’s commitment to reform, inclusivity, and economic resilience remains clear. Nirmala Sitharaman’s historic seventh consecutive budget is poised to set the tone for India’s financial and developmental trajectory in the coming years, reinforcing the nation’s aspirations for rapid and sustainable development.
(With inputs from agencies)
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