Infrastructure development has been the sine qua non of PM Modi government’s long-term economic strategy for the past 10 years and remains so. The budget proposes a sweeping plan for both urban and rural development, designed to transform cities into growth engines and ensure comprehensive development of rural areas. This includes significant projects across sectors such as transportation, housing, and sanitation.

The allocated capital expenditure of Rs 11.1 lakh crore, or 3.4 percent of GDP, represents the highest investment in infrastructure in the past 26 years, underscoring the government’s commitment to this sector.

Fiscal consolidation has been a consistent theme over the past 10 years and continues with this budget. The fiscal deficit is projected to decrease to 4.9 per cent in FY25, down from 5.1 per cent in the interim budget, with further reduction planned for the following year. This fiscal prudence is achieved without modifications to the existing tax structures, ensuring a stable tax environment conducive to improving India’s credit rating.

Further enhancements to the taxation system are evident in both direct and indirect taxes. The budget proposes more attractive terms for the new tax regime, including higher deductions and broader, lower tax slabs. Indirect tax changes aim to support domestic manufacturing, address rate inversions, and simplify the overall tax process. Adjustments to the capital gains tax structure have also been introduced to streamline taxation and encourage investment.

Environmental sustainability and climate finance are other critical areas addressed by the budget, recognising the importance of ecological considerations in sustainable economic planning. The government views these initiatives as crucial for ensuring that economic progress does not compromise environmental goals. Technology plays a pivotal role in all major governmental initiatives, with the budget emphasizing its importance in achieving sustainable development goals.

The FY2024-25 Budget lays down a robust blueprint for India’s future economic direction. It balances economic growth with fiscal discipline and social welfare, ensuring a stable foundation for sustainable development.

The Budget’s strategic focus on job creation, infrastructural investment, and fiscal consolidation is poised to significantly shape India’s economic landscape in the coming years, steering the country towards achieving the vision of Viksit Bharat by 2047. Through these measures, the budget ensures long-term growth and resilience.

(The author is MD and CEO,National Stock Exchange)