On July 23, Finance Minister Nirmala Sitharaman delivered her seventh consecutive Union Budget, surpassing former Prime Minister Morarji Desai’s record. This Budget is significant as it is the first under the BJP-led NDA government since their re-election in June.
Sitharaman: Political Landscape and Budget Implications
Unlike in 2019, when the BJP had 303 seats in the Lok Sabha, the party now holds 240. This reduction reflects potential discontent with the government’s economic policies. The Budget’s focus is crucial amidst coalition politics and regional partners’ expectations.
Fiscal Deficit and Economic Projections
The fiscal deficit for FY 2023-24 stood at 5.63% of GDP, with a target of 5.1% for FY 2024-25. The Economic Survey tabled on July 22, forecasts India’s GDP growth for FY 2025 between 6.5% and 7%, down from the previous year’s 8.2%.
Support for Flood Mitigation
Sitharaman addressed flood mitigation, highlighting Bihar’s recurrent flood issues and providing ₹11,500 crore in support. Assistance will also be extended to Assam, Uttarakhand, Sikkim, and Himachal Pradesh for managing floods and landslides.
