Budget 2024: Economists Call For Fiscal Prudence, Employment Boost, Through Welfare Spend

Economists on Wednesday have urged the government to maintain fiscal prudence, increase allocations to welfare schemes, and boost employment during the initial week of pre-budget meetings between the Union Finance Ministry and stakeholders.

The Bharatiya Janata Party-led National Democratic Alliance government is preparing to present its inaugural full budget in July. Finance Minister Nirmala Sitharaman, who previously presented an interim budget in February before the Lok Sabha elections, attended alongside other ministry officials.

Ashwani Mahajan, national co-convener of the Swadeshi Jagaran Manch, the economic arm of the Rashtriya Swayamsevak Sangh, told reporters that the discussions centred on the economy's growth momentum, fiscal prudence, capital expenditure, and government spending.

"The government has indicated it will reduce the fiscal deficit in the upcoming budget," Mahajan said. "Simultaneously, enhancing employment remains a critical priority."

Mahajan emphasised the need for welfare policies that stimulate employment, noting a rise in rural consumption but no corresponding increase in urban areas.

Nagesh Kumar, director and chief executive of the Institute for Studies in Industrial Development, contributed to the discussions by proposing measures to bolster the manufacturing sector and introduce production-linked incentives for labour-intensive industries such as leather goods.

Sitharaman is scheduled to meet with capital market experts on Thursday.