Union Finance Minister Presents Interim Budget 2024, Emphasizes Fiscal Consolidation

The Union Finance Minister, Nirmala Sitharaman, presented the Interim Budget 2024 in the Lok Sabha today. This budget holds significant importance as it marks the final budget in the second term of Prime Minister Narendra Modi ahead of the forthcoming Lok Sabha elections.

In her Budget speech, Sitharaman highlighted that the Indian economy has witnessed significant transformation over the past decade. Under the leadership of Prime Minister Modi, the government has implemented crucial structural reforms and pro-people programmes. She emphasized the government’s commitment to continuing on the path of fiscal consolidation, with the aim of reducing the fiscal deficit to 4.5% by 2025-26.

As an interim budget, no major changes relating to taxation were proposed. Sitharaman mentioned that the government intends to maintain the existing tax rates for direct and indirect taxes, including import duties.

However, the Opposition party, Congress, criticized the Interim Budget, accusing the government of being in denial mode. They claimed that the real income of citizens has witnessed a decline over the years.

The Interim Budget serves as a comprehensive financial statement until the new government, formed after the general elections, presents a full Budget for the financial year 2024-25. It covers estimates for the government’s expenditure, revenue, fiscal deficit, and overall financial performance for a limited duration.

The full Budget is typically released after the Lok Sabha elections, once the new government takes office. It provides a detailed account of the government’s projected costs and expenses for the entire financial year.