NEW DELHI: The first budget of Narendra Modi's third term will be presented on July 23. There are signs that Finance Minister Nirmala Sitharaman will not only use the revenue increase and the record dividend from the Reserve Bank of India to invest in infrastructure but will also use the funds at her disposal to focus on specific groups such as the middle class, women and the agricultural sector.
Although the economy has been performing well so far, the government also wants to use the draft budget to announce some reform measures that do not require parliamentary approval.
“The Hon'ble President of India, on the recommendation of the Government of India, has approved the proposal to convene both the Houses of Parliament for the Budget Session, 2024 from July 22, 2024 to August 12, 2024 (subject to the exigencies of Parliamentary work). The Union Budget, 2024-25 will be presented in the Lok Sabha on July 23, 2024,” Parliamentary Secretary Kiren Rijiju said in a post on X.
The Economic Report for the last fiscal year, which is also due to be tabled, is likely to be tabled in Parliament on the opening day. It will outline the achievements of the Modi government during the first two terms and identify the areas of focus. It remains to be seen whether the government will come out with its much-talked-about 100-day agenda before the budget is presented, as the elements of the plan will be incorporated in the announcements.
Sitharaman will present her seventh consecutive Budget – surpassing Morarji Desai's sixth Budget – and will seek to address critical issues of inflation, jobs, income inequality and regional imbalances, while announcing tax measures and other welfare measures aimed at the middle class.
After the government posted a better-than-planned fiscal deficit thanks to high tax revenues, Sitharaman and her team will be closely watched as she accelerates the move towards a 4.5 percent fiscal deficit. Last year, the deficit was 5.8 percent of GDP, a revised estimate. The Centre ended the year with a deficit of 5.6 percent. The government had set a target of 5.1 percent for the current fiscal year and the revenue gains so far are expected to help it achieve that target, especially given projections that GDP growth could be higher than planned.
Sitharaman, who has been cautious in her estimates, could, however, use some of the revenue 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.
Although the economy has been performing well so far, the government also wants to use the draft budget to announce some reform measures that do not require parliamentary approval.
“The Hon'ble President of India, on the recommendation of the Government of India, has approved the proposal to convene both the Houses of Parliament for the Budget Session, 2024 from July 22, 2024 to August 12, 2024 (subject to the exigencies of Parliamentary work). The Union Budget, 2024-25 will be presented in the Lok Sabha on July 23, 2024,” Parliamentary Secretary Kiren Rijiju said in a post on X.
The Economic Report for the last fiscal year, which is also due to be tabled, is likely to be tabled in Parliament on the opening day. It will outline the achievements of the Modi government during the first two terms and identify the areas of focus. It remains to be seen whether the government will come out with its much-talked-about 100-day agenda before the budget is presented, as the elements of the plan will be incorporated in the announcements.
Sitharaman will present her seventh consecutive Budget – surpassing Morarji Desai's sixth Budget – and will seek to address critical issues of inflation, jobs, income inequality and regional imbalances, while announcing tax measures and other welfare measures aimed at the middle class.
After the government posted a better-than-planned fiscal deficit thanks to high tax revenues, Sitharaman and her team will be closely watched as she accelerates the move towards a 4.5 percent fiscal deficit. Last year, the deficit was 5.8 percent of GDP, a revised estimate. The Centre ended the year with a deficit of 5.6 percent. The government had set a target of 5.1 percent for the current fiscal year and the revenue gains so far are expected to help it achieve that target, especially given projections that GDP growth could be higher than planned.
Sitharaman, who has been cautious in her estimates, could, however, use some of the revenue 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.
