Budget 2024: Simplified Insights from Finance Minister’s Post-Budget Briefing

What are Government Priorities:

The Finance Minister outlined five key priorities: making use of technology to increase productivity; focusing on infrastructure development; concentrating on social justice for effective governance; improving the welfare of the poor, youth, women, and farmers; and the creation of a high-power committee to address demographic challenges.

Economic Growth:

India’s GDP has grown by 7% annually over the last three years, making it the largest economy among the G20’s main players.

Government’s Focus:

The focus areas for the government have been efficiency, growth, and governance. They have done a good job of managing the economy despite obstacles, and they are trying to lower the fiscal deficit.

Government Spending:

The government will continue to invest in capital expenditure (capex) to support development, considering it essential for the country’s progress.

International Projects:

The India-Middle East-European Corridor (IMEC) project will proceed in spite of obstacles, even after disruptions in the Red Sea.

Tax-Related Measures:

The withdrawal of 1.1 crore outstanding small direct tax demands for certain years will cost less than ₹3,500 crore to the government.

Tax Rates for Manufacturing Units:

After March 2024, the reduced tax rates for newly established manufacturing facilities will end.

The Disinvestment Targets:

The Secretary of the Department of Investment and Public Asset Management (DIPAM) said there is no clear goal for disinvestment in the fiscal year 2024–2025.

Fiscal Responsibility:

The government is not only following the earlier fiscal consolidation plan but is also improving upon it, as stated by the Finance Minister.

Debt-to-GDP Ratio:

The target to reduce the Centre’s debt-to-GDP ratio to 40%, set before the COVID-19 period, needs reevaluation, according to the Finance Secretary.

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