Budget 2024: How year-on-year India’s GDP grew to become world’s fastest-growing economy?

India’s Gross Domestic Product (GDP) for the fourth quarter of FY24 surged by 8.2%, amounting to Rs 47.24 lakh crore, surpassing earlier estimates by the National Statistical Office (NSO) which projected a growth of 7.3%. The nominal GDP expanded by 9.6% in FY24, compared to 14.2% in FY23, as reported by the Ministry of Statistics and Programme Implementation (MoSPI).

India is the fifth largest economy in the world GDP rankings list after USA, which is first, followed by China, Germany and Japan.

The Gross Value Added (GVA), which measures the value generated by various sectors of the economy, also saw robust growth, increasing by 7.2% in FY24, driven by a 9.9% growth in manufacturing and a 7.1% growth in the mining sector. Real GVA and GDP growth rates for the fourth quarter stood at 6.3% and 7.8%, respectively.

Budget 2024: Direct taxes bigger, grosser than indirect taxes – A look at tax collection data from past 10 years

The Revised Estimates (RE) 2023-24 of the total receipts other than borrowings is Rs 27.56 lakh crore, of which the tax receipts are Rs 23.24 lakh crore. In Budget Estimates of 2024-25, the tax receipts are estimated at Rs 26.02 lakh crore.

Government receipts (excluding borrowings) for the fiscal year are estimated at Rs 27,16,281 crore, reflecting an 11.7% increase over the revised estimates of 2022-23. To cover the gap between these receipts and total expenditure, borrowings are budgeted to amount to Rs 17,86,816 crore, marking a 1.8% increase over the revised estimate of borrowings for 2022-23.

Budget 2024 Expectation: Where does money come from and where is it spent? Govt’s income and expense explained

Finance Minister Nirmala Sitharaman unveiled her sixth consecutive budget on February 1 presenting the interim Budget. Sitharaman had projected the fiscal deficit to narrow to 5.8% in the current year and further to 5.1% by 2024-25.

In the interim Budget for the fiscal year 2024-25, the total expenditure was projected to be Rs 47,65,768 crore. This includes a significant capital expenditure amounting to Rs 11,11,111 crore. The Effective Capital Expenditure for the year 2024-25 was slated to be Rs 14,96,693 crore, marking a notable 17.7% rise over the Revised Estimates of the previous fiscal year.

Budget 2024: Will Modi 3.0 continue with welfare push? Know schemes that got massive allocations

Finance Minister Nirmala Sitharaman outlined changes in allocations for Major schemes in the Interim Budget 2024 that she presented on February 1 this year. Allocations for the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) scheme was Rs 86,000 crore, maintaining the same level as the revised estimate for 2023-24.Initially budgeted at Rs 60,000 crore in February 2023, the allocation had to be increased during the year due to sustained high demand for work under the scheme. The actual Budget allocated for the scheme in FY23 was Rs 90,806.

India’s capex sees sharp boost in 10 years, Budget allocation for FY25 around Rs 15 lakh crore

Finance Minister Nirmala Sitharaman, during her interim Budget speech in February, said that the Union government has raised the capital expenditure target by 11.1% to Rs 11.11 lakh crore for the next fiscal year starting April 1. This would be 3.4 per cent of the GDP.

Budget 2024: Inflation drops to 1-year low in May- A look at the trend over 10 years

According to NSO data, May 2024 marked India’s lowest CPI inflation since the same month a year ago, when it was 4.31%, consistently below 6% since September 2023. Retail inflation continued its downward trend, reaching a one-year low of 4.75% in May, driven by a slight drop in food prices, according to the data released by the National Statistical Office (NSO). Overall inflation has moderated sequentially since January 2024, ranging narrowly from 5.1% in February to 4.8% in April.The Consumer Price Index (CPI), which has been declining since January, was 4.83% in April 2024 and 4.31% in May 2023, the previous low. Food inflation stood at 8.69% in May, slightly down from 8.70% in April, data showed. 

Sensex scales 80,000 in just 138 days- A look at key levels from 1990-2024

Sensex scaled a fresh high in July and successfully breached the 80,000 milestone on July 03, 2024. The investor sentiment was buoyed by positive sentiment globally and confidence in the local economy. What’s particularly fascination is the pace at which Sensex climbed the latest 10,000 points. It took the Benchmark Index just 138 days to rally to 80,000 from 70,000.

“80,000 reflects markets’ confidence on policy measures announced by the government as they indicate policy continuity in Modi 3.0,” said Trideep Bhattacharya, President & CIO-Equity at Edelweiss MF. 

Inflation slides to under 5% from 9% in 10 years: Find out how

Headline inflation is often measured using indices like the Consumer Price Index (CPI) and the Wholesale Price Index (WPI). In FY14, the headline inflation in the country stood at 9.4%. In a matter of 10 years, the headline inflation has dropped to 5.5% in FY24, according to data provided by the Ministry of Finance. During the Monetary Policy Committee (MPC) meeting of the RBI during June 5-7, it said that the headline inflation was projected to ease from 5.4% in 2023-24 to 4.5% in 2024-25. This was subject to evenly balanced risks from the rising incidence of adverse climate events, pressures from input costs and volatility in crude prices and financial markers as well as the effects of monsoon on food prices.

Fiscal deficit drops to under 5% from 9% levels in the past four years

During 2020-21, the fiscal deficit surged to 9.3% of GDP, reflecting unprecedented spending on health and economic relief measures amidst the pandemic-induced economic downturn.Finance Minister Nirmala Sitharaman, during her Interim Budget speech in February, announced that the revised fiscal deficit target for FY25 was set at 5.1 per cent of the Gross Domestic Product (GDP).She had said that the revised fiscal deficit was at 5.8% and that the target was to reduce the fiscal deficit to below 4.5% of the GDP in 2025-26 (FY26).“We are committed to the path of fiscal consolidation, aiming to reduce the fiscal deficit below 4.5 per cent by 2025-26. The fiscal deficit in 2024-25 is estimated to be 5.1 per cent of GDP, adhering to this path,” Sitharaman had said in her Interim Budget speech.

How Nifty rose or fell in one month before Union Budget in last 5 years: See charts

On Budget day itself, Nifty 50 fell five times and gained five times in the past 10 years. In 2022, frontline indices surged to end 1.4% higher as investors gave a thumbs up to the pro-growth Budget. Nifty gyrated 367 points intra-day to hit a high of 17,622 before it eventually closed at 17,577, up 237 pts. The index moved in a 4.9% range in 2021 on the Budget day, where it eventually closed the day 4.7% higher. On February 1, 2020, the index ended 2.5% lower. In 2019, the 50-stock NSE barometer closed 0.6% higher. In 2018, Nifty closed mildly in red, while the index gained 1.8% in 2017.

Budget key statistics: Fiscal deficit target eased, capex, revenue deficit, disinvestment get smaller

The fiscal deficit target has been above Rs 15 lakh crore over the past two years as the government focused more on providing relief to its citizens, the budget stats show. On the other hand, capex target increased significantly in the past five years, as India aims to achieve $5 trillion economy goal.

Union Budget: How allocation to defence, education, health has seen double-digit growth in last 5 years

Budget 2023 is expected to focus on health, defence, education and social welfare sectors. In the last five years, the budget allocation for defence jumped by 46% while the allocation for social welfare rose more than 30%. The budget allocations to the health and education sector have also consistently increased.

Budget: Infrastructure takes front seat in 5 years; Rail, Roads, Highways get boost, Civil Aviation grounded

People are looking forward to Budget 2023 as the infrastructure industry has taken a front seat, with government allocations increasing significantly in the past five years. The Railway budget increased to Rs 1.4 lakh crore in 2022, Roads & Highways surged to Rs 1.99 lakh crore and the civil aviation budget rose to over Rs 10,000 crore.

Modi’s pet schemes: How allocation changed for Ujjwala, PM Kisan, Awas Yojana in last 5 Budgets

From the Kisan Samman Nidhi scheme to double farmers’ income to introducing the Ujjwala scheme, the budget allocation has changed significantly last nine years since Narendra Modi became Prime Minister.