Unveiling the Modi Government’s Interim Budget: A Closer Look

Unveiling the Modi Government’s Interim Budget: A Closer Look

While the regular annual budget hasn’t been presented yet due to the upcoming elections, the Modi government’s interim budget, unveiled by Finance Minister Nirmala Sitharaman on February 1st, 2024, provides a glimpse into their fiscal priorities for the coming year. Here’s a detailed breakdown of the key highlights:

Fiscal Consolidation and Continuity:

• The budget prioritizes maintaining fiscal discipline, targeting a 5.1% deficit for the 2024-25 fiscal year. This reflects a commitment to controlled spending amidst global economic uncertainties.
• No major policy changes were announced, emphasizing continuity and avoiding disruptions before the elections.

Boosting Infrastructure and Rural Development:

• Capital expenditure has been significantly increased to ₹11.11 lakh crore, showcasing the government’s focus on infrastructure development and job creation.
• Allocation for the rural employment scheme, MGNREGA, has been increased by 43.33%, underscoring their commitment to rural development and poverty alleviation.

Taxation and Investment:

• The budget maintains existing income tax rates for individuals and corporates, as well as customs duty. This stability provides businesses and individuals with predictability in their financial planning.
• A ₹1 lakh crore corpus fund has been established for research and innovation, demonstrating the government’s commitment to fostering a technology-driven future.

Social Welfare and Agriculture:

• The PM Kisan scheme, providing direct financial support to farmers, will continue with its existing allocation, ensuring continued support for the agricultural sector.
• Initiatives like the Aatmanirbhar Bharat scheme and Skill India continue to receive support, reflecting the focus on self-reliance and skill development.

Reactions and Analysis:

• The budget has received mixed reactions, with some praising its focus on fiscal prudence and continued development programs, while others criticize it for lacking bold initiatives and addressing key challenges like unemployment and inflation.
• It’s important to note that this is an interim budget, and the full picture of the government’s fiscal vision will be unveiled with the regular annual budget after the elections.

Looking Ahead:

The interim budget provides a snapshot of the Modi government’s immediate priorities. However, the real test lies in the upcoming regular budget, where voters will have a clearer picture of the government’s long-term vision and its ability to address critical economic and social challenges.