FM Traverses On Sustained Development Trajectory In Her Short Budget Speech

New Delhi: The Interim Budget 2024 has been termed as largely non-populist while the industry has lauded FM Nirmala Sitharaman for abstaining from any populist measures in her announcements.

"In a short budget speech, usual for an interim budget immediately preceding general elections, the FM largely traversed on a sustained development trajectory. The Budget is largely non-populist, given that there is barely any change in Budgeted subsidies for FY25, uncharacteristic of an Interim Budget ahead of the national elections. The policy intent was crystal clear as seen through the selective allocation of resources, with stronger emphasis on sectors of rural and middle-class housing and Green Energy," said Amar Ambani, Executive Director, YES Securities.

Ambani has said that the biggest plus for the market was the aggressive fiscal deficit target of 5.1% for FY25 versus expectation of 5.5%.

"Our own view was closer to the government stance, that it will target an aggressive number for FY25. The commitment to achieve a 4.6% fiscal deficit in FY26 seemed imperative, given the inclusion of Indian bonds in global indices," he said.

Other standout features include the incremental target of two crore affordable homes under the PM Awaas Yojana Gramin in next five years, with three and a half crore homes already nearing completion.

However, he added that the missed announcement was around manufacturing and PLI. 

"While we saw some subsidy hike, no material sops were announced, since income support to farmers in the last instance was introduced just prior to the general election and a flurry of subsidies were given, in various forms since Covid, including distributing food grains," Ambani added.

Shishir Baijal, Chairman and Managing Director, Knight Frank India said, "The 11.1% increase in infrastructure outlay which is 3.4% of GDP will further enhance the railway, roads and logistics infrastructure of the country."