India’s Economic Growth Continues To Be The Shining Exception Despite Global Uncertaintites

While presenting the Union Budget 2024-25 in Parliament today, the Union Minister for Finance and Corporate Affairs, Smt. Nirmala Sitharaman said the global economy, while performing better than expected, is still in the grip of policy uncertainties. Elevated asset prices, political uncertainties and shipping disruptions continue to pose significant downside risks for growth and upside risks to inflation. Yet, India’s economic growth continues to be the shining exception and will remain so in the years ahead, the Finance Minister said.

Elaborating the features of the Union Budget 2024-25, smt. Nirmala Sitharaman said that this budget focuses on 9 priority areas with potential for transformative changes. The budget also covers some of the previously made announcements with an intent to strengthen them and step up their implementation for expediting the goal of Viksit Bharat. These 9 priority areas include:

1) Productivity and resilience in Agriculture

2) Employment & Skilling

3) Inclusive Human Resource Development and Social Justice

4) Manufacturing & Services

5) Urban Development

6) Energy Security

7) Infrastructure

8) Innovation, Research & Development and

9) Next Generation Reforms

She further added that subsequent budgets will build on these, and add more priorities and actions. A more detailed formulation will also be carried out as part of the ‘Economic Policy Framework’.

Giving details of Budget Estimates 2024-25, she said the total receipts other than borrowings and the total expenditure are estimated at ₹32.07 lakh crore and ₹48.21 lakh crore respectively. The net tax receipts are estimated at ₹25.83 lakh crore. The fiscal deficit is estimated at 4.9 per cent of GDP. The gross and net market borrowings through dated securities during 2024-25 are estimated at ₹14.01 lakh crore and ₹11.63 lakh crore respectively. Both will be less than that in 2023-24.

She expressed that the fiscal consolidation path announced in 2021 has served the economy very well, and Government aims to reach a deficit below 4.5 per cent next year. The Government is committed to staying the course. From 2026-27 onwards, endeavour will be to keep the fiscal deficit each year such that the Central Government debt will be on a declining path as percentage of GDP.