New Delhi: Finance Minister Nirmala Sitharaman is expected to conduct pre-budget consultations with industry leaders on June 20, according to sources. The budget for the fiscal year 2024-25 is anticipated to be presented in Parliament during the latter part of July.
Industry insiders revealed that the pre-budget discussion with Sitharaman will be preceded by a meeting with Revenue Secretary Sanjay Malhotra on June 18.
The upcoming 2024-25 Budget is set to outline the economic strategy of the Modi 3.0 administration. The finance minister faces the challenge of fostering growth without exacerbating inflation while securing resources to fulfill the coalition government’s commitments.
The economic strategy will likely encompass measures to accelerate reforms, aiming to elevate India to a USD 5-trillion economy in the near future and achieve ‘Viksit Bharat’ status by 2047.
According to RBI projections, the Indian economy is expected to grow by 7.2 percent in the current fiscal year, driven by improving rural demand and decreasing inflation.
The Modi 3.0 government takes charge with a robust economy and sound fiscal management. Adding to this, the RBI has announced its highest-ever dividend of Rs 2.11 lakh crore for FY24.
The primary policy objectives for Prime Minister Narendra Modi’s third term include addressing challenges in the agriculture sector, creating jobs, maintaining the momentum of capital expenditure, and boosting revenue growth to adhere to the fiscal consolidation trajectory.
Rating agency S&P has endorsed the economic policies of the Modi government over the past decade by upgrading the sovereign rating outlook to positive. It also suggested a potential rating upgrade within the next 1-2 years, contingent upon the government’s adherence to its fiscal deficit targets.
While tax revenue appears strong, non-tax revenue remains a concern, with strategic disinvestment seeing limited progress apart from the significant sale of Air India.