Budget 2024 Focuses On Debt Reduction Without Hindering Growth, Says Nirmala Sitharaman | Exclusive

Finance Minister Nirmala Sitharaman underscored that the 2024 Union Budget focused on reducing the national debt without stifling economic growth, in an interview with NDTV Group Editor, Sanjay Pugalia. The government’s strategy involves curbing debt levels while ensuring that growth trajectories remain positive, a balancing act crucial for long-term economic stability, she said.

Sitharaman highlighted that recent budgets have become notably simpler, more direct, and more transparent. This change is part of Prime Minister Narendra Modi’s vision for budget communication, she said. "The Prime Minister has always desired that the budget and its language be simple so that the common man can understand its content. Nothing should be hidden; everything should be laid out clearly," she said.

“We now present everything upfront. There’s no fine print or hidden details. We ensure that any changes made are communicated openly, based on feedback and transparent processes," Sitharaman said. This approach marks a departure from earlier practices where budget details could be obscured by complex language and extensive fine print, she said.

One of the standout features of this year’s budget is its focus on youth. “This budget offers a comprehensive package for youth development,” she said. Key components include expanding apprenticeship opportunities for students in the top 500 companies, increasing investment in state-owned Industrial Training Institutes, and introducing new training programmes in collaboration with private players. The budget also addresses emerging fields such as robotics, Web 3.0, and AI, preparing students for careers in these high-demand sectors.

On financial regulation, particularly concerning derivatives, Sitharaman acknowledged the growing interest among Indians in these investment vehicles. "We leave it to the SEBI to give a soft-touch regulatory approach to F&O and cash markets", she explained. This approach seeks to balance investor protection with market efficiency, providing a flexible regulatory environment that supports the growing derivatives market, she said.

On criticism that the budget focused on specific states, the finance minister said no state is being denied its due support. “States are receiving allocations as they have in the past. No state is being left behind."

Regarding South Indian states, Sitharaman acknowledged their developmental challenges and emphasised the role of the Finance Commission in addressing these issues. States should present their developmental achievements and needs in order to secure appropriate funding. They should seek funds for developmental purposes based on their achievements and challenges, she said.

Sitharaman also touched on the development of cities beyond major metros. “We are focusing on technology and innovative town planning to make existing cities more livable and futuristic,” she said. This initiative aims to improve urban infrastructure and quality of life in cities across India, not just in metropolitan areas.

The Finance Minister elaborated on fiscal prudence, stressing that reducing the fiscal deficit requires a broader perspective on macroeconomic stability. “While it's important to bring down the debt, the focus should be on doing so without affecting growth."

The goal is not merely to meet deficit targets but to manage debt through asset creation and efficient borrowing practices, she said.

The Income Tax Regime Committee will deliver its report within six months, Sitharaman confirmed. This report is anticipated to provide recommendations on potential reforms to streamline and enhance the income tax system.