The Parliament’s Budget Session will reconvene on Tuesday with key financial matters on the agenda. Union Finance Minister Nirmala Sitharaman is scheduled to present the Finance Bill for the fiscal year 2024-2025 to the Lok Sabha for consideration and passage. The bill encompasses the current income-tax rates and introduces tax relief measures as well as amendments to various laws. Meanwhile, a general discussion on the Interim Union Budget for 2024-25, which was outlined on February 1, will take place.
In the other chamber, the Rajya Sabha will focus on the discussions surrounding the Motion of Thanks to the President’s address. The previous day saw Prime Minister Narendra Modi responding to the Motion of Thanks in the Lok Sabha, where he criticized former governmental policies and highlighted the achievements and vision of his own administration. With the Lok Sabha elections 2024 on the horizon, Modi expressed confidence in securing a third term in office through significant public backing.
On the economic front, Finance Secretary T.V. Somanathan outlined that the era of adhering to fixed fiscal goals is seemingly over, noting that India’s robust growth should naturally result in a decrease in the debt to GDP ratio. He warned, however, that inflation risks remain, necessitating the central bank to carefully balance economic growth with inflation when reviewing monetary policy. Somanathan also mentioned that a White Paper discussing economic strategies and reforms since 2014 is anticipated to be presented during this parliamentary session. Furthermore, he indicated ongoing discussions regarding the National Pension System, which his panel is reviewing. When asked about more concrete actions in the upcoming full Budget, Somanathan suggested that while details will be added, the broader fiscal outlook will remain consistent, barring changes in program expenditures.
He also clarified that the aim of reducing borrowings and the fiscal deficit is not intended as a signal to the markets or the Reserve Bank of India, but rather as a transparent account of the government’s fiscal strategies for long-term national welfare. Somanathan emphasized the delicate balance the RBI must maintain between growth incentives and inflation control. Reflecting on fiscal targets, he pointed out the international shift away from rigid goals, advocating for a more flexible approach to fiscal responsibility that reflects India’s comparatively low debt levels and promising growth prospects.