Modi 3.0: Nirmala Sitharaman to hold pre-budget meeting with industry stakeholders on June 20: Here's what to expect

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Also Read: Union Budget 2024: Finance Minister Nirmala Sitharaman to break Morarji Desai's THIS recordThe Indian economy is projected to grow 7.2 per cent in FY25 on the back of improving rural demand and moderating inflation, according to recent estimates by the Reserve Bank of India (RBI). The Modi 3.0 government inherits a strong economy with fiscal prudence in place with a special advantage as the RBI had announced the highest-ever dividend of ₹2.11 lakh crore for FY24.The key policy priorities for the third term of Prime Minister Narendra Modi-led government would include dealing with food inflation, unemployment, stress in the agriculture sector, job creation, sustaining capex momentum and pushing revenue growth to stay on the fiscal consolidation path.Rating agency S&P has maintained a positive stance on the economic policies followed by the Modi regime in the past 10 years.

The agency had upgraded the sovereign rating outlook to positive. It also hinted at a possible rating upgrade in next 1-2 years provided the government sticks to its fiscal deficit roadmap.Also Read: Union Budget 2024 likely on July 22, Economic Survey on July 3, says reportWhile tax revenues seem to be buoyant, non-tax revenue remains a challenge as the strategic disinvestment has almost been a non-starter with no big-ticket strategic sale, except Air India.

Analysts also expect some new changes in the income tax regime for the tax-paying salaried employees."A key area of focus will be to generate jobs, especially in the rural economy. Consequently, the final budget is anticipated to feature increased government expenditure in areas such as MGNREGA, housing, water, and agriculture.