Budgetary Triumph
The 2024-25 Budget received its final seal of approval on Thursday, with the Rajya Sabha returning the relevant bills to the Lok Sabha. This marks the culmination of the budgetary process for the fiscal year.
Empowering the Middle Class
Finance Minister Nirmala Sitharaman responded to the Opposition’s critique that the Budget neglected the middle class. She emphasized the government’s efforts to reduce the tax burden on this segment of society. Sitharaman highlighted the simplification of taxation and the reduction in tax rates, contrasting India’s approach with many developed economies that have increased taxes in the wake of the COVID-19 pandemic.
Capital Expenditure Catalyst
The Finance Minister underscored the government’s commitment to stimulating economic growth through increased capital expenditure. She revealed that the effective capital expenditure for the current year is projected to be a substantial ₹15.02 lakh crore, representing an 18% increase from the previous year. Sitharaman emphasized that this heightened capital expenditure since 2020 has positively influenced private investment, consumption, and exports.
States’ Empowerment
Sitharaman also highlighted the government’s support for states in their development endeavors. She pointed out that allocations for states in 2024-25 are estimated at ₹22.91 lakh crore, a significant increase of ₹2.49 lakh crore from the previous year. The Finance Minister further mentioned the provision of 50-year interest-free loans to states, which could potentially be converted into grants in the future.
Addressing GST Concerns
Opposition MPs raised concerns about the 18% GST on health insurance premiums, urging its withdrawal. In response, Sitharaman questioned whether these MPs had raised the issue with their respective state Finance Ministers who are members of the GST Council. She emphasized that the matter falls within the purview of the GST Council, where decisions are typically made by consensus.
Opposition’s Perspective
While the government celebrated the Budget’s passage, the Opposition voiced its reservations. Congress MP Jairam Ramesh pointed out the sluggishness of private investment as a proportion of GDP and the less-than-ideal investment climate. He argued that while government investment has seen an increase, private investment, consumption, and wages have remained stagnant or experienced minimal growth. CPI(M) MP John Brittas expressed concern over the increase in allocation for centrally-sponsored schemes, while Central sector schemes witnessed a decrease in budget. Aam Aadmi Party MP Sanjay Singh criticized the government for waiving loans of companies while failing to address the demands of the youth regarding the Agniveer scheme and the restoration of the previous Army recruitment system.
Conclusion
The passage of the 2024-25 Budget marks a significant milestone in the country’s fiscal journey. The government’s emphasis on capital expenditure, support for states, and tax relief for the middle class are expected to drive economic growth and development. However, the Opposition’s concerns about private investment, consumption, and wages, as well as the GST on health insurance premiums, remain unresolved. As the government implements the Budget’s provisions, it will be crucial to address these concerns and ensure inclusive and sustainable economic progress.
Key Learning Points
| Point | Description |
|---|---|
| Budget Approval | The 2024-25 Budget has been approved by both houses of Parliament. |
| Capital Expenditure | The government has increased capital expenditure to stimulate economic growth. |
| Support for States | Allocations for states have been increased, and 50-year interest-free loans are being provided. |
| Tax Relief | The government has reduced the tax burden on the middle class. |
| Opposition Concerns | The Opposition has raised concerns about private investment, consumption, wages, and the GST on health insurance premiums. |
Summary
The 2024-25 Budget has been successfully passed, marking a significant step in the country’s fiscal journey. The government’s focus on capital expenditure, support for states, and tax relief for the middle class aims to propel economic growth. However, the Opposition’s concerns regarding private investment, consumption, wages, and the GST on health insurance premiums need to be addressed to ensure inclusive and sustainable development.
Soumya Smruti Sahoo is a seasoned journalist with extensive experience in both international and Indian news writing. With a sharp analytical mind and a dedication to uncovering the truth, Soumya has built a reputation for delivering in-depth, well-researched articles that provide readers with a clear understanding of complex global and domestic issues. Her work reflects a deep commitment to journalistic integrity, making her a trusted source for accurate and insightful news coverage.
