New Delhi: Union Finance Minister Nirmala Sitharaman has proposed an increase in capital expenditure for the fiscal year 2024 25 with a whopping Rs 11.11 lakh crore allocated. This announcement was made as part of the Budget preceding the upcoming General elections.
The governments focus on capital expenditure, which is aimed at creating lasting physical assets has been evident in their strategy. Year in Prime Minister Narendra Modis final full Budget of his second term there was a substantial 33% increase in capital expenditure to Rs 10 lakh crore for 2023 24. This amount accounted for 3.3% of the GDP.
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The surge in capital expenditure plays a role in achieving the governments overarching objectives of boosting growth potential promoting job creation attracting private investments and providing a safety net against global uncertainties. Finance Minister Sitharaman highlighted that over the decade Indias economy has undergone significant transformations thanks to people centric reforms and structural changes implemented by the Modi led government.
"In 2014 our nation faced challenges; however through strategic reforms and measures focused on benefiting the people we have created an environment conducive, to employment opportunities and entrepreneurship.""The development achieved has had an impact on the people giving them a renewed sense of purpose and hope " stated Sitharaman in her initial remarks.
Emphasizing the governments commitment to inclusivity she further added, "In our term we focused on inclusive development that takes into account social and geographical aspects. Through a national approach we successfully tackled the challenges arising from the COVID 19 pandemic worked towards Aatma Nirbhar Bharat (self reliant India) and laid strong foundations for Amrit Kaal."
Sitharaman reassured that the government is actively working towards all encompassing development by transcending caste and socioeconomic barriers. The ultimate objective is to transform India into a developed nation by 2047.
The interim budget, aimed at meeting requirements until a new government is formed after the Lok Sabha polls will be followed by a complete budget presentation in July. With this presentation Sitharaman will match the record set by former Prime Minister Morarji Desai when he served as finance minister and presented five budgets along with one interim budget, between 1959 and 1964.
The Budget Session of Parliament began with President Droupadi Murmu addressing a sitting of Lok Sabha and Rajya Sabha.
President Murmu celebrated the year 2023 as a milestone for India highlighting the countrys ability to maintain its position as the fastest growing major economy despite global challenges.
According to a report by the Ministry of Finance Indias economy is projected to grow by 7% in the fiscal year 2024 25 starting from this April. It is worth noting that Indias economy experienced growth rates of 7.2% in 2022 23 and 8.7% in 2021 22 solidifying its position as the growing major economy. The previous comprehensive budget of Modi government 2.0 had aimed at increasing capital expenditure by 33% to Rs 10 lakh crore in 2023 24 which's equivalent to around 3.3% of GDP nearly three times higher than the outlay, in 2019 20.
