Former NSDL Executive VP Chandrashekhar Tilak Analyzes the Interim Budget 2024

In a pre-election bonanza, Finance Minister Nirmala Sitharaman today presented the Interim Budget 2024, outlining a slew of measures focused on rural development, infrastructure, women empowerment, and healthcare. In response to this Former Executive Vice President at National Securities Depository Limited Economist Chandrashekhar Tilak gives an overview of the Union Interim Budget 2024-25. 

Decoding the Interim Budget

While speaking to LokmatTimes.com he said, “In her 1- hour speech, Finance Minister Nirmala Sitharaman presented the budget focuses on universal development. However, the government was expected to announce more pro-poor schemes in an election year which did not happen.” Tilak appreciated Finance Minister’s efforts to provide 2 crore more houses under PMAY-Gramin in next 5 years but was skeptical about its implementation.

Tilak told that looking at the current global order and wars going on, the budget could have been more aggressive. He expressed it is good sign for India’s supply chain though the Russia- Ukraine conflict and Israel- Hamas war disrupted the global supply chains, impacting trade. 

Tax Rates to Remain Same is a Welcome Step

 Tilak asserted that it is a welcome step that there was no change in income tax slab. There is enough thought,f and consideration given towards tax administration, according to the economist.  In a major announcement, the government has decided to withdraw outstanding direct tax demands up to Rs 25,000 for the period up to financial year 2009-10 and up to Rs 10,000 for financial years 2010-11 to 2014-15.

Defence Sector:

Tilak states that government has focused on defence sector. “It is important that our trade routes are open and secure amid the on-going wars. Earlier we were dependent on foreign countries for coal, gold and defence resources. Now, our export in defence equipment is increasing due to Atmanirbhar Bharat campaign.” In this budget, government has given attention to defence sector in terms of Resources, research and rebuild. 

Health Sector

“Under this budget, government is concentrating to build more hospitals, medical colleges which is a good effort. Government should not only focus on allopathic, but also ayurvedic and homeopathic hospitals, says Tilak.”

Infrastructure

FM Sitharaman highlighted physical, digital and social infrastructure. Roads, ports, airports come under physical infrastructure. Sitharaman said, "The aviation sector has been galvanised in the last 10 years. The number of Airports have been doubled to 149.” According to Tilak, “Though we have started UDAAN scheme, some airports are not developed and used just as buildings. Nashik, Solapur and Kolhapur airports are not developed. An airport near Gangtok could not be utilized due to weather change. We should look at the feasibility and operability of the airports.”

Digital infrastructure is boosted by the government. “It is a great step that government is expanding 5-G. We should focus more on IT industry and employment opportunities due to it”, states Tilak.

Health, education, women empowerment and child- care comes under social infrastructure.  Sitharam told poor, women, youth and annadata are 4 major castes. Tilak says, “The government has announced to empower these sections, but it requires consistency and proper direction. It is quite difficult to pay attention to their aspirations due to the model code of conduct before general elections.”