Ahead Of General Elections, FM Sitharaman To Present Sixth Budget In a Row

Finance Minister Nirmala Sitharaman is set to present her sixth consecutive Budget, aligning with former Prime Minister Morarji Desai’s record, just ahead of the Parliamentary elections. This pre-election Budget, essentially a vote on account and commonly referred to as an interim Budget, will seek Parliament’s approval for an advance grant to cover the central government’s essential expenses for the initial four months of the upcoming fiscal year starting in April. The full Budget is anticipated to be presented by the newly elected government post the April/May general elections, likely in July.

The final Budget before the general elections, under Prime Minister Narendra Modi’s government, is expected to feature a blend of economic measures with a focus on key segments such as farmers and women. While likely to be peppered with political nuances, the Budget may serve as a political document showcasing the successes of the Modi government over the past decade and outlining its vision for the future.

Also read: Budget 2024 Live Updates: All Eyes On FM Nirmala Sitharaman’s Interim Budget Today

With recent electoral victories reducing pressure for populist measures, Sitharaman is expected to maintain fiscal prudence while introducing incentives for sectors like agriculture and engines of the economy to stimulate job creation and consumption. Although the interim Budget traditionally avoids major policy announcements, it serves as a platform for spectacle shortly before the Model Code of Conduct is enforced for the general elections.

In past instances, finance ministers have utilized interim Budgets to announce benefits for rural India and the middle class. For instance, in the 2019 interim Budget, then Finance Minister Piyush Goyal unveiled a Rs 75,000 crore outlay for the PM KISAN Samman Nidhi scheme, along with other tax-related adjustments. Despite the limitations of an interim Budget, it provides an opportunity for strategic announcements, setting the tone for the upcoming elections.

Sitharaman has indicated a restrained approach for the interim Budget, ruling out any “spectacular announcement.” Since assuming office in 2019, she has overseen India’s resilience against the COVID-19 pandemic, implementing various policy measures to support the vulnerable and maintaining the country’s status as the fastest-growing major economy globally.

As India aims to become a USD 5 trillion economy by 2027-28 and USD 30 trillion by 2047, Sitharaman is expected to introduce measures to boost the rural sector, given the anticipated deceleration in agriculture sector growth for 2023-24. The Finance Minister’s presentation will be keenly watched for its impact on the nation’s economic trajectory.