Economic Survey 2024: The Economic Survey, tabled by Finance Minister Nirmala Sitharaman in the Lok Sabha on Monday, underscores the prevailing strengths of India’s economy and showcases the outcomes of various governmental reforms. It also identifies areas for further growth and progress as the country moves towards building a Viksit Bharat (Developed India).
Key Insights from the Economic Survey
MGNREGS and Rural Distress
The survey provides an in-depth analysis of the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS). It suggests that the demand for MGNREGS is not necessarily an indicator of rural distress but is predominantly linked to the state’s institutional capacity and other considerations. The survey highlights that a state’s ability to effectively utilize MGNREGS funds is crucial for the scheme’s success.
Key Numbers to Watch in the First Full Budget of Modi 3.0
Fiscal Deficit
The budgeted fiscal deficit for the current fiscal year is projected at 5.1 percent, down from 5.8 percent in the last fiscal year. The government aims to reduce the fiscal deficit to 4.5 percent of GDP by FY26, thanks to improved tax buoyancy.
Capital Expenditure
The government has planned a capital expenditure of Rs 11.1 lakh crore for this fiscal year, an increase from Rs 9.5 lakh crore in the previous year. This hike reflects the government’s push for infrastructure development and its efforts to incentivize states to increase their capital expenditure.
Tax Revenue
The Interim Budget projects gross tax revenue at Rs 38.31 lakh crore for 2024-25, an 11.46 percent increase over the last fiscal. This includes Rs 21.99 lakh crore from direct taxes (personal income tax and corporate tax) and Rs 16.22 lakh crore from indirect taxes (customs, excise duty, and GST).
GST Collection
GST collection is estimated to rise to Rs 10.68 lakh crore in 2024-25, marking an 11.6 percent increase. These figures will be closely monitored in the final budget for the fiscal year.
Government Borrowing
The government’s gross borrowing for the current financial year is set at Rs 14.13 lakh crore. This borrowing funds the fiscal deficit, with particular attention from the market due to higher-than-expected dividends from the RBI and financial institutions.
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