Budget likely to continue thrust on major infra projects

Big Projects for More Jobs

l There will be increased outlays on social welfare schemes

l Buoyancy in tax revenues is expected to continue in 2024-25

l Investments in big infra projects create more jobs and incomes

New Delhi: The government’s interim Budget 2024-25, to be presented by Finance Minister Nirmala Sitharaman on February 1, just ahead of the Lok Sabha polls, is expected to see a continuation of the stepped-up government investment in big-ticket infrastructure projects to spur economic growth while keeping the fiscal deficit in check.

There will also be increased outlays in the budget on social welfare schemes for the poor and the agricultural sector to meet the food security needs of the vulnerable sections and ensure inclusive growth. The Finance Minister is comfortably placed on the fiscal consolidation path with tax collections in 2023-24 expected to exceed the budget estimates.

As the economy continues to grow at a brisk pace, this buoyancy in tax revenues is expected to continue in 2024-25, which will make sufficient resources available for taking up big projects in the highways, ports, railways and power sectors as well as social welfare schemes for the poor without the fiscal deficit spinning out of control.

The fiscal deficit, which reflects the amount of government borrowing required to bridge the gap between its total revenue and expenditure, was fixed at 5.9 per cent for 2023-24. The government is expected to meet this target.

Government investments in big infrastructure projects create more jobs and incomes that have a multiplier effect on the economy as demand for products such as steel and cement also goes up, which leads to more private investments and employment.