Budget 2024: Ahead of FM Sitharaman speech, IMF Executive Director says India's economy quite strong

Ahead of tabling of the Interim Union Budget 2024-25, Executive Director of the International Monetary Fund (IMF) and former Chief Economic Advisor to the Government of India, KV Subramanian, said: “India has completely overcome the COVID-19 pandemic impact.” “Global economy has still not completely recovered because inflation resulted due to spending during COVID-19 and to bring that down interest rates have been increased. So, the interest rates have not decreased yet. Contrary to that, if you look at India - inflation is under control here,” Subramanian said. “Policy rates can also come down in the time to come. But of you see overall - fiscal deficit is being brought down, current account deficit is in a good position, inflation is under control too… So, there is no doubt that India has completely overcome the pandemic impact,” he added.

#WATCH | Delhi | Ahead of the presentation of the Union Interim Budget today, KV Subramanian - Executive Director of the IMF and former Chief Economic Advisor to the Government of India says, "Global has still not completely recovered because inflation resulted due to spending… pic.twitter.com/thEIBWTveH

— ANI (@ANI) February 1, 2024

‘India’s economy quite strong’ “…If you look at the growth rate, you must remember that when there was pandemic and very few people believed it, I had said that the growth rate will be more than 7 per cent and that is what the numbers are…The policies we adopted during the pandemic, a mixture of supply and demand…benefitted the needy. Capital expenditure has been increased - by almost 3.5 per cent. So, India’s economy is quite strong and in a good position due to this. IMF and others can see this clearly,” Subramanian said.

#WATCH | Delhi | Ahead of the presentation of the Union Interim Budget today, KV Subramanian - Executive Director of the IMF and former Chief Economic Advisor to the Government of India says, "...If you look at the growth rate, you must remember that when there was pandemic and… pic.twitter.com/N2uoUWdp8g

— ANI (@ANI) February 1, 2024

More from Business

Hyundai India’s Rs 27,870 crore IPO oversubscribed by 2.28X, largely driven by institutional investors How Indian fintech startups are driving Malaysia’s UPI-like digital payments revolution

‘Good measures taken in previous years will be repeated’ Speaking about his expectations from the Budget 2024-25, Subramanian said: “First of all, we need to keep in mind that this is a vote on account… The full budget will be presented after elections, in June or July… So, not many measures are taken in this budget.” “Since the economy is in a very good position with the possibility of a growth rate of 7.3 per cent, I think the government will carry forward what it has done in previous years. Perhaps a few measures will be taken…maybe there will be something for women…Overall, I see that the good measures taken in previous years will be repeated,” he added.

#WATCH | Delhi | Ahead of the presentation of the Union Interim Budget today, KV Subramanian - Executive Director of the IMF and former Chief Economic Advisor to the Government of India says, "First of all, we need to keep in mind that this is a vote on account...The full budget… pic.twitter.com/woWe4pgOo7

— ANI (@ANI) February 1, 2024

Budget 2024

Finance Minister Nirmala Sitharaman will present the Interim Budget in Parliament on Thursday (1 February) ahead of the Lok Sabha elections in 2024, marking the final budget in the second term of Prime Minister Narendra Modi. The Interim Budget estimates or outlines expenditure, revenue, fiscal deficit, financial performance and projections until the formation of a new government. It helps the government to manage its financial obligations.

WATCH: Finance Minister holds paperless ‘bahi katha’

Union Finance Minister Nirmala Sitharaman, dressed in tussar handloom blue cream Kantha saree, and her Budget team on Thursday morning were seen with paperless ‘bahi katha’ at the North Block ahead of the presentation of Budget 2024 in Parliament.

#WATCH | Union Finance Minister Nirmala Sitharaman will present the interim budget today pic.twitter.com/irGtbAcPbP

— ANI (@ANI) February 1, 2024

Video also showed Interim Budget 2024 copies arrive in Parliament on Thursday morning.

#WATCH | Interim Budget copies arrive in Parliament, Finance Minister Nirmala Sitharaman to present her sixth straight budget today pic.twitter.com/ZFKdzcx7kt

— ANI (@ANI) February 1, 2024

Expectations of the common man are high from the Interim Budget 2024 as the PM Modi-led government focuses on sustaining India’s GDP growth momentum, while at the same time moving on the fiscal glide path to attain an acceptable fiscal deficit target. India is the fastest growing major economy in the world and in the coming years will become the world’s third largest economy with a $5 trillion GDP. Sitharaman’s Budget 2024 Vote On Account is expected to provide a path to that goal. With inputs from agencies