Finance Minister Nirmala Sitharaman chaired the first pre-budget meeting with leading economists in Delhi on Wednesday as part of pre-budget consultations for the General Budget 2024-25.
The discussions focused on critical issues such as boosting capital expenditure and reducing the fiscal deficit.
During the discussion, economists emphasized that the fiscal deficit will be further reduced in the upcoming budget, and the government is concentrating on policies to generate employment growth.
"The government has shown fiscal prudence and has controlled fiscal deficit. This time, revised estimates also show positive indications. The government has already stated that the fiscal deficit will be lower in the budget. At the same time, employment remained an important issue of discussion" said Ashwani Mahajan, National Co-convener of the Swadeshi Jagaran Manch.
On the demand for granting special status to some states, Mahajan added, “There's nothing on special status for states. The government is already doing a lot on capital expenditure, with at least more than 3 per cent of GDP being spent on it.”
Industry bodies, including the Confederation of Indian Industry (CII), urged the government to increase capital expenditure in the upcoming budget. During the discussions, economists also highlighted on the need to boost capital expenditure.
"It is very much in the discussion, that CapEx (Capital Expenditure) has driven or helped to drive the growth of the economy, which should be sustained. And private sector investment and consumption growth should also be sort of pushed to sustain this growth" said Nagesh Kumar, Director and Chief Executive of the Institute of Studies in Industrial Development.
The meeting was attended by the Finance Secretary, and the Secretaries of the Departments of Economic Affairs, Revenue, Financial Services, and Corporate Affairs, along with the Chief Economic Adviser of India.
These discussions with industry experts and economists are crucial as they lay the groundwork for the government's fiscal policy and economic strategies in the forthcoming budget. (ANI)
