NEW DELHI: The first Budget of
Narendra Modi
’s third term will be presented on July 23 amid indications that finance minister
Nirmala Sitharaman
will use the revenue growth and record dividend from
Reserve Bank of India
to spend not just on capital expenditure for creating infrastructure but also use the resources at its disposal to focus on specific target groups such as the middle class, women and farm sector.
While the economy has so far been performing well, govt also wants to use the Budget to announce some reform measures that do not need legislative approval.
“Hon’ble President of India, on the recommendation of Govt of India, has approved the proposal for summoning of both the Houses of Parliament for the budget session, 2024 from 22nd July, 2024 to 12 August, 2024 (subject to exigencies of parliamentary business). Union Budget 2024-25 will be presented in Lok Sabha on 23 July, 2024,” parliamentary affairs minister Kiren Rijiju said in a post on X.
The Economic Survey for the last financial year, which is also due, is likely to be tabled in Parliament on the opening day, outlining the Modi govt’s achievements during the first two terms and identifying the focus areas. It remains to be seen if govt releases its much-talked 100 days’ agenda before the Budget is tabled since the elements in the plan will feed into the announcements.
Sitharaman, who will present her seventh consecutive Budget — a record that overtakes Morarji Desai’s six, will seek to address critical concerns around inflation, jobs, income inequality and regional imbalances while announcing tax measures and other social security benefits targeted at the middle class.
Having posted a better-than-budgeted
fiscal deficit
thanks to buoyant tax collections, Sitharaman and her team are being watched if govt intends to speed up the move towards a 4.5% fiscal deficit. Against revised estimates of 5.8% of GDP last year, the Centre closed the year with a deficit of 5.6%. For the current fiscal year, the govt had set a target of 5.1% and the
revenue mop-up
so far is expected to help it achieve the target, especially amid projections that
GDP growth
may turn out to be higher than the budgeted level.
Sitharaman, who has been conservative in her estimates, may, however, use some of the receipts for spending to ensure that the
Indian economy
, which is expected to grow 7% this year, remains resilient in the medium term by investing in areas that need attention.
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