New Delhi [India], February 7 (ANI): Finance Minister Nirmala Sitharaman, while addressing the Parliament during the discussion on the Interim Union Budget for 2024-25, emphasized key financial indicators and government initiatives aimed at bolstering economic growth and fiscal stability. Sitharaman’s remarks shed light on various aspects of the budget, including inflation, capital expenditure, and allocations for Jammu and Kashmir.
Addressing concerns regarding inflation, Sitharaman highlighted a decline in retail inflation, which dropped from an average of 6.8 percent in April-December 2022 to 5.5 percent during the corresponding period in 2023. She noted that retail inflation had stabilized within the notified tolerance band of 2-6 percent, indicating a positive trend in economic indicators.
Sitharaman said, “Talking about inflation, retail Inflation has declined from an average of 6.8 per cent in April-December 2022 to 5.5 per cent in the corresponding period of 2023. The retail inflation is now stable and within the notified tolerance band of 2-6 per cent. The core inflation has actually declined from 5.1 per cent in April 2023 to 3.8 per cent in December 2023″.
Furthermore, Sitharaman underscored a reduction in core inflation, which decreased from 5.1 percent in April 2023 to 3.8 percent in December 2023, signaling improved economic resilience. Discussing financial allocations for Karnataka, Sitharaman compared funding received under various finance commissions, emphasizing the significant increase in allocations under the 14th Finance Commission.
She highlighted that Karnataka had received Rs 1,29,854 crores under the current finance commission, surpassing previous allocations, indicative of the government’s commitment to equitable distribution of funds across states. Sitharaman said, “In the case of Karnataka, 13th Finance commission, period is 2010-11 and 2014-15, Karnataka received Rs 61,691 crores.
14th finance commisiion beginning 2015-16 to 2019-20 Karnataka received Rs 1,51,309 crores. Our current finance commission, Karnataka has already received Rs 1,29,854 crores, 4 years compared to 5 years”.
In terms of capital expenditure for 2024-25, Sitharaman revealed an outlay of Rs 11,11,111 crores, representing a 17 percent increase over the Revised Estimates (RE) of 2023-24.
Sitharaman said, “For capital expenditure for 2024-25 we have kept and outlay of Rs 11,11,111 crores which is about 17 per cent higher than the RE of 2023-24 and this outlay is higher than the projected GDP growth rate of 10.5 per cent. So even faster and higher than the GDP growth rate we have accommodated for capital expenditure”.
The Minister added, “The fiscal deficit glide path which we had submitted before the house and got approved, 5.8 per cent is what we have provided for this year, and in the forthcoming year we are predicting that it will be 5.1 per cent, actually 5.9 is what we have expected to reach and 5.2 is what we have expected to reach the next year but we have been fairly a lot more prudent”.
This outlay, she noted, exceeded the projected GDP growth rate of 10.5 percent, reflecting the government’s prioritization of infrastructure development and economic expansion. Sitharaman also outlined the fiscal deficit glide path, projecting a reduction to 5.1 percent in the forthcoming year, underscoring prudent fiscal management practices.
Sitharaman said, “Transfers to jammu Kashmir gets Rs 3 thousand crores for meeting the additional expenditure towards central assistance to Union Territory of Jammu and Kashmir for bridging the resource gap”. Minister added, “Jammu and Kashmir is seeking a vote on accounts for Rs 59,364 crores which is only for part year because the whole year’s BE is Rs 1,18,728 crores, this covers the revenue expenditure of 40 thousand crores and capital expenditure 19,283 crores. So the central government will provide the government of Jammu and Kashmir Rs 41,751 crores in 2023-24 and Rs 37,278 crore in 2024-25 as assistance to the Union Territory. This is their interim Budget”.
Addressing financial provisions for Jammu and Kashmir, Sitharaman announced a transfer of 3 thousand crores to meet additional expenditure towards central assistance to the Union Territory, aimed at bridging the resource gap. Additionally, she highlighted the Union Territory’s interim budget, which includes a vote on accounts for Rs 59,364 crores, covering revenue and capital expenditures for the fiscal year 2023-24.
Sitharaman assured the allocation of Rs 41,751 crores in 2023-24 and Rs 37,278 crores in 2024-25 as assistance to Jammu and Kashmir, reflecting the government’s commitment to supporting the Union Territory’s developmental initiatives. Overall, Sitharaman’s budget presentation underscored the government’s proactive measures to promote economic growth, fiscal stability, and equitable development across regions, setting the stage for constructive deliberations and policy initiatives in the forthcoming fiscal year. (ANI)
