As Finance Minister Nirmala Sitharaman prepares to unveil the Union Budget 2024, anticipation is high regarding the government’s fiscal strategy. This budget comes at a crucial juncture, with India aiming to sustain its economic growth amidst global uncertainties. Here’s a glimpse of the major spends and income from the last year’s budget, the promises that remained unfulfilled, and what we might expect this year. Ms. Sitharaman will have the honour to become the first finance minister to present the union budget seven times in a row. The budget being the first in Modi 3.0, people have very high expectations from it.
Major Expenditures in the 2023 Budget
- Infrastructure Development: The 2023 budget allocated a significant portion to infrastructure, with a planned capital expenditure of 10 lakh crore. This was aimed at bolstering roads, railways, and urban infrastructure, pivotal for sustaining long-term economic growth.
- Health and Education: The health sector saw an allocation of Rs. 86,175 crore, focusing on improving public health infrastructure and expanding the coverage of healthcare schemes like Ayushman Bharat. Education received Rs. 1.12 lakh crore, emphasizing digital learning and skill development to create a future-ready workforce.
- Agriculture and Rural Development: With an allocation of Rs. 1.25 lakh crore, the government aimed to enhance agricultural productivity and rural livelihoods. The budget emphasized schemes like PM-KISAN and the provision of credit facilities to farmers.
- Defence: Defense spending remained a priority, with an allocation of Rs. 5.94 lakh crore, addressing modernization of the armed forces and strengthening defence capabilities.
- Social Welfare: Programs aimed at social welfare, including schemes for women, children, and the elderly, received substantial funding. The allocation for social welfare stood at Rs. 1.59 lakh crore.
Major Income Sources in the 2023 Budget
- Taxes: The primary source of income was from taxes, including income tax, corporate tax, Goods and Services Tax (GST), and customs duties. The total tax revenue was projected to be around Rs. 27.57 lakh crore.
- Non-Tax Revenue: Non-tax revenue, including dividends from public sector enterprises and the Reserve Bank of India, was estimated to be Rs. 3.01 lakh crore.
- Disinvestment: The government aimed to raise Rs. 65,000 crore through the disinvestment of public sector undertakings (PSUs).
Unfulfilled Promises from the 2023 Budget
Despite the ambitious targets set in the 2023 budget, several promises remained unfulfilled:
- Disinvestment Targets: The government fell short of its disinvestment target, achieving less than half of the projected Rs. 65,000 crore due to market volatility and lack of investor interest.
- Healthcare Infrastructure: While allocations were made, the expansion of healthcare infrastructure, especially in rural areas, lagged behind due to bureaucratic delays and implementation challenges.
- Agricultural Reforms: Despite increased allocations, the intended reforms in agricultural marketing and the creation of farm infrastructure faced setbacks due to political opposition and logistical hurdles.
- Employment Generation: The anticipated boost in job creation, particularly in the manufacturing and services sectors, did not materialize as expected, partly due to the slow recovery from the pandemic.
Expectations from the 2024 Budget
- Sustainable Growth Initiatives: With global economic challenges, the budget is expected to focus on sustainable growth. This includes further investments in green energy, technology, and digital infrastructure.
- Healthcare and Education: Continued emphasis on healthcare and education is anticipated, especially in the wake of lessons learned from the COVID-19 pandemic. There may be increased allocations to enhance public health systems and digital education platforms.
- Agriculture: Support for the agricultural sector will likely remain strong, with new measures to ensure better income security for farmers and innovations in agricultural practices.
- Tax Reforms: The budget might introduce tax reforms aimed at simplifying the tax structure and increasing compliance. There could also be incentives for industries to boost manufacturing and exports.
- Social Security: Enhanced social security measures for marginalized and vulnerable populations, including the elderly and the differently-abled, are expected.
Nirmala Sitharaman’s Union Budget 2024 will be pivotal in setting the economic trajectory for the coming years. As the nation waits with bated breath, the focus will be on balancing growth with sustainability and inclusivity.
