Fiscal restraint and capital spending have gained precedence, while populism has diminished. The fiscal deficit objective for 2024–2025 has been set at 5.1% of GDP; the similar figure for 2023–2024 was 5.9%, which was revised downward to 5.8%.
The gap between the government’s total revenue and total expenses is known as the fiscal deficit, and it serves as a predictor of potential borrowing needs for the Centre. The goal set by the government is to reduce it to less than 4.5% of GDP by the fiscal year 2025–2026.
Source: Money Control
There has been a proposal to increase the capital expenditure spending by 11.1%. From Rs 10 lakh crore in 2023–2024 to Rs 11.11 lakh crore in 2024–2025—3.4 percent of GDP—the allocation will increase. The government’s plan to promote growth and realise the vision of Viksit Bharat, or developed India, which combines infrastructure development with job creation, includes the capex drive as a crucial component.
The Ministry of Agriculture and Farmers’ Welfare (Rs 1.27 lakh crore) has come in below a number of ministries in terms of allocation, with the Ministry of Defence receiving the highest amount (Rs 6.2 lakh crore).
Source: Mint
The government mostly stuck to repeating how effective its previous programs have been, so the interim budget hasn’t given the farming industry any new momentum. The middle class has not benefited from tax cuts, as different tax bands have remained intact.
According to the FM, it is evident that the government is determined to keep up the momentum created by high tax receipts, which have more than doubled over the last ten years. The interim Budget, which is largely devoid of big-bang announcements, encapsulates the government’s confidence, which some may interpret as complacency.
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