New Delhi (TIP)- Moody’s Investors Service on Thursday, Feb 1, said the interim budget for 2024-25 firmly conveys the government’s commitment to its fiscal consolidation goals, set against a backdrop of healthy economic growth. Moody’s Investors Service Senior Vice President Christian de Guzman said the government demonstrated fiscal restraint in not resorting to large handouts or increasing discretionary spending ahead of this year’s elections. “The government anticipates that reduced spending as a percentage of GDP will largely drive the reduction in the fiscal deficit, despite ongoing increases in planned infrastructure spending,” Guzman said. Given the challenging global environment and the potential for climate-related shocks, emerging spending needs not currently included in the budget could restrict the government’s ability to meet its deficit target, he added.Finance Minister Nirmala Sitharaman announced a Rs 11.11 lakh crore spending on infrastructure and vowed to continue reforms as she resisted resorting to populist measures in Modi government’s last Budget before general elections, instead choosing to stay on the path of cutting deficit while bolstering measures for focus groups. Fiscal deficit in next financial year is estimated at 5.1 per cent of GDP, lower than 5.8 per cent in current fiscal.
Budget focuses on making India USD 5 trn economy, developed nation: Assocham
The interim budget focuses on the government’s objective of making India a USD 5 trillion economy and a developed nation by 2047, Assocham President Ajay Singh said.
“It is an India-first budget. A confident budget of a confident government that focuses on the objective of ensuring that India becomes a 5 trillion-dollar economy by 2025 and a developed nation by 2047,” Singh told PTI in a post-budget interaction.
Speaking further, he said the government has focused on infrastructure, startups, and rail corridors in the Budget. The Finance Minister also announced a Rs 1 lakh crore fund for research and development and the startup sector which is a very significant move.
There is no question that the Budget will have a significant impact on the common man, Singh, who is also the CMD of airline company SpiecJet, said.