"Judicious and visionary..." Former CEA KV Subramaniam on interim budget

New Delhi [India], February 1 : After the presentation of the interim budget, the Executive Director of the IMF and the Former Chief Economic Advisor KV Subramaniam on Thursday termed the budget as Judicious on the fiscal front, non-populace and visionary.
"...Overall, that is how I would assess it - judicious on the fiscal front, non-populace because it is more of the same and visionary because many other steps on innovation and CapEx etc." said KV Subramanian - Executive Director of the IMF and former Chief Economic Advisor to the Government of India.
Meanwhile, Nitesh Kumar MD & CEO of Emami Realty Ltd. said that this is a very positive, inclusive, and balanced budget for developed India
"This is a very positive, inclusive, and balanced budget for developed India; the announcement by the Finance Minister of a middle-class housing scheme that permits residents of unapproved colonies, slums, and rented houses to buy or build their own homes is positive for the real estate market. The goal of this programme is to make it easier for them to build or buy their own homes. For the fourth consecutive year, the government has boosted capital investment outlays, allocating 11.11 lakh crores, an increase of 11.1%. This increase in the budget is beneficial since it will encourage more investment and the building of the country's infrastructure. Infrastructure is essential to a country's ability to grow and develop because it raises productivity and competitiveness, helps create jobs, and enhances the quality of life for its citizens." said Nitesh Kumar.
G Hari Babu, National President of NAREDCO, also lauded the interim budget and said that this budget perfectly aligns with our vision of fostering a progressive and inclusive India
"We commend the government's visionary approach in crafting a comprehensive roadmap for Vikasit Bharat, emphasizing governance, development, and performance. This budget perfectly aligns with our vision of fostering a progressive and inclusive India. The government's commitment to housing development through the Pradhan Mantri Awas Yojana - Gramin is laudable, with the announcement of 2 crore additional houses reflecting a dedicated effort to improve citizens' lives and address rural housing challenges. Further, the reiteration of a new scheme for the urban middle class population, also would boost confidence of both the common man and the real estate sector. We now look forward for a clear roadmap of this scheme. Thes proactive steps underscores the government's unwavering commitment to holistic development and the welfare of our people. The announcement in the budget regarding the withdrawal of pending income tax demands, particularly for amounts up to Rs25,000 for the period up to the financial year 2009-10 and up to Rs10,000 for financial years 2010-11 to 2014-15, is a welcome move. This decision, benefiting a crore taxpayers, demonstrates the government's commitment for easing financial burdens and prioritizing the welfare of our citizens."
Former President FICCI, Naina Lal Kidwai said, "The budget was a bit of a surprise because many of us were expecting a commitment to stay with the fiscal deficit at 5.3%... The government has announced a fiscal deficit of 5.1%, which is even stricter than what they had originally indicated and which the markets had readily accepted... We don't know on what basis they believe that the revenues will be good and healthy enough to enable the fiscal deficit at 5.1%. Because on the other hand, there has been no scaling back of capital expenditure. There is an increase of 11.1%... We have had a pretty big allocation in capital expenditure... So these are two huge positives. CapEx up. Fiscal deficit down..."
Meanwhile, Union Finance Minister Nirmala Sitharaman pegged the fiscal deficit target for 2024-25 at 5.1 percent of gross domestic product (GDP).
In 2023-24, the government pegged the fiscal deficit target for 2023-24 at 5.9 per cent of gross domestic product (GDP). Today, Sitharaman said that the fiscal deficit of 2023-24 was downwardly revised to 5.8 per cent.
The difference between total revenue and total expenditure of the government is termed as fiscal deficit. It is an indication of the total borrowings that may be needed by the government.
The government intends to bring the fiscal deficit below 4.5 per cent of GDP by the financial year 2025-26.
The government proposed to increase capital expenditure outlay by 11.1 per cent to Rs 11.11 lakh crore in 2024-25.
A capital expenditure, or capex, is used to set up long-term physical or fixed assets.
Last year, which was the last full Budget under the Prime Minister Narendra Modi-led government's second term, the government proposed to increase capital expenditure outlay by 33 per cent to Rs 10 lakh crore in 2023-24, which was estimated to be 3.3 per cent of the GDP.
With this budget presentation, Sitharaman equalled the record set by former Prime Minister Morarji Desai, who as finance minister, presented five annual budgets and one interim budget between 1959 and 1964.
The Indian economy is projected to grow close to 7 per cent in the financial year 2024-25 which starts this April, said the Ministry of Finance in a review report.