Anand Mahindra shares 5 reasons why he is ‘pleased’ by Interim Budget 2024

Budget 2024: The Union Finance Minister on Thursday presented Modi 2.0 government's last budget as the Lok Sabha elections are due in May most likely. In the Interim Budget speech, the finance minister resisted the temptation of spending trillions of rupees on schemes for the poor despite the elections nearing and instead focused on fiscal consolidation to attract investors.

The lack of social spending largesse is indicative of the BJP's confidence in returning to power for a rare third term.

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However, Mahindra Group Chairman Anand Mahindra hailed FM Sitharaman for keeping the budget short and crisp.

According to Anand Mahindra, "The Budget is NOT necessarily the occasion for transformational policy announcements. Those can, and should, happen throughout the year".

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The business magnate noted that the Budget should be an opportunity to plan finances 'prudently' and with 'fiscal rectitude'.

"The more we are focussed on living within our means and investing for a robust but sustainable future, the more confidence we will gain with global investors," Mahindra wrote on the X platform.

Budget full speech of Nirmala Sitharaman

Further, he enlisted five points why he is pleased by Sitharaman's Interim Budget speech.

Firstly, Mahindra hailed the finance minister for her 'shortest speech'. "Brevity that is welcome and which communicates quiet confidence," he wrote.

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Notably, Sitharaman presented her sixth consecutive budget with a speech lasting 56 minutes, her shortest ever. She also holds the distinction of delivering the longest budget speech at two hours and forty minutes in 2020.

Secondly, Mahindra appreciated that the Interim Budget included 'no populistic measures' and hoped that it would become a permanent norm in future budget speeches as well.

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Further, Mahindra said that the fiscal deficit target was better than envisaged. The government is targeting to reduce its fiscal deficit to 5.1% of GDP in 2024-25 from 5.8% in the current financial year.

Since the FM announced no changes in tax rates for direct and indirect taxes, Mahindra hailed the decision. He said, "Businesses place a high value on stability and predictability and that was evident in this budget".

According to Mahindra, the biggest announcement made by Sitharaman on Thursday was the ' higher Tax to GDP ratio' as it 'cements a strong foundation for fiscal flexibility and aggressive expenditure when it is needed. The FM can and should trumpet this more loudly...'.l

The Interim Budget 2024 size increased by 6.1% to ₹47.66 lakh crore because of a rise in expenditure and higher allocation for capital expenditure and social sector schemes.

According to FM Sitharaman, the revenue receipts at ₹30.03 lakh crore are expected to be higher than the Budget Estimate, reflecting strong growth momentum and formalisation in the economy.

The nominal GDP growth for the next financial year has been pegged at 10.5% against the 11% estimated earlier.

Stressing that the impact of all-round development is discernible in all sectors, she said, "There is macro-economic stability, including in the external sector. Investments are robust. The economy is doing well."

People are living better and earning better, with even greater aspirations for the future, she said, adding that the average real income of people has increased by 50%.