BJP manifesto to maintain fiscal prudence, make India 3rd largest economy

The Bharatiya Janata Party (BJP), in its manifesto released on Sunday, said it would continue on the path of fiscal prudence and stay committed to expanding India’s economic strength after forming the government at the Centre following the Lok Sabha elections.

“We guarantee that Bharat will be the third largest economic power,” the BJP said in its election manifesto while detailing its plans for “Modi ki guarantee for prosperous Bharat”.

The BJP said it had brought the country from being among the “fragile five” to its place among the “top five” economies despite the global turmoil and the once-in-a-century pandemic.

“This was possible due to right policies, focussed execution and meticulous planning. We have demonstrated low inflation, high growth and fiscal prudence in the last decade,” the BJP’s manifesto said.

Helped by an improvement in tax buoyancy, the government managed to achieve a fiscal deficit of 5.8 per cent against the Budget Estimate of 5.9 per cent last financial year.

The government has set a fiscal deficit target of 5.1 per cent for FY25 to stick to the glide path set in 2021-22. It aims to trim the fiscal deficit to 4.5 per cent by FY26.

“We have strengthened our financial system, maintained fiscal prudence, and increased our foreign exchange reserves. We have successfully shielded our citizens from global price shocks and created a conducive environment for economic growth,” the BJP said.

The party in its manifesto has promised to launch an exercise to revamp economic and commercial legislation.

“We have substantially simplified the indirect and direct tax systems through simpler rules, new legislation, and use of technology.” 

Watch: BJP Manifesto, key promises and initiatives

The BJP has said it would promote exports through international cooperation, infrastructure development, and simplifying laws. 

The government has been in the process of revamping the competition law with a proposed Digital Competition Bill to bring ex-ante (preventive) regulations for curbing anti-competitive practices of Big Tech companies.

The BJP also added in its manifesto it would honour honest taxpayers who have played an important role in strengthening the economy.

Fiscal Deficit report card

FY24 - 5.8% against budget estimate of 5.9%
 

FY25 Target - 5.1% of GDP
 

FY26 Target - 4.5% of GDP