Explore the intricacies of Budget 2024 as Finance Minister Nirmala Sitharaman unveils a Rs 47.66 lakh crore budget. Understand the fiscal nuances, market responses, and the trajectory for the coming financial year.
Budget 2024 Unveiled: A Comprehensive Overview
Increased Allocation and Fiscal Resilience
In a significant fiscal move, Finance Minister Nirmala Sitharaman presented Budget 2024-25, revealing a 6.1% increase to Rs 47.66 lakh crore. This surge is attributed to heightened expenditure and augmented allocations for both capital and social sector schemes.
Key Budget Figures
Total Receipts and Expenditure
The total receipts, excluding borrowings, and the total expenditure for 2024-25 are estimated at Rs 30.80 lakh crore and Rs 47.66 lakh crore, respectively. Sitharaman highlighted tax receipts at Rs 26.02 lakh crore in her budget speech.
Nominal GDP Growth and Fiscal Deficit
The nominal GDP growth for the next financial year is set at 10.5%, with the revised estimate of the fiscal deficit improving to 5.8% of GDP, surpassing the initial budget estimate of 5.9%. Remarkably, despite an 11% increase in capital expenditure (capex) outlay, the fiscal deficit for FY25 is projected at 5.1%.
Expert Insights and Market Response
Sandeep Das, MD & CEO of Centrum Wealth, lauded the government’s fiscal prudence in an interim budget. The lower-than-expected fiscal deficit projection of 5.1% in FY25 and the substantial 11% surge in infrastructure spending were particularly well-received by the market.
Revised Estimates 2023-24
Sitharaman provided insights into the Revised Estimates for 2023-24, revealing total receipts, excluding borrowings, at Rs 27.56 lakh crore. Tax receipts stood at Rs 23.24 lakh crore, surpassing the budget estimate. The total expenditure for the fiscal year is estimated at Rs 44.90 lakh crore, with revenue receipts at Rs 30.03 lakh crore, signaling robust growth and formalization in the economy.
A Decade of Transformation
Reflecting on the past decade, Sitharaman emphasized the positive transformation of the Indian economy. Acknowledging the challenges faced in 2014, the government’s commitment to gradual economic repair, streamlined governance, and nation-first principles have put the economy on a sustainable growth path.
Hope, Investments, and Reform
In the early years of the Modi government, the focus was on instilling hope, attracting investments, and garnering support for essential reforms. Overcoming past crises, the economy now stands on a robust growth trajectory with comprehensive development across various sectors.
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