A day after the commencement of the Budget Session of Parliament, Union Finance Minister Nirmala Sitharaman is set to present the Union Budget 2024 later this morning. Here’s what to expect: Given that this is an interim Budget, no big policy announcements are expected. Rather, this year’s Budget is likely to be a report card of the Modi government’s triumphs over the last decade. Notably, the budgeted fiscal deficit of 5.9 per cent of the gross domestic product (GDP) for the current fiscal is likely to be achieved. Correspondingly, the debt-GDP ratio at 54 per cent is also well above the target of 40 per cent.
The interim Budget will include estimates of the government’s expenditure, fiscal deficit and overall financial performance for a few months. The full budget will be presented in July, following the election cycle by the newly-elected government.
In a recently released economic review, the Ministry of Finance expect Indian GDP to expand at 7 per cent rate for FY 2023-24. This is slightly lower than earlier expectations. Notably, the budget announcement is coming ahead of the US Federal Reserve interest rate decision. America’s central bank will commence its two-day meeting on Tuesday to decide on a rate decision.
(With inputs from agencies)