Finance Minister Nirmala Sitharaman is set to announce the next budget on February 1, which will serve as a temporary measure due to the upcoming elections.
In a recent statement, the minister shared that the 2024-25 budget will not bring any major changes, but will instead focus on the government’s spending plans until a new administration is established after the elections.
However, there is growing anticipation among the public for any potential pre-budget initiatives. Gurmeet Singh Chawla, who is employed at Master Capital Services Ltd., speculates on some potential plans the government may have in store
As India prepares for the Lok Sabha elections in April to May 2024, it is expected that the upcoming budget will prioritize short-term measures rather than introducing any significant new government initiatives
Anticipations are high for the government to implement 6 major transformations.
- Reputedly, the government is likely to allocate greater funds towards welfare and strive to reduce the fiscal deficit to 4.5% of the GDP by 2025-26.
- According to forecasts,” stated Chawla,explained that the public’s expectations include discussion of tax reduction, support for agricultural and rural sectors, and addressing the issues of climate change.
- According to him, the farming sector is grappling with various challenges such as unfavorable weather conditions, the impact of climate change, and soaring prices.
- In light of global concerns about economic growth, the government is planning to allocate more funds towards addressing these issues.
- Greater financial resources are anticipated for the development of crucial infrastructure, including roads and technology.
- The government has set its sights on promoting a
digital India, embracing green hydrogen, encouraging the use of electric
vehicles, and expanding broadband services.
India is contemplating a significant expenditure of Rs 4 trillion ($48 billion) on providing support for food and fertilizer in the upcoming year.
The Ministry of Consumer Affairs, Food, and Public Distribution has proposed a budget of $26.52 billion for food subsidies in FY25, which represents a 10% increase from the previous year’s budget of $24.11 billion. 4. There are indications that the government is considering a budget increase of more than 15% for affordable housing.
The government’s objective is to secure Rs 510 billion (equivalent to $6 billion) through divesting assets and investments.
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