Union Budget 2024 will likely focus on women, middle-class and agri sector

Budget date: Narendra Modi’s first Budget of his third term, to be presented on July 23, will see Finance Minister Nirmala Sitharaman leveraging revenue growth and a record dividend from the Reserve Bank of India. The focus will be on infrastructure investment and targeted spending for the middle class, women, and the agricultural sector.

Besides showcasing economic resilience, the government plans to introduce reform measures that bypass the need for legislative approval.

“Hon’ble President of India, on the recommendation of Govt of India, has approved the proposal for summoning of both the Houses of Parliament for the budget session, 2024 from 22nd July, 2024 to 12 August, 2024 (subject to exigencies of parliamentary business). Union Budget 2024-25 will be presented in Lok Sabha on 23 July, 2024,” parliamentary affairs minister Kiren Rijiju said in a post on X.

The Economic Survey for the past financial year is expected to be tabled in Parliament on the opening day, highlighting the Modi government’s achievements over its first two terms and outlining key focus areas. There’s anticipation about whether the government will release its widely-discussed 100-day agenda before the Budget, as it could influence the Budget announcements.

Finance Minister Nirmala Sitharaman, set to present her seventh consecutive Budget—surpassing Morarji Desai’s record of six—will aim to address pressing issues like inflation, unemployment, income inequality, and regional disparities. The Budget is also expected to include tax measures and social security benefits, particularly targeting the middle class.

With buoyant tax collections resulting in a fiscal deficit better than budgeted, Sitharaman and her team are under scrutiny for accelerating the move towards a 4.5% fiscal deficit. Last year’s deficit closed at 5.6% against a revised estimate of 5.8% of GDP. The current fiscal targets 5.1%, with revenue exceeding expectations, potentially aiding in meeting this goal amid anticipated higher GDP growth.Despite conservative estimates, Sitharaman may allocate some receipts towards targeted spending to bolster the Indian economy, projected to grow at 7% this year, and address critical areas needing attention for medium-term resilience.