Finance Minister Niramala Sitharaman will present the Interim Budget 2024. The Budget is likely to focus on maintaining a controlled fiscal approach and prioritise infrastructure over populist measures. Keeping upcoming polls in mind, government’s welfare measures may include doubling annual payouts to female landowning farmers and extending the federal housing scheme. Additionally, India is poised to attract investments through measures like lower taxes on hybrid cars and potential tariff reductions on gold bars.
The Modi administration aims for sustained growth despite geopolitical risks, with ongoing initiatives benefiting farmers, women, and the economically disadvantaged. The government may also avoid extensive privatization of state-owned firms and maintain modest divestment targets. Overall, a measured fiscal strategy is expected in the forthcoming budget, with a focus on sustainable economic growth and targeted welfare measures.

The interim budget serves as a temporary financial measure in an election year, addressing immediate financial requirements until a new government is established. The comprehensive union budget will be unveiled post-elections scheduled for April-May. Generally, the interim budget refrains from significant and far-reaching policy declarations.

What to expect in the Interim Budget 2024?

* The budget may announce conservatory spending on populist schemes and focus on building infrastructure.
* Lower budget deficit and higher capital spending of 20%.

* Focus on farmers, women and poor.

* Announcement of new housing loan subsidy scheme for low-cost loans.

* Lower tax on hybrid cars.

* Lower divestment target from PSU privatisation.

The Budget session started yesterday with President Droupadi Murmu’s address to a joint sitting of Lok Sabha and Rajya Sabha. Highlighting Modi government’s achievements of the last 10 years, Murmu said the Indian economy, once part of the “fragile five,” is currently progressing positively and at an appropriate pace. This transformation is attributed to various governmental reforms implemented over the past decade.

Highlighting big achievements of the government, the President said that the government has achieved several milestone like New Parliament, 100 medals in Asian Games, High-speed trains, landing on the South pole of Moon, Ram Mandir inauguration, abolition of Article 370, launch of Bharat Nyay Sanhita, and implementation of OROP.

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