Parliament's budget session has officially begun. The government will present the interim budget for FY24-25 tomorrow.
Highlighting the growth taking place in the space sector, President Draupadi Murmu said, "My Government is working towards making India, a major space power of the world. This is a mode to make human life better. This is also an effort to increase India’s share in the space economy. Important decisions have been taken for the expansion of India’s space program. Several new space startups have been formed. The day is not far when India’s Gaganyaan will go into the space."
"In the past years, the world witnessed two major wars and faced a pandemic like Corona. Despite such global crises, my government kept inflation under control in the country and did not let the burden on common Indians increase..."
“Tourism is a sector that provides employment opportunities to the youth. A record number of tourists are reaching the northeast region. There is excitement among people about the Andaman Islands and Lakshadweep. Around 13 lakh devotees have taken darshan at Ayodhya Dham after ‘Pran Pratishtha’.”
Investors and experts are keeping a close watch on announcements related to capital expenditure and fiscal deficit. As per government’s previously stated position, India aims to cut down fiscal deficit to 4.5% by FY26. For FY24, the target has been set at 5.9%. The fiscal deficit target has become a talking point ahead of India’s inclusion in global bond indices of JP Morgan and Bloomberg.
Some experts suggest that inability to meet targets might not be appreciated by investors in government bonds. However, a focus on fiscal consolidation has implications for the capital expenditure budget. In the last four financial years, the capex budget has grown at a CAGR of over 30%.
To support growth, the Modi government has been funding infrastructure growth to make up for missing private capex. Led by government’s push, India has seen resilient growth amidst a challenging global macroeconomic environment. But with fiscal constraints ahead, will the government continue to go big on investments?
Ahead of the budget session, here is what Prime Minister Modi said, "Let us strive to deliver our best, enrich the House with our ideas, and infuse the nation with enthusiasm and optimism."
He added, "Usually, when the election time is near, the full budget is not presented, we will also follow the same tradition and bring the full budget before you after the formation of the new government"
Finance Minister Nirmala Sitharaman is set to present the interim budget tomorrow at 11 am in the Parliament. Before the start of the budget session, Prime Minister Narendra Modi said that the government will follow the tradition of presenting an interim budget before the general elections. The finance minister had earlier indicated that there will be “no spectacular announcements” in this budget and it will just be a vote on account.
For the unversed, an interim budget is presented to allocate funds for the remaining months of a government’s tenure before the general elections which are expected to be held in April-May.