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“Government’s Belief That Reforms Are On The Right Path Is Shown by the Interim Budget 2024”

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<p>One of the most memorable things that Finance Minister Nirmala Sitharaman said during her sixth budget presentation on February 1 was that she did not propose any tax-related changes to direct or indirect tax. The government’s strong conviction that its reforms are the correct course and that, considering the impending elections, they did not need to take any populist measures is reflected in this. The Budget mirrored the government’s ongoing long-term orientation while assessing the progress of the nation during the previous ten years. Considering the long-term effects financial services have on a nation’s ability to prosper economically, eight things sprang out.</p>
<p><img decoding=”async” class=”alignnone wp-image-396856″ src=”https://www.theindiaprint.com/wp-content/uploads/2024/02/theindiaprint.com-governments-belief-that-reforms-are-on-the-right-path-is-shown-by-the-interim-budg-750×563.jpg” alt=”theindiaprint.com governments belief that reforms are on the right path is shown by the interim budg” width=”1348″ height=”1011″ title=”"Government's Belief That Reforms Are On The Right Path Is Shown by the Interim Budget 2024" 3″ srcset=”https://www.theindiaprint.com/wp-content/uploads/2024/02/theindiaprint.com-governments-belief-that-reforms-are-on-the-right-path-is-shown-by-the-interim-budg-750×563.jpg 750w, https://www.theindiaprint.com/wp-content/uploads/2024/02/theindiaprint.com-governments-belief-that-reforms-are-on-the-right-path-is-shown-by-the-interim-budg-1024×768.jpg 1024w, https://www.theindiaprint.com/wp-content/uploads/2024/02/theindiaprint.com-governments-belief-that-reforms-are-on-the-right-path-is-shown-by-the-interim-budg-768×576.jpg 768w, https://www.theindiaprint.com/wp-content/uploads/2024/02/theindiaprint.com-governments-belief-that-reforms-are-on-the-right-path-is-shown-by-the-interim-budg-150×113.jpg 150w, https://www.theindiaprint.com/wp-content/uploads/2024/02/theindiaprint.com-governments-belief-that-reforms-are-on-the-right-path-is-shown-by-the-interim-budg.jpg 1200w” sizes=”(max-width: 1348px) 100vw, 1348px” /></p>
<p>Fiscal consolidation: The capacity of a country to maintain its government-committed fiscal deficits within a certain range determines its sovereign grade. The suggested range for the long-term budget deficit is 4.5% of GDP. The government’s resolve is shown by the decision to maintain it at 5.1% of GDP for FY25 as opposed to 5.8% for the prior year. This is a major credit positive for the nation and will significantly support sustained growth. This is consistent with the government’s goal of having a budget deficit objective by 2025–2026 of less than 4.5%. In addition, the government has committed to sustainable development and fiscal consolidation by setting a divestment goal of Rs 50,000 crore for FY25.</p>
<p>Sustained emphasis on fortifying and fortifying the financial services ecosystem: The strength of the financial services ecosystem, which underpins the real economy, is a prerequisite for any real economy to flourish. Acknowledging this, the government has reaffirmed its commitment to improving the size, scope, capability, and regulatory framework of the financial services ecosystem. This dedication is shown by the government’s last budget presentation, which states that 25 crore people have received assistance in leaving multifaceted poverty. The government has saved money thanks to the direct benefit of Rs 34 lakh crore from Jan Dhan, which has strengthened the ecosystem of financial services even more.</p>
<p>Human Capital: The budget includes initiatives related to education, skill development, employment, health care, gender equality via women’s empowerment, sports, and financial inclusion. These efforts are aimed at enhancing human capital, which is one of the most important factors in boosting a country’s GDP. These efforts have a very long-term and sometimes misinterpreted return on investment (ROI). Nevertheless, it is admirable that the administration is determined to overlook it and maintain a laser-like concentration on changes. Initiatives focused on human capital provide a substantial contribution to long-term, sustainable development and are often seen favorably by sovereign rating agencies. Projects like the Skill India Mission, which has trained 1.4 crore youth and reskilled and upskilled 54 lakh youth, demonstrate the government’s dedication to fostering the development of young people, who are the future of our nation.</p>
<p>Focus on entrepreneurship: The government acknowledges that ideas and developments spurring economic progress are products of an entrepreneurial attitude. Initiatives like as the Pradhan Mantri MUDRA Yojana, which has approved loans totaling INR 22.5 lakh crore, have aided in fostering entrepreneurial ambitions. In a similar vein, the 30 crore Mudra Yojana loans that were approved for them under the MUDRA loans for women initiative have helped women entrepreneurs. Statements aimed at establishing a strong startup environment in India demonstrate this dedication to pursuing innovation.</p>
<p>An worldwide emphasis on the internationalization of the rupee: The Budget mentioned in passing the significance of the IFSC ecosystem and how it would act as a conduit to foreign finance. This declaration would give the IFSCA regulator a lot of motivation to keep up its liberalization efforts and make sure India has a bigger say in the global financial system.</p>
<p>Dedicated to preserving the regulators’ autonomy in India: The Finance Minister’s acknowledgement of the RBI’s efforts as an organization entrusted with managing inflation is indicative of a strong commitment to preserving the institutional independence of the banking regulator, which is important from the perspective of foreign investors.</p>
<p>Concentrate on bolstering soft power via the extensive Indian diaspora it has around the world: India understands the significance of the influence it can have via the global reach of its Indian diaspora. Its efforts to promote spiritual tourism and domestic travel demonstrate its dedication to diplomatic dominance, which is a crucial weapon in the multipolar world of today when regionalization prevails over globalization. Given that many Indians now occupy various prominent positions throughout the world, as evidenced by the 2x growth in FDI Inflow between 2014 and 2023 of INR 43.71 lakh crores (USD 596 billion) vis-à-vis 2005-2014, this will also significantly contribute to increased FDI in the country.</p>
<p>DPI, or digital public infrastructure, is a new production element. The government has set a goal of creating “Digital India,” and Digital Public Infrastructure (DPI) has been instrumental in achieving this. The speech’s acknowledgement of the same as a fresh component of production shows how committed the government is to the idea. This will provide regulators a boost as they experiment with different projects, including the RBI’s proposal to offer financial firms with public cloud infrastructure.</p>
<p>This interim budget for 2024 is a continuation of the preceding budgets, which show the gradual changes implemented over time and contributed to India’s current status as one of the brightest nations in an otherwise gloomy globe.</p>


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