Preparations for the budget for the financial year 2024-25 are underway, even before the general elections.

Government officials are gearing up to present a comprehensive budget possibly in June or July.

Budget Preparation:

• Sources indicate that major policy announcements will await the new government’s formation.
• Nevertheless, groundwork for various aspects of the budget has commenced.

Industry Involvement:

• Industry stakeholders have submitted tax proposals for consideration by the Finance Ministry.
• Discussions with industry representatives on tax matters are likely post-election.

Government’s Vision:

• The Finance Ministry is formulating a 100-day vision document post-election.
• Focus remains on achieving the goal of a developed India over the next five years, particularly emphasizing infrastructure and capital expenditure.

Reforms Agenda:

• Finance Minister Nirmala Sitharaman has highlighted the government’s intent to push for reforms in its third term.
• Emphasis on digital infrastructure and broader reforms in factors crucial for production like land, labor, capital, and entrepreneurship.

Fiscal Strategy:

• The interim budget in February prioritized strengthening the treasury, aiming to maintain fiscal deficit below 4.5% of GDP by 2025-26.
• Estimated fiscal deficit for 2024-25 stands at 5.1% of GDP, and for the current fiscal year, it may be 5.8% of GDP.

Budget Implementation:

• The interim budget focused on revenue and expenditure management until the new government formation.
• Post-general elections, the new government will present a full budget for the remainder of the financial year.
• Additionally, the government plans to offer interest-free loans to states for 50 years to drive economic reforms.

As India braces for the financial year 2024-25, early budget preparations indicate a proactive approach to address economic challenges and drive growth. The upcoming budget is poised to reflect a blend of continuity and fresh initiatives under the backdrop of evolving economic landscapes and policy imperatives.