Abstract:

With the Budget session approaching its presentation day, the expectations of all the sectors are starting to spurt. The paper presents a precise analysis of the economy of the country with respect to the international situation to accordingly understand India’s economic position. The various sectors such as manufacturing, agriculture, real estate and health have been critically analysed to understand how well they have performed up till now with the given resources. The recommendations have been made after understanding the shortcomings of each sector and have been categorised under the ambit of economic growth, fiscal policy, social welfare initiatives and sustainable environment measures. The paper aims to dive into the economic situation of the country and its expectations for the Union Budget 2024-25.

Introduction:

Nirmala Sitharaman being consequently selected for the third time as the Finance Minister is set to present the Union Budget 2024-25 on 23rd July 2024. The Union Budget is expected to fill the areas that haven’t been in the interim budget.  A competitive win for the NDA in the recent general election would set the tone for the upcoming budget which is expected to not only consist of certain populist measures but would also draw attention towards time longing issues such as unemployment, agricultural reforms etc. 

The government’s vision of a “Viksit Bharat” being its top-notch priority brings forth its commitment towards India’s future in nurturing aspirations and focusing on comprehensive development and progress. In the midst of conflicts, wars and economic slowdowns around the world, the growth of the Indian economy has been significant. The economic growth should take place both at the macro as well as at the micro level for the holistic development of the country to envision the idea of a “Viksit Bharat”. Hence, the third term of the government led by a coalition will be crucial in maintaining the consistent growth and development of the country.

Review of Previous Budget:

The previous interim budget was devoid of introducing a number of welfare schemes due to the model code of conduct [MCC] that was in place before the general elections. The government had estimated to spend Rs 47,65,768 crore in 2024-25, which is 6% higher than the revised estimate for 2023-24. The focus mantra for the interim budget being ‘Sabka Saath, Sabka Vikas, and Sabka Vishwas’ and the whole national approach of “Sabka Prayas” achieving the goal of “Amrit Kaal-2047”, focused on the upliftment of four classes, that is, ‘Garib’ (Poor), ‘Mahilayen’ (Women), ‘Yuva’ (Youth) and  ‘Annadata’(Farmer). The MCC’s presence had restricted the populist schemes but developments in schemes like PM Awas Yojna took place with the aim of inclusion of 2 crore houses in the next 5 years, rooftop solarization of 1 crore household etc.

Looking at the strides in Infrastructural development, the capital expenditure outlay had been increased by 11.1%, accounting for 3.4% of the GDP. The railway sector also were benefitted from the economic corridors programmes and increased inclusion of the Vande Bharat trains. The Ayushman Bharat scheme had also been announced to the ASHA and the Anganwadi workers to make it more inclusive. Noteworthy has been a reduction of around 7% in the fund allocation compared to the previous budget to the Education Ministry, which could lead to inadequate resources for the sector which is evolving under programmes like that of New Education Policy.

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