budget 2024

GD Topic for MBA Admission – Union Interim Budget 2024

“Union Interim Budget 2024-2025: Unraveling Fiscal Strategies, Economic Projections, and Policy Initiatives for India’s Growth”

Indian Finance Minister Nirmala Sitharaman recently presented the Interim Budget 2024 in Parliament, setting the tone for India’s economic trajectory amidst the upcoming Lok Sabha Elections. As the nation anticipates a full Budget in July 2024, this interim financial plan provides a glimpse into the government’s fiscal strategies, economic outlook, and targeted initiatives for the year.

  1. Taxation Adjustments: The Finance Minister opted for stability by maintaining existing tax rates for direct taxes, including personal and corporate income tax. This decision aims to provide a consistent and favorable environment for taxpayers, fostering economic predictability.
  2. Gross Domestic Product Outlook: The budget outlines a robust nominal GDP of ₹327.7 trillion for 2024-25, reflecting a substantial 10.5% growth from the current fiscal year. This growth projection serves as a key metric for measuring the economy’s size, indicating a positive trajectory and potential for increased economic activities.
  3. Fiscal Deficit Overview: Addressing fiscal responsibility, the government aims to reduce the fiscal deficit to 5.1% of GDP in 2024-25, aligning to reach less than 4.5% by 2025-26. This commitment reflects a prudent approach to managing the variance between government earnings and expenditures.
  4. Government’s Financial Obligations: The government’s reliance on borrowing and small savings schemes to fund its fiscal deficit is crucial. Projections indicate a decline in gross borrowing in 2024-25, potentially easing funds for private-sector borrowing and stimulating economic growth.
  5. Direct Tax Collections: An interesting shift is expected in 2024-25, with personal income tax collections predicted to surpass corporate income tax, highlighting the continued benefits for corporates from the 2019 rate cut.
  6. Goods and Services Tax Scenario: The government envisions a total GST collection of ₹10.68 trillion or 3.3% of GDP in 2024-25. The Finance Minister emphasizes the positive trend, with monthly GST collections nearly doubling to ₹1.66 trillion, underscoring improved tax compliance.
  7. Capital Expenditure Projections: Significant emphasis has been placed on asset-creating capital expenditure, with the central government anticipating a substantial 17% surge in 2024-25. This reflects a commitment to infrastructure development and economic stimulus.
  8. Taxation Demands Discourse: To simplify the lives of income taxpayers, the Finance Minister proposed the withdrawal of outstanding direct tax demands, providing relief to those facing minor, unverified, or disputed tax demands dating back to 1962.
  9. Major Initiatives: The budget introduces initiatives aimed at assisting the middle class in home acquisition, promoting home construction under the PM Awas Yojana, and extending healthcare coverage under the Ayushman Bharat scheme. The announcement of rooftop solarization underscores the government’s commitment to renewable energy and empowering households.

Conclusion: As India approaches a pivotal election year, the Union Interim Budget 2024-2025 sets the stage for economic resilience and progress. The outlined fiscal projections, taxation strategies, and targeted initiatives demonstrate the government’s dedication to fostering a stable and flourishing economy. The upcoming months hold the promise of further financial insights and policies as the nation navigates through the democratic process, charting its course toward sustained growth.

Can you discuss about Union budget 2024 of India?

Since today is February 9, 2024, it’s important to clarify that there wasn’t a full Union Budget for India in 2024. However, an Interim Budget was presented on February 1st, 2024, to cover spending for the first half of the 2024-25 fiscal year, until a new government is formed after the Lok Sabha elections.

Here are some key points about the Interim Union Budget 2024-25:

Fiscal Consolidation:

  • The government aims to reduce the fiscal deficit to below 4.5% by 2025-26.
  • The estimated fiscal deficit for 2024-25 is 5.1% of GDP.

Increased Capital Expenditure:

  • The capital expenditure outlay is increased by 11.1% to Rs. 11,11,111 crore, which is 3.4% of GDP.
  • This aims to boost infrastructure development and economic growth.

Focus on Key Sectors:

  • The budget prioritizes seven key sectors – “Saptarishi”:
    • Sustainable growth
    • Financial sector
    • Infrastructure & Investment
    • Unleashing potential
    • Youth power
    • Reach to the last mile
    • Inclusive development
  • Specific initiatives announced for each sector, such as:
    • 2 crore more houses under PM Awas Yojana (Gramin)
    • Increased target for creating Lakhpati Didis (women entrepreneurs)
    • Vaccination program for cervical cancer prevention
    • Upgradation of 40,000 railway bogies to Vande Bharat standards

Important to Remember:

  • This is an interim budget, and a full budget will be presented by the new government after the elections.
  • Some of the announced initiatives might be modified or scrapped by the new government.

GDPI Topic: Interim Budget 2024-25: Opportunities and Challenges for India

The Interim Budget 2024-25 has been presented with a focus on fiscal consolidation, capital expenditure, and specific sector initiatives. Discuss the potential opportunities and challenges this budget presents for India’s economy and society.

Group Discussion Points:

  • Opportunities:
    • Increased infrastructure spending could boost economic growth and create jobs.
    • Focus on key sectors like healthcare, education, and agriculture could address pressing needs and improve long-term development.
    • Initiatives like “Saptarishi” offer a framework for comprehensive growth and societal progress.
    • Fiscal consolidation might improve investor confidence and lead to lower interest rates.
  • Challenges:
    • Achieving the fiscal deficit target could be difficult, especially considering future uncertainties.
    • Implementing ambitious initiatives requires efficient execution and effective resource allocation.
    • Addressing income inequality and poverty requires more than just targeted interventions.
    • The budget’s impact on rural areas and marginalized communities needs careful evaluation.
    • Global economic slowdown and geopolitical tensions could pose external risks.

Answers (with paragraphs):

Candidate 1: I believe the Interim Budget presents valuable opportunities for India’s growth. The increased capital expenditure, particularly in infrastructure, has the potential to create jobs, enhance connectivity, and stimulate overall economic activity. Additionally, the focus on “Saptarishi” sectors holds promise for addressing crucial areas like healthcare, education, and skill development. However, we must acknowledge the challenge of achieving the fiscal deficit target while simultaneously investing in these initiatives. Effective resource allocation and efficient program implementation will be crucial for success.

Candidate 2: While the budget does prioritize key sectors, I’m concerned about the impact on income inequality and rural development. While initiatives like “Lakhpati Didis” are commendable, they need to be complemented by broader strategies to address economic disparities. Additionally, the budget’s impact on rural areas needs further scrutiny. We must ensure that marginalized communities benefit equitably from the allocated resources.

Candidate 3: The global economic slowdown and geopolitical tensions pose external risks to the budget’s objectives. It’s crucial to monitor these developments and adapt strategies accordingly. Furthermore, the interim nature of the budget adds an element of uncertainty. The upcoming full budget presented by the new government will need to build upon and refine the current framework to ensure sustained progress.

Additional Points for Civil Exams:

  • Analyze the budget in the context of previous years’ budgets and government’s overall economic policies.
  • Discuss the potential impact of the budget on specific sectors like agriculture, manufacturing, and services.
  • Evaluate the budgetary allocations for social welfare schemes and their effectiveness in addressing societal challenges.
  • Assess the budget’s alignment with Sustainable Development Goals (SDGs).


The Interim Budget 2024-25 presents a mix of opportunities and challenges for India’s economy and society. A nuanced understanding of both aspects, along with critical analysis and proactive planning, will be crucial for maximizing the budget’s potential and navigating its inherent risks.

Can you please Analyze the budget in the context of previous years’ budgets.

Analyzing the Interim Budget 2024-25 in Context:

Continuity and Change:

Compared to previous years’ budgets, the Interim Budget 2024-25 presents both continuity and change:


  • Fiscal Consolidation: The government maintains its commitment to fiscal consolidation, aiming to reduce the deficit to below 4.5% by 2025-26, similar to the target set in the 2021-22 budget.
  • Capital Expenditure Focus: Increased focus on capital expenditure (11.1% rise) continues a trend seen in recent budgets, highlighting infrastructure development as a key driver of growth.
  • Sectoral Focus: Continued emphasis on specific sectors like agriculture, healthcare, and education aligns with previous initiatives.


  • Lower Disinvestment Target: The budget sets a lower disinvestment target (Rs. 50,000 crore) compared to previous years, reflecting challenges in meeting aggressive goals.
  • Saptarishi Framework: Introduces a new “Saptarishi” framework for holistic growth, potentially shifting the focus from individual schemes to a more strategic approach.
  • Interim Nature: Being an interim budget, it presents a limited vision compared to a full budget, with details of specific initiatives likely to be refined by the new government.

Linking to Overall Economic Policies:

The budget aligns with the government’s broader economic policies in some respects:

  • Make in India: Increased capital expenditure supports infrastructure development, potentially aiding domestic manufacturing.
  • Digital India: Initiatives like digital literacy and e-governance initiatives continue digitalization efforts.
  • Skilled India: Focus on skill development aligns with the government’s push for upskilling the workforce.

However, other aspects like:

  • Limited welfare schemes: Budget avoids major new welfare schemes, potentially contradicting the focus on inclusive development.
  • Employment generation: While infrastructure spending can create jobs, its impact on long-term job creation might be limited.

Overall Analysis:

The Interim Budget 2024-25 strikes a balance between continuity and change. It maintains the focus on fiscal consolidation and capital expenditure but introduces a new framework and prioritizes specific sectors differently. While aligning with some aspects of the government’s broader economic policies, it avoids significant new welfare schemes and focuses more on infrastructure development. The true impact and effectiveness of the budget will depend on its execution and refinement by the new government in the full budget.

Compare and contrast the Indian budget of 2023-2024 with 2024-2025

A direct comparison of the 2023-2024 and 2024-2025 budgets in India isn’t fully possible due to the nature of the latter. Here’s why:

2024-2025 Budget:

  • This was an Interim Budget, presented on February 1st, 2024, only covering the first half of the fiscal year.
  • As it’s meant to bridge the gap before a new government is formed, it’s primarily a continuation of existing spending plans and doesn’t present a long-term vision like a full budget.

Therefore, comparing it directly to a complete “full budget” like 2023-2024 wouldn’t be an accurate reflection of both years’ intentions and allocations.

However, you can analyze the Interim Budget 2024-25 by comparing it to the prior full budget (2023-2024) and the government’s overall economic policies. Here are some key aspects to consider:


  • Fiscal consolidation: Both budgets aim to reduce the fiscal deficit, although the target slightly shifted in 2024-25.
  • Capital expenditure focus: Both emphasize infrastructure development through increased capital spending.
  • Sectoral focus: Both budgets prioritize key sectors like agriculture, healthcare, and education.


  • Nature of the budget: 2023-2024 was a complete budget, while 2024-25 is an interim one with limited scope.
  • Disinvestment target: 2023-2024 had a higher disinvestment target, lowered in 2024-25.
  • Specific initiatives: 2023-2024 outlined specific schemes, while 2024-25 introduces a broader “Saptarishi” framework.
  • Welfare schemes: 2023-2024 might have included broader welfare initiatives, unlike the focused approach in 2024-25.

Additional Points:

  • Analyze how the “Saptarishi” framework differs from previous approaches.
  • Assess the impact of a lower disinvestment target on revenue generation.
  • Evaluate how both budgets align with the government’s broader economic policies like “Make in India” and “Digital India.”

The Seven Priorities of the Budget “Saptarishi”: An Elaboration

While the 2024-25 budget was an interim budget and didn’t present complete details, it introduced the “Saptarishi” framework outlining seven key priorities for India’s future development. Here’s an elaboration on each:

1. Inclusive Development: This aims to ensure equitable growth and empower marginalized communities through initiatives like:

  • Improved access to basic needs: Education, healthcare, housing, sanitation, etc.
  • Focus on rural development: Infrastructure, skill development, and agricultural support.
  • Financial inclusion: Expanding access to credit and banking services.
  • Gender equality: Bridging the gender gap in education, employment, and social opportunities.

2. Reaching the Last Mile: This focuses on delivering essential services and benefits to the most disadvantaged sections of society:

  • Strengthening social safety nets: Expanding schemes like PDS, MGNREGA, and pensions.
  • Targeting marginalized communities: Scheduled tribes, scheduled castes, minorities, and women.
  • Bridging geographic disparities: Improved infrastructure and development in remote areas.
  • Technology-driven solutions: Using digital platforms for targeted delivery and monitoring.

3. Infrastructure & Investment: This aims to boost economic growth and competitiveness through:

  • Increased capital expenditure: Investments in roads, railways, ports, airports, and digital infrastructure.
  • Public-private partnerships: Leveraging private sector investment for infrastructure development.
  • Focus on clean energy and sustainable infrastructure: Green growth initiatives.
  • Modernization and upgradation of existing infrastructure: Enhancing efficiency and capacity.

4. Unleashing Potential: This focuses on developing human capital and fostering innovation:

  • Upskilling and reskilling workforce: Aligned with industry needs and future technologies.
  • Education reforms: Improving quality and access to education at all levels.
  • Promoting research and development: Encouraging innovation and entrepreneurship.
  • Supporting startups and MSMEs: Creating a conducive environment for business growth.

5. Green Growth: This aims for sustainable development by:

  • Promoting renewable energy and clean technologies: Reducing dependence on fossil fuels.
  • Combating climate change: Mitigation and adaptation strategies.
  • Resource conservation and sustainable resource management: Water, land, and forests.
  • Green infrastructure development: Sustainable transportation, buildings, and industries.

6. Youth Power: This empowers the youth and harnesses their potential through:

  • Skill development and employability programs: Matching youth with job opportunities.
  • Promoting entrepreneurship and self-employment: Supporting startups and young businesses.
  • Enhancing participation in governance and decision-making: Giving voice to young aspirations.
  • Investing in youth-centric initiatives: Education, healthcare, and sports development.

7. Financial Sector: This aims to:

  • Deepen financial inclusion: Bringing more people into the formal financial system.
  • Strengthen financial markets: Ensuring stability and growth.
  • Promote fintech and digital payments: Encouraging cashless transactions and innovation.
  • Make credit accessible: Facilitating loans for individuals and businesses.

Key Points to Remember:

  • These are broad goals, and specific implementation plans are yet to be developed.
  • The Saptarishi framework highlights a shift towards a holistic and integrated approach to development.
  • Success depends on coordinated efforts, effective resource allocation, and performance-based monitoring.

Additional points you might consider:

  • Analyze how these priorities align with existing government policies and programs.
  • Evaluate the potential challenges and opportunities in implementing each priority.
  • Discuss the role of different stakeholders, including government, private sector, and civil society.

By understanding these seven priorities and the Saptarishi framework, you can gain valuable insights into the direction of India’s future development and engage in informed discussions about the nation’s economic and social landscape.tunesharemore_vert

Analyze how the “Saptarishi” framework differs from previous approaches.

The “Saptarishi” framework, introduced in the Interim Budget 2024-25, marks a potential shift in India’s budgetary approach compared to previous years. Here’s an analysis of its key differences:


  • Holistic Approach: Saptarishi presents seven interconnected goals (“Rishis”) covering various aspects of economic and societal development, fostering a more comprehensive view than individual schemes.
  • Sustainable Growth: Unlike past budgets primarily focused on GDP growth, Saptarishi emphasizes sustainability and environmental considerations within growth strategies.
  • Long-Term Perspective: The framework appears to aim for long-term sustainable development, potentially moving beyond short-term political goals.


  • Framework, not a plan: Saptarishi outlines the goals but lacks detailed schemes, offering flexibility for future governments to adapt and implement.
  • Sectoral Integration: It encourages collaboration between different sectors to achieve common goals, potentially breaking down siloed approaches.
  • Performance-based Allocation: The framework suggests linking resource allocation to performance against specified metrics, potentially promoting efficiency.

Comparison to Previous Approaches:

  • Individual Schemes: Past budgets often prioritized individual schemes or programs, sometimes lacking a unifying theme or long-term vision.
  • Short-term Goals: Focus was often on immediate results and meeting specific targets, potentially neglecting long-term sustainability.
  • Sectoral Silos: Ministries and sectors often operated independently, potentially hindering holistic policy formulation and implementation.

Potential Advantages of Saptarishi:

  • Comprehensive and strategic: Provides a framework for addressing multiple interconnected challenges.
  • Sustainable and future-oriented: Encourages sustainable growth and long-term development vision.
  • Flexible and adaptable: Offers flexibility for future governments to implement specific plans.

Potential Challenges of Saptarishi:

  • Lack of clarity: The framework’s broad goals require detailed plans and metrics for effective implementation.
  • Collaboration needed: Achieving collaboration across sectors and ministries might prove challenging.
  • Measuring performance: Developing and monitoring meaningful performance metrics for diverse goals could be complex.


While the “Saptarishi” framework marks a potential shift towards a more integrated and sustainable approach, its success depends on effective implementation, detailed plans, and collaborative efforts across sectors. Only time will tell if this new framework can deliver on its promise of holistic and sustainable development for India.

Assess the impact of a lower disinvestment target on revenue generation in 2024-2025 budget.

Assessing the impact of a lower disinvestment target on India’s revenue generation requires some context and consideration of various factors:

Impact on Revenue:

  • Direct Impact: Lower disinvestment translates to less immediate revenue for the government. In the 2024-25 Interim Budget, the disinvestment target is Rs. 50,000 crore, significantly lower than previous years.
  • Indirect Impact: Disinvestment can also indirectly impact revenue through factors like:
    • Taxation: Selling assets can generate capital gains tax revenue.
    • Dividends: Government may receive dividends from profitable disinvested companies.
    • Economic performance: Efficient disinvestment can improve the performance of public sector companies, potentially boosting tax revenue from them.

However, the magnitude of these impacts depends on several factors:

  • Valuation of assets: The actual revenue generated depends on the price fetched for the disinvested assets.
  • Type of assets: Selling profitable companies versus loss-making ones has different financial implications.
  • Market conditions: Favorable market conditions can lead to higher asset valuations and revenue.

Alternative Revenue Sources:

The government might look for alternative revenue sources to compensate for lower disinvestment income:

  • Increased taxes: Raising taxes on individuals, corporations, or specific sectors is a possibility.
  • Borrowing: Increased borrowing may lead to higher debt burden in the long run.
  • Asset monetization: Leasing or selling other government assets could generate revenue.

Overall Impact:

  • Short-term: Lower disinvestment might lead to reduced revenue, impacting government spending and potentially hindering growth initiatives.
  • Long-term: The impact depends on how the government manages the finances. Focusing on efficient expenditure and exploring alternative revenue sources can mitigate the negative impacts.

Additionally, consider:

  • Strategic rationale: The government might prioritize long-term strategic goals over immediate revenue generation by retaining control of certain assets.
  • Impact on specific sectors: Lower disinvestment in certain sectors could affect their development and employment opportunities.


While a lower disinvestment target directly reduces immediate revenue, the overall impact depends on various factors and alternative strategies implemented by the government. Evaluating its long-term implications requires further analysis and consideration of the broader economic context.

Leave a Comment

Your email address will not be published. Required fields are marked *