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Drawing a sharp contrast in India’s economic trajectory, the interim budgets of 2014-15, under Manmohan Singh’s UPA government, and 2024-25, under Prime Minister Modi’s NDA government, reveal distinct approaches to economic governance
NEW DELHI: Finance Minister Nirmala Sitharaman presented the Union Budget 2024 in the Lok Sabha on Thursday, marking an interim budget ahead of the impending Lok Sabha Elections. Drawing a sharp contrast in India’s economic trajectory, the interim budgets of 2014-15, under Manmohan Singh’s UPA government, and 2024-25, under Prime Minister Modi’s NDA government, reveal distinct approaches to economic governance.
2014-15 Interim Budget:
Under the stewardship of Finance Minister P. Chidambaram, the 2014-15 Interim Budget was marred by manipulative tactics aimed at concealing fiscal challenges. Shifting payments of subsidies to the following year artificially reduced the deficit, wreaking havoc on the cash flow of oil and fertilizer companies, impeding their growth.
Furthermore, plan expenditure was slashed by Rs. 80,000 Crore, crippling productive investment. Payments to infrastructure companies were halted, leading to a drastic drop in government capital expenditure from 23 per cent to 14 per cent between 2005 and 2014. The result was a prolonged period of jobless years, as the UPA failed to foster economic growth and job creation.
FLASH: “We continue in the path of fiscal consolidation as announced in my budget speech in 2021-22 to reduce fiscal deficit below 4.5% by 2025-25. The fiscal deficit of 2024-25 is estimated to be 5.1% of GDP, adhering to that path” : #NirmalaSitharaman, in the #Parliament today.… pic.twitter.com/hlR1U2U0Ya
— The New Indian (@TheNewIndian_in) February 1, 2024
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2024-25 Interim Budget:
In stark contrast, the 2024-25 Interim Budget, presented by Finance Minister Nirmala Sitharaman, reflects a paradigm shift in economic governance. Transparent budgeting practices have been employed, maintaining a fiscal deficit glide path without resorting to manipulative tactics.
Record-high and consistently increasing capital expenditure, particularly in infrastructure, marked a departure from the UPA era’s approach of slashing productive investments.
India’s economic indicators under the Modi-led NDA government reflect a positive trajectory. High GDP growth, moderate inflation, controlled deficit, and declining Current Account Deficit (CAD) underscore the success of the economic policies implemented.
The last decade has witnessed not only high growth but also substantial job and employment generation, contrasting sharply with the jobless years under the UPA.
FLASH: FM #NirmalaSitharaman announces significant strides for #WomenEmpowerment in #Budget2024.
“Abolishing Triple Talaq, and providing 33% reservation to women in the LokSabha and State Assemblies are the few measures taken by the government to empower women.”
Reports:… pic.twitter.com/CG8UOsMDbH— The New Indian (@TheNewIndian_in) February 1, 2024
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Finance Minister Nirmala Sitharaman’s budget of February 2024 exemplifies the commitment to transparency and responsible fiscal management. With every payment meticulously accounted for, the government has successfully navigated the fiscal deficit glide path.
The emphasis on record-high capital expenditure, with a significant allocation of 11.1 lakh crore for infrastructure development, signals a proactive approach to stimulate economic growth.
The comparison between the interim budgets of 2014-15 and 2024-25 reveals a tale of two contrasting economic approaches. The UPA’s budgetary maneuvers led to a period of stagnation and joblessness, while the NDA’s transparent and strategic fiscal policies have propelled India into a “sweet spot” of high growth, job creation, and economic development.
