Interim Union Budget Of India 2024-25:
The Finance Minister, Smt. Nirmala Sitharaman delivered the Union Budget for the fiscal year 2024-25 in the new Parliament Building on February 1, 2024.This budget presentation represents her sixth consecutive budget, following those of 2019, 2020, 2021, 2022, and 2023.
Highlights:
- Finance Minister Nirmala Sitharaman mentioned the goal of making India ‘Viksit Bharat’ by 2047 and emphasized the focus on inclusive development with the motto “Sabka Sath, Sabka Vikas”.
- The government’s efforts are aimed at creating a developed and prosperous India in the years to come.
- Finance Minister Nirmala Sitharaman outlined the government’s focus on four major groups: the poor, women, youth, and farmers.
- She highlighted the impact of the PM Janman Yojana, specifically aiding tribal groups that have historically been outside the realm of development.
- Sitharaman stated that the government has assisted 25 crore people in breaking free from poverty over the last decade, emphasizing the commitment to uplifting various sections of the population.
- She expressed her hope that the people of the country will once again choose the Bharatiya Janata Party (BJP) with a resounding mandate in the upcoming Lok Sabha elections.
- Finance Minister Nirmala Sitharaman highlighted the impact of Goods and Services Tax (GST), stating that it has enabled ‘one nation, one market, one tax.’
- She emphasized that tax reforms have led to the deepening and widening of the tax base.
- Sitharaman also mentioned the government’s focus on comprehensive governance, development, and performance, represented by ‘GDP’ (Governance, Development, Performance). This underscores the government’s commitment to holistic and impactful policies for the nation’s growth.
- The government aims to provide 1 crore households with 300 units of free electricity per month through rooftop solarization. This move emphasizes the promotion of clean and sustainable energy.
- The benefits of Ayushman Bharat, a health insurance scheme, will be extended to all Accredited Social Health Activists (ASHA) and Anganwadi workers.
- This step is aimed at providing health coverage to those involved in grassroots healthcare.
- The government will assist “deserving” sections of the middle class in building their own houses.
- This initiative aims to address housing needs and promote homeownership among the middle class.
- The establishment of a corpus of ₹1 lakh crore through a 50-year interest-free loan.
- This corpus is intended to provide long-term financing with extended tenure and minimal or no interest rates.
- The measure aims to support specific sectors or initiatives that require sustained financial assistance for their development.
- Finance Minister Nirmala Sitharaman emphasized a shift in the meaning of FDI to “First Develop India.”
- She highlighted the focus on encouraging bilateral trade treaties to boost Foreign Direct Investments (FDIs) in the country.
- This signals an intention to attract more investments that contribute to the development and growth of India’s economy.
- FY24 fiscal deficit seen at 5.8% of GDP
- FY24 total expenditure revised to ₹ 44.90 lakh crore
- FY 24 total receipts other than borrowings is ₹ 27.56 lakh crore
- FY24 tax receipts are ₹ 23.24 lakh crore
- FY25 fiscal deficit seen at 5.1%
- Aim to reduce fiscal deficit to below 4.5% by FY26
- FY25 gross market borrowing seen at ₹ 14.13 lakh crore
- Finance Minister Nirmala Sitharaman announced that there will be no proposals to change tax rates, whether direct or indirect.
- She also mentioned the extension of tax benefits for startups and investments made by sovereign wealth and pension funds until March 2025.
- Furthermore, the withdrawal of outstanding direct tax demands up to ₹25,000 for the period up to the financial year 2009-10, and up to ₹10,000 for financial years 2010-11 to 2014-15, was announced.
- This move is expected to benefit around one crore taxpayers, providing them with relief from outstanding tax liabilities.
- New Scheme for Strengthening Deep-Tech Technologies for Defence Purposes: A new scheme focusing on enhancing deep-tech technologies for defense purposes.
- Capital expenditure has been increased by 11.1% to over ₹11.18 lakh crore, which represents 3.4% of the GDP.
- Conversion of Rail Bogies to Vande Bharat Standards: 40,000 normal rail bogies will be converted to Vande Bharat standards, aiming to improve and modernize the railway infrastructure.
- 2 Crore More Houses Under PM Awas Yojana: The government aims to build 2 crore more houses in the next five years under the Pradhan Mantri Awas Yojana, focusing on affordable housing.
