ALL EYES WERE on the Union Budget in July 2024, that came just six weeks after the General Elections. Voters, businesses, political parties, and those looking to invest in India—everyone wanted to assess what it would indicate about the NDA government’s broad policy direction in its third term and what it would hold for each section of the country and economy.
And it certainly did not disappoint. Taking cues from the elections and ahead of polls in some states—such as in Maharashtra, Haryana, Jharkhand, Delhi and Bihar—the government took up issues close to the voters, the biggest being that of employment and skilling. Others include fresh avenues for funding and easier compliances for micro, small and medium enterprises (MSMEs), higher outlay for agriculture and schemes for rural development and housing that could have a multiplier effect. There was also some tax relief for the middle class.
The Budget also took care of the demands of the NDA’s two key allies—the Telugu Desam Party (TDP) and the Janata Dal (United) or JD(U)—which together hold 28 seats in the Lok Sabha. Finance Minister Nirmala Sitharaman announced generous outlays for schemes and financial support to both Andhra Pradesh, where the TDP is in power, and the JD(U)-ruled Bihar.
The Budget also quelled worries of economists and investors around the dynamics of a coalition government by retaining credible targets while underlining its continued commitment to fiscal consolidation. It has
