Finance Minister counters opposition charges on budget in Rajya Sabha

Union Budget 2024: Finance Minister Nirmala Sitharaman addressed the Rajya Sabha on Wednesday, responding to various questions raised by opposition parties regarding the Budget 2024. Highlighting the budget's balanced approach to growth, employment, welfare, capital investment, and fiscal consolidation, Sitharaman provided detailed responses to the concerns raised by opposition members.

"The spiral budget of 2024-2025 is actually a continuation of the interim budget," said Sitharaman, noting that critical aspects of the interim budget are subsumed into the regular budget. "Since 2014, the principle which has guided us is Sabka Saath, Sabka Vikas, Sabka Vishwas, and Sabka Prayas, which continues in this budget as well, and hopefully will guide us for the next five years."

Sitharaman maintained that the budget's focus on fiscal prudence reaffirmed the government's commitment to reducing the fiscal deficit. "I promised in this House in 2021-22 that the government would endeavour to attain a fiscal deficit to GDP level below 4.5 per cent by the year 2025-26. We have reached an unprecedented high number of 9.2 per cent in 2021, and we are well on track to attain that target."

The Finance Minister also underscored India's growing contribution to the global economy, citing International Monetary Fund (IMF) data. "According to the IMF, India's share in global growth is 16 per cent, and it is also rising."

Boost to manufacturing 

Sitharaman detailed measures aimed at boosting the manufacturing sector, including the reduction of basic customs duty and the success of the production-linked incentive (PLI) scheme. "India now produces 97 per cent of all mobile phones in demand in the country, and 30 per cent of total production in India in the year 2024 has gone for exports exclusively."

Further, she announced initiatives to support the domestic production and recycling of critical minerals and the establishment of investment-ready industrial parks. "We have fully exempted customs duty on 25 critical minerals and reduced the basic customs duty on two of them."

The budget also focuses on advancements in technology and research, with allocations for artificial intelligence (AI) and the National Research Foundation. "We are working towards establishing three centres of excellence in top educational institutions for realizing the vision of Make AI in India and Make AI Work for India."

Focus on sectoral growth

Sitharaman addressed sectoral allocations, highlighting significant increases in funding for agriculture, education, women's development, rural and urban development, and health. "The 2024-2025 budget for education, employment, and skilling is 1.48 lakh crore, which is 28,000 crore more than last year."

Responding to concerns about fiscal deficit and public sector borrowing, Sitharaman pointed out the government's successful management of borrowing costs. "The weighted average yield, which corresponds to the average cost of borrowing of central government securities issued during the 10-year period of 2014-15 to 2023-24, is lower by about 60 basis points than the period between 2004-05 to 2013-14."

The Finance Minister also marked the government's commitment to cooperative federalism and timely resource transfers to states and union territories. "The total resources proposed to be transferred to the states this year, 2024-2025, is estimated to be 22.91 lakh crore, entailing an increase of about 2.49 lakh crore over 2023-2024."

Addressing claims made by opposition leaders, Sitharaman clarified that not mentioning a state in the budget speech does not mean it is excluded from budgetary allocations. She dismissed such assertions as misleading and reassured that the budget provides for all regions of the country.