Budget 2024: FM key Announcements For The Common Man

New Delhi: The country’s economy will grow at a pace of 8.2% in the financial year 2024. This has been estimated in the Economic Survey presented today (Economic Survey 2023-24). The Economic Survey has estimated that the country’s GDP will be between 6.5-7% in FY25. The Economic Survey also mentions the decreasing NPA of banks and reduction in LPG, petrol, and diesel prices to provide relief to the common man. The survey has praised the steps taken by the government to control inflation.

A day before the Union Budget 2024 to be presented on July 23, Finance Minister Nirmala Sitharaman tabled the Economic Survey in Parliament.

GDP will be between 6.5-7% in FY25

The survey said that despite many geopolitical challenges, India’s Economy maintained momentum in FY2023 and carried it forward in FY 24. According to the Economic Survey, India’s GDP growth in FY 2024 was 8.2%, which was more than 8% in three out of four quarters of FY 24.

• Indian economy grew by 8.2% in FY24
• The higher growth in FY24 comes after growth rates of 9.7% and 7% in the last two financial years.
• Real GDP growth is estimated to be between 6.5-75 in FY25
• Core inflation is largely under control, although some food items remain high
• Trade deficit was lower in FY24 compared to FY23, and the current account deficit (CAD) is around 0.7% of GDP
• Fiscal deficit increased by 1.6% of points of GDP in FY23 compared to the previous financial year.
• Government expenditure reduced to 15% of GDP in FY24 from 17.7% in FY21
• Total tax at constant price increased by 19.1% in FY24

Rising inflation was dealt with tactfully

The Economic Survey said the government’s emphasis on capex and steadily increasing private investment have boosted capital formation. A growth of 9% has been seen in real gross fixed capital formation in FY24.

The pressure on inflation caused by global tensions, supply chain concerns, and monsoon uncertainty has been smartly dealt with through administrative and monetary policy. This is the reason why after an average of 6.7% in FY23, retail inflation declined to 5.45 in FY24.

Improvement in current account deficit

• Pressure on inflation due to global and supply chain concerns, monsoon uncertainty
• The inflation crisis was cleverly dealt with through administrative and monetary policy
• After averaging 6.7% in FY23, retail inflation eases to 5.4% in FY24

The Economic survey states that there has been a slowdown in demand for goods across the world, due to which the external balance has come under pressure. But it has been managed in a better way. Strong services exports have balanced this to a great extent. The current account deficit (CAD) during FY24 stood at 0.7% of GDP which was 2% during FY23, indicating that the current account deficit has improved to a great extent.

The health of banks improved

It has been said in the Economic Survey that the government’s commitment has been towards a healthy and stable banking system, and the government has done a lot of work in this direction. This is the reason why India’s banking and financial sectors have performed brilliantly in FY24. Double-digit growth was seen in the credit of banks, gross and net NPA have gone to the lowest levels in many years. There has also been a significant improvement in the asset quality of banks.

• India’s banking and financial sectors have performed brilliantly in FY24
• Banks saw double-digit growth in loans, gross and net NPA are at the lowest levels in many years.
• Asset quality of banks improved, reflecting the government’s commitment to a healthy banking sector.
• Primary capital market generated capital of Rs 10.9 lakh crore during FY24

Prices of LPG, petrol, and diesel were reduced

The economic survey said that the government announced a reduction in prices of LPG, petrol, and diesel, due to which retail fuel inflation remained low in FY24. In August 2023, LPG prices were cut by Rs 200/ cylinder while in March 2024, petrol and diesel prices were cut by Rs 2/litre. Due to these steps, retail inflation of petrol and diesel also went into a deflation zone in March 2024.

• Global Energy price index saw a sharp decline during FY24
• The government announced a reduction in prices of LPG, petrol, and diesel
• The result was that retail fuel inflation remained low in FY24
• In August 2023, LPG prices were cut by Rs 2/ litre in March 2024
• Retail inflation of petrol and diesel also went into a deflation zone in March 2024.

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Nancy, from Patiala, Punjab, is currently pursuing a BA Hons in Political Science from Noida International University, Greater Noida. She has a passion for content writing, dancing, and painting. Nancy is also eager to learn new skills and ideas, and she values collaboration, which helps her excel in teamwork.

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