INTERPRETING BUDGET DYNAMICS

IN HER SIXTH UNION BUDGET, the last before this year's parliamentary elections, finance minister Nirmala Sitharaman was fiscally prudent and refrained from populist schemes. She also continued to push growth via higher capital expenditure but at a slower pace. The finance minister is banking on pick-up in private spending while ensuring that lower growth in government expenditure brings down FY25 fiscal deficit to 5.1% of gross domestic product (GDP). The neutral nature of the Budget and broad directions towards building a Viksit Bharat by 2047 reflect government's confidence in coming back to power for a third term.

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Fortune India formed a panel of the country's leading economists, CEOs, industrialists and experts to understand what the Interim Budget offers. Gopal Krishna Agarwal, BJP's national spokesperson for Economic Affairs; Suneeta Reddy, managing director, Apollo Hospitals Group; A.M.Naik, chairman emeritus, L&T; Nilesh Shah, managing director, Kotak Mahindra Asset Management Company; Gautam Singhania, chairman and managing director, Raymond India; Gourav Vallabh, national spokesperson, Indian National Congress; Santosh Kumar Mehrotra, professor of economics, Centre For Informal Sector And Labour Studies, Jawaharlal Nehru University; N.R. Bhanumurthy, vice chancellor, BR Ambedkar School of Economics University; and Pravesh Sharma, chairman, National Association Of Farmer Producer Organisations answer questions on government’s interim financial statement. Edited excerpts:

Has Interim Budget provided a roadmap for economic growth?

Gopal Krishna Agarwal: The Interim Budget gave a roadmap for economic direction because it focused on fiscal consolidation. As against the revised fiscal deficit estimate of 5.8% of GDP for FY24, the target for the coming year is 5.1%. The 11% increase in capital expenditure will create infrastructure for development—be it ease of doing business or ease of living or creation of demand. There is a provision of ₹1 lakh crore fund for research and development (R&D). This is important as artificial intelligence, blockchain innovations, green hydrogen and areas such as chip technology require huge R&D investments. The four important segments of economy—youth, women, poor and farmers—have been properly provided.