Shortly after Finance Minister Nirmala Sitharaman presented the Union Budget 2024, Prime Minister Narendra Modi commended her team for a budget that “reflects the aspirations of young India.” The Prime Minister highlighted key decisions, including a Rs 1 lakh crore fund for research and innovation and an extension of tax exemption for start-ups. He also noted that the capital expenditure is set at 11.11 lakh crore while keeping the fiscal deficit in check.
During her budget speech, Sitharaman revealed that the fiscal deficit has been reduced to 5.8%. She set ambitious targets, aiming to bring it down to 5.1% of GDP by FY25 and further to 4.5% by FY26. Despite expectations, no changes were introduced to income tax slabs. However, the government announced a relief measure, withdrawing outstanding direct tax demands up to Rs 25,000 for the period up to FY 2009-10 and up to Rs 10,000 for FY 2010-11 to 2014-15.
Union Home Minister Amit Shah praised the interim Budget, calling it a “roadmap to achieve PM Modi’s vision of a Developed Bharat by 2047.” On the other hand, the Congress party expressed disappointment. Congress MP Shashi Tharoor criticized the budget, stating it was “short and disappointing,” with major omissions and crucial issues left unaddressed.
Congress leader Manish Tewari raised concerns about the budget deficit, pointing out that it stands at Rs 18 lakh crores. He emphasized that this indicates the government is borrowing for its expenditure and expressed worry that this number is likely to increase next year. The differing reactions reflect the varying perspectives on the budget’s impact, with the government focusing on aspirations and development while the opposition raises concerns about fiscal management and content omissions.
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