A Glance at Interim Budget 2024

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Key Highlights of Interim Budget 2024

Key Highlights of Interim Budget 2024

The Interim Budget 2024 for the fiscal year 2024- 25 was presented by Union Finance Minister Nirmala Sitharaman in the Lok Sabha on 1st February 2024. This is the sixth budget of Finance Minister Nirmala Sitharaman. The 2024 vote-on-account budget is set against the backdrop of India’s economic resilience and global instability. The complete budget will be presented in July 2024, following the formation of the new government post-Lok Sabha Election.
The vision of India is to transform into a developed nation, termed “Vikshit Bharat,” by 2047. The government stated that the Budget was presented with an emphasis on economic policies that promote growth, enable inclusive development, enhance productivity, and generate opportunities for different segments. Its primary emphasis is on four key pillars:

  1. Uplifting the poor (Garib)
  2. Empowering women (Nari)
  3. Nurturing the youth (Youva)
  4. Supporting the farmers (Annadatta)

Here are the key highlights of the budget:

Four Core Focus Areas

1. Garib Kalyan, Desh ka Kalyan

  • DBT has led to savings of ₹2.7 lakh crore.
  • 25 crore individuals have moved out of multidimensional poverty.
  • Credit support extended to 78 lakh street vendors through the PM-SVANidhi scheme.

2. Welfare of Farmers-Annadata

  • Direct financial support to 11.8 crore farmers under PM-KISAN
  • Crop insurance to 4 crore farmers through the PM Fasal Bima Yojana
  • Incorporating 1,361 mandis under e-NAM, facilitating a trading volume of ₹ 3 lakh crore
  • Providing crop insurance to 4 crore farmers through the PM Fasal Bima Yojana and incorporating 1,361 mandis into the e-NAM platform, facilitating a trading volume of ₹ 3 lakh crore.

3. Nari Shakti

  • 30 crore Mudra Yojana loans distributed to women entrepreneurs
  • Increased female enrolment in higher education by 28 per cent in 10 year
  • 43 percent of female enrolment inSTEM courses
  • Expanded target for Lakhpati Didi Scheme from 2 crore women to 3 crore women

4. Empowering the Youth

  • 1.4 crore youth trained under Skill Budget Allocation India Mission
  • Fostering entrepreneurial aspiration of Youth-43 crore loans sanctioned under PM Mudra Yojana

Strategy for Amrit Kaal

1. Sustainable Development

  • Several schemes are to be launched to turn Net Zero by 2070 such as providing financial support to harness offshore wind energy generation with an initial capacity of 1 Giga-Watt, procuring biomass aggregation machinery, and promoting the e-vehicle sector by encouraging more manufacturing and charging infrastructure.
  • Rooftop solarization will empower 1 crore households to receive up to 300 units of free electricity per month

2. Infrastructure and Investment

  • Implementation of 3 major railway corridor programs under PM Gati Shakti to improve logistics efficiency and reduce cost
  • Facilitating foreign investment promotion through the negotiation of bilateral investment treaties

3. Inclusive Development

  • The Aspirational District Programme strives to assist States in accelerating development, including employment generation opportunities.
Health
  • Encourage Cervical Cancer Vaccination for girls (9-14 years)
  • Saksham Anganwadi and Poshan 2.0 are to be expedited for improved nutrition delivery, early childhood care, and development Health cover under the Ayushman Bharat scheme is to be extended to all ASHA,
  • Anganwadi workers, and helpers
Housing
  • Two crore more homes for the next 5 years under Pradhan Mantri Awas Yojana (Grameen)
  • For the middle class to buy/build their own house, a housing scheme to be launched
Tourism
  • States will be encouraged to undertake the development of iconic tourist centers to attract business and promote opportunities for local entrepreneurship.
  • States to be provided with long-term interest-free loans to promote development.
  • Projects for enhancing port connectivity, tourism infrastructure, and improving amenities will be implemented on islands, including Lakshadweep

4. Agriculture and Food Processing

  • The government will enhance private and public investment in post-harvest activities.
  • The government aims to promote the use of ‘Nano DAP’ in diverse crops and expand in all agro-climatic zones.
  • Implementation of Pradhan Mantri Matsaya Sampada Yojana to be set up to address the needs of fishermen.
  • 5 Integrated Aquaparks to be set up in 2025.

Fiscal Deficit

  • FY24 achieved 5.8% due to improved revenue, as against the 5.9% target.
  • FY25 fiscal deficit target: 5.1% (expected 5.3%).
  • The government aims to reduce the fiscal deficit to below 4.5% by FY26.
  • FY24 total expenditure revised to rupees 44.90 lakh crore.
  • FY24 total receipts other than borrowings is rupees 27.56 lakh crore.
  • FY25 gross market borrowing stood at rupees 14.13 lakh crore.

Spends on capital expenditure increased to rupees 11.11 lakh crore for 2024-25.

Tax Proposals

  • Tax rates remain unchanged for both direct and indirect taxes, including import duties
  • Taxes for corporates: 22% imply for existing domestic companies and 15% for certain new manufacturing companies.
  • Taxpayers with income up to rupees 7 lakh are not liable to pay taxes under the new tax regime.

Summary

The Finance Minister stated that the detailed roadmap for Vikasit Bharat will be presented in the July budget. In addition to gross domestic product, the government is equally concentrating on a more comprehensive GDP – governance, development, and performance.

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