Budget 2024 and the impact of the general elections
Live MintPopular expectations had settled on the notion that the outcome of Election2024 would influence the tenor and direction of Budget2025. The ambition on agriculture reforms, the ₹1.1-trillion infrastructure push, development of industrial parks with states to spur manufacturing, urban development plans and ramp-up of skilling, among others, are all projects that envisage intense cooperation between the Centre and states. FM Sitharaman even acknowledges that many of the reform measures will require close collaboration between the Centre and the states because, “…development of the country lies in development of the states." And, yet, in the middle of this funds crunch, the budget is asking states to cut stamp duty, which is perhaps among the largest sources of revenue for many states. Ironically, the budget proposal to cut stamp duty contradicts the Fifteent Finance Commission’s recommendation for states to raise more revenue through higher stamp duty and registration fees.
History of this topic
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