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Published: June 11, 2024
Updated: June 11, 2024

Nirmala Sitharaman to Present Historic Seventh Consecutive Budget

Historic Achievement: Seven Budgets in a Row

Nirmala Sitharaman, 64, is set to make history by becoming the first finance minister to present seven consecutive Budgets — six full and one interim — surpassing Morarji Desai. This milestone underscores her significant role in shaping India's economic landscape.

A Journey of Remarkable Milestones

Sitharaman's journey in the Modi government began in 2014 when she was appointed as the Minister of State with independent charge of Commerce and Minister of State for Finance and Corporate Affairs. She was elevated to Cabinet rank in 2017 as the Defence Minister. In 2019, she became the first full-time woman Finance Minister of India.

Steering Through Economic Challenges

As Finance Minister, Sitharaman has navigated the country through unprecedented challenges, including the COVID-19 pandemic. During the pandemic, the Budget size increased from 12.2% of GDP in FY19 to 17.7% in FY21. Despite the increased spending, fiscal consolidation efforts have continued, leading to a potential sovereign rating upgrade within the next two years, according to S&P Global Ratings.

Leadership in International Forums

An alumna of Jawaharlal Nehru University, Sitharaman has also led India in G20 discussions, introducing critical topics such as cryptocurrency regulation and reforms in multilateral development banks. Her leadership on the global stage has positioned India as a key player in international economic policy.

Tax Reforms and Economic Stimulus

In 2019, Sitharaman announced significant tax reforms, reducing the base corporate tax rate from 30% to 22% for existing companies and to 15% for certain new manufacturing firms. This move aimed to boost corporate cash flow and stimulate job creation and private capital expenditure. However, the anticipated increase in private capex has yet to fully materialize, presenting an ongoing challenge.

Challenges Ahead: Stimulating Private Investment

One of Sitharaman's primary challenges will be ensuring that government capital expenditure encourages private investment. Despite substantial tax incentives and deductions, private sector investment has not increased as expected, necessitating further strategic measures to stimulate economic growth.

Nirmala Sitharaman's tenure as Finance Minister has been marked by significant achievements and unprecedented challenges. As she prepares to present her seventh consecutive Budget, her focus will likely remain on fostering economic stability and growth, both domestically and on the global stage.