FM Sitharaman said that for the year 2024-25, the total receipts other than borrowings and the total expenditure are estimated at Rs 32.07 lakh crore and Rs 48.21 lakh crore respectively. The net tax receipts are estimated at Rs 25.83 lakh crore…reports Asian Lite News
The Lok Sabha on Tuesday approved the Rs 48.21 lakh crore Union Budget for 2024-25 aimed at giving a major push to job creation with a focus on the country’s youth, empowering women and improving the incomes of farmers. The Union Budget and the Budget for J&K, which was also tabled on Tuesday, were passed by a voice vote by the Lok Sabha.
The relevant appropriation bills were also passed by the lower house. Finance Minister Nirmala Sitharaman has fixed the fiscal deficit at 4.9 per cent of GDP despite higher allocations for social welfare schemes due to robust tax collections in a fast-growing economy. Replying to the debate on the budget, Finance Minister Nirmala Sitharaman said the fiscal deficit would be brought down further to below 4.5 per cent by 2025-26 as the government would stick to the fiscal consolidation path.
The gross and net market borrowings through dated securities during 2024-25 are estimated at Rs 14.01 lakh crore and Rs 11.63 lakh crore respectively. Both will be less than that in 2023-24. The reduced borrowings by the government will leave more money in the banking system for companies to borrow for investments which will help to spur growth and create more jobs.
FM Sitharaman said that for the year 2024-25, the total receipts other than borrowings and the total expenditure are estimated at Rs 32.07 lakh crore and Rs 48.21 lakh crore respectively. The net tax receipts are estimated at Rs 25.83 lakh crore.
Sitharaman rejects opposition’s charge
With several opposition members attacking the government, alleging discrimination between states in the Union Budget, Finance Minister Nirmala Sitharaman hit back over the allegations and said budgets presented during the Congress-led UPA government also did not name most of the states.
Replying to the debate on the union budget in Lok Sabha, Sitharaman said names of states not finding a mention does not mean that funds and projects are not going to them.
Opposition parties alleged that projects had been announced only for Bihar and Andhra Pradesh in union budget and there was no mention of most other states.
“Many members have spoken about how they thought cooperative federalism only benefits a few states. I would like to humbly state that I am sure all the members know that in the budget speech not naming any state does not mean that no money goes to them. There was a misleading campaign that has been happening,” she said.
“Budget of 2004-2005 did not take the name of 17 states. I would like to ask the UPA government members, did money not go to those 17 states? Did it stop then? Did they have any business to ask this question? I presume they did not stop money going to those 17 states because they did not name it. In 2009-10, 26 states of India did not have a mention. +So, when it is something for them, it is alright. If the same thing happens somewhere else, then it is not right…
“Cooperative federalism, states not being mentioned in the budget speech, doesn’t have to be a very big issue. They all know, they have presented budgets in this country for decades. But when it is an ordinary Chaiwala, OBC leader who becomes Prime Minister, and he does administration well, you have a problem… Is he doing well, no, no, we will have to protest. This will not work and people are seeing this game,” she added.
In her Budget speech in Parliament, Sitharaman announced projects for Bihar and Andhra Pradesh. JD-U is in power in Bihar and TDP in Andhra Pradesh. The two parties are crucial for survival of BJP-led NDA government at the Centre.
She also answered opposition allegations on price rise, unemployment and welfare of farmers.
Sitharaman said that SBI research report which was released in July 2024 said India created 12.5 crore jobs between 2014 and 2023 compared to only 2.9 crore during the 10 years of the UPA government.
“The unemployment rate has declined from 6 per cent in 2017-18 to a low of 3.2 per cent in 2022-23. Youth unemployment for the age group 15-29 years has declined sharply from 17.8 per cent in 2017-18 to 10 per cent in 2022-23.”
Sitharaman said the National Commission on Farmers had recommended in 2006, Minimum Support Price should be at 50 per cent more than the weighted average cost of production and UPA government rejected MS Swaminathan report in 2007.
“This was not accepted by the UPA government. The cabinet note, which was drafted in July 2007, said MSP is recommended by the CACP on objective criteria considering the variety of factors involved. Therefore, setting an increase of at least 50 per cent on the cost may cause distortion in the market. In some cases, there may be a mechanical linkage between MSP and the cost of production per producer. After saying this, the UPA govt rejected the MS Swaminathan report in 2007…Congress Party can go on shedding crocodile tears about farmers, but no implementation was done in the last 10 years,” she said.
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