FM Sitharaman likely to present Union Budget 2024-25 in July end

Sitharaman will need to focus on measures to stimulate growth without exacerbating inflation while also securing resources to fulfill coalition government commitments.

The budget for the fiscal year 2024-25 is likely to be presented in Parliament during the latter half of July, reported PTI. Finance Minister Nirmala Sitharaman is expected to engage in pre-budget discussions with industry chambers around June 20, according to sources.

Prior to the consultations with Sitharaman, industry sources mentioned a meeting with Revenue Secretary Sanjay Malhotra scheduled for June 18.

The upcoming budget is anticipated to outline the economic agenda of the Modi 3.0 government.

Sitharaman will need to focus on measures to stimulate growth without exacerbating inflation while also securing resources to fulfill coalition government commitments.

The economic agenda aims to accelerate reforms aimed at positioning India as a USD 5-trillion economy in the near future and transforming the nation into a 'Developed India' by 2047.

The Reserve Bank of India projects the Indian economy to grow by 7.2 percent in the current fiscal year, driven by improving rural demand and easing inflation.

The Modi 3.0 government inherits a robust economy with established fiscal discipline. Additionally, the RBI's announcement of its highest-ever dividend of Rs 2.11 lakh crore for FY24 provides a significant boost.

Key policy priorities for Prime Minister Narendra Modi's third term include addressing challenges in the agricultural sector, job creation, sustaining capital expenditure momentum, and enhancing revenue growth to maintain fiscal consolidation.

Rating agency S&P has expressed approval of the economic policies implemented over the past decade under the Modi administration by upgrading the sovereign rating outlook to positive. There is potential for a further rating upgrade in the next 1-2 years if the government adheres to its fiscal deficit targets.

While tax revenues appear robust, non-tax revenue remains a hurdle due to limited progress in strategic disinvestment, apart from the sale of Air India.

With PTI inputs