Union Finance Minister Nirmala Sitharaman receives a warm welcome from BJP women workers on her arrival, at the party headquarters, in New Delhi on Tuesday.
| Photo Credit: ANI

Budget 2024: Nirmala Sitharaman signals shift from earlier trickle-down strategy to a slew of schemes

Presenting her seventh Union Budget and the first after this year’s Lok Sabha election, Finance Minister Nirmala Sitharaman on July 23 unveiled a flurry of measures aimed at fixing the woes of unemployed youth, small businesses, and the middle class, and sought to strengthen the ruling NDA coalition’s bonds with support for multiple investment projects in Bihar and Andhra Pradesh.

Budget 2024: States ruled by non-NDA parties ignored, says Opposition; four CMs to boycott Niti Aayog meet

The Opposition slammed the Union Budget calling it an exercise in political jugglery to appease the BJP’s two key allies, Janata Dal (United) and Telugu Desam Party, while doing little to address issues such as high rate of unemployment and inflation. States ruled by non-National Democratic Alliance (NDA) parties, the Opposition said, have been ignored.

Budget 2024: Stocks wobble on capital gain tax plan

The stock markets reacted negatively to the Budgetary provisions concerning additional tax burden on investors and closed in the negative territory led by losses in banking stocks after undergoing high volatility. The key benchmark indices recovered most of the lost ground in the second half of trading.

Trump assassination attempt: U.S. Secret Service director Kimberly Cheatle steps down

The director of the U.S. Secret Service said on July 23 she is resigning following the assassination attempt against former President Donald Trump that unleashed intensifying outcry about how the agency tasked with protecting current and former Presidents could fail in its core mission.

Y.S. Jagan approaches A.P. High Court seeking Leader of Opposition status 

Former Andhra Pradesh Chief Minister and YSR Congress Party (YSRCP) president Y.S. Jagan Mohan Reddy filed a writ petition in the High Court (HC) praying for a direction to the A.P. government to designate him as the Leader of the Opposition (LoP) in the Legislative Assembly, in accordance with Section 12-B of the A.P. Payment of Salaries and Pension and Removal Of Disqualifications Act, 1953.

NTA will release final NEET results within two days: Dharmendra Pradhan

Union Education Minister Dharmendra Pradhan on July 23 hailed the Supreme Court’s decision on the NEET-UG issue and announced that the final results of the medical entrance exam would be declared within two days. The merit list would be revised according to the observations made by the Supreme Court, he said.

Nehru Planetarium set for revamp, India’s space achievements to take centre stage

Nehru Planetarium is getting ready for a revamp by the year end, with its gallery set to feature by 2025 new interactive screens focusing on India’s latest space missions and developments in the field of astronomy. The planetarium has now teamed up with the Indian Space Research Organisation (ISRO) to incorporate the country’s latest space missions into its shows.

Bombay High Court puts temporary hold on Indrani Mukerjea’s Europe trip 

The Bombay High Court on Tuesday passed an ad interim stay on a special court order that permitted Indrani Mukerjea to travel to Spain and United Kingdom until July 29. Ms. Mukerjea who is the prime accused in the alleged murder of her own daughter Sheena Bora, is currently out on bail.  

Sri Lanka apologises for forced cremations policy during pandemic 

Sri Lanka on Tuesday apologised for enforcing a “cremations only” policy during the Covid-19 pandemic, going against the religious sentiments of Muslims, as well as expert views that burials were safe. The government said the Cabinet approved a joint proposal from a group of ministers “to plead an apology on behalf of the government”, from all communities affected by the compulsory cremation policy during the pandemic, when President Gotabaya Rajapaksa was in office.

Paris Olympics preview | Indian pugilists capable of landing medal-winning punches

The presence of two World champions, including an Olympic medallist, and two Worlds medallists in the six-member Indian squad brightens up the country’s prospects in the Paris 2024 boxing ring. After the dismal performance of the male boxers in the initial qualifying phase and the loss of the women’s 57kg quota place due to Parveen Hooda’s missed dope tests, the boxing scene looked better as Amit Panghal (51kg) and Nishant Dev (71kg) notched up two quota places and Jaismine Lamboria reclaimed the 57kg slot.

Paris Olympics preview | Will the ‘nucleus of Indian sports’ live up to its title?

The health of Indian sports will largely depend on the contribution of Olympic medals by the shooters in the Paris Games. It may sound ironical that a sport that has brought nought from the last two Games in Rio and Tokyo, finds itself as the nucleus of Indian sports. There will be 21 shooters, the best from any country including China, competing for 27 medals. Can quality come from quantity? Can there be another gold medal from shooting, the way Abhinav Bindra won by asserting his mastery in air rifle in the Beijing Games in 2008.

Finance Minister Nirmala Sitharaman holding the Budget Papers at the North Block in New Delhi on February 01, 2023.
| Photo Credit: R.V. Moorthy

Finance Minister Nirmala Sitharaman on February 1 raised the personal income tax rebate limit, doled out sops on small savings, and announced one of the biggest hikes in capital spending in the past decade as she did a tightrope walk in the Budget between staying fiscally prudent and meeting public expectations in the year before general elections.

Ms. Sitharaman’s fifth straight Budget comes at a time when the economy is slowing and there is a need for increased spending on social sectors as well as ramping up incentives for local manufacturing. The Modi government will seek third term next year and the BJP will face nine Assembly elections this year.

Announcing its last full budget before the 2024 elections, the NDA government focused on a slew of measures that expanded Capital Expenditure spending and tied in various priorities including Green Growth, Youth Power, and Inclusive Development. This was also accompanied by major tax announcements for the salaried class, with changes in tax slabs and a clear intention to shift to the new tax regime.

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If budget making is a complex task, interpreting the Union Budget can be hazardous given the amount of fine print that one has to pore over. Finance Minister Nirmala Sitharaman’s fifth Budget, and the current Bharatiya Janata Party-led government’s final full-fledged one before next year’s general election, ticks all the right boxes on the face of it. Inclusive development that ensures prosperity for all, especially the youth, women, farmers, Other Backward Classes, Scheduled Castes and Scheduled Tribes, a focus on infrastructure and investment that serves as a multiplier for growth and employment, policies to enable green or environmentally sustainable growth, the rationalisation of direct taxes, including a raft of concessions to the middle and salaried classes, and pensioners, and, most importantly, doing all this while staying the course on fiscal consolidation. Terming it the “first Budget in Amrit Kaal”, Ms. Sitharaman sounded the poll bugle by emphasising the ruling dispensation’s achievements since 2014, when Prime Minister Narendra Modi first assumed office. Per capita income, she said, had more than doubled to ₹1.97 lakh as a result of the economy’s growth to being the world’s fifth-largest and the government’s efforts to ensure a better quality of living for all. She also cited an increase in formalisation of the economy and the widespread adoption of digital technologies, especially in the payments sphere, as other significant achievements.

With an eye on ‘India at 100’, the Budget proposals, Ms. Sitharaman said, were aimed at actualising a “technology-driven and knowledge-based economy with strong public finances, and a robust financial sector”. Emphasising that the economic agenda for achieving this vision would, among other things, require a focus on giving a strong impetus to growth and job creation, the Minister laid out her Budget proposals that were heavy on this government’s trademark acronyms describing the various schemes, but relatively light on details. PM VIKAS or Pradhan Mantri Vishwakarma Kaushal Samman, for instance, would for the first time offer traditional artisans and craftspeople, or Vishwakarmas, a package of assistance aimed at helping them improve the quality, scale and reach of their products, she said. Specifics, including a financial outlay and the likely mechanics of implementation, were, however, not spelt out. Similarly, a ‘Mangrove Initiative for Shoreline Habitats & Tangible Incomes’ or ‘MISHTI’, aimed at undertaking mangrove plantation along the coastline and on salt pan lands leaves the funding to a “convergence between MGNREGS and a compensatory afforestation fund”. With the rural sector’s mainstay employment guarantee scheme, one that was introduced during the Congress-led United Progressive Alliance government’s term, itself increasingly being starved of budgetary support, it is hard to fathom how the new initiative to protect and regenerate the ecologically sensitive mangroves will be funded. The decrease in outlay comes at a time when the rural economy is still to regain vigour from the ravages of the pandemic, the fallout on incomes from the uneven distribution of last year’s monsoon rainfall, and the relatively greater impact of high food inflation on hinterland households.

At a broader level, the Budget estimate for expenditure on rural development in 2023-24 is pegged at ₹2.38 lakh crore, a marginal 0.1 percentage point increase when measured as a proportion of overall expenditure at 5.3%, compared with the 5.2% in the previous Budget Estimate. When viewed against the revised estimate, the outlay is a good 0.6 percentage point lower. Food subsidy too has been sharply pared: at ₹1.97 lakh crore, it is almost 5% lower than the 2022-23 Budget estimate and a steep 31% down from the revised estimate. To be sure, the government’s resolve to stay the course on fiscal consolidation, especially after the COVID-19 pandemic had led it to spend more even as revenue receipts dipped amid the unprecedented economic contraction, left Ms. Sitharaman with little leeway on the expenditure front once she had decided that the government would concentrate its resources on increased public outlays on infrastructure and investment. Capital expenditure has been allocated ₹10 lakh crore, a 33% jump from this fiscal’s Budget estimate. If one adds the almost ₹3.7 lakh crore set aside for grants-in-aid to States for the creation of capital assets, the Minister’s laudable intent to apply the force multiplier of government capital spending as the primary lever to spur economic activity becomes clearly evident. With global demand uncertain this year on account of the slowdown in the developed economies, as the Economic Survey pertinently pointed out, India’s domestic market will necessarily have to serve as the economy’s bulwark. Ms. Sitharaman has also attempted to woo the middle class with a raft of changes in personal income tax that would, in combination with tweaks to customs duties, in total cost the government ₹ 37,000 crore in foregone direct tax revenue. Some of these changes are aimed at leaving more money in the hands of the salaried and pensioners, cash that the Budget planners hope would find its way back either as savings or increased spending on vital consumption. The biggest beneficiaries of the income-tax changes though are likely to be those in the highest income bracket, where the effective rate has been cut by 3.74 percentage points reinforcing a perception that this government bats for the affluent.

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