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Updated February 1st, 2024 at 13:03 IST

Government to invest more than $134 billion on infrastructure

Net borrowings and gross borrowings for the fiscal year 2024/25 have also been outlined, with attention to maintaining fiscal discipline.

Business Desk
Infrastructure
Infrastructure | Image:IRB Infrastructure
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Budget 2024: Finance Minister Nirmala Sitharaman presented the government's final budget to parliament before the upcoming general elections, stressing the country’s ongoing economic transformation. 

The budget earmarks notable investment in infrastructure, with over $134 billion allocated for the next fiscal year, reflecting an 11 per cent increase compared to the current year's allocations.

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Key highlights of the budget speech include initiatives to alleviate poverty, enhance crop insurance schemes, and train workers under the India skill mission.

Notably, the government has provided significant financial assistance to households and women-led enterprises over the past decade, contributing to economic empowerment.

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Sitharaman stressed the moderation of inflation and the acceleration of economic growth, attributing proactive inflation management to containing inflation within the target band of 2 per cent-6 per cent. 

Furthermore, she outlined plans for next-generation reforms in consultation with states and initiatives to bolster affordable housing schemes, particularly in rural areas.

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Infrastructure spending remains a focal point, with major allocations for the upcoming fiscal year. The federal government will allocate major funds to states for infrastructure development, alongside the establishment of a corpus for research in sunrise sectors and support for renewable energy initiatives, including offshore wind power and rooftop solar programs.

In terms of fiscal management, the fiscal deficit target for the next fiscal year has been reduced to 5.1 per cent of GDP, reflecting the government's commitment to prudent financial management. 

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Net borrowings and gross borrowings for the fiscal year 2024/25 have also been outlined, with attention to maintaining fiscal discipline.

Tax reforms will continue without changes to the existing tax structure, with incentives extended to sovereign wealth funds and pension funds. The budget estimates total revenue receipts for the next fiscal year, signalling robust revenue projections and the government's efforts to widen the tax base.

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Overall, the budget outlines a comprehensive strategy to drive economic growth, promote infrastructure development, and ensure fiscal sustainability, setting the stage for India's economic trajectory in the coming years amidst the backdrop of impending elections and evolving global dynamics.

(With Reuters Inputs)

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Published February 1st, 2024 at 13:02 IST

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