New Delhi [India], July 28 : Union Minister for Commerce and Industry, Piyush Goyal, shared his insights on the Union Budget 2024 at an event in Mumbai on Sunday.
Praising the budget, presented by Union Finance Minister Nirmala Sitharaman on July 23, the Commerce Minister noted that the interim budget presented in February set the course for the full year.
Elaborating on the long-term vision of the Union Budget 2024-25, he explained that budget could take two forms; the one filled with populist announcements may be beneficial in the short term but will be harmful in the long run. "The populist decisions of the budget can benefit us immediately, but their impact is harmful for the country," he added.
Reflecting on the aftermath of government spending during the financial crisis of 2008-2009 in the USA, he said, "India increased the fiscal deficit after the global meltdown of 2008-2009. Heavy borrowings and populist measures were adopted for almost six years. There was competition in every budget to see what more could be given to the people."
"For one or two years, an atmosphere of enthusiasm was created in the country. The rate of development also perhaps fell after reaching 9 per cent. The effect of heavy borrowing was visible in the form of a fiscal deficit. After that, the country saw double-digit inflation as well," the minister said.
The fiscal deficit target for 2024-25 is pegged at 4.9 per cent, better than what was estimated in the Interim Budget.
Presenting the Union Budget for 2024-25, Union Finance Minister Nirmala Sitharaman on Tuesday pegged the fiscal deficit target at 4.9 per cent of gross domestic product (GDP).
The difference between total revenue and total expenditure of the government is termed as the fiscal deficit. It is an indication of the total borrowings that may be needed by the government.
He further stated that by 2014, inflation was high and the rate of development had started falling. "By 2014, India started being counted among the fragile five economies. Everyone in the world started feeling that India's future could not be bright. A very weak narrative was created, and in a way, the whole world had turned its back on India," he said.
He emphasized that the budget should be crafted to ensure the country's economy remains strong, strengthening the economic base while benefiting citizens. "If the base of the economy is strong, then only can the country become a developed nation," he stated.
Attacking the opposition, the Union Commerce Minister said, "An atmosphere was created that only two states have received funds in the budget, which is entirely wrong. There are many infrastructure projects going on in every state. The Prime Minister visited the northeastern states more than 50 times to ensure these areas could develop," he added.
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