Nirmala Sitharaman Says Budget Focuses On Inclusivity, Development In Counter To Opposition Charges

Here are the highlights from Finance Minister Nirmala Sitharaman's response to the Union Budget 2024 debate at the parliament on Tuesday:

• Overall Government Expenditure: The government's expenditure has grown to Rs 48.21 lakh crore.

• Agricultural Allocation: The budget allocates Rs 8,000 crore more to agriculture compared to last year, bringing the total agricultural budget to Rs 1.23 lakh crore, which is 3.3 times higher than in 2019.

• Education: The allocation to education has increased by 23% compared to last year.

• Health and Social Welfare: The allocation for health and social welfare has increased by Rs 3,000 crore compared to last year.

• Capital Expenditure: The budget's capital expenditure (capex) is 3.3 times that of 2019.

• Jammu and Kashmir: Rs 17,000 crore has been allocated to Jammu and Kashmir, with a focus on development.

• Unemployment: The unemployment rate for the 15-59 age group decreased to 4.7% in 2022-23, down from 6.4% in 2020-21.

• Small Agriculture Loans: Loans to small agriculture farmers have increased to 76%, up from 57% in 2014.

• Mudra Loans: Rs 29 lakh crore in Mudra loans have been disbursed this year.

• Development for SC, ST, Women, and Backward Classes: The allocation for these groups has increased. The allocation for women's development has increased to over Rs 88,000 crore.

• Investor Base: The registered investor base at the NSE has tripled from March 2020 to March 2024, with 9.2 crore Indians investing by March 31, 2024.

• Housing Construction: The spend on housing construction increased to Rs 35 lakh crore in the financial year 2022-23.

Sitharaman finally spoke about the 'Halwa Ceremony' before the Union Budget 2024. “When did this become a photo event? In 2013-14, the halwa was distributed by the Finance Minister from the UPA government. Did someone ask them how many SC, STs were there?”

On July 29, Rahul Gandhi, the Leader of Opposition, took a dig at the traditional halwa ceremony, calling it the 'budget ka halwa'. Where he displayed a photo of the halwa ceremony in Parliament, and questioned that why there were no Dalit, adivasi or backward class officer in the photo.

"West Bengal's share in total industrial production of India fell to 3.5% from 24% during independence," the Finance Minister commented after a certain economist compared the state's economy today with the British era.

The employment for youth in 2024 has been increased to 51% in comparison to 34% in 2014, said Finance Minister Nirmala Sitharaman.

The government has increased its allocation for women to over Rs 88,000 crore in this fiscal, the Finance Minister said in Lok Sabha. She also added women's participation in the labour force has also seen an increase.

Finance Minister said on Tuesday that the spend on construction of houses has increased to Rs 35 lakh crore in the financial year 2022-23.

The registered investor base at the NSE has tripled from March 2020 to March 2024. "The investors grew to 9.2 crore Indians till March 31, 2024. Potentially translating in 20% of India's households now are channeling their savings into financial markets," she said.

The allocation towards the development of SC, ST, women and backward classes has increased, said Sitharaman. The Finance Minister said while countering Opposition's remark on the SC, ST and women are being ignored in Union Budget 2024.

Domestic inflation used to be higher than global average during the UPA government, said Sitharaman. Annual inflation rose to over 8% in 2013-14 from 3% in 2003-04."India's inflation is much lower during the NDA government," the Finance Minister said.

Youth unemployment has decreased to 3% in 2022-23 vs 6% in 2017-18.Industry survey shows that formal employment during covid was better as compared to 2012-14, Sitharaman said on Tuesday. "There was a higher dip in formal employment during the UPA rule, even higher than that of the Covid-19 figures," she said during her budget discussion in Parliament.

"Rs 29 lakh crore Mudra loans disbursement in this year," Finance Minister Sitharaman said in the parliament on Tuesday.

The loan disbursement has increased to Rs 29 lakh crore and hence the allocation has been increased in the budget, she further added.

The agriculture budget in this fiscal stands at Rs 1.23 lakh crore. This is 3.3 times higher than the allocation in 2019. She further added, "Small agriculture farmer loans have increased to 76% from the earlier 57% in 2014."

Recently our government has announced multiple packages for many states, the Finance Minister said in the parliament. "Delhi-Amritsar road project got Rs 18,274 crore recently, she said. "Highway projects in Kerala were given Rs 9667 crore," she further added.

Sitharaman also mentioned budget allocation for West Bengal, Jharkhand, Bihar for railways multi tracking project.

"Vizhinjam port was given over Rs 800 crore as viability funding gap, "she said.

She also mentioned bulk drug parks in Himachal Pradesh were given Rs 1,900 crore.

The Finance Minister Sitharaman, said that if a state is not named in a budget speech, it doesn't mean that benefits are not going to them. She said that after the opposition blamed the government on focusing on Bihar and Andhra Pradesh- the states of the two NDA allies.

"Many states were not named in budgets presented by UPA government, was money not given to them?," she said.

The unemployment rate in age group of 15-59 years came down to 4.7% in 2022-23 vs 6.4% in 2020-21, the Finance Minister said on Tuesday in her reply to the parliament during budget discussion.

Talking about Capex finance minister on Tuesday said that the budget capex is 3.3 times that of 2019. She also added that the capex has helped India maintain high growth. "The capex has also enabled us to come out of the Covid," she added.

We have provided substantial allocation of Rs 17,000 crore for Jammu and Kashmir in the Union Budget 2024. "The Union Territory is now able to focus on the development much more than ever before," Sitharaman said.

"186 tribal villages are beginning to be developed in Jammu and Kashmir," she further added.

The agricultural allocation in the budget 2024 is Rs 8,000 crore higher as compared to last year, the Finance Minister said in the parliament on Tuesday.

"The allocation to education has increased by 23% as compared to last year," she said. "Health and social welfare allocation increased by `3,000 cr as compared to last year," she further added.

Finance Minister Nirmala Sitharaman emphasised that the capex has actually enabled us to come out of the covid and the expenditure of the government has grown to Rs 48.21 lakh crore.

The social & geographical inclusivity are highlighted in the budget, she said in the parliament.

The Finance Minister starts responding to the Union Budget 2024. "This budget is the first step to the next five years of Vikasit Bharat," she said.

Opposition parties on Monday tore into the Union Budget saying most of the states have got nothing in the first major economic document of the Modi 3.0 government. Treasury benches on the other hand lauded the Rs 48.2 lakh crore Union Budget presented in Parliament on July 23 saying the country has made all-round development.

Participating in the general discussion on the budget, senior BJP leader Sudhanshu Trivedi reeled out data on GDP growth, rising foreign exchange reserves, declining fiscal deficit and a sharp increase in foreign remittances to highlight the achievements of the government on the economic front.

Congress member Imran Pratapgarhi said the budget has done injustice to states, youth, farmers, women and the middle class. He said the finance minister has spoken only 10 words on inflation at a time when tomato prices have skyrocketed to Rs 100 per kg.

John Brittas (CPI-M) too took a jibe at the Modi-government, saying the finance minister has achieved a 'rare feat' of presenting the budget of Bihar and Andhra Pradesh in parliament, and added next year, she can present the budget of Haryana and Maharashtra.

(Source: PTI)

In the current fiscal, the Union government remains committed to its path of fiscal consolidation, targeting a fiscal deficit of 4.9% of GDP. Finance Minister Nirmala Sitharaman emphasised that while achieving a specific deficit number is crucial, it is not the sole focus.

She highlighted that merely reducing debt is a viable route to managing fiscal deficit, but it has its limitations.

"Reducing the debt is an obvious route for any country, but you need to borrow, especially for a growing economy," Sitharaman told NDTV last week. The key is to ensure that borrowing translates into asset creation rather than just debt clearance, she said.

Read full report here.

During today's Lok Sabha debate on Budget 2024, a heated exchange erupted between Samajwadi Party chief Akhilesh Yadav and BJP MP Anurag Thakur over the Agnipath scheme.

Yadav, representing Kannauj in Uttar Pradesh, labeled the budget as a "budget of despair," criticizing the government's praise for it while highlighting the lack of provisions for the unemployed, youth, and rural areas. He lamented the struggles faced by families in managing household expenses, educating children, and caring for the elderly.

In response, BJP MP and former Union Minister Anurag Thakur challenged Yadav's remarks, emphasizing his own military background as a Territorial Army captain. Thakur dismissed Yadav's critique, saying, "He has just gone to a military school; I am serving as a Territorial Army captain. Akhilesh ji, don’t give gyan."

Yadav fired back by suggesting that Thakur's irritation might stem from not securing a ministerial position this time, remarking, "Maybe he is agitated because he is no longer a minister. I read pain on your face."

(Source: NDTV)

Finance Minister Nirmala Sitharaman said that it is incumbent upon the Securities and Exchange Board of India to regulate the futures and options markets amid concerns over exuberance and excess volatility in the derivatives segment.

"We believe it is for SEBI to do that regulation in the market, just like they have been voicing concerns about the speculative activity happening in the F&O market and the valuation commentary," Sitharaman told NDTV's Editor-in-Chief Sanjay Pugalia in an exclusive interview last week.

The budget proposal to increase the securities transaction tax on futures and options is to show the government's intent to indicate to people the high-risk nature of such markets, and not to raise revenue, she said.

Read full report here.

Nirmala Sitharaman's facepalm moment in the Lok Sabha has become a hot topic online. The incident occurred when Rahul Gandhi on Monday criticised the traditional pre-budget 'Halwa' ceremony, pointing out the lack of diversity among those involved in its preparation, notably the absence of Dalits, Other Backward Classes, and Adivasis.

At this point, the Finance Minister placed her hands over her face. A disapproving nod followed. The reaction was not lost on the Congress leader.

"The Finance Minister is laughing. It is quite astonishing. This is not a laughing matter, Madam. This is about caste census. It will change the country," said Gandhi.

In response, the BJP criticised Gandhi's remarks, alleging that the Congress has a history of obstructing reservations for Scheduled Castes, Scheduled Tribes, and OBCs. The BJP also accused the Congress of being "anti-Hindu".

(Source: NDTV)

Finance Minister Nirmala Sitharaman is expected to reply to the general discussions on the Union budget 2024 in Parliament today. The budget was tabled last week.

The opposition has raised several issues with the budget, including the removal of indexation benefits on real estate, a lack of tax cuts for the middle class, and a lower allocation to education as a share of the government's total expenditure plans.

The minister is expected to speak in Parliament at 4 p.m.