Union Budget 2024: 5 Major Themes This Time

With the BJP losing its majority, the government is now focused on state-level coalition partners like the Telugu Desam Party (TDP) from Andhra Pradesh and the Janata Dal (United) (JD(U)) from Bihar. The FY25 union budget highlighted five major themes which we’ll talk about in this article.

 union budget major theme

According to Nomura, a Japanese brokerage, the focus of the government’s economic strategy is expected to be on public capex for Union Budget 2024. According to reports, “The brokerage said the second half of the year will see "muted returns" on the equities front, and reiterated its year-end target of 24,860 points on Nifty, which is only about 3 per cent higher than the current levels.”

Nomura's India Economist Aurodeep Nandi allegedly told reporters, “The government has over-delivered by reducing the fiscal deficit to 5.6 per cent in FY24 as against the budgeted 5.8 per cent, and also has the comfort of the record ₹2.1 lakh crore of dividend from the RBI,” stated Economic Times.

In this article, we will talk about the five major themes of the FY25 union budget.

Consumption Lift

The government is expected to use the standard deduction limit and interest income exemption, and possibly lower tax rates for middle-income earners to stimulate economic growth, anticipate cash boosts for farmers and put more money in people's pockets.

Social Sector

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The government may put more investments towards rural development by increasing funds for housing support, rural roads, empowerment programs for women, expanding health insurance, and job opportunities.

Manufacturing Sector

The government may plan to boost domestic manufacturing by increasing local content requirements with the help of tax breaks for new factories and expanding incentives for electronic and labour-intensive industries, all with the hope of providing support to small businesses and job creation.

Infrastructure

To attract loans for infrastructure projects which will drive economic growth and meet the states’ demands, the government may prioritise public investments by increasing spending to 3.5% of GDP.

Economic Transformation Agenda

The government is likely to use this budget as an opportunity to share its bold vision for India's economic future, sketching a clear roadmap for India to become a developed economy by 2047. This roadmap will probably include achievable five-year goals and concrete reforms to drive growth and stability.

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