Unveiling India's Financial Future: Budget Highlights for 2024-25

Finance Minister Nirmala Sitharaman is set to present her seventh Budget, outlining the vision for a developed India by 2047. Key highlights include expected tax relief for the middle class, fiscal deficit projections, capital expenditure plans, tax revenue, GST collection, and borrowing. Ensuing economic performance metrics will be closely watched.

Finance Minister Nirmala Sitharaman will unveil her seventh consecutive Budget on Tuesday, aiming to set India on a path to development by 2047. This Budget also serves as a report card of the Modi government's achievements over the past decade.

Key aspects to watch include potential tax relief for the middle class and the government's commitment to reducing the fiscal deficit to 4.5% of GDP by 2025-26. The fiscal deficit for the current year is projected at 5.1%, down from 5.8% last year, reflecting tax buoyancy.

Sitharaman's 2019 Budget replaced the traditional leather briefcase with a 'bahi-khata', and this year's Budget will continue to be paperless. Expectations are high for updates on capital expenditure, tax revenue, GST collection, borrowing figures, and the overall economic growth trajectory.

The government has set a capital expenditure target of Rs 11.1 lakh crore for this fiscal year. Tax revenue is anticipated to grow by 11.46%, with GST collections expected to rise by 11.6% to Rs 10.68 lakh crore. Borrowing figures will be closely monitored, with Rs 14.13 lakh crore earmarked this fiscal year.

Nominal GDP growth is projected at 10.5%, with real GDP growth at 7.2%. The revised figures from the RBI and financial institutions indicate a positive economic outlook. Additionally, spending on key schemes like NREGA and sectors such as health and education will be in the spotlight.

(With inputs from agencies.)