Budget 2024: FM Sitharaman announces economic policy framework for next-gen reforms to boost economic growth

Union Finance Minister Nirmala Sitharaman on Tuesday (Jul 23) in her Budget speech announced that the Centre will come up with an economic policy framework that would steer next-generation reforms aimed at speeding up the economic expansion.

"We will formulate an economic policy framework to delineate an overarching approach to economic development and set the scope of next-generation reforms for facilitating employment opportunities and for sustaining high growth," Sitharaman said.

She said that the government will initiate and incentivisereforms to improve productivity of factors of production and facilitate markets and sectors to become more efficient.

The next-generation reforms are set to cover aspects related to the factors of production, including land, labour, capital, entrepreneurship and technology as facilitators of refining the total factor productivity and traversing inequality.

Next Generation Reforms

- Technology to speed up the digitalisation of the economy.

- Jan Vishwas Bill 2.0 to improve Ease of Doing Business.

- States to be incentivised to implement Business Reforms Action Plans and digitalisation.

- Sectoral database for improving data governance and management.

- Committee to review New Pension Scheme to evolve solution which addresses relevant issues while maintaining fiscal prudence.

Nine priority areas of Union Budget

FM Sitharaman listed nine priorities while presenting the Budget 2024-25 aimed at generating ample opportunities for all.

1. Productivity and Resilience in Agriculture

2. Employment and Skilling

3. Inclusive Human Resource Development and Social Justice

4. Manufacturing and Services

5. Urban Development

6. Energy Security

7. Infrastructure

8. Innovation, Research, and Development

9. Next Generation Reforms

"This Budget envisages sustained efforts on the following nine priorities for generating ample opportunities for all - Productivity and Resilience in Agriculture, Employment and Skilling, Inclusive Human Resource Development and Social Justice, Manufacturing and Service, Urban Development, Energy Security, Infrastructure, Innovation, Research and Development and Next Generation Reforms. Subsequent budgets will build on these and add more priorities and actions," the finance ministersaid.

(With inputs from agencies)