Business Standard
Business Standard

Union Budget 2024 Updates

Following the swearing-in of Prime Minister Narendra Modi-led National Democratic Alliance (NDA) government, India is awaiting the announcement of the full Budget for the financial year 2024-25 (FY25). Finance Minister Nirmala Sitharaman is expected to present the Union Budget sometime in July, and the monsoon session of Parliament is likely to commence in the third week of July. Parliamentary Affairs Minister Kiren Rijiju announced recently that the inaugural session of the new Lok Sabha will begin on June 24.
This will be the seventh consecutive Union Budget to be presented by Nirmala Sitharaman. She had also presented the Interim Budget on February 1 this year, which is often referred to as a vote on account, paving the way for the full Budget to be presented by the newly elected government.
Given India's objective to become the third-largest economy by 2030, stakeholders are seeking detailed guidance from the government on the path ahead in the upcoming Budget.

Budget 2024

Over the past decade, successive Budgets have underscored the government's commitment to doubling farmers' incomes and injecting liquidity directly into their hands. Budget allocations to the agricultural sector have surged fivefold in the last 10 years, from Rs 22,652 crore in FY15 to Rs 1.27 trillion in the Interim Budget for FY25. A continuation of this trend is expected in Union Budget 2024.
Preliminary indications also suggest a continued focus of the government on fiscal consolidation in FY25. Consequently, the Budget 2024 might emphasise stimulating growth while managing inflation. The government faces the task of aligning expenditures, particularly on Minimum Support Price (MSP), food, fertilisers, and Liquified Petroleum Gas (LPG), to achieve the fiscal deficit target of 4.5 per cent of Gross Domestic Product (GDP) by FY26.
Union Budget 2024 is also expected to align with the Modi government's inclusive development and welfare agenda, emphasising growth initiatives such as Ujjwala, Jal Jivan Mission, PM Kisan, and Swachh Bharat.
Besides, the railway sector could receive a boost with higher capital allocation, building on the government's focus on revitalising railway assets and infrastructure development. The railway ministry achieved a record Rs 2.55 trillion in budgetary support in Interim Budget 2024, marking an all-time high allocation.