On July 11, Prime Minister Narendra Modi met with top economists to gather insights and ideas for the upcoming Budget for 2024-25. This crucial meeting aimed at defining the financial roadmap for the Modi 3.0 government was also attended by Union Finance Minister Nirmala Sitharaman, who will present the Budget in the Lok Sabha on July 23.
The meeting included notable participants such as Niti Aayog Vice Chairman Suman Bery, Union Finance Minister Nirmala Sitharaman, Planning Minister Rao Inderjit Singh, Chief Economic Advisor V. Anantha Nageswaran, renowned economists Surjit Bhalla and Ashok Gulati, and veteran banker K.V. Kamath.
The upcoming budget is expected to outline how India can progress towards becoming a developed nation by 2047, as President Droupadi Murmu mentioned in her recent address to Parliament. The government plans to introduce significant reforms to accelerate development.
Finance Minister Sitharaman has been proactive in her preparations, consulting with various stakeholders, including economists and industry leaders, to gather comprehensive views for the Budget.
One consistent suggestion has been for the government to provide tax relief to boost consumer spending, manage inflation, and stimulate economic growth.
India's economy has shown remarkable growth, registering an 8.2 percent increase for FY 2023-24. This forthcoming Budget will follow the interim one presented by Sitharaman in February, specifically designed with the upcoming Lok Sabha elections in mind.
The Budget is anticipated to reflect new and innovative thinking, laying down comprehensive policies to shape India's future economic trajectory. In preparation for this significant economic document, the Modi 3.0 government has held widespread consultations, including meetings with Indian industry leaders, state finance ministers, and economists.
Finance Minister Sitharaman, presenting her first full budget for the Modi 3.0 government, aims to ensure continued high economic growth and job creation.
She is expected to increase the income tax exemption limit to provide relief to the middle class, thereby increasing disposable income and boosting demand to fuel economic growth.
With a low fiscal deficit, a substantial ₹2.11 lakh crore dividend from the RBI, and buoyant tax revenues, the Finance Minister has ample room to implement growth-accelerating policies and social welfare schemes aimed at uplifting the poor. Prime Minister Modi has already emphasised that the next five years will be a decisive battle against poverty.
The Budget comes at a time when the Indian economy has achieved robust growth of 8.2 percent in 2023-24, the fastest among major global economies, with inflation decreasing to below 5 percent. The RBI projects that the economy is on track for over 8 percent growth.
The fiscal deficit has been reduced from over 9 percent of GDP in 2020-21 to a targeted 5.1 percent for 2024-25, strengthening the macroeconomic fundamentals.
S&P Global Rating has also upgraded India's sovereign rating outlook to 'positive' from 'stable,' citing improving finances and strong economic growth.
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