The Union Budget for the fiscal year 2024-25, presented by Finance Minister Nirmala Sitharaman, outlines several key initiatives and fiscal measures aimed at bolstering economic growth, infrastructure development, and fiscal consolidation.

Capital Expenditure and Infrastructure Development

• Increased Capital Outlay: The budget allocates ₹11.11 lakh crore towards capital expenditure, accounting for 3.4% of GDP. This represents an 11.1% increase from the previous year, underscoring the government’s commitment to infrastructure development.

Fiscal Consolidation

• Reduced Fiscal Deficit: The fiscal deficit target has been set at 4.9% of GDP for 2024-25, a reduction from the previous year’s 5.1%. The government aims to achieve a fiscal deficit below 4.5% in the subsequent year, emphasizing fiscal discipline.

Agriculture and Rural Development

• Enhanced Agricultural Budget: The budget proposes a 15% increase in the agriculture sector’s allocation, bringing it to approximately $20 billion. This marks the most significant rise in over six years, focusing on high-yield seed varieties, improved storage, and supply infrastructure to boost rural incomes and control inflation.

Subsidies

• Increased Subsidy Allocation: The government plans to raise spending on food, fertilizer, and cooking gas subsidies by 8%, totaling $47.41 billion. This move addresses higher food and energy costs, with the food subsidy expected to grow by about 5% to nearly ₹2.15 trillion.

Job Creation and Economic Growth

• Employment Initiatives: A $24 billion expenditure plan has been announced to create jobs over the next five years, alongside increased rural spending. Key measures include support for women and the MSME sector, agriculture initiatives, and a focus on job creation in manufacturing.

Market Borrowings

• Reduced Borrowing: The government has cut its planned gross market borrowing to ₹14.01 trillion for the financial year ending March 2025, a decrease from the initial figure of ₹14.13 trillion announced earlier. This move reflects efforts to manage debt levels prudently.

These measures reflect the government’s strategy to stimulate economic growth through increased investment in infrastructure and agriculture while maintaining fiscal prudence.