The Union Budget 2024-2025 is expected to include (but not limited to) tax reforms, increased funding for the rural economy, and measures to boost local manufacturing and job creation.
New Delhi: On Tuesday, Union Finance Minister Nirmala Sitharaman will deliver her seventh consecutive Union Budget, outlining a plan for ‘Viksit Bharat’ (Developed India) by 2047, a vision that aims to transform India into a developed nation by focusing on key economic and social indicators.
After that, in the afternoon, Finance Minister Sitharaman, Minister of State for Finance Pankaj Chaudhary, Finance Secretary T.V. Somanathan, Secretaries of the Ministry of Finance, and Chief Economic Adviser V. Anantha Nageswaran will address the government at a press conference following the presentation of the Budget.
Increased funding for the rural economy, tax reforms, infrastructure development, local manufacturing, job and skill creation, and a rise in production-linked incentive (PLI) allocation to labour-intensive industries are likely the main ways the Union Budget will stimulate consumption.
The focus would probably be on enhancing the ease of doing business in the nation and adjusting the income tax structure to benefit taxpayers in all tax brackets.
According to Moody’s Analytics, the Budget is expected to lead to higher capital investment and a more standardized tax system, bringing potential benefits to the Indian economy.
Experts say that investments in districts and rural areas are necessary to accelerate traditional economic activity and the new economy, which is centred on circularity.
As overall sustainability becomes a top priority, concentrating on elevating rural communities to the status of champions of circularity has considerable promise.
India’s GDP growth rate is predicted by the Economic Survey 2023–2024 to be between 6.5 and 7 percent for 2024–2025 because the country’s economy is doing well.
Chief Economic Adviser Nageswaran is optimistic, asserting that raising India’s GDP growth rate to 7% ‘is doable’ despite the challenging global economic conditions.
Prime Minister Narendra Modi is confident in the Economic Survey, which he believes accurately reflects the current state of India’s economy and the positive outcomes of the government’s reforms.
“It also identifies areas for further growth and progress as we move towards building a Viksit Bharat,” Prime Minister Modi said in a post on X on Monday.
Growth in capital formation has been aided by the government’s push for capital expenditures and the ongoing momentum in private investment. In real terms, gross fixed capital formation grew by 9% in 2023–2024.
The significance of the non-farm sectors in the Indian economy’s growth trajectory has also been highlighted by the Economic Survey 2023–2024.
–IANS
