This year's interim budget has come on the back of a turbulent global economic environment marked by slowing global growth and rising volatility. Against this backdrop, Finance Minister Nirmala Sitharaman has very nicely balanced fiscal discipline, welfare necessities and inclusive economic growth.To everyone's very pleasant surprise, the balance between economic growth and fiscal consolidation has been maintained with the fiscal deficit for FY25 budgeted at 5.1 % of GDP. This is better than CII had suggested and the adherence to strict fiscal management will improve macroeconomic stability and support sustainable economic growth. With capital expenditure for the next year budget to rise by 11.1%to ₹11.1 lakh crore, economic growth will continue to be strongly supported.Encouragingly, capex support to states is to continue with a significant allocation. This year's budget was also marked by support to Nari Shakti as a means to Rashtra Shakti.

Source: Economic Times February 03, 2024 12:37 UTC