INVC NEWS
New Delhi : On February 1, 2024, Finance Minister Nirmala Sitharaman is poised to deliver the Interim Budget 2024 in Parliament, setting the stage for pivotal market movements and economic trajectories. This eagerly anticipated event promises insights into the government’s fiscal priorities for the upcoming financial year, sparking intrigue among investors and market pundits alike.
Capital Expenditure
Amidst the backdrop of economic recovery, all eyes are on the government’s stance towards capital expenditure. Speculation abounds that increased investment in infrastructure projects, rural development schemes such as MNREGA and PM Kisan Samman Nidhi, and the PM Vishwakarma Yojana could be on the cards. The potential allocation of ₹10.2 lakh crore for FY25, with a projected 10% growth rate, underscores the government’s commitment to propelling economic growth.
Employment Generation
Rural employment generation looms large on the agenda, with expectations of announcements geared towards bolstering rural infrastructure investment. The expansion of production-linked incentive (PLI) schemes, particularly in the chemical and services sectors, offers a potential avenue for stimulating job creation and fostering manufacturing sector growth.
Fiscal Deficit
Amidst electoral pressures, the government may opt for further fiscal tightening, with projections indicating a reduction in the fiscal deficit to 5.3% of GDP. This move signals a steadfast commitment to fiscal prudence and underscores the government’s resolve to navigate the economic landscape with judicious fiscal management.
Social Security Schemes
Anticipated increases in allocations towards social security schemes underscore the government’s efforts to prioritize welfare measures. Buoyed by robust tax collections, projections suggest a potential windfall for social security initiatives, reaffirming the government’s commitment to social inclusivity and equitable development.
Agricultural Sector Growth
Efforts to rejuvenate the agricultural sector are expected to take center stage, with measures aimed at enhancing consumption and revitalizing growth momentum. Against a backdrop of declining growth rates, the interim budget may unveil targeted interventions to bolster agricultural productivity and support rural livelihoods.
Banking and Insurance Sector
The forthcoming budget holds significant implications for India’s banking, financial services, and insurance (BFSI) sector, a linchpin of the nation’s economic architecture. With an emphasis on technological integration, foreign investment facilitation, and skill development, the budget could pave the way for transformative reforms that catalyze sectoral growth and resilience.
Cryptocurrency Regulation
Amidst evolving regulatory dynamics, the government’s stance on cryptocurrency assumes heightened importance. Despite the absence of legal recognition, concerted efforts to regulate the cryptocurrency market underscore the government’s resolve to ensure investor protection and financial stability.
Fintech Sector Expectations
The burgeoning fintech sector is poised for a potential boost, with stakeholders eagerly awaiting policy pronouncements that foster an enabling ecosystem for innovation and growth. Recognizing fintech’s pivotal role in driving economic dynamism, the budget could unveil measures to nurture and empower this burgeoning sector.
Interim budget presentation
As anticipation mounts ahead of Finance Minister Nirmala Sitharaman’s interim budget presentation, stakeholders across the spectrum brace for potential market-moving announcements. Against a backdrop of economic resurgence and transformative aspirations, the budget holds the promise of charting a course towards inclusive growth and prosperity.
