The Hindu Editorial Summary

Editorial Topic : Budget for 2024-25

 GS-3 Mains Exam : Economy

Revision Notes

Growth Targets:

  • Presented on July 23, 2024
  • Short-term target: Minimum 7% GDP growth
  • Medium-term target: Sustained real GDP growth rate of 7%-7.5%

Fiscal Deficit:

  • Aim to bring fiscal deficit down to FRBM target of 3% of GDP within 3-4 years

Investment and Savings:

  • Required real investment rate for 7% growth: 35% of GDP
  • Current real investment rate (GFCF): 33.3% (FY23) & 33.5% (FY24)
  • Saving to GDP ratio (FY23): 30.2% nominal, 32.8% real
  • Need for marginal increase in savings and investment rates

Growth Drivers:

  • Domestic growth focus due to continued global economic shutdown
  • Emphasis on labor-intensive sectors for job creation

Budgetary Considerations:

  • Expected revenue improvement from tax and non-tax sources
  • Nominal GDP growth projected at 11% (7% real, 3.8% inflation)
  • Tax revenue target: Rs. 38.8 lakh crore (after state share)
  • Non-tax revenue boost from Rs. 2.11 lakh crore RBI dividends


  • Budget needs to balance growth with price and fiscal stability
  • Commitment to FRBM targets will reduce debt burden and facilitate fiscal consolidation


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