5 May 2024India's fiscal plan for 2024-25 has been tabled, detailing a strategic approach to usher in robust economic growth, maintain fiscal discipline, and enhance the country’s infrastructure.
Income Tax: The Finance Minister has kept direct tax rates unchanged, indicating a preference for a stable tax environment.
GDP Projections: The budget anticipates a rise in nominal GDP from ₹296.6 trillion to ₹327.7 trillion, targeting a growth rate of 10.5%.
Fiscal Deficit: Efforts to reduce the fiscal deficit are outlined, with goals to bring it down from 5.8% of the GDP in 2023-24 to 5.1% in the next fiscal year.
Government Debt: Projected to slightly decrease from 56.9% of the GDP in March 2024 to 56% in the following year, with a reduction in government borrowings.
Direct Tax Collections: Personal income tax collections are expected to surpass corporate tax collections for the third time since 1991-92.
GST Revenue: Expected to grow to ₹10.68 trillion or 3.3% of the GDP, with monthly collections nearly doubling from the previous year.
Capital Expenditure: Allocated ₹11.11 trillion for 2024-25, marking a considerable increase to boost infrastructure and stimulate economic growth.
Tax Compliance: The budget proposes withdrawing unresolved direct tax demands, some dating back to 1962, to ease taxpayer compliance.
Major Initiatives: Plans include support for middle-class homeownership, healthcare coverage extension, and promoting rooftop solarization.
Private Consumption: Acknowledges slow growth in private consumption expenditure and aims to boost it indirectly through broader economic strategies.
Pre-Election Strategy: The budget hints at continuity and cautious optimism with no significant disruptions before the upcoming Lok Sabha elections.
Conclusion
India's 2024-25 budget sets forth a pathway to sustainable growth, financial stability, and infrastructural development. It reflects a strategic vision that balances fiscal prudence with growth-oriented expenditures while signalling confidence in the existing economic framework. As the nation navigates through post-pandemic recovery and global uncertainties, the budget's measures are poised to strengthen the foundation for India's ambition to become an economic powerhouse in the coming years.