Finance Minister Nirmala Sitharaman’s Union Budget 2024-25, her seventh consecutive presentation, has been critiqued by Professor Ganesh Kawadia for leaning more towards populism rather than focusing on economic fundamentals. The budget introduces several schemes aimed at rural development, infrastructure, skill enhancement, and agricultural diversification. While it incorporates measures to increase welfare and social schemes, critics argue that it falls short in addressing long-term growth and development goals, such as the vision for Amrit Kaal and 2047.
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- Finance Minister Nirmala Sitharaman presented her seventh consecutive Union Budget for 2024-25.
- The budget is seen as more politically oriented, focusing on populist measures rather than economic reforms.
- Key initiatives include schemes for rural development, rural housing, infrastructure development, and job creation through skill development.
- The budget allocates Rs 2 lakh crore for a comprehensive internship scheme aimed at integrating higher education with industry.
- Increased social and welfare schemes are expected to boost economic activity among weaker groups.
- Good fiscal space due to strong tax collection and RBI dividends allowed for increased spending, but this opportunity was not fully leveraged for long-term growth.
- The absence of a focus on Amrit Kaal and the development vision for 2047 is noted as a missed opportunity.
- Minor adjustments in direct taxes are anticipated to offer some relief to the middle-income group.
- Higher short and long-term capital gains taxes may deter retail investors, potentially impacting capital market growth.
- Reduction in custom duties on gold and silver could lead to increased savings in unproductive channels, although it may benefit the gold market.
