Union Finance Minister Nirmala Sitharaman presented the Modi 2.0 government’s last Budget before the general elections on Thursday. The interim budget has a mix of measures for the economy and significant segments for women that are important from the point of voters’ pull.
The Finance Minister, in her budget speech, said the government was focused on Poor, Women, Youth and Farmers, and it was their needs and aspiration that “are our highest priority”.
“As our Prime Minister firmly believes, we need to focus on four major castes. They are, ‘Garib’ (Poor), ‘Mahilayen’ (Women), ‘Yuva’ (Youth) and ‘Annadata’ (Farmer). Their needs, their aspirations, and their welfare are our highest priority. The country progresses, when they progress. All four require and receive government support in their quest to better their lives. Their empowerment and well-being will drive the country forward,” Sitharaman said.
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She said there would be no change in the taxation scheme, both in direct and indirect brackets. Notably, there is no tax liability for individuals with income up to Rs 7 lakh under the new regime. “The Revised Estimate of the fiscal deficit is 5.8 per cent of GDP, improving on the Budget Estimate, notwithstanding moderation in the nominal growth estimates,” the FM said.
With the pressure for populist measures off after convincing victories in Chhattisgarh, Madhya Pradesh and Rajasthan, Sitharaman stuck to being fiscally prudent while sprinkling sops on sectors like technology and railways of the economy.
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The budget will be technically be a vote on account and popularly termed an interim Budget as it seeks Parliament’s nod for a grant in advance to meet the central government’s essential expenditure for the first four months of the new fiscal year that starts in April. A new government elected after the April-May general elections will present the full Budget in July.
The Budget Session of Parliament commenced on Wednesday with President Droupadi Murmu addressing a joint sitting of both houses. Sitharaman equaled the record of former Prime Minister Morarji Desai, who as finance minister, presented five annual budgets and one interim budget between 1959 and 1964.
