Budget 2024: Hand on the gear, getting ready to thrust ahead

Union budget 2024: The government is expected to continue prioritizing capital expenditure, particularly in the infrastructure sector, in the upcoming Budget to drive economic growth. The government has allocated a record high of Rs 10 lakh crore for capex during the current financial year, with a consistent increase. The upcoming Budget is expected to allocate a substantial amount for capital expenditure, as it has a multiplier effect on the economy and attracts private investment.

Analysts believe rupee to appreciate further and bond yields to extend decline on increased expectations of a credit rating upgrade as fiscal consolidation and lower borrowing costs suggest an improvement in the fiscal profile.

The common man awaits to hear in the Budget if the government will ease tax rates, impacting cash in hand. While the interim Budget didn't change income tax slabs, it did address the headache of fiscal deficit, which impacts a country's wallet. Fiscal prudence was prioritised, and the government aims to narrow the budget gap. A higher fiscal deficit leads to higher government debt and higher interest payments. The government stuck to fiscal prudence despite elections, and reduced borrowing may lead to lower interest rates.

India's government faces challenges in meeting its fiscal deficit target of 4.5% of GDP in FY26, according to global ratings agency Fitch. The agency predicts a 6.5% growth in the Indian economy in FY25, supported by 11% growth in government capex. The government has set a 5.1% fiscal deficit for FY25, down from 5.8% in FY24. Fitch expects the new government to maintain the fiscal path laid down in the interim budget.

The interim budget serves as a crucial milestone in this journey, aligning with broader goals of sustainability, inclusive development, infrastructure enhancement and fiscal responsibility. It hinges on harnessing the power of women, youth, farmers and innovation for nation's development. The finance minister reminded us that the aspiration of growth must go hand in hand with having adequate financial resources and hence, opening India to more investment from the world is more important than ever for India's growth story to continue.

The interim budget presented by Finance Minister Nirmala Sitharaman focuses on making India a USD 5 trillion economy and a developed nation by 2047. It includes a Rs 11.11 lakh crore spending on infrastructure and a Rs 1 lakh crore fund for research and development and the startup sector.

Interim Budget 2024: Amar Ambani, Executive Director, Yes Securities expect the government to continue with its agenda of boosting capex as a percentage of total expenditure. Also he foresees non-government enterprises incrementally cajoled through incentives to help lift the private capex cycle

Budget News: Finance minister Nirmala Sitharaman promised economic reforms to drive growth in a speech on the government's budget on Thursday, the last before a na.

Budget 2024: The estimated grants and loans to foreign governments for 2024-25 stand at ₹5,667.56 crore. | Latest News India

Crisil Ltd managing director and CEO Amish Mehta said the agency expects India's gross domestic product to grow at an average 6.7 per cent through fiscal 2031 to be the fastest-expanding large economy.