Ahead of polls, high expectations from Interim Budget
Sandeep Dikshit
New Delhi, January 31
Union Finance Minister Nirmala Sitharaman will present the Interim Budget on Thursday amidst high expectations from the common man and the industry alike.
What’s expected
- Higher interest rate for women
- Cheaper credit for housing
- Higher outlay for rural growth
- Focus on healthcare, education
By convention, the Interim Budget is meant to cater to the financial needs till a new government takes over after the General Election. But expectations are high from the Interim Budget because it being an election year, most sections expect some benevolence on the lines of the Rs 6,000 Kisan Samman Nidhi announced in the run-up to the Interim Budget in 2019.
The widespread expectation is that there could be something for each section which would be modelled by Sitharaman as “Modi’s guarantees”. Among them are providing avenues to women to save at higher interest rates. Though taxation issues remain untouched in an interim budget, it is expected that the middle class could be mollified by cheaper access to credit for housing and benefits for those who join the New Pension Scheme.
Rural development is another sector where the government could increase the outlay for MGNREGA and even double the Kisan Samman Nidhi that was announced just before the 2019 General Election.
On the capital expenditure front, the continued absence of a significant private sector interest in adding capacities means that the Narendra Modi government will have to hike the outlay on this account to another record high in order to maintain economic growth figures. In the last full Budget for 2023-24, the Centre had hiked capital expenditure to a record Rs 10 lakh crore.
The focus towards infrastructure will also include healthcare and education too.
Sitharaman will also table the Interim Budget of the UT of J&K for 2024-25 along with its supplementary demands.
One area where the government will fail is missing its disinvestment targets for the fifth consecutive year.
