USISPF lauds Interim Budget 2024, says it represents "welcome statement of responsible fiscal management"

New Delhi [India], February 6 : US-India Strategic Partnership Forum (USISPF) has commended the Interim Budget 2024 and said that with no major policy pronouncements in an election year, it represents a "welcome statement of responsible fiscal management."
USISPF CEO and President, Mukesh Aghi, in a statement, appreciated the policy of tax stability, while affirming hope that it will be extended beyond the new fiscal year starting April 1, 2024
"USISPF commends the interim budget, presented on February 1st by the honorable Finance Minister Mrs. Nirmala Sitharaman, for its consistency and focus on growth. As an interim, pre-election budget with no major policy pronouncements, it represents a welcome statement of responsible fiscal management in an election year," the statement read.
It highlighted the budget projections that the fiscal deficit for the upcoming financial year (2025) will narrow to 5.1 per cent and GDP growth will remain between 6-7 per cent GDP, adding that the government's priorities, on the expenditure side, will remain focused on short-term spending for social protection and job creation, and medium-term growth fuelled by enhanced capital expenditure.
USISPF affirmed confidence that these priorities, within the framework of fiscal consolidation, will help strengthen India's macro-economy, lower government borrowing costs, and support the increased foreign trade and investment that is the foundation of the US-India partnership.
"In line with growing US-India commercial ties, we commend the government's continued focus on the trinity of infrastructure, inclusive growth, and fiscal prudence," the statement added.
It further pointed out that the 2024 budget increases capital expenditures, which are critical to maintaining the engine of economic growth, by 11.1 per cent, to USD 133.9 billion. At the same time, the government has prioritised funding for infrastructure projects, with USD 130 billion allocated for roads, rails, ports, and airports.
According to USISPF, all of these investments will help attract private investment in these sectors, including foreign direct investment from the United States.
The USISPF President also recognised the important social spending included in the budget, such as the construction of 20 million affordable houses in the next five years, which will give a boost to the rural economy with new jobs and the construction sector.
"We commend the continued steps toward meeting India's clean energy goals, including the project to provide free rooftop solar-generated electricity to 10 million households. Additional investments in the healthcare, education, and manufacturing sectors, the latter through investments in the PLI schemes, will help attract high-end tech manufacturing and build on resilient supply chains, critical priorities for both Washington and New Delhi," the statement read.
He also highlighted that on the revenue side, the budget eschewed significant tax policy changes, keeping rates steady for the salaried middle class and maintaining 15 per cent corporate rate through March 2024.
Muksh Aghi also appreciated the policy of tax stability and extension of tax benefits, adding that it will promote India as an attractive destination for long-term funds for sovereign wealth funds and pension funds.
"We welcome this policy of tax stability, which is critical to increased investment and job creation, and hope to see it extended beyond the new fiscal year starting April 1, 2024," he further said.
"We also welcome the extension of tax benefits to leverage the start-up ecosystem through INDUS-X and promote India as an attractive destination for long-term funds for sovereign wealth funds and pension funds," the statement added.