The expectations for India’s Interim Budget 2024, set to be revealed on February 1, include several key developments:

1. Increased Welfare Spending: There are anticipations of a rise in government welfare spending.
2. Fiscal Deficit Reduction: A target to decrease the fiscal deficit to 4.5% of GDP by FY26 is expected.
3. Focus on Capex: The government may increase spending on capital expenditure, especially for sectors like digitization, green hydrogen, electric vehicles, and broadband.
4. Allocation for Subsidies: Around Rs 4 trillion is expected to be allocated for food and fertilizer subsidies.
5. Affordable Housing Fund: There may be a more than 15% increase in funding for affordable housing.
6. Divestment Goal: The government aims to raise Rs 510 billion through divestment.

These points reflect the government’s strategy before the upcoming general elections and are likely to focus more on government expenditure rather than major policy declarations