NEW DELHI — The Lok Sabha on Tuesday approved the INR 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 INR 14.01 lakh crore and INR 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 INR 32.07 lakh crore and INR 48.21 lakh crore respectively. The net tax receipts are estimated at INR 25.83 lakh crore.