Union Budget 2024-25: Balancing Growth and Fiscal Consolidation

Finance Minister Nirmala Sitharaman presented the Union Budget 2024-25, emphasizing growth, employment, and fiscal consolidation. Notably, Rs 22.91 lakh crore is allocated to states, an increase from the previous year. Capital expenditure under Modi's regime surged to Rs 43.82 lakh crore. Sitharaman highlighted substantial funding for agriculture and J&K's improved financial status.

Finance Minister Nirmala Sitharaman on Wednesday presented the Union Budget 2024-25, striking a fine balance between growth, employment, capital investment, and fiscal consolidation.

During her address in Rajya Sabha, Sitharaman stated that the budget showcases unwavering support for cooperative federalism, allocating Rs 22.91 lakh crore to states, marking an increase of Rs 2.49 lakh crore over the previous fiscal year.

Highlighting the capital expenditure under the Narendra Modi government's last decade, she noted it totalled Rs 43.82 lakh crore, a significant leap from Rs 13.19 lakh crore during the UPA era. The minister added that Production Linked Incentive (PLI) schemes remain appealing to the manufacturing sector, making India an attractive destination for companies.

Sitharaman affirmed the government's commitment to reducing the fiscal deficit to below 4.5% by 2025-26 from the current 4.9% target. The budget also allocates Rs 1.52 lakh crore to agriculture and allied sectors, an Rs 8,000 crore increase from last year. For comparison, the UPA allocated only Rs 30,000 crore in 2013-14. The minister also mentioned the improved financial status of the Union Territory of Jammu and Kashmir, with J&K Bank reporting profits.

(With inputs from agencies.)