On February 1, the Finance Minister of India will present her sixth budget, an interim one. It will be the last one before the upcoming general elections in April-May. In the Union Budget 2024, the government aims to build on the growth momentum of the past two years while maintaining fiscal discipline.
Union Budget 2024-25: List Of Important Metrics
1. Budget Size
The most closely monitored figure ahead of general polls is the Budget size, which underscores the government’s fiscal support for the economy and welfare programs. This metric reflects the scale of financial commitment and sets the tone for economic priorities.
2. Capital Spending
Government capital expenditure has stimulated investment-driven growth in the absence of a widespread resurgence in private investment. This strategic approach serves as a crucial tool for the revitalization of the economy. Prioritizing capital expenditure fosters infrastructure development and creates a ripple effect for overall economic expansion.
3. Nominal GDP Growth
This metric is mainly tracked for the government’s revenue assumptions and tax resilience. A higher growth helps contain the fiscal deficit ratio, which influences economic stability. Furthermore, strong GDP growth boosts government revenue and strengthens the overall economic foundation.
4. Fiscal Deficit
It reflects the budget’s fiscal surplus or deficit. The result indicates if the government has been able to adhere to its fiscal commitments or not.
5. Disinvestment
This metric signals the government’s privatization goals, contributing to revenue mop-up. Disinvestment can streamline public sector enterprises, promoting efficiency and adding funds into the government treasury.
6. Market Borrowing
Excessive government borrowing can crowd out private players. Judicious market borrowing is essential to fund government initiatives without causing disruptions in the broader financial markets and private sector activities.
7. Net Tax Mop-up
It is crucial to assess the government’s spending capacity without worsening the fiscal gap. The ability to meet tax targets directly impacts the government’s ability to fund its programs and maintain a balanced budget.
8. RBI Dividend
Utilizing RBI dividends responsibly can help manage budgetary shortfalls without resorting to excessive borrowing.
Hot Take: Union Budget 2024-25: Important Metrics To Look Out For
On February 1, Nirmala Sitharaman, the Finance Minister of India, will present her sixth budget, an interim one. It will be the last one before the upcoming general elections in April-May. In the Union Budget 2024, the government aims to build on the growth momentum of the past two years while maintaining fiscal discipline.
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