Budget 2024: Finance Minister Nirmala Sitharaman lowers deficit target to 5.1 per cent

Union Finance Minister Nirmala Sitharaman presented the Interim Budget for the fiscal year 2024-25 on February 1. This marked her sixth consecutive budget presentation. She highlighted the government's financial accomplishments and future goals without modifying the current tax structure.

Both direct and indirect taxes, including import duties, remain the same in this interim budget, a temporary provision. For the forthcoming fiscal year (FY25), the fiscal deficit target is set at an ambitious 5.1 percent of the GDP, showing a commitment to fiscal consolidation.

This target shows progress compared to the revised deficit of 5.8 percent for FY24. The government plans to further decrease the fiscal deficit to 4.5 percent by the fiscal year 2025-26, signaling a move towards more responsible fiscal management.

In light of the forthcoming general elections, the budget refrained from launching new schemes. Instead, it concentrated on the government's previous structural reforms and pro-people initiatives.

The Modi government underscored its decade-long endeavours that have resulted in a profound metamorphosis of the Indian economy. It accentuated the triumph over significant hurdles and the provision of developmental benefits to the citizens.

The provisional budget also retained a focus on infrastructure expenditure, with projections of unparalleled capital outlay, especially in the sectors of roadways, highways, and Indian Railways. This is in line with the government's plan to propel economic growth through infrastructure investment, persisting with Prime Minister Narendra Modi's vision.

Also read: Budget 2024: Finance Minister Nirmala Sitharaman promises 2 crore new homes under housing scheme