Daily Briefing: Key takeaways & analysis of Budget 2024

1) There weren’t too many surprises in yesterday’s Budget speech. Given that this was an interim Budget – with the Lok Sabha polls right around the corner – Union Finance Minister Nirmala Sitharaman steered clear of any big policy changes or announcements. As expected, she did spend some time highlighting the economic triumphs of the Modi government over the last decade. Interestingly, she also signalled the beginning of a slow tapering of government heavy-lifting of the economy.
From a muted outlook on GDP growth to spend cuts on health and education — here are six big takeaways from Budget 2024.

2) The government’s aim to restrict the fiscal deficit to 5.8 per cent of the Gross Domestic Product (GDP) as against 5.9 per cent budgeted earlier for the financial year and the push to restrict the fiscal deficit target to below 4.5 per cent by 2025-26 rides on the back of a strong buoyancy in tax revenues.

3) In our opinion section today, Sajjad Z Chinoy writes on why the baton must now be passed to the private sector: “The large fiscal consolidation in an election year is bold, necessary and must be complimented. Now consolidation must be executed in the least growth-impinging manner.”

4) Notwithstanding the government’s seemingly upbeat expectations from India Inc, a few concerns continue to cloud the outlook for companies which are waiting and watching before they decide to invest and expand capacity. We break down the reasons why the private sector is still shy of taking the investment baton from the Finance Ministry.

5) Hours after presenting the Interim Budget, Finance Minister Nirmala Sitharaman said that it was premised on the Modi Government’s performance in the last 10 years and the mantra of sabka saath, sabka vikas. We chalk out the important bits of her post-Budget interview with DD News.

Until tomorrow,

Rahel Philipose and Rounak Bagchi 

Business As Usual by EP Unny