Decoding Budget 2024 Key Highlights and Potential Impacts India’s Union Budget for 2024-25, presented on February 1st, 2024, by Finance Minister Nirmala Sitharaman, outlined the government’s spending plans for the upcoming fiscal year. With a total outlay of ₹47.66 lakh crore, the budget aims to balance economic growth with fiscal consolidation. Here’s a breakdown of some key highlights and their potential impacts:

Boosting Infrastructure:

• Increased Capital Expenditure: The budget allocates ₹11.11 lakh crore for capital expenditure, marking an 11.1% rise from the previous year. This signifies continued focus on infrastructure development, potentially creating jobs and boosting the economy.
• Railway Modernization: ₹40,000 normal rail bogies will be converted to Vande Bharat standards, aiming to improve passenger experience and safety. This could also lead to increased investment in the railway sector.
• Three Major Economic Railway Corridor Programs: The budget focuses on energy, mineral & cement corridors, port connectivity corridors, and high traffic density corridors, aiming to improve logistics and trade efficiency.

Focus on Social Welfare:

• PM Awas Yojana (Gramin): Construction of 2 crore additional houses under this scheme aims to provide affordable housing for rural populations.
• Lakhpati Didi Target Increased: The target to empower women entrepreneurs through this scheme has been raised from 2 crore to 3 crore, potentially aiding financial inclusion and women’s empowerment.
• Vaccination for Cervical Cancer: The budget prioritizes public health by introducing a vaccination program against cervical cancer, potentially saving lives and reducing healthcare costs.

Fiscal Consolidation:

• Fiscal Deficit at 5.1%: While lower than the previous year’s estimate, the deficit remains above the government’s 4.5% target for 2025-26. This might raise concerns about long-term fiscal sustainability.
• Reduced Food and Fertilizer Subsidies: The budget cuts subsidies on food and fertilizers, potentially impacting certain sections of the population. However, it could also contribute to fiscal consolidation.

Other Key Announcements:

• Fifty-year interest-free loan corpus for research and innovation.
• Continued focus on digitalization and green initiatives.
• No major changes to income tax slabs.

Potential Impacts:

• The budget’s focus on infrastructure development could lead to economic growth and job creation, but its effectiveness depends on efficient implementation.
• Social welfare schemes have the potential to improve the lives of vulnerable populations, but their success hinges on proper targeting and execution.
• Fiscal consolidation efforts might lead to some austerity measures, but they are crucial for long-term economic stability.

Overall, Budget 2024 presents a mixed bag of measures with potential benefits and challenges. Its success will depend on effective implementation, monitoring, and addressing potential concerns.