Why Budget 2024 is important for the Modi Government?

Updated Jun 29, 2024 | 06:23 PM IST

As per media reports it will be presented in the third week of July but no official announcement has been made yet.

Finance Minister Nirmala Sitharaman will present the full budget for FY25. (Image: Twitter/Nirmala Sitharaman/ET NOW News)

The country is waiting with anticipation for Finance Minister Nirmala Sitharaman to present the full budget for FY25. As per media reports it will be presented in the third week of July but no official announcement has been made yet. Budget 2024 is very important for the Modi Government for many reasons both economically and politically for India. Here’s why:

Economic Reforms and Growth

One of the main focus of Budget 2024 is to bring in big economic reforms to boost growth. The government is expected to change the income tax structure and reduce taxes for lower income brackets. This will increase disposable income and thereby increase consumer spending and growth. Also the budget will have measures to support small and medium sized enterprises (SMEs) which are the backbone of job creation and economic stability.

As the first budget of Modi’s third term it is a big political messaging tool. The budget will reflect the government’s priorities and policy directions, will address issues like job creation, inflation and manufacturing. By focusing on these areas the government will fulfill its electoral promises and maintain public support. The budget will also set the stage for future policies and reforms.

Fiscal discipline while growth is another key aspect of Budget 2024. The government has to manage the fiscal deficit carefully to ensure sustainable economic policies. This means balancing development expenditure with revenue generation through taxes and other means. Good fiscal management will maintain the investor confidence and stability of the Indian economy.

Budget 2024 is part of Modi Government’s long term vision to make India a developed nation by 2047. This vision includes big investments in emerging sectors like green energy, mobility and technology. By supporting these sectors, the government will create new employment opportunities and innovation. The budget will have incentives for R&D and measures to promote digital infrastructure and connectivity.

With high public expectations the budget is seen as a document to address the aspirations and concerns of the people. The government has to ensure that the budget has measures to improve the quality of life for all citizens. This could be more spending on healthcare, education and social welfare schemes. Addressing these areas will build public trust in the government’s policies.

Infrastructure development will be a big focus of Budget 2024. The government will invest heavily in building and upgrading of infrastructure – roads, railways and ports. This investment will support growth and connectivity across the country. Better infrastructure will also attract foreign investment and make Indian businesses competitive.

Environmental Sustainability

Budget 2024 will probably have a big thrust on environmental sustainability as per global trends. The government may bring in laws to support sustainable activities, reduce carbon emissions and promote renewable energy sources. To combat climate change and for the long-term health of the environment these are important.