By Dr. Mayur J. Kapadia, Former Additional General Manager, GNFC Ltd.
The Finance Minister Nirmala Sitharaman, while presenting an interim budget or a “vote-of-account” in a record creating shortest speech of 58 minutes, abstained from any populist measures, but offered a vision for ‘Viksit Bharat 2047’ through fiscal prudence, discipline and reduced fiscal deficit. ‘Vote-of-account’ is generally believed to be a non-eventful one, but several specific measures of budget 2024 make it an eventful budget.
- Fiscal consolidation : FM revised the fiscal deficit down to 5.8 % of GDP from previous target of 5.9 % of GDP. The target for FY25 and FY26 have been set at 5.1 and 4.5 % of GDP.
- Capex : Increase in capital expenditure outlay by 11.1% to Rs 11.11 lakh crore, equivalent to 3.4% of GDP, will help boost increased investment to stimulate private capital expenditure. This surge will not only drive economic growth but also create increased employment opportunities.
- EV push : The expansion and strengthening of e-vehicle ecosystem clubbed with greater adoption of e-buses for public transport networks will increase opportunities for small vendors for manufacturing, installation and maintenance of EV charging networks.
- Rail : The conversion of 40,000 more rail bogies into Vande Bharat coaches will further create job opportunities while reducing travel time as well as increasing tourism across the country.
- Solar ambition : Through rooftop solarization, 1 crore households will be enabled to obtain up to 300 units free electricity every month, which will help households to save monthly up to Rs 15,000–18,000.
- Nari Shakti : 30 crore Mudra Yojana loans for women entrepreneurs, allotment of >70% houses to rural women under PM Awas Yojana, Improved nutrition delivery, Early childhood care etc will ensure increased women contribution towards enhanced economic activities.
- Tourism : Encouraged to states to develop iconic tourist centres, provision of long-term interest free loans, projects for port connectivity, tourism infrastructure, and amenities will enhance tourism.
While promising government support for farmers, young, women and poor; the FM intends to continue on the path of fiscal consolidation with continued capital expenditure and other social welfare services. The slew of measures for targeted sectors implies that budget 2024 is not a non-eventful, but it will pave way towards turning the dream of Viksit Bharat into a reality by 2047.
