Budget 2024: Government seeks to script long-term India growth story
#Budget' 2024 with ET
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What's in Sitharaman's Budget for you?
Despite the imperative to support growth, thrust on fiscal consolidation continued. Fiscal deficit is expected to be brought down to 4.9% of GDP in FY25, better than 5.1% estimated as per interim budget and 5.6% print seen last year. Encouragingly, the cushion provided by buoyant tax collections, and RBI's excess dividend bonanza of 0.4% of GDP was used well to strike a balance between achieving fiscal consolidation and increasing social welfare spending largely directed towards youth, women, MSME and agriculture. Capital spending, too, is budgeted to rise by 17% in FY25 over the provisional numbers of FY24, along with a rise in capex support to states. This will help to broadbase the recovery being currently witnessed in private capex.
The strong focus given in the budget to generate more quality employment opportunities for India's rising workforce was indeed reassuring. The announcement of three schemes for 'Employment-linked Incentive' catering to the formal sector first-time employees, creation of manufacturing sector jobs and support to employers bodes well to increase employment and will help in formalisation of the labour force over the medium term. Additionally, significant efforts have been announced to enhance women's participation in the workforce. All these measures to generate employment opportunities will empower the youth to partake in India growth story.
