Mission Viksit Bharat: India’s Ambitious 2024 Budget for a Developed Future

Mission Viksit Bharat in Budget 2024

Introduction The Indian government has unveiled the 2024 Budget with a strong focus on “Mission Viksit Bharat,” aiming to lay a foundation for a developed India by 2047. Prime Minister Narendra Modi emphasized that this budget will guide the government’s direction for the next five years.

Fiscal Prudence and Growth The budget strikes a balance between fiscal prudence and growth. The fiscal deficit for 2023-24 was 5.6% of GDP, lower than the expected 5.8%. This allowed the government to reduce borrowing for the current fiscal year, pegging the fiscal deficit at 4.9%.

Tax Collections and Reforms Tax collections have been robust, with a 13.5% growth in gross tax collection, driven mainly by personal income taxes. The government has continued its path of an exemption and rebate-free tax regime, widening tax slabs by ₹1 lakh.

RBI Dividend A significant highlight is the higher-than-expected RBI dividend, which was almost 0.7% of GDP, more than twice the budgeted amount. This additional revenue has provided the government with more fiscal space.

Focus on GYAN The budget emphasizes the GYAN initiative, targeting the poor (Garib), youth (Yuva), farmers (Annadata), and women (Nari). Key schemes include a ₹1.48 lakh crore allocation for education, employment, and skill development, and five new schemes to provide employment to 4.1 crore youth with an outlay of ₹2 lakh crore.

Support for MSMEs The government continues to support the manufacturing sector and MSMEs through various initiatives. These include a credit guarantee scheme, a new assessment model for MSME credit, and increased credit support during stress periods.

Conclusion Overall, the 2024 Budget aims to foster economic growth while maintaining fiscal discipline. The focus on Mission Viksit Bharat, tax reforms, and support for key sectors highlights the government’s commitment to building a developed India by 2047.