Budget 2024 came at a rare moment in the history of Indian budgets. Tax revenues are up, bank and corporate balance sheets are cleaned up, reserves are looking good and a surprise bonus from the Reserve Bank of India has bolstered the ability of the government to spend without compromising the fiscal consolidation process. But there are two clouds on the horizon — slowing consumption growth and tepid private sector investment. There was a third issue in front of the government — the middle class wanted a break from the increased taxation it has faced over the years. While Budget 2024 has not addressed all these issues to everybody’s satisfaction, it has started the walk on the path that does.
