New Delhi: Finance minister Nirmala Sitharaman, who will present the first Union Budget of the Modi 3.0 government on Tuesday, July 23, during the monsoon session of Parliament, faces the challenge of fostering economic growth while controlling inflation and adhering to the path of fiscal consolidation.
All eyes are on the full budget as the Interim Budget on February 1 saw no major policy shifts or new benefits for the middle class. The Union Budget is expected to provide support to the productive sectors of the economy by finding a fine balance between supporting investment and consumption.
Again, addressing the demands of key allies like N Chandrababu Naidu's Telugu Desam Party (TDP) and Nitish Kumar's Janata Dal (United), whose support was crucial for the BJP to secure its third consecutive term despite falling short of a majority in the recent Lok Sabha elections, is crucial.
The Union Budget 2024 will mark her seventh consecutive budget and eclipsing the late Moraji Desai's record of six consecutive budgets, which is also likely to focus on changes in the income tax structure and improving the ease of doing business in India.
Here are some highlights
- At 11 am today, the much-awaited full budget for 2024-25, the first under the Modi 3.0 government, will be presented on the floor of the Parliament. All eyes will be on the major announcements made by the finance minister and the government's forward-looking guidance about the overall economy. Sitharaman treads a tricky path amid soaring expectations, especially for the middle class and the all-important income tax slabs.
- Sitharaman will lay on the table a statement of the estimated receipts and expenditures of the government for the year 2024-25 in the Rajya Sabha. She will table the budget one hour after the conclusion of the presentation of the Union Budget 2024-25 in the Lok Sabha. It remains to be seen how the government plan to align allocation in coherence with Prime Minister Modi’s ‘Viksit Bharat 2047’ along with demands of the NDA coalition parts. A tricky balancing act is needed no doubt. What adds new dynamics to the conundrum is how the Modi-led government plans to pacify the middle class.
- The Finance Minister also lay on the table, under subsection (1) of Section 3 of the Fiscal Responsibility and Budget Management Act, 2003, a copy each (in English and Hindi) of the following papers: medium-term fiscal policy strategy statement and macro-economic framework statement.
- The Finance Minister will further lay on the table statements of the estimated receipts and expenditures (2024-25) of the Union Territory of Jammu and Kashmir (with the legislature). The interim budget, tabled on February 1, took care of the financial needs of the intervening period until a government was formed after the Lok Sabha polls, after which a full budget was to be presented by the new government.
- With this upcoming budget presentation, Finance Minister Nirmala Sitharaman will surpass the record set by former Prime Minister Morarji Desai, who presented five annual budgets and one interim budget between 1959 and 1964 as finance minister.
- The budget, once it is presented, is then subjected to detailed debate and discussion in both houses of Parliament, allowing members to scrutinise its provisions, raise concerns, and propose amendments. Following its presentation and approval by Parliament, the Union Budget sets in motion a series of post-budget activities aimed at implementing its provisions and achieving the outlined objectives.
- The budget session of Parliament began on July 22 and, according to schedule, will end on August 12. Before presenting the Budget, the finance minister will go to the North Block, where the Ministry of Finance is housed. She will meet the secretaries of her ministry, and later, along with them, she will reach the President's residence to get permission before presenting the Budget.
- Like the previous few full Union budgets, the Budget 2024 will also be delivered in paperless form. An Interim Union Budget 2024 was presented on February 1, as the country was due for general elections later in the year. All the Union Budget documents, including the Annual Financial Statement (commonly known as the Budget), Demand for Grants (DG), and Finance Bill, as prescribed by the Constitution, will be available on the "Union Budget Mobile App" for hassle-free access to budget documents by Members of Parliament (MPs) and the public.
