India Budget 2024: NDA Led Government aims FY25 fiscal deficit target at 5.1% of GDP

Today, Finance Minister Nirmala Sitharaman presented the Interim Union Budget for the financial year 2024-25 in Parliament. Explore the significant aspects, covering topics from income tax to green energy and tourism, as we delve into the 14 key highlights.

Marking her sixth budget presentation and the final one of the second term of the Narendra Modi-led government. Notable highlights included a focus on fiscal consolidation, infrastructure, agriculture, green growth, and railways. Disappointingly, there were no alterations to the tax rates, leaving salaried individuals wanting.

The Fiscal Deficit target for FY25 was set at 5.1 percent of the GDP, surpassing expectations, and the FY24 target was revised down to 5.8 percent. Additionally, the capex target for FY25 saw an 11.1 percent increase to ₹11.1 lakh crore.

In her budget speech, Finance Minister Sitharaman highlighted the positive transformation of the Indian economy over the past decade. She expressed optimism for the future, citing the government’s successful navigation of challenges since 2014. Looking ahead, Sitharaman emphasized the next five years as a period of unprecedented development, aiming to achieve the goal of becoming a developed country by 2047. She underscored the significance of the “trinity of democracy, demography, and diversity” in fulfilling the aspirations of every Indian.

Experts view the budget positively, noting the FM’s emphasis on strengthening domestic macro factors, sustained investments in infrastructure, agriculture, and domestic tourism, and a commitment to fiscal responsibility. The anticipation of a lower fiscal deficit and reduced borrowings is seen as favorable for foreign investors, potentially paving the way for a ratings upgrade. Pradeep Gupta, Co-founder & Vice-chairman of Anand Rathi Group, expressed optimism about these measures contributing to an improved economic outlook.