Finance Minister Nirmala Sitharaman will present the Union Budget 2024–25 on Tuesday, marking the first budget of Prime Minister Narendra Modi's third successive government. This budget comes amid a changed political landscape, as the BJP no longer holds a majority on its own. The focus will be on how this shift affects the budget, comparing it to the interim budget presented earlier this year.
What is the Budget?
The Budget is an essential financial statement where the government outlines its income, expenditure, and borrowing plans to the Parliament and the country. It details the financial health of the government, covering the past year's performance and projecting the next year's financial plans.
Why does the Budget matter?
The Budget directly impacts taxpayers, as it involves public money. It addresses crucial questions about taxation, government spending priorities, and fiscal policies. Monitoring these factors helps citizens understand how their money is being managed and the implications for future generations.
Influence on the economy
Union budgets can significantly influence the country's economic trajectory. By adjusting tax policies and government spending, the budget can incentivize business investments, boost economic activity, and address public needs such as education and healthcare. The upcoming budget may signal shifts in these areas, especially given the recent electoral outcomes and economic challenges.
Key factors to watch
- GDP growth: Projections for economic growth and how the budget plans to support this.
- Tax collections: Performance of direct and indirect tax collections and future targets.
- Fiscal Deficit: Management of the fiscal deficit and borrowing plans.
- Inflation: Measures to control inflation and its impact on the economy.
- Exports: Strategies to enhance export performance amid global economic challenges.
The presentation of the Union Budget 2024–25 will be a critical event, outlining the government's fiscal strategy and its approach to addressing current economic issues while maintaining stability and growth.
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