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Published: February 1, 2024
Updated: February 1, 2024

Focus on GYAN - (Garib ,Yuva, Annadata, Nari) likely as FM Sitharaman Unveils Interim Budget 2024

Union Finance Minister Nirmala Sitharaman is poised to present the Interim Budget 2024-25, sparking intrigue despite her assertion of no "spectacular announcements." As the country gears up for Lok Sabha polls, experts anticipate subtle yet impactful measures to be introduced across various sectors.

Anticipated Measures for Key Groups:

Amidst the interim budget, FM Sitharaman is expected to focus on uplifting specific demographic groups—youth, women, farmers, and the impoverished. Aligning with Prime Minister Narendra Modi's vision, the government aims to address the needs of these groups without caste, community, or religious considerations.

Inclusive Development Measures:

Foreseen measures include targeted initiatives for farmers, women, and youth, building upon previous budget allocations for their welfare. The emphasis remains on holistic development, reflecting the government's commitment to the betterment of these vital sections of society.

Boost to Skill Development:

Reports suggest a potential 10% increase in funds for the Skill India programme, emphasizing the importance of skill development in the country. Such an infusion of funds would align with the government's history of launching programs like the Pradhan Mantri Kaushal Vikas Yojana (PMKVY) to incentivize and promote skill certification among the youth.

Support for the Informal Sector:

The informal sector receives a spotlight, with FM Sitharaman pledging policy support and credit accessibility. This strategic move aims to bolster economic activity at the grassroots level, allowing formal sectors to flourish independently. Anticipated measures for MSMEs include a special package to enhance credit accessibility at competitive rates.

Fiscal Discipline and Deficit Targets:

FM Sitharaman's commitment to fiscal prudence without compromising on social welfare spending is expected to reflect in the budget. The government aims to reduce the fiscal deficit to 4.5% of GDP by FY26, signaling a cautious approach to economic management. Economists predict a fiscal deficit target of 5.3% for FY25, balancing short-term goals with a medium-term target of sub-4.5% by FY26.

Emphasis on Public Capex:

The budget speech will also shed light on the government's plans for public capital expenditure, a pivotal driver of economic growth. The deliberate focus on public capex aims to address infrastructure deficits and potentially stimulate private sector capex. Suggestions from industry experts, such as a 20% increase in capital expenditure to Rs 12 lakh crore, underscore the importance of robust public spending.

As FM Sitharaman unfolds the Interim Budget, the nation awaits a judicious blend of fiscal responsibility and strategic measures to address the evolving economic landscape. The budget's emphasis on key groups, skill development, informal sector support, fiscal discipline, and public capex reflects a comprehensive approach to sustain India's economic growth. Observers and stakeholders keenly anticipate the unveiled financial roadmap and its implications for the nation's future prosperity.