Sitharaman addresses Lok Sabha to answer post-budget opposition questions

FM on opposition queries: In her post-budget speech at Lok Sabha, Finance Minister Nirmala Sitharaman underlined the continuity and advancements in the current budget, aligning it with the vision outlined in the Vote on Account. The Finance Minister said that the budget consolidates past achievements while introducing new measures to propel India towards its goal of "Vikasit Bharat" (Developed India) over the next five years.

Sitharaman highlighted that the budget builds on the principles of governance established in 2014, aiming to address challenges through a focus on social and geographical inclusivity. She noted that the budget's expenditure has grown significantly, reaching Rs 48.21 lakh crore, with projections for a 7.3 per cent increase over the previous year and an 8.5 per cent rise compared to pre-actuals of 2023-24.

A key feature of India's post-COVID growth, according to Sitharaman, is the focus on capital expenditure. The budget allocates Rs 11.11 lakh crore for capital investment, nearly 3.3 times the amount in 2019-20. When considering effective capital expenditure, which includes grants and aid for state-level capital assets, the total stands at Rs 15.02 lakh crore, marking an 18 per cent increase over the revised estimates of 2023-24.

Increased expenditure across sectors: Sitharaman

Sitharaman refuted claims of reduced social sector allocations, presenting data to support that expenditure has increased across various sectors. Notably:

Agriculture: Allocation rose from Rs 0.30 lakh crore in 2013-14 to Rs 1.52 lakh crore, an increase of Rs 8,000 crore from last year.

Education, Employment, and Skilling: Increased from Rs 0.85 lakh crore to Rs 1.48 lakh crore, a 23 per cent rise from last year.

Women and Girls: Allocation grew from Rs 0.96 lakh crore to Rs 3.27 lakh crore, an increase of Rs 96,000 crore from the previous year.

Rural Development: Increased from Rs 0.87 lakh crore to Rs 2.66 lakh crore, an 11.7 per cent rise over last year.

Urban Development: Allocation has risen from Rs 2 lakh crore to approximately Rs 3 lakh crore, up by Rs 7,000 crore from last year.

Health and Social Welfare: Increased from Rs 0.72 lakh crore to Rs 1.46 lakh crore, a rise of Rs 3,000 crore from the previous year.

The Minister also addressed concerns regarding fiscal prudence, noting a major improvement in the revenue deficit to fiscal deficit ratio, expected to fall to 36 per cent in 2024-25. 

She reaffirmed the government's commitment to reducing the fiscal deficit to GDP ratio below 4.5 per cent by 2025-26, adhering to the fiscal trajectory set out in previous announcements.

Sitharaman also praised India's economic recovery post-pandemic, highlighting the country's position as the fastest-growing economy over the past three years. She attributed this success to the hard work of citizens and effective leadership, including Prime Minister Narendra Modi.

Sitharaman on Jammu Kashmir Budget

Turning to Jammu and Kashmir, Sitharaman announced substantial financial support for the Union Territory, with Rs 17,000 crore allocated for 2024-25. This includes Rs 12,000 crore for financing the cost of the Jammu and Kashmir Police and an additional Rs 5,000 crore in central assistance. The Minister projected that the fiscal deficit to GSTP ratio for Jammu and Kashmir would be around 3 per cent for the year, reflecting improved public finances and a focus on developmental activities.

Addressing concerns raised by MPs about unemployment in Jammu and Kashmir, Sitharaman provided data showing a reduction in the unemployment rate from 6.4 per cent in 2020-21 to 4.4 per cent in 2022-23, attributing the improvement to government schemes creating self-employment and livelihood opportunities.