Budget to introduce reforms aimed at increasing rural employment, enhancing farmers’ incomes

The forthcoming Union Budget 2024-25, which will be tabled on July 23 by Finance Minister Nirmala Sitharaman, will be important for the nation as it will set the tone of policy measures for the next 5 years. There are expectations that the Budget will strike a balance between enhancing consumption and increasing investments, both essential elements for sustainable economic growth. What are the other announcements that can be expected from the Budget? 

In an interaction with Business Today, Vaibhav Porwal, co-founder of Dezerv, said a weaker mandate may pressure the government to implement populist measures. “We expect the government to maintain its commitment to fiscal consolidation,” he said.

Porwal added that while India’s macroeconomic fundamentals are strong, policy efforts shall be directed towards transforming India into a developed economy by 2047. “To tackle the issue of a sluggish rural demand, we anticipate the Budget to introduce various reforms aimed at increasing rural employment and enhancing farmers’ incomes,” he said.

The wealth manager said that the government has prioritised infrastructure investment, resulting in the capital spending to GDP ratio doubling from FY19 to FY24. “While we anticipate ongoing government support for infrastructure projects, we also expect the government to incentivise states and private companies to contribute to the next phase of infrastructure development,” Porwal said, adding over the past decade, numerous government reforms and initiatives have created a favourable environment for the growth of various sectors in India.

“Earlier, Make in India and simplified indirect tax structure by conceptualising GST-enhanced manufacturing capabilities. National Manufacturing Policy, Liberalisation of FDI norms, and continuous focus on infrastructure development have boosted the capital goods and industrial sector. RERA brought transparency, accountability and efficiency to the real estate sector, helping restore investors’ confidence. Also, the push for affordable housing through subsidies and incentives provided significant impetus to the sector. These 3 have had the biggest impact on the economy,” he said.

Dezerv, which manages Rs 7,000 crore of assets, announced on July 9 that it has secured Rs 265 crore in a funding round led by Premji Invest. This round also saw participation from existing investors Elevation Capital, Matrix Partners India (aka Z47), and Accel.