Reform, Perform and Transform
Despite budget constraints due to upcoming elections, the Finance Minister expanded the government's mantra to include "Sabka Vishwas," alongside "Sabka Saath, Sabka Vikas," fueled by confidence in re-election. The speech highlighted inclusive development efforts, focusing on the "4 castes": Poor, Women, Youth, and Farmer. Direct benefit transfers (34 trillion) saved 2.7 trillion, aiding 18 million farmers and skilling 14 million youth. Infrastructure development, digitalization, and GST were also mentioned. Infrastructure spending for 2024-25 is 3.4% of GDP, prioritizing railway upgrades, connectivity, green energy, and tourism, including Lakshadweep. Defence and Digital India remain key. The speech addressed rooftop solarization, medical colleges, and agro-processing.
Acknowledging complex global affairs and a new world order post-COVID, the India-Middle East-Europe Economic Corridor was reiterated. Existing tax rates remained, but outstanding income tax demands below 25,000 (up to 2009-10) and 10,000 (2010-11 to 2014-15) were withdrawn, benefiting the lower middle-class. The fiscal deficit projection of 5.1% of GDP for 2024-25 (targetting 4.5% by 2025-26) is a concern, but the economy's strength offers hope.