Overview

• India's Interim Budget 2024 focuses on fiscal consolidation and infrastructure, avoiding populist measures ahead of elections.
• The budget aims for a fiscal deficit target of 5.1% of GDP, with increased expenditure on capital and social sector schemes.
• Anand Mahindra praises the budget for its brevity and stability, highlighting the higher Tax to GDP ratio as a foundation for future fiscal flexibility.
• The budget includes cuts in food and fertilizer subsidies, aiming to boost the rural economy and support low-income earners.
• Economists view the budget as a sign of the government's confidence in reelection, with a focus on long-term economic stability rather than short-term electoral gains.