In the Interim Budget 2024-25 presented in Parliament on Thursday, Finance Minister Nirmala Sitharaman emphasized the commitment to fiscal consolidation while promoting economic growth and inclusive development.
The Finance Minister has reduced the fiscal deficit target to 5.1% of GDP for 2024-25, aiming for economic growth by increasing government capital expenditure on major infrastructure projects. This move comes as a result of robust tax collections in a rapidly growing economy. The allocation for significant infrastructure projects in the upcoming fiscal year has been raised to Rs 11.1 lakh crore, marking an 11.1% increase from the previous year.
Despite the reduction in market borrowings by the government, the Finance Minister highlighted that lower market borrowings would free up more funds for private sector corporates to secure loans for investment, further accelerating economic growth.
The gross market borrowing of the government is set at Rs 14.13 lakh crore, with the proposed net market borrowing at Rs 1.75 lakh crore, lower than the corresponding figure for 2023-24.
The Interim Budget has also established a corpus of Rs 1 lakh crore for a 50-year interest-free loan for the farm sector.
Sitharaman clarified that there were no changes in direct or indirect tax rates in the interim budget.
Addressing the transformational changes in the Indian economy, Sitharaman noted that the fruits of development were reaching people on a mass scale. The government's policy of inclusive development and growth, according to her, is a deliberate departure from past administrations. She highlighted achievements such as providing housing, water, electricity, bank accounts, and cooking gas for all, eliminating worries of food with free food for 83 crore people, and increasing real incomes.
Sitharaman reiterated the government's commitment to social justice, emphasizing all-round development to enhance people's capabilities and empower them. The saturation approach reflects the government's commitment to secularism in action, preventing corruption and nepotism. The Finance Minister highlighted the government's focus on empowering the poor, women, youth, and farmers, making them a top priority for support.
(With Agency Inputs)
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