Strengthening the Country
Finance Minister Nirmala Sitharaman recently concluded the presentation of the Interim Budget 2024-25, emphasizing key initiatives to empower farmers, women, youth, and the economically disadvantaged. With a strong commitment to inclusive development, Sitharaman highlighted the government’s focus on ‘Sabka Sath, Sabka Vikas,’ successfully controlling inflation and ensuring macroeconomic stability. Here’s an overview of the key points from her address.
Vision for 2047 – ‘Viksit Bharat’
Sitharaman articulated the government’s ambitious vision of transforming the nation into a developed entity by 2047, underlining a long-term commitment to comprehensive growth.
Government’s Priorities – ‘Garib, Mahilayen, Yuva, and Annadata’
The Finance Minister reiterated the government’s unwavering focus on the poor, women, youth, and farmers, emphasizing that their needs and aspirations take precedence. Addressing the nation, she stated, “Garib, Mahilayen, Yuva, and Annadata (Poor, women, youth, and farmers) – their needs and aspirations are our highest priorities.”
Enhancing Farmers’ Income: Recognizing the critical role of farmers, Sitharaman discussed measures to boost their income. She highlighted the periodic increments in minimum support prices for crops, aligning with the government’s commitment to enhancing farmers’ financial well-being. Specific initiatives, such as the PM Kisan Samman Yojana and PM Fasal Bima Yojana, were mentioned, providing direct financial assistance and crop insurance to millions of farmers.
Robust Economy and Controlled Inflation: Sitharaman delivered positive news on the economic front, stating that the Indian economy is performing well, with robust investments and better-than-expected growth in all sectors. She reassured the nation of macroeconomic stability and successful efforts in controlling inflation.
Controlled Inflation and Comprehensive Governance: Finance Minister Nirmala Sitharaman emphasized the government’s success in controlling inflation, highlighting its moderation and commitment to comprehensive governance, development, and performance. Beyond achieving high growth, she underscored the administration’s dedication to a holistic approach, considering factors beyond mere economic indicators.
Infrastructure Boost Across Sectors: A significant focus on infrastructure development was evident in Sitharaman’s presentation. The Finance Minister announced a substantial push in sectors such as railways, aviation, and ports. The capital expenditure outlay for the upcoming year witnessed an 11.1% increase, reaching Rs 11.11 lakh crore. This strategic move aims to enhance connectivity and propel growth across vital infrastructure domains.
Stability in Taxation Rates: Addressing concerns about tax changes, Sitharaman proposed maintaining the current tax rates for both direct and indirect taxes, including export duties. This decision provides stability and continuity in the tax regime, offering a predictable environment for businesses and taxpayers.
Fiscal Deficit Adjustments: Sitharaman adjusted the fiscal deficit for FY24 to 5.8% of the gross domestic product, revising it from the previous estimate of 5.9%. Looking ahead to FY25, she estimated a fiscal deficit of 5.1% of GDP, showcasing prudent fiscal management.
Railway Corridors for Enhanced Connectivity: The Finance Minister announced the creation of three vital railway corridors—a port connectivity corridor, an energy, mineral, and cement corridor, and a high-traffic density corridor. These corridors aim to strengthen connectivity and spur development in their respective sectors.
Affordable Housing Initiative: Sitharaman introduced a housing program targeting deserving sections living in rented accommodation, slums, chawls, or unauthorized colonies. The initiative aims to facilitate the acquisition or construction of homes for these communities, promoting inclusivity in housing development.
Solar Power for Free Electricity: A groundbreaking initiative was unveiled as Sitharaman introduced rooftop solarisation. This program is set to benefit one crore households, offering up to 300 units of free electricity each month. Anticipated advantages include potential savings for households and opportunities to sell excess electricity to distribution companies (discoms).