New Delhi: While presenting the Union Budget 2024-25 in Parliament Tuesday, Union Minister for Finance and Corporate Affairs, Nirmala Sitharaman, emphasized that despite global economic uncertainties, India’s economic growth continues to be a bright spot.
She highlighted the challenges faced globally, including elevated asset prices, political uncertainties, and shipping disruptions, which pose risks to growth and inflation. However, she affirmed that India remains a shining exception and is expected to continue on this path.
Sitharaman elaborated that the Union Budget 2024-25 focuses on nine priority areas with the potential for transformative changes. These areas are productivity and resilience in agriculture, employment and skilling, inclusive human resource development and social justice, manufacturing and services, urban development, energy security, infrastructure, innovation, research and development, and next-generation reforms.
The budget also aims to strengthen and expedite the implementation of previously announced initiatives to achieve the goal of Viksit Bharat.
The Finance Minister stated that future budgets would build on these priorities, adding more areas of focus and detailed formulations as part of the ‘Economic Policy Framework.’
Detailing the budget estimates for 2024-25, she mentioned that total receipts, excluding borrowings, are estimated at ₹32.07 lakh crore, with total expenditure at ₹48.21 lakh crore. Net tax receipts are projected to be ₹25.83 lakh crore.
The fiscal deficit is estimated at 4.9% of GDP. The gross and net market borrowings through dated securities are expected to be ₹14.01 lakh crore and ₹11.63 lakh crore, respectively, both lower than the previous year.
Sitharaman expressed confidence that the fiscal consolidation path announced in 2021 has benefited the economy significantly. The government aims to reduce the deficit to below 4.5% next year and is committed to maintaining fiscal discipline. From 2026-27 onwards, the goal is to ensure that the Central Government debt will be on a declining trajectory as a percentage of GDP.
