On Budget FM Sitharaman
Speaking at the CII’s event, Sitharaman said, “I don’t want to be a spoilsport, but the 1st February Budget is just a vote on account; a budget to meet expenditure till the next government comes to power.
Finance Minister Nirmala Sitharaman at CII event
Finance Minister Nirmala Sitharaman on December 7 said that the upcoming Union Budget on February 1, 2024 from the NDA government is unlikely to hold any “spectacular announcements.” She added that the regular Budget will be in July and “you will have to wait till then.”
The vote on account is an interim budget through which the incumbent government seeks Parliament’s approval for expenditure required to run till the new government is in place.
Speaking at the CII’s Global Economic Policy Forum 2023 in New Delhi, Sitharaman said, “I don’t want to be a spoilsport, but the 1st February Budget is just a vote on account; a budget to meet expenditure till the next government comes to power. No spectacular announcements, you will have to wait till after the general election.”
The Finance Ministry is looking to present a ‘concise’ document detailing the state of the Indian economy similar to an Economic Survey ahead of the interim budget. Typically, before a general election, the Centre presents the Survey only when the full annual financial statement is tabled around June-July.
“This won’t be a full-fledged Economic Survey, but it will be a short document, similar to a survey. It will not be seen as big as what will be presented around June-July, but it will likely include the key indicators and forecasts such as GDP growth, nominal GDP growth target, oil prices, among others, but it won’t be a deep dive on the economy,” the official, who spoke on condition of anonymity.
As per another report citing government officials, the upcoming Budget is likely to aim for a 10.5 percent growth in direct tax collections, in spite of apprehensions of a slowing global economy in 2024, and a high base of revenue collections in the current fiscal.
“India is likely to budget the same rate of growth in direct taxes next year as well, which will be on the high base of this fiscal. Growth in direct taxes will be above the GDP growth rate — a 10.5 percent growth in direct taxes in FY24-25 is realistic. Buoyancy is likely to remain above 1 next year,” a senior government official told.
During her inaugural speech, Sitharaman also bat for greater discussion, global engagement on growth, adding that it is necessary to keep momentum on concerns of global south. She said that cost of transitional energy is a concern. “EU’s carbon tax norms against global south are ‘morally’ inappropriate.”
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