Interim Union Budget 2024-25: Growth,Welfare and Fiscal Rectitude

The interim Union Budget of India for the Financial Year 2024-25 is a comprehensive plan aimed at fostering economic growth while exercising fiscal restraint. The Budget points to four major ‘castes’ - the poor, the farmers, the women, and the youth of the country, and correctly considers their needs and welfare as the highest priority. It is set against the backdrop of a global economy struggling with inflation, high interest rates, low growth, and high public debt. India has successfully navigated these challenges, showing resilience in the face of crises related to food, fertilizer, and fuel, and has put forth solutions for global problems.

The budget also demonstrates the government’s focus on fiscal consolidation, with a reduction in the fiscal deficit to 5.8% for FY24 vs. a budgeted 5.9%, a further reduction to 5.1% for FY25 and aims to reach a target of below 4.5% by FY26. This is a significant move given that the nominal growth for the current year stands at 9% versus the budget estimate of 10%. Capital expenditure is notably high, with an increase of 16.9% to a record ₹11.11 lakh crore, accounting for 3.4% of the GDP. This is the highest in 26 years and implies a Compounded Annual Growth Rate (CAGR) of 27% over the last five years in capex, which now comprises 23.3% of total expenditure, indicating the government’s commitment to enhancing public infrastructure.

In conclusion, the Indian Union Budget for FY 2024-25 represents a continuation of the  PM’s strategic vision for the nation's growth, emphasizing infrastructure development, fiscal consolidation, and social empowerment. It aims to ensure economic stability and growth while providing a welfare umbrella for the Indian population, a must-have for any developed nation today. The Budget builds on the foundation for the country to navigate the complexities of the global economic landscape during our country’s ‘Kartavyakaal’ in the coming years and achieve a ‘Viksit Bharat’ by 2047.