Finance Minister Nirmala Sitharaman has presented an interim budget that steered clear of election-centric promises, opting instead to highlight the achievements of the Modi government over the past decade. In her hour-long speech, Sitharaman underscored the government's commitment to inclusive development, citing notable milestones such as schemes providing free food grains to 80 crore people and uplifting the living standards of 25 crore individuals. She also pointed out the injection of 34 lakh crore rupees directly into the hands of the people through relief programs.
The Finance Minister emphasized the government's strides in eradicating corruption and alleviating poverty, resulting in the upliftment of 25 crore people from poverty during its tenure. Controlled inflation, expanded infrastructure, and improved living standards for various segments of society, including the poor, women, youth, and farmers, were highlighted.
While refraining from grandiose announcements, the interim budget included initiatives such as the construction of two crore houses for the poor under the Pradhan Mantri Awas Yojana and measures to boost the fisheries sector, aimed at enhancing the income and living conditions of fishermen.
Welfare schemes targeting women, such as increased loans through the Mudra scheme, and the integration of Anganwadi workers into the Ayushman Bharat scheme, were outlined. The budget also addressed infrastructure development, railway upgrades, new metro routes, increased air travel facilities, and the creation of three freight corridors.
Taxation remained unchanged, with no adjustments to direct and indirect taxes. However, certain benefits were extended to corporate taxation, along with incentives for startups. The Finance Minister assured timely income tax refunds within ten days of filing returns.
Significant allocations were earmarked for the education sector, including plans for 140 new medical colleges and new IITs. Spiritual tourism projects, particularly in states like Kerala, received emphasis, along with a childhood vaccination program aimed at preventing uterine cancer in women.
Despite expectations of election-centric announcements, Sitharaman's speech received a subdued response, described by some as a concise report on the government's achievements. The interim budget seemed to fulfill its purpose of refraining from using outgoing government resources for campaigning.
The Budget forecasts indicate a continued effort towards fiscal consolidation. Revised Estimates show this year's fiscal deficit at 5.8% of the GDP, a slight improvement from the previous Budget Estimate of 5.9%. The Minister achieved this by reducing effective capital expenditure by Rs.1 lakh crore, despite a moderate growth forecast. Looking ahead to 2024-25, she aims for sharper consolidation, targeting a deficit of 5.1%, expecting a 14% increase in revenue receipts to counterbalance an 11% rise in estimated capital expenditure. While highlighting a significant increase in capital spending over the past four years, the Minister overlooks the fact that next year's budgeted increase is considerably lower than the previous year's. This cautious fiscal approach, amidst sluggish private consumption, risks dampening economic momentum and exacerbating inequality, posing a significant challenge.
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