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From Interim to Full Term: Comparing the February and July 2024 Budget Allocations

The July 2024 budget shows conservative fund reallocation with stable capital expenditure, reflecting cautious governance under the new coalition dynamics.

Parag Kar by Parag Kar
25 Jul, 2024 - Updated On 1 Oct, 2024
in Budget Analysis
Reading Time: 8 mins read
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The July 2024 budget represents a continuation of fiscal policy under the incumbent government, following the interim budget presented in February 2024 before the elections. This earlier budget was crafted under the expectation that the same government would retain power, albeit with a forecasted reduced majority. As predicted, the government did continue, but now it faces a shifted political landscape, relying on coalition partners to govern. Consequently, the financial strategies initially outlined in the February budget have been significantly adjusted to align with the new government’s altered priorities.

Instead of comparing this budget with that of FY 2023-24, it is more insightful to examine the deviations from the February 2024 interim budget. However, this comparison is not straightforward, as the July document omits the February figures. Therefore, one must reference a separate document to meticulously compare changes in allocations line by line—a laborious but necessary task to understand the shifts in governmental priorities. I have spent considerable time analyzing the expenditure aspects of the budget to discern these changes. This analysis aims to detail these shifts with as much granularity as possible, allowing readers to clearly perceive how political dynamics have reshaped budgetary allocations and priorities.

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Tags: Budget 2024Capital ExpenditureCoalition GovernmentEconomic PrioritiesElectric Mobility PromotionEmployment GenerationFiscal PolicyGovernment SpendingGovernment SubsidiesIndiaAI MissionIndian Fiscal PolicyInterest PaymentsMinistry AllocationsRevenue Expendituresubsidies
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Dissecting Budget 2023 — The Department of Telecommunication

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by Parag Kar
4 Feb, 2023 - Updated On 14 Nov, 2024
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GOI recently announced Budget2023. This captures the receipts and expenditures of the government for FY23–24. The purpose of this note...

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