BUDGET PUSHES FOR CAPEX OF RS 11.1 TRN, 3 RAIL CORRIDORS

Finance Ministers’ governance, development performance mantra.

- NIVEDITA MUKHERJEE

The Interim Budget 2024, in keeping with legacy of such past exercises, would have been just a temporary financial statement to meet essential expenses until elections are held. However, in a departure from stereotype, Finance Minister Nirmala Sitharaman, in her sixth consecutive budget presentation, delivered much more. Sitharaman recast GDP as Governance, Development and Performance as the mantra to achieve high growth in India’s gross domestic product alongside the three metrics by maintaining a focus on capex and fiscal discipline, enhancing infrastructure and empowerment of people for national development. “Aligning with the ‘Panchamrit’ goals, our Government will facilitate sustaining high and more resource-efficient economic growth. This will work towards energy security in terms of availability, accessibility and affordability,” the Minister said in her Budget speech.

Coming in the backdrop of negative global headwinds, yet resilience of an economy due to its strong macroeconomic fundamentals, the Interim Budget leans on four major pillars – poor, women, youth, and farmers – to give a new shape to the socio-economic development of the country and make growth more inclusive in the coming times. The base is strong. Investments have been robust, average real income of the people has increased by 50 per cent, inflation is moderate, 51 crore bank accounts under Jan Dhan Yojana now have total deposits of over Rs 2.1 lakh crore, and net financial assets of households by March 2023, improved to 65.5 per cent of GDP. To cap it all, India has become the fastest-growing economy among G20 countries and is currently the 5th largest economy globally. Various forecasts suggest the Indian economy will achieve a growth rate at or above 7 per cent for FY24, and in FY25 as well.