1 February 2024
Sandeep Dhand (Ludhiana)
In a significant move for the nation’s economic landscape, Finance Minister Nirmala Sitharaman presented the interim budget in the Parliament on Thursday, highlighting substantial positive changes witnessed in the Indian economy over the past decade. Expressing confidence in the future, Sitharaman emphasized the government’s commitment to holistic development under the leadership of Prime Minister Narendra Modi.
Addressing the parliament, Sitharaman underscored the pivotal role of structural reforms, pro-people programs, and increased employment opportunities in bolstering the economy. Following a 5.8% contraction in FY 2020-21, the nation achieved an impressive growth rate of 9.1% in 2021-22. The finance ministry’s latest monthly economic review forecasts India’s GDP to reach $5 trillion in the next three years, positioning it as the world’s third-largest economy, a substantial leap from the current $3.7 trillion. The ambitious projection suggests India’s potential to evolve into a seven trillion dollar economy by 2030.
Notably, February 1 marked the presentation of Finance Minister Sitharaman’s first interim budget, the second in the ten-year tenure of the Narendra Modi government. This interim budget grants the government authority to expend funds until the new government passes the entire budget, offering flexibility for adjustments in line with the evolving economic landscape.
In the realm of economic policymaking, interim budgets serve as a platform for the government to make new announcements. Sitharaman’s predecessor in 2019 saw the unveiling of the Pradhan Mantri-Kisan Samman Nidhi Yojana, exemplifying the potential for populist measures during interim budgets. Decisions on tax exemptions and standard deductions also played a pivotal role in shaping the economic discourse.
The interim budget, by design, allows the government to make critical decisions about the full budget, even allowing for new announcements to be made. Sitharaman, known for her meticulous approach to economic governance, hinted at the possibility of a budget that aligns with the government’s priorities and addresses the evolving needs of the populace.
While the interim budget sets the stage for economic strategies, it’s important to note that the new government, post-election results, holds the prerogative to modify these decisions while presenting the comprehensive budget. This underscores the significance of the interim budget as a preliminary roadmap, subject to refinement in response to the socio-economic dynamics that unfold post-election.
As India charts its course towards economic resurgence, Sitharaman’s interim budget serves as a beacon of hope and optimism, projecting the nation’s potential on the global stage. The strategic focus on structural reforms and inclusive policies aims not only to propel economic growth but also to address the diverse needs of the population.
In conclusion, the interim budget marks a crucial milestone in India’s economic journey, encapsulating the government’s vision for a robust and dynamic future. As the nation anticipates the unfolding of the full budget, the decisions made in this interim period will undoubtedly shape the trajectory of India’s economic landscape in the years to come.