FM Sitharaman set to present her 6th Budget, showcases digital ‘bahi khata’

In 2019, Sitharaman did away with the traditional Budget briefcase and instead went for a “bahi-khata” with the national emblem to carry the speech and other documents.

In her pre-election Budget, Sitharaman will seek Parliament’s nod for a grant in advance to meet the Centre’s essential expenditure for the first four months of the new financial year that starts in April. This Budget is technically a vote on account and is popularly termed an interim Budget. 

Prime Minister Narendra Modi government’s last Budget before the general elections is widely expected to contain a mix of measures for the economy and electorally significant segments like farmers and women.

Interim Budget 2024 expectations: What do trends indicate?

Peppered with political innuendos, it may be a political document with a snapshot of the Modi government’s triumphs over the last 10 years and pointers to how it wants to take the country forward.

According to PTI, with pressure for populist measures off after recent emphatic wins in three states, including Madhya Pradesh and Rajasthan, Sitharaman is expected to stick to being fiscally prudent while sprinkling sops for sectors like agriculture and engines of the economy that would create jobs and boost consumption.

Some finance ministers in the past have used the occasion to announce doles for rural India and the middle class.

For instance, the then Finance Minister Piyush Goyal in his interim Budget in 2019 had announced Rs 75,000 crore outlay for PM KISAN Samman Nidhi scheme wherein farmers are paid Rs 6,000 cash a year.

He also raised the standard deduction to Rs 50,000 and came up with a tax rebate to ensure that individuals with income of up to Rs 7 lakh per annum are not taxed.

In the pre-election Budget of 2014, Finance Minister P Chidambaram in the Congress-led UPA government slashed excise duty on cars, SUVs, two-wheelers, capital goods and consumer durables to boost manufacturing.

Pranab Mukherjee too in his interim Budget in 2009 hiked the outlay for rural sector schemes to shield the economy from the aftermath of the global financial crisis triggered by the collapse of US-based investment bank Lehman Brothers in 2008.

Jaswant Singh of the BJP-led NDA government in the 2004 pre-election interim Budget announced sops for central government employees.

Interim Budgets so far

The first interim Budget of independent India was presented by the then Finance Minister R K Shanmukham Chetty on November 26, 1947. CD Deshmukh presented the interim Budget in 1952, and TT Krishnamachari in 1957.

Former Prime Minister Morarji Desai presented two interim Budgets, one in 1962 and the other in 1967. Desai has the distinction of presenting six Budgets in a row. He had presented a total number of 10 Union Budgets.

Among others, Manmohan Singh presented interim Budget in 1996, Yashwant Sinha in 1991, R Venkataraman in 1980, H M Patel in 1977, and Y B Chavan in 1971.

As the Parliamentary elections are due, Sitharaman’s interim Budget may not contain any major policy changes.

Speaking at an industry event in December 2023, Sitharaman had ruled out any “spectacular announcement” in the interim Budget, saying it would just be a vote-on-account before the general elections.

After the Modi government came to power in 2014, Arun Jaitley took charge of the finance ministry and presented five Budgets in a row from 2014-15 to 2018-19. It was in 2017 that Jaitley departed from the colonial-era tradition of presenting the Budget on the last working day of February to the 1st of the month.

After the 2019 general elections, in the Modi 2.0 government, Sitharaman was given the charge of the finance portfolio. She became the second woman to have presented a Budget after Indira Gandhi, who had presented the Budget for the financial year 1970-71.

Indian economy under Nirmala Sitharaman

Under Sitharaman, India has weathered the Covid pandemic with an array of policy measures announced for the poor and continued its tag of the fastest-growing major economy and a “bright spot” in the world economy.

India is racing to become a $5 trillion economy by 2027-28 and a $30 trillion by 2047.

Sitharaman is expected to come up with some measures, especially to boost the rural sector as the agriculture sector growth in 2023-24 is estimated to decelerate to 1.8 per cent, from 4 per cent in the preceding year.

(With agency inputs)

First Published: Feb 01 2024 | 10:21 AM IST