Budget 2024: Finance Minister Sitharaman hikes capital spend by 11%, trims deficit for next fiscal

Finance Minister Nirmala Sitharaman on Thursday increased capital expenditure by 11 per cent for the upcoming fiscal year to uphold the remarkable economic growth rate while reducing the deficit in an interim budget focused on reforms. The interim budget also provided relief to the common man by addressing contested small tax demands of up to Rs 25,000. In her presentation of the interim budget for 2024-25, Sitharaman introduced no alterations to income tax rates for individuals and corporations, as well as customs duty. In less than an hour-long budget speech, she presented the Modi government’s achievements in the last 10 years that transformed India from being a ‘fragile’ economy to the world’s fastest-growing major economy. She hiked capital expenditure to Rs 11.11 lakh crore for 2024-25 while trimming the fiscal deficit for this financial year to 5.8 per cent, from the budgeted 5.9 per cent of GDP, and further lowering to 5.1 per cent in the next fiscal.

#WATCH | Interim Budget 2024-25 | Union Finance Minister Nirmala Sitharaman says, "...The revised estimate of the fiscal deficit is 5.8% of GDP, improving on the budget estimate notwithstanding moderation in the nominal growth estimates." pic.twitter.com/MxehZWCPZA

— ANI (@ANI) February 1, 2024

Stating that every challenge of the pre-2014 era was overcome through economic management and governance, she said the government, in its July budget, will present a detailed roadmap to make India a developed country. “Guided by the principle ‘reform, perform, and transform’, the Government will take up next-generation reforms, and build consensus with the states and stakeholders for effective implementation,” Sitharaman said in her speech. The revenue receipts for the current fiscal at Rs 30.03 lakh crore are expected to be higher than the Budget Estimate, reflecting strong growth momentum and formalisation in the economy. “We continue on the path of fiscal consolidation, as announced in my Budget Speech for 2021-22, to reduce fiscal deficit below 4.5 per cent by 2025-26,” Sitharaman said. With inputs from agencies