The whole budget for the financial year that follows, or FY25, will be unveiled in July following the election of a new government. It is improbable that the government would unveil major policy changes in the February 1 budget.
As a result, there is little possibility that policies that could boost market mood and give the economy more momentum will be announced. However, experts think that the government’s declarations to boost capital spending and stimulate the industrial sector will have a significant impact on the direction of the Indian economy.
Following its most recent policy meeting on Friday of last week, the Reserve Bank of India (RBI) increased the nation’s real GDP growth forecast for FY24 from 6.5% to 7%, with Q3 GDP coming in at 6.5% (versus earlier estimates of 6%), and Q4 GDP coming in at 6% (versus earlier estimates of 5.7%). The Reserve Bank of India has projected real GDP growth of 6.7% for Q1FY25, 6.5% for Q2FY25, and 6.4% for Q3FY25.
The major thing that will influence the budget of 2024-2025 is the upcoming elections.
Here are few predicted highlights for the upcoming year:-
- Empowerment Of Woman
Earlier- A total of Rs. 28,600 crores was set aside in the budget for different women-focused initiatives and programmes, such as the Beti Bachao Beti Padhao campaign and the Pradhan Mantri Mahila Shakti Kendra.
Current- It is expected that the following allotment will be more than 30,000 crore for more regional wise plan distributions and elections promises.
- Agriculture
Earlier- Rs. 2.83 lakh crore was set out in the Union Budget 2023–24 for agricultural and rural development, with an emphasis on boosting farmer incomes and generating jobs in rural areas. Under the PM plan, the center had spent Rs 2 lakh cr. on providing free food grains to all priority households.
Current- Due to the Israel-Palestine war crisis and election promises the expected budget for agriculture is 3.3 lakh crore for the upcoming year. Plus including other schemes benefitting the Indian farmers would be also be stretched.
- Education
The government has set aside Rs. 95,000 crores for education, with the goal of raising educational standards and expanding educational opportunities for all. The government intends to establish a National Digital Library for kids and teens to make high-quality books more widely available in a variety of languages, genres, and reading levels.
- Infrastructure
The construction of roads, railroads, airports, ports, and highways is among the infrastructure projects for which the government can alot around 1.10 lakh crore.
The Finance Minister made the point that investments in productive capacity and infrastructure have a significant multiplier effect on employment and growth, which would aid in boosting the economy and generating job possibilities.
The Government is planning to spend Rs 9,000 crore annually to promote urban infra development. Through the PM Awas Yojna, the government has raised spending on affordable housing (expected spending enhanced by 66% to over 79000 crore).
The government intends to resurrect 50 more airports, helipads, water aero drones, and advanced landing grounds in order to substantially enhance regional air connectivity.
Unlike previous budget predictions, when taxpayers looked forward to significant increases in exclusion limits or lower tax burdens, there aren’t as many expectations for this interim budget. The finance minister has hinted at some minor modifications, so taxpayers can only hope for reduced tax burdens or perhaps even some tax benefits in the form of bonuses.
