On February 1, 2024, Union Finance Minister Nirmala Sitharaman presented her sixth Budget. An interim budget designed to address the needs of the nation ahead of the upcoming general elections. This budget prioritized youth and women empowerment, recognizing the crucial role they play in the nation’s progress. However, fiscal consolidation remained a key concern, and efforts were made to maintain financial stability while pursuing capital expenditure.
As part of this approach, FM Sitharaman lowered the target for the fiscal deficit in the fiscal year 2025. By aiming to bring it down to 5.1% of the GDP. This move reflects a commitment to responsible financial management. It ensures the sustainability of economic growth and development in the years to come.
List of points addressed
- Finance Minister Nirmala Sitharaman unveiled a reform-oriented interim budget. It included a notable 11 per cent increase in capital expenditure for the upcoming fiscal year. With the goal of sustaining India’s impressive economic growth rate.
- The budget also placed a strong emphasis on reducing the deficit. It provides relief to the general public by addressing disputed small tax demands up to ₹25,000.
- During the budget speech, She highlighted the Modi government’s achievements over the past decade. How they played role in transforming India from a “fragile” economy to the world’s fastest-growing major economy. She presented a roadmap for India’s development, emphasizing the principles of reform, perform, and transform.
- The budget set the capital expenditure for 2024-25 at ₹11.11 lakh crore. While reducing the fiscal deficit for the current financial year to 5.8 per cent of GDP. Additionally, She stated that the government would continue its path of fiscal consolidation, aiming to reduce the fiscal deficit to below 4.5 per cent by 2025-26.
- The Union Finance Minister made a significant announcement by allocating a massive ₹1 lakh crore to support India’s tech-savvy youth in a highly anticipated Budget speech. This bold step aims to drive research and innovation in emerging fields by encouraging significant efforts from the private sector. With a strong focus on inclusive development, the Budget pledges to empower the key foundations of a developed India, including the dynamic youth, underprivileged individuals, women, and hardworking farmers. This Budget outlines a path for India’s future and effectively captures the aspirations of the growing young population.
Other facts
- The interim budget did not expose any tax incentives for homebuyers, such as an increase in the deduction limit for home loan interest under Section 24. This let down disappointed potential homebuyers who desired more.
- Moreover, there were high hopes for increased allocations for schemes like PMAY (Urban) to enhance affordability and stimulate new projects in the housing market. However, the interim budget remained silent on this matter as well, causing the industry to question the government’s approach towards addressing these concerns. Although no significant announcements were made, the absence of specific measures suggests the necessity for a comprehensive strategy in addressing challenges within the housing sector. Since the budget failed to tackle these vital aspects, it remains uncertain how the government plans to address the concerns of homebuyers and foster the growth of affordable housing in the future.
Conclusion
In conclusion the Interim budget turned out to be good. We are hopeful that this might result in few betterments for the society. However let’s see what impact it has on the industry. Above all it is a period of growth and progress. Furthermore let’s see what happens in the elections.