In defence of the recent budget, Finance Minister Nirmala Sitharaman addressed Parliament, affirming that the budget reflects an increase in expenditure across all sectors rather than a reduction. The budget aligns with the government's goal of developing a 'Viksit Bharat' by 2047 and highlights the confidence the country has in the Prime Minister's leadership, she said.
This year's budget incorporates elements from the vote of account, building on previously stated objectives, Sitharaman said in a parliamentary response. It focuses on consolidating earlier accomplishments and addressing current challenges. Two core elements of the budget are social inclusivity and geographical inclusivity, aimed at ensuring comprehensive national development, she said.
Government expenditure has surged to Rs 48.21 lakh crore, with a substantial portion allocated to capital expenditure. Of this, Rs 11 lakh crore is designated for capital investments, nearly three times the amount allocated before the Covid-19 pandemic. This increase in expenditure underscores the government's commitment to bolstering public infrastructure, which has been instrumental in driving India's status as the fastest-growing economy globally, she said.
The Finance Minister highlighted significant increases in budget allocations across various sectors. Allocation for education, employment, and skilling has risen from Rs 0.18 lakh crore in 2013–14 to Rs 1.48 lakh crore in this budget. Rural development has seen an increase from Rs 0.87 lakh crore to Rs 2.66 lakh crore, marking an 11.7% rise from the previous year. Urban development funding has grown from Rs 0.12 lakh crore in 2014 to nearly Rs 1 lakh crore now, she said.
The budget aims to strike a balance between growth, employment, welfare spending, capital investment, and fiscal consolidation, Sitharaman said.
The fiscal deficit is projected to fall below 4.5% by 2025–26, down from a high of 9.2% in 2020–21. This year's budget sets the fiscal deficit at 4.9%, reflecting the government's adherence to its fiscal trajectory, the Finance Minister stated.
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