Union Finance Minister Nirmala Sitharaman is poised to deliver her seventh consecutive Union Budget, outlining a strategic roadmap for 'Viksit Bharat' by 2047. Following the Budget presentation, Sitharaman will join Minister of State for Finance Pankaj Chaudhary, Finance Secretary T.V. Somanathan, Ministry of Finance Secretaries, and Chief Economic Adviser V. Anantha Nageswaran for a post-budget press conference later in the day.
The Union Budget is anticipated to prioritize bolstering consumption through increased allocations for the rural economy, comprehensive tax reforms, substantial investments in infrastructure, a renewed emphasis on local manufacturing, and initiatives aimed at job creation. Additionally, there is expected to be a significant rise in the allocation for production-linked incentives (PLI) aimed at labor-intensive sectors.
Of particular focus will be potential changes in the income tax regime aimed at benefiting taxpayers across various income brackets, alongside efforts to enhance the ease of doing business in India. The budgetary provisions are also likely to augment capital expenditure and introduce a more streamlined approach to taxation, as suggested by Moody's Analytics.
Economic experts stress the imperative of injecting investments into districts and rural areas to accelerate both traditional economic activities and foster new economy sectors, particularly those promoting circularity. This strategic focus on rural areas as hubs of circular economy practices holds promising potential amid a growing global emphasis on sustainability.
The Economic Survey for 2023-2024 forecasts India's GDP growth rate for 2024-25 in the range of 6.5 to 7 percent, signaling a robust economic outlook despite the increasingly challenging global environment. Chief Economic Adviser Nageswaran remains optimistic about achieving this target, underscoring India's resilience and economic strengths.
Prime Minister Narendra Modi has lauded the Economic Survey for highlighting the nation's economic strengths and showcasing the outcomes of recent governmental reforms. He emphasized the survey's role in identifying key areas for future growth, aligning with India's vision of building a 'Viksit Bharat'.
The government's steadfast commitment to enhancing capital expenditure and stimulating private investment has spurred growth in gross fixed capital formation, marking a notable nine percent increase in real terms for 2023-24. The Economic Survey also underscores the pivotal role of non-farm sectors in driving India's economic trajectory forward.
As the nation anticipates Sitharaman's budgetary announcements, all eyes are on the fiscal measures that will shape India's economic landscape in the coming years, aligning with aspirations for a prosperous and sustainable future.