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The government is already formed, now we know what Modi 3.0’s first budget could look like.

Sagar Patel

By Sagar Patel

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Modi budget 3.0 is coming soon

The National Democratic Alliance (NDA) government will be formed in the country under the leadership of the BJP. Narendra Modi has once again been elected leader of the parliamentary party and will be sworn in as Prime Minister of the country for the third time. After the elections in the country, the formation of the government is almost complete, but the most important thing is that as soon as the government is formed, the most important task is to present the budget.

Before the elections in the country, the government presents a provisional budget and after the elections, the new government that is formed brings the complete budget. Former Finance Minister Nirmala Sitharaman presented the interim budget in February and now the full budget will be presented in late June or early July. Therefore, now all eyes are on what the government’s budget will look like.

Will the government choose the path of popularity?

The Bharatiya Janata Party did not win a majority on its own in the Lok Sabha elections. The BJP’s electoral performance in the country’s largest state, Uttar Pradesh, has also been disappointing. Elections will also be held in many states of the country until 2025, including Bihar and Delhi. In such a situation, experts believe that the government may opt for the path of populist schemes in the budget.

In such a situation, the government may announce new welfare schemes or schemes to help the poor. The coalition partner parties have an important role in the current government, which will last the next five years. In this sense, Moody’s Analytics states that the impression of coalition partners can now be seen in the government’s policymaking.

ET spoke to economist N., vice-chancellor of the BR Ambedkar School of Economics, Bengaluru University. r. Bhanumurthy has been quoted as saying that every government works on welfare schemes, but when the alliance is decisive, then the focus on such schemes increases.

Will the reforms stop?

In the last two terms of Narendra Modi, the country underwent many economic reforms. The biggest challenge in this was implementing GST. Apart from this, proper implementation of RERA, bankruptcy law, etc. It is one of the main achievements of this government. In such a situation, will these reforms stop in the new coalition government i.e. Modi 3.0?

In this sense, Moody’s Analytics affirms that the coalition government can put the brakes on economic and fiscal reforms. The government has set a target of taking the fiscal deficit to 5.1 per cent of GDP in 2024-25. It currently stands at 5.6 percent. While for a healthy economy it should be 4.5 percent.

In this regard, economist Dhananjay Sinha says that in the last 5-7 years, the government’s focus has been on the supply side. Like cutting corporate taxes, pumping money back into banks, paying off bad loans, and spending on infrastructure. This is also believed to be one of the reasons why the government got a weak mandate.

In such a situation, there is a possibility that in Modi 3.0, the government can now focus more on the demand side. The government can implement such schemes that will send money to the village level, where the anger growing in the rural economy can be reduced.

Sagar Patel

Sagar Patel

I am Sagar Patel, specializing in business news reporting. With a keen focus on economic trends, market analysis, and corporate developments,

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