Interim Budget today: Measures for farmers, women on anvil

New Delhi:  Finance Minister Nirmala Sitharaman will on Thursday present the Modi 2.0 government's last Budget before the general elections, which is likely to contain a mix of measures for the economy and electorally significant segments like farmers and women.

Peppered with political innuendos, her sixth straight Budget may present a political document with a snapshot of the Modi government's triumphs over the last 10 years and pointers to how it wants to take the country forward.

With pressure for populist measures off after recent emphatic wins in three states, she is expected to stick to being fiscally prudent while sprinkling sops on sectors like agriculture and engines of the economy that would create jobs and boost consumption.

The Budget she will present is technically a vote on account and popularly termed an interim Budget as it seeks Parliament's nod for a grant in advance to meet the central government's essential expenditure for the first four months of the new fiscal year that starts in April.

A new government elected after the April/May general elections will present the full Budget, likely in July.

The interim budget, however presents an occasion for spectacle just weeks ahead of the Model Code of Conduct coming into force.

While the precedence dictates that no major policy announcements are made in a vote on accounts, going by past conventions hasn't stopped governments from making big announcements like the cash dole for  farmers announced in the 2019 interim Budget.

The Budget is expected to focus on infrastructure and buck a trend of spending big on new vote-garnering measures.

The Budget would, however, provide an occasion to assess the fiscal health of the economy against the backdrop of robust economic growth.

It would provide an occasion for the government to give a clear roadmap for achieving the Fiscal Responsibility and Budget Management Act (FRBMA) targets. Suman Chowdhury, chief economist and head - Research, Acuite Ratings & Research, said, "Given the priority that is likely to be given for fiscal consolidation in the upcoming Budget, we don't expect any significant fiscal stimulus in it. However, the government may continue to earmark a significant quantum for capital expenditure with a growth of 15 per cent in its budgetary allocation; the latter will continue to be a primary driver of the domestic economy over the medium term".

The government may also enhance the subsidy allocation for some segments like farmers, women, informal sector workers and unemployed youth to strengthen domestic private consumption, which is estimated to show a weak growth of 4.4 per cent in FY24, he said.