Election Results to Shake Up the New Budget? What Possible Changes Will the New Government Bring?

Budget 2024-25: Although the third term of the Modi government has started on 9 June, but in this election, no party has got a clear majority like the last two elections. One reason for this is also believed to be the rising inflation and unemployment in the country. In such a situation, the biggest challenge before the newly formed government will be to take some such decisions in this budget 2024-25 which can also provide relief to the general public.  

She will take over the reins of the Finance Ministry again 

In the new government, Nirmala Sitharaman has once again taken the responsibility of handling the Finance Ministry. Its economic agenda will include making the country a five trillion dollar economy and accelerating reforms to turn India into a ‘developed nation’ by 2047.

According to the information, the ministry has already started working on the budget. In this budget, it will be specially taken care of whether the government will keep the fiscal deficit to 5.1 percent of GDP or the fiscal deficit will be improved by the dividend of 2.1 trillion received from RBI.

What can be seen differently in this budget 

What can be different this time in the Budget 2024-25 to be presented by the government formed for the third time under the leadership of  Narendra Modi . However, there is also speculation that the effect of the alliance can also be seen on the budget.

During the Lok Sabha election campaign, PM Modi had said that if his government comes to power for the third time, his priority will be the economy. At present, the government does not seem to be in the mood to step back regarding the pace of the economy. 

PM Modi, while addressing the public even after the election results, had said that his party’s goal is to make India the third largest economy in the world and a developed nation by 2047. In this year’s full budget, the Modi government can make some new and big announcements for the women, farmers and youth of the country. 

Big announcements made in the interim budget

In the interim budget of February 2024, three crore houses were built under the PM Awas Yojana, and in the next five years, 2 crore more houses will be built in rural areas. In the interim budget, it was said that vaccination for cervical cancer, which is increasing in India, will be promoted, under which it was said that girls aged 9-14 years will be given free vaccination.  

In February 2024, the target of Lakhpati Didi was increased to 3 crore. So far, 1 crore women have been made Lakhpati Didi in the country. Apart from this, a target was set to build 3 new corridors under the PM Gati Shakti Yojana, apart from this, the number of airports has increased to 149 in the coming 10 years. 40,000 bogies of Vande Bharat will be upgraded. Metro and Namo Bharat will be connected to other cities.

Which sectors will the new government focus on in the upcoming budget? 

Now that no party has got majority in this election, the full budget is expected to be quite populist. The common man may get relief on taxes in this full budget, apart from this, special announcements can be made for the farmers of the country. 

Many more schemes like PM Ujjwala Yojana can be announced. However, along with all this, the Modi government can maintain its focus on the infrastructure and manufacturing sector to maintain the pace of the economy. 

Focus will be on inflation 

The new government can also take big decisions to reduce inflation in this budget. Actually, the rising inflation in the country increases the burden on the pockets of the common man. This issue was also raised fiercely during the election campaign. In such a situation, the government can take steps to keep the prices of food items and fuel under control in this budget.

It is also very important to strengthen and improve the education sector in the country. In view of this, the central government can increase the education budget so that all children can get good education. Schemes can also be started in the full budget to promote digital education, so that children from rural and remote areas can also get online education. 

Infrastructure development is also very important for the country. In such a situation, the government can increase the budget for construction of roads, bridges and rail network in the full budget. This decision will not only improve transport facilities but will also create new employment opportunities. 

The real estate sector will also be given attention in the full budget. Many important decisions related to this sector can also be taken. First of all, this sector is a big part of our economy and provides employment to millions of people. Therefore, the government can take some special steps to promote this sector. 

The world will keep an eye on these issues 

Despite the rise in tax revenue in the country, non-tax revenue remains a big challenge. One reason for this is that people do not pay attention to strategic investment at all. Strategic sale of many central public enterprises including Shipping Corporation, NMDC Steel Limited, BEML, PDIL and HLL Lifecare is currently in process. 

In the last few years, the government has been facing a lot of opposition on the banking sector reform front. In such a situation, big steps are expected in this budget regarding the banking sector.