Union Budget 2024: Key figures to watch in Nirmala Sitharaman’s 7th consecutive budget
PTC News Desk: On Tuesday, Finance Minister Nirmala Sitharaman will deliver her seventh consecutive budget, which will outline a plan for a developed India by the year 2047 and provide an overview of the previous ten years’ worth of results.
With tax buoyancy, all eyes will be on Sitharaman to deliver the much-needed tax relief for the middle class, putting more money in their hands. In addition, the market anticipates that by continuing on the fiscal glide path, the deficit will drop to 4.5 per cent of GDP by 2025–2026.
During her first budget in 2019, Ms. Sitharaman, who would be presenting her seventh consecutive budget, replaced the leather briefcase that had been used for carrying budget documents for decades with a traditional ‘bahi-khata’ covered in red fabric. The budget for this year will be submitted electronically, as it has been for the previous three.
Here are the key numbers to watch out for the first full Budget of Modi 3.0:
Fiscal Deficit: The current fiscal year’s budgeted fiscal deficit is projected at 5.1%, as outlined in the Interim Budget in February, compared to 5.8% in the last fiscal year. The final Budget is expected to show improved projections due to increased tax revenues. The government aims for a fiscal deficit of 4.5% of GDP by FY26.
Capital Expenditure: The government’s planned capital expenditure for this fiscal year is budgeted at Rs 11.1 lakh crore, up from ₹9.5 lakh crore in the previous fiscal year. The government is focusing on infrastructure development and incentivizing states to increase their capital expenditure.
Tax Revenue: The Interim Budget estimated gross tax revenue at ₹38.31 lakh crore for 2024-25, an 11.46% increase over the last fiscal year. This includes ₹21.99 lakh crore from direct taxes (personal income tax corporate tax) and ₹16.22 lakh crore from indirect taxes (customs excise duty GST).
GST: Goods and Services Tax (GST) collection for 2024-25 is estimated to rise to ₹10.68 lakh crore, an 11.6% increase. The final Budget will need to confirm these tax revenue figures for the 2024-25 fiscal year.
Borrowing: The Interim Budget projected the government’s gross borrowing at ₹14.13 lakh crore for the current financial year. The market will closely watch the borrowing figure, especially considering higher-than-expected dividends from the RBI and financial institutions.
Nominal GDP: India’s nominal GDP growth (real GDP plus inflation) for the current fiscal year is estimated at 10.5%, reaching ₹327.7 trillion, according to the Interim Budget. With a normal monsoon, improved revenue collections, and increased rural consumption, an upward revision in growth estimates is anticipated. Real GDP growth for the current fiscal is projected at 7.2%, as per the RBI.
Dividend: The Interim Budget projected ₹1.02 lakh crore from the RBI and financial institutions, but this will be revised upwards due to the RBI’s surplus transfer of ₹2.11 lakh crore in May. Additionally, ₹43,000 crore is expected from CPSEs.
Spending on Key Schemes: Attention will also be on spending for major schemes like NREGA and crucial sectors such as health and education.
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