All Set for Budget 2024, Last Under PM Modi's Second Term
The interim budget will take care of the financial needs of
the intervening period until a government is formed after the Lok Sabha polls.
A full budget will be presented by the new government
On Thursday, Union Finance Minister Nirmala
Sitharaman will table the interim budget before the country heads for Lok Sabha
polls later this year. This will be her sixth Budget as the Finance Minister
and last in the second term of the Modi government.
The interim budget will take care of the
financial needs of the intervening period until a government is formed after
the Lok Sabha polls. A full budget will be presented by the new government.
The Budget Session of Parliament commenced on
Wednesday with President Droupadi Murmu addressing a joint sitting of Lok Sabha
and Rajya Sabha.
In her address, the President said 2023 was a
historic year for the country and among other steps, the country kept up the
momentum of being the fastest-growing major economy.
"The year 2023 was a historic year for India
when it grew the fastest among major economies despite the global crisis. India
grew about 7.5 per cent for two consecutive quarters," she said.
The last session before Lok Sabha polls, expected
to be held in April-May this year, will have a total of eight sittings spread
over 10 days.
A day before the session was set to start,
Parliamentary Affairs Minister Pralhad Joshi, at an all-party meeting, said the
budget session would mainly be devoted to the financial business relating to
the interim union budget for 2024-25 and discussion on the Motion of Thanks on
the President's Address.
However, essential legislative and other business
may also be taken up during this session. The all-party meeting was attended by
45 leaders from 30 political parties.
In addition, he also informed that Supplementary
Demands for Grants for 2023-24 in respect of the Union Government will be
discussed. The presentation and discussion on the Interim Budget of the Union
Territory of Jammu and Kashmir for 2024-25 along with Supplementary Demands for
Grants of Union Territory of Jammu and Kashmir for the financial year 2023-24
will also be taken up and voted.
State of
the Economy:
The Indian economy is projected to grow close to
7 per cent in the financial year 2024-25 which starts this April, said the
Ministry of Finance in a review report.
The strength of domestic demand has driven the
economy to a 7 per cent plus growth rate in the couple of years.
India's economy grew 7.2 per cent in 2022-23 and
8.7 per cent in 2021-22. The Indian economy is expected to grow 7.3 per cent in
the current financial year 2023-24, remaining the fastest-growing major
economy.
The robustness seen in domestic demand--private
consumption and investment--traces its origins to the reforms and measures
implemented by the government over the last 10 years.
Also, firm GDP growth forecasts, inflation at
manageable levels, political stability and signs of central bank tightening its
monetary policy have all contributed to painting a bright picture for the
Indian economy.
According to projections, India is expected to
become the third-largest economy in the world with a GDP of USD 5 trillion in
the next three years. Subsequently, India can aspire to become a USD 7 trillion
economy in the next six to seven years (by 2030).
Highlights from the 2023-24 Budget:
The last full Budget of Modi government 2.0 had
proposed to increase capital expenditure outlay by 33 per cent to Rs 10 lakh
crore in 2023-24, which would be 3.3 percent of the GDP. It was almost three
times the outlay in 2019-20.
Further, the government had proposed to increase
the agricultural credit target to Rs 20 lakh crore with a focus on animal
husbandry, dairy and fisheries. The agriculture sector of the country has been
growing at an average annual growth rate of 4.6 per cent in the last six years.
Like the previous two Union Budgets, the Union
Budget 2023-24 was also presented in paperless form.
Presenting the Union Budget 2023, Union Finance
Minister Nirmala Sitharaman pegged the fiscal deficit target for 2023-24 at 5.9
per cent of gross domestic product (GDP).
The Finance Minister further said that the
government intends to bring the fiscal deficit below 4.5 per cent of GDP by the
financial year 2025-26.
The 2023-24 Budget document noted that the Indian
economy was backed by strong macroeconomic fundamentals, and there are ample
indicators to back it. Be it capital expenditure, the asset quality of banks,
foreign exchange reserves, GST collections, fiscal consolidation, and
convergence of wholesale and retail inflation, all these indicators were on
strong ground.
Prime Minister Narendra Modi, hailing what he
called the "first budget of Amrit Kaal," said that it would lay a
strong foundation for building a developed India by 2047. (ANI)
Regards!
Librarian
Rizvi Institute of Management
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