Nirmala Sitharaman, India’s Finance Minister, is making history by presenting her sixth consecutive Budget, a feat achieved only by former Prime Minister Morarji Desai. She follows in the footsteps of Indira Gandhi as the only Indian woman to take on this significant responsibility.
Nirmala Sitharaman made history as the second female finance minister to present the budget after Indira Gandhi, who presented the budget for the 1970-71 fiscal year.
Setting Records:
With the interim Budget presented on February 1, Sitharaman surpassed the records set by her predecessors, including Manmohan Singh, Arun Jaitley, P Chidambaram, and Yashwant Sinha. Morarji Desai, as Finance Minister, presented five annual Budgets and one interim Budget between 1959 and 1964, a feat that Sitharaman is about to exceed.
Sitharaman’s journey to the Finance Ministry was unconventional. A seasoned politician with experience in defence and commerce, she was known for her sharp intellect and articulate arguments. Her appointment defied expectations, marking a significant moment for gender representation in Indian politics.
Interim Budget 2024-25:
The interim Budget Sitharaman presented was a vote-on-account, providing the government with the authority to spend specific sums of money until a new government is in place after the general elections in April-May. Due to the upcoming elections, the interim Budget may not include major policy changes, serving as a vote-on-account to manage government spending in the short term.
Sitharaman has clarified that the interim Budget won’t feature any “spectacular announcement.” In a recent industry event, she emphasized that it is a pre-election vote-on-account and ruled out major policy shifts. The interim Budget is focused on authorizing government expenditures for the April-July period.
A vote-on-account, approved by Parliament, permits the government to withdraw funds from the Consolidated Fund of India on a pro-rata basis to meet expenses for the specified period. The new government, likely to form around June, will then present the final Budget for 2024-25, typically in July.
Past Finance Ministers:
Arun Jaitley, during the Modi government’s tenure from 2014-2019, presented five consecutive Budgets. Piyush Goyal took charge in 2019 due to Jaitley’s ill health and presented the interim Budget, introducing measures like an increased standard deduction for salaried taxpayers and enhanced tax rebates for certain income groups.
Sitharaman’s Unique Approach:
Since assuming office in 2019, Sitharaman has ushered in changes, discarding the traditional Budget briefcase in favour of a ‘bahi-khata’ with the national emblem. Her tenure has seen India weather the challenges of the COVID-19 pandemic through a series of policy interventions, maintaining its status as the fastest-growing major economy globally.
Economic Resilience Amidst Challenges:
Under Sitharaman’s leadership, India navigated the challenges posed by the Covid-19 pandemic through a series of policy measures aimed at supporting the vulnerable. Despite global uncertainties, India maintained its status as the fastest-growing major economy, earning recognition as a ‘bright spot’ in the world economy.
India, under Sitharaman, is striving to achieve the ambitious goal of becoming a USD 5 trillion economy by 2027-28 and a staggering USD 30 trillion by 2047, showcasing a commitment to long-term economic growth.
Morarji Desai’s Legacy:
Morarji Desai, a former Prime Minister, holds the record for presenting ten Budgets, the most by any finance minister. His six consecutive Budgets, including one interim, set a precedent that Nirmala Sitharaman is on the verge of surpassing.
Expectations for the Sixth Budget:
Sitharaman’s 2024 Budget includes measures to boost the rural sector, empower women, responding to concerns about the slowdown in agricultural sector growth. According to Experts the Budget focuses on immediate fiscal needs rather than introducing broad, long-term economic reforms.
Positive Takeaway
As Nirmala Sitharaman presented her sixth consecutive Budget, she stands as a trailblazer, breaking records and leaving a mark on India’s economic landscape. While the interim Budget may not bring major policy changes, it reflects a strategic balance between addressing immediate fiscal responsibilities and laying the foundation for future economic growth in the pre-election context.
