India Unveils Budget Prioritizing Reforms for Economic Growth
India's government has proposed a slightly reduced budget deficit for the upcoming fiscal year, focusing on reforms in key areas to stimulate economic growth.
The deficit target for the year starting April 1st is set at 4.4% of GDP, marginally below the previous estimate of 4.5%. The current year's fiscal gap is also projected to narrow to 4.8% of GDP.
Finance Minister Nirmala Sitharaman outlined a series of reforms in six sectors to drive growth:
* Taxation
* Power sector
* Urban development
* Mining
* Financial sector
* Regulatory reforms
The budget acknowledges India's recent economic slowdown and geopolitical uncertainties, which have led to a decline in stock prices. Despite expectations for consumption-boosting measures, the government has prioritized debt reduction.
The economy is projected to expand by 6.4% in the current fiscal year and 6.3%-6.8% in the coming year, below the 8% annual growth required to achieve Prime Minister Narendra Modi's vision of a developed India by 2047.
Other highlights from the budget include:
* A 100 billion rupee fund for startups
* Increase in farm credit card loan limit to 500,000 rupees
* New policy for labor-intensive sectors
* Scheme to establish India as a global hub for toy manufacturing
* Reliance on atomic energy to meet power needs and amendment of regulations for private sector investment
* Bond issuance target of 14.82 trillion rupees for the next fiscal year