Budget Expectation 2024. See what the Government has brought to the table.

Posted By: Admin Published: 02-05-2024

As the government prepares for the interim Budget set to be announced on February 1, different predictions have emerged about the direction it could take. Government insiders have told the media that fiscal discipline will take precedence over populist spending.

This is backed by the statement Finance Minister Nirmala Sitharaman made to the Confederation of Indian Industry in December. For the interim Budget, Sitharaman ruled out any “spectacular announcements” before the Lok Sabha elections to be held later this year. On the other hand, foreign brokerage Jefferies has said the government will boost welfare spending in the interim Budget. These developments raise two crucial questions. First, will the interim Budget stick to the fiscal glidepath? And, second, will it honour the conventions associated with an interim Budget? To find out the answer, read the transcript of the Business Standard Morning Show's first interim Budget special.       

The announcement of interim Budget 2024-25 on February 1 will see the Centre maintain fiscal discipline as it adheres to the post-Covid-19 fiscal consolidation plan of reducing the fiscal deficit to 4.5 per cent of gross domestic product (GDP) by FY26. The government has budgeted a fiscal deficit of 5.9 per cent of GDP in the current financial year, FY24. The fiscal deficit was 6.4 per cent of GDP in FY23.