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.