Essentially a bold Budget: Team Modi confident of track record to win polls - Shuns populism. Centre proposes 11% jump in infra spend

'Ceteris paribus'

 is a Latin phrase that generally means "all other things being equal." 

In economics, it acts as a shorthand indication of the effect one economic variable has on another, provided all other variables remain the same.

Essentially a bold Budget: Team Modi confident of track record to win polls 2024 

Shuns populism.

Govt's makes mega push and proposes 11% jump in infra spend, measures for Agri sector; . 

Defence Ministry Gets Highest Allocation, Agriculture Lowest

In the Interim Budget 2024, the agriculture sector received the lowest allocation at ₹1.27 lakh crore

Budget 2024: Key takeaways 

Populist measures did a vanishing act from Nirmala Sitharaman's interim budget 2024-35 despite this being an election year.

FM maintained the government's focus on creating jobs through a sustained infrastructure push, in addition to prioritising groups such as farmers, youth, women and the poorest households. 

"We continue on the path of fiscal consolidation, as announced in my Budget Speech for 2021-22, to reduce fiscal deficit below 4.5 per cent by 2025-26," FM said.

She said that the updated fiscal deficit estimate stands at 5.8 percent of GDP for FY24, showcasing improvement compared to the initial Budget Estimate. Meanwhile, the projected fiscal deficit for FY25 is 5.1 per cent.  

"As for tax proposals, in keeping with the convention, I do not propose to make any changes relating to taxation and propose to retain the same tax rates for direct taxes and indirect taxes including import duties," she said.  

Modi's GYAN in election year

Garib, Yuva, Annadata, Narishakti

--that is Poor

Youth, Farmers and Women power identified as key pillars to drive development

Focus on poor, women, youth and farmers: 

"Their needs, their aspirations, and their welfare are our highest priority. The country progresses when they progress. All four require and receive government support in their quest to better their lives. Their empowerment and well-being will drive the country forward," she said.

"Building on the massive tripling of the capital expenditure outlay in the past 4 years resulting in a huge multiplier impact on economic growth and employment creation, the outlay for the next year is being increased by 11.1 per cent to over Rs 11 lakh crore. This would be 3.4 per cent of the GDP," Sitharaman said.

Vision for ‘Viksit Bharat’: The Finance Minister said -- "Our vision for ‘Viksit Bharat’ is that of “Prosperous Bharat in harmony with nature, with modern infrastructure, and providing opportunities for all citizens and all regions to reach their potential".

She also proposed a provision of Rs 75,000 crore as 50-year interest-free loan this year to support those milestone-linked reforms by the state governments.

Experts views:

Siraj Hussain, former Union Agriculture Secretary & Advisor, Food Processing, FICCI

"Since the elections are so close, no one was really expecting serious reforms in the agri-food sector. In recognition of India’s federal constitution, the Finance Minister did well to highlight that the reform process will be continued in consultation with the state governments. The FM rightly took the credit for handsome hikes in the Minimum Support Prices and proactive management of food inflation, in challenging geopolitical circumstances, with the Russian war on Ukraine and Israel’s war on Gaza continuing unabated." (MoneyControl.com)

"...a boring budget is a good budget and this one definitely fits the bill," says Anupam Manur, Professor of Economics, Takshashila Institution.

The impressive part was the resistance on the part of the government to introduce any big, populist measures aimed at strengthening their position before the upcoming elections.  

Sandeep Hasurkar, Author of `Never Too Big To Fail: The Collapse of IL&FS’, ex-investment banker

"At the Prana Pratishtha ceremony of the Ram Mandir in Ayodhya on January 22, Prime Minister Modi enunciated his views on the principles of governance and development as “Ram Se Rajya, Dev Se Desh”. 

On his return to New Delhi the same day, he followed it up by announcing the Pradhan Mantri Suryodaya Yojana, a rooftop solar programme for 1 crore households.

It was an appropriate tribute that a potentially game-changing, decentralised, sustainable solar energy programme for primarily rural households was announced on the day of the consecration of the Suryavanshi Ikshvaku deity. Budget 2024 is the economic blueprint of that philosophy."