Union Budget 2024 LIVE Updates: FM unveils big sops for Bihar, A.P.; no mention of southern States in flood mitigation scheme

Finance Minister Nirmala Sitharaman presented her seventh Union Budget on July 23, 2024, surpassing the record of former Prime Minister Morarji Desai. The Union Budget 2024 is the first budget by the BJP-led NDA government since it was re-elected in June with a reduced majority of 240 seats in the Lok Sabha, down from 303 seats in 2019.

Key Announcements in the Union Budget 2024:

Big Sops for Bihar and Andhra Pradesh:

Significant financial packages and development projects have been allocated to Bihar and Andhra Pradesh.
These allocations are likely aimed at bolstering support in these key states.

Fiscal Deficit Targets:

The fiscal deficit for FY 2023-24 was 5.63% of GDP.
The target for FY 2024-25 has been set at 5.1% of GDP.

No Mention of Southern States in Flood Mitigation Scheme:

The flood mitigation scheme announced did not specifically mention any southern states, potentially leading to dissatisfaction in those regions.

Economic Survey Highlights:

The Economic Survey projected India’s GDP growth for FY 2024-25 to be between 6.5% and 7%.
This is lower than the previous year’s growth rate of 8.2%.

Political Context of the Union Budget 2024:

The reduced seat tally for the BJP indicates potential dissatisfaction with the government's economic policies from 2019-24.
Coalition politics and the aspirations of regional partners have become more significant due to the reduced majority.

Reactions to the Union Budget 2024:

Economic Analysts:

Mixed reactions with some praising the targeted allocations to specific states, while others express concerns about the absence of measures for flood-prone southern states.

Political Reactions:

Regional parties in the southern states may voice strong objections over the lack of inclusion in the flood mitigation scheme.
Positive responses from leaders in Bihar and Andhra Pradesh due to the substantial financial packages.

General Public:

The focus on personal tax revenue without significant new measures might be seen as a cautious approach to fiscal management.

The Union Budget 2024 is being closely scrutinized for its ability to address regional disparities and economic growth challenges while maintaining fiscal discipline. The coming days will likely see detailed analyses and responses from various stakeholders, reflecting on how this Union Budget aligns with the aspirations of the Indian electorate and economic realities.

News Source:- thehindu.com