All eyes are on Finance Minister Nirmala Sitharaman as she presents an interim budget today ahead of the Lok Sabha Elections 2024. This will be her sixth Budget as the Finance Minister and last in the second term of the Modi government.Economists believe Sitharaman has room to sustain infrastructure spending and introduce targeted measures for key voter segments - farmers, women, poor and youth. But a spending bonanza looks unlikely.In the run-up, Sitharaman indicated there wont be major announcements in this stop-gap budget. It will likely focus on fiscal consolidation and policy priorities going forward, said Madhavi Arora, Emkay Global Financial Services economist.With 7% growth projected next fiscal, additional stimulus may not be needed. The middle class hoping for tax relief to combat inflation could be disappointed as fiscal deficit reduction takes priority.However, the government may top up existing welfare schemes to boost its electoral prospects. Farmer income support, subsidized food, gas cylinders, housing and credits for small businesses - all could see enhanced outlays and wider coverage.Rahul Bajoria, Barclays chief India economist said, We expect budgetary spending quality to improve, with focus on infrastructure, manufacturing incentives and credit growth.As the PM Modi-led BJP government presents its final full budget before polls amid global uncertainties, it needs to balance populism and prudence.Sitharaman has a tough task of maintaining spending momentum while exercising fiscal restraint. All eyes will be on her as she walks the tightrope between election punch and macro stability in challenging times.Follow our live updates as the finance minister presents Budget 2024 and shapes the governments economic agenda on the cusp of elections.WATCH LIVE here:
All eyes are on Finance Minister Nirmala Sitharaman as she presents an interim budget today ahead of the Lok Sabha Elections 2024. This will be her sixth Budget as the Finance Minister and last in the second term of the Modi government.Economists believe Sitharaman has room to sustain infrastructure spending and introduce targeted measures for key voter segments - farmers, women, poor and youth. But a spending bonanza looks unlikely.In the run-up, Sitharaman indicated there wont be major announcements in this stop-gap budget. It will likely focus on fiscal consolidation and policy priorities going forward, said Madhavi Arora, Emkay Global Financial Services economist.With 7% growth projected next fiscal, additional stimulus may not be needed. The middle class hoping for tax relief to combat inflation could be disappointed as fiscal deficit reduction takes priority.However, the government may top up existing welfare schemes to boost its electoral prospects. Farmer income support, subsidized food, gas cylinders, housing and credits for small businesses - all could see enhanced outlays and wider coverage.Rahul Bajoria, Barclays chief India economist said, We expect budgetary spending quality to improve, with focus on infrastructure, manufacturing incentives and credit growth.As the PM Modi-led BJP government presents its final full budget before polls amid global uncertainties, it needs to balance populism and prudence.Sitharaman has a tough task of maintaining spending momentum while exercising fiscal restraint. All eyes will be on her as she walks the tightrope between election punch and macro stability in challenging times.Follow our live updates as the finance minister presents Budget 2024 and shapes the governments economic agenda on the cusp of elections.WATCH LIVE here:
