Interim Budget 2024

KEY TAKEAWAYS

5. The Union Finance Minister presented the finance budget on February 1.
5. The Interim Budget 2024 preserved fiscal consolidation and continued capital expenditures while emphasizing the empowerment of women and youth.
5. The FY25 budget deficit objective was cut by FM Sitharaman to 5.1% of GDP. The rates of direct tax and indirect tax were left unchanged.
5. In BE 2024–2025, major subsidies of ₹3.81 lakh crore account for about 10.4% of revenue expenditures. It is anticipated that the largest subsidies as a percentage of GDP will decrease from 1.4% in the Revised estimate of 2023–2024 to 1.2% in the BE of 2024–2025.
5. She announced building 2 crore new dwellings for the rural poor in the next five years under the ongoing PM Awas Yojana (Grameen), but there are no sops or significant rural transfers.
5. The nation has increased its capital expenditure by 11% to ₹11.11 lakh crore, or 3.4% of GDP, during 2024–2025
5. Income tax requests up to ₹25,000 (till 2009–10) and ₹10,000 (from 2010 to 11 to 2014–15) were withdrawn by the government. This is going to help almost one crore taxpayers.
5. For FY25, nominal GDP growth is anticipated to be 10.5%.

INTRODUCTION

The interim budget for the fiscal year 2024–25 is scheduled to be presented by Union Finance Minister Nirmala Sitharaman on February 1. After the general elections in 2024 and the creation of a new government, the whole budget for that fiscal year will be introduced. Sitharaman ruled out any major news at her sixth union budget presentation on February 1, stating that it would essentially be a "vote on account" prior to the general elections. She went on to say that these interim budgets don't include any big announcements, so the public would have to wait until July 2024 when the new administration presents the full budget.

A multifaceted approach to economic management is outlined in the budget, encompassing tax changes, digital public infrastructure, and infrastructure development. Under Prime Minister Narendra Modi's leadership, the government has prioritized inclusive growth under the motto "Sabka Saath, Sabka Vikas, Sabka Vishwas". There are now more job and business prospects as a result of structural changes and pro-people initiatives.

 The emphasis on focused development via initiatives like "housing for all" and "Har ghar jal" for each and every home and person. 80 crore people's food anxieties would be allayed, while farmers will benefit from higher minimum support prices. The government prioritizes the empowerment of the impoverished, women, young, and farmers in order to achieve inclusive, widespread, and all-encompassing development. With an aim to bring it below 4.5% of GDP by 2025–2026, the revised fiscal deficit is projected to reach 5.8% of GDP for 2023–2024.

Considerable emphasis on farming, as seen by programmes like the Atmanirbhar Oil Seeds Abhiyan and Nano DAP. Initiatives for dairy, fisheries, and women's emancipation in rural communities. Youth focus on athletic accomplishments, education and skill development, and startup support. Healthcare programs, like the vaccine against cervical cancer and the growth of Ayushman Bharat. Put an emphasis on renewable energy sources, such as bio manufacturing, coal gasification, and offshore wind energy. Encouragement of electric cars and the creation of a bio-foundry and bio-manufacturing program

INCLUSIVE DEVELOPMENT AND GROWTH

1.emphasis on focused development via initiatives like "housing for all" and "Har ghar jal" for each and every home and person.

2. The fact that 80 crore individuals are eligible for free rations has allayed concerns regarding food. The minimum support prices for "Annadata" production are suitably raised on a regular basis. 

3. These, together with the supply of basics, have increased rural residents' actual income. By providing for their financial requirements, we may promote growth and create jobs.

SOCIAL JUSTICE AND EMPOWERMENT

4. The government aims to the empowerment of the impoverished, women, youth, and farmers in order to achieve inclusive, widespread, and all-encompassing development.

5. Bill states that our Prime Minister firmly believes that we must concentrate on the four main castes. They are called "Annadata" (Farmer), "Mahilayen" (Women), "Yuva" (Youth), and "Garib" (Poor). Our top priorities are their needs, their goals, and their wellbeing. When they advance, so does the nation. In order for any of the four to succeed in improving their lives, the government must provide with them. 

6. The progress of the nation will be fueled by their empowerment and welfare.

ECONOMIC AND FISCAL MANAGEMENT

7. The budget presents a multifaceted approach to economic management that includes tax changes, digital public infrastructure, and infrastructure development.

8. With an aim to bring it below 4.5% of GDP by 2025–2026, the revised fiscal deficit is projected to reach 5.8% of GDP for 2023–2024.

9. The government has saved almost 2.7 lakh crore thanks to the "Direct Benefit Transfer" of ~ 34 lakh crore made through PM-Jan Dhan accounts. This has been made possible by avoiding the leaks that were common in the past. The savings have made it possible for "Garib Kalyan" to have more money.

10. Around 78 lakh street sellers have received credit help from PM-SVANidhi. Three times over, out of that amount, 2.3 lakh have been credited.

11. Janman, PM Yojana extends extended its assistance to the tribal communities that are most vulnerable yet have not yet benefited from development. PM Shiswakarma Yojana offers complete assistance to artists and craftspeople working in eighteen different vocations. 

12. The programs aimed at empowering Divyang and Transgender individuals demonstrate our government's unwavering commitment to ensuring that no one is left behind.

13. For the purpose of fostering the entrepreneurial dreams of our young, the PM Mudra Yojana has approved 43 crore loans, totaling over 22.5 lakh crore. In addition, our youngsters are being helped by the Fund of Funds, Start Up India, and Start Up Credit Guarantee programs. They are developing into "rozgardata" as well. 

14. With 1361 mandis integrated, the Electronic National Agriculture Market serves 1.8 crore farmers with a trade turnover of around 3 lakh crore.

15. In addition to training 1.4 crore young, the Skill India Mission has also upskilled and reskilled 54 lakh young people and created 3000 new ITIs. There are a lot of new universities; 7 IITs, 16 IIITs, 7 IIMs, 15 AIIMS, and 390 universities that have been established.

16. Women entrepreneurs have received loans under the Mudra Yojana totaling thirty crore. In the last 10 years, the percentage of female students enrolled in higher education has increased by 28%. Girls and women make up forty-three percent of students on STEM courses, which is among the highest percentages in the world. The rising number of women entering the workforce is a reflection of all these initiatives.

17.FM Nirmala Sitharaman states in her speech that making “triple talaq” Illegal,allocating one-third of the seats in the Lok Sabha and State legislatures to women, and granting women sole or joint owners of more than 70% of the dwellings in rural regions under the PM Awas Yojana.

EXEMPLARY TRACK RECORD OF GROWTH, DEVELOPMENT, PERFORMANCE (GDP)

18. In addition to achieving rapid growth in GDP, the government is also focusing on a broader definition of GDP, or "Governance, Development, and Performance."

19. People now have higher expectations for the future, better lives, and higher incomes. The average real income of the populace has grown by 50%. There is a moderate level of inflation. People are becoming more capable, equipped, and empowered to follow their dreams. Large projects and programs are delivered on schedule and effectively.

GLOBAL CONTEXT 

20. Two such projects are India's G20 leadership and the establishment of the India-Middle East-Europe Economic Corridor.

21. There is acknowledgement of global concerns such as supply chain disruptions, conflicts, and climate change.

BIGGEST ALLOCATION FOR DEFENCE, LOWEST FOR AGRICULTURE

(sector specific  initiatives)

22. Considerable emphasis on farming, as seen by programmes like the Atmanirbhar Oil Seeds Abhiyan and Nano DAP.

23. Initiatives for dairy, fisheries, and women's emancipation in rural communities.

24. Youth focus on athletic accomplishments, education and skill development, and startup support.

25. Healthcare programs, like the vaccine against cervical cancer and the growth of Ayushman Bharat.

(Infrastructure and environment initiative)

26. In order to build on the enormous impact of the capital expenditure outlay being tripled over the last four years on employment creation and economic growth, the outlay for the upcoming year has been increased by 11.1% to eleven lakh, eleven thousand, one hundred and eleven crore rupees (~ 11,11,111 crore). This amounts to 3.4% of the GDP.

27. To improve passenger safety, convenience, and comfort, 40,000 regular rail bogies will be modified to Vande Bharat standards.

28. Over the last 10 years, there has been a surge in the aviation industry. To 149, the number of airports has doubled. Under the UDAN program, air connectivity has been widely extended to tier-two and tier-three cities. There are 517 new routes with 1.3 crore people on them now.

29. The e-vehicle ecosystem will be strengthened and expanded by our government through the provision of manufacturing and charging infrastructure assistance. Payment security features will promote e-bus adoption for public transportation networks.

30. A new program including bio-manufacturing and bio-foundry will be introduced in order to encourage green growth. As a result, environmentally friendly substitutes will be available, including biodegradable polymers, bioplastics, biopharmaceuticals, and bioagri-inputs. Additionally, this plan will support the shift from the current paradigm of consumptive production to one based on regenerative principles.

TOURISM AND INVESTMENT PROMOTION

31. States will be urged to embark on the thorough development of well-known tourism destinations, branding and promoting them internationally. There will be a structure developed for grading the centers according to the caliber of their amenities and services. States will get long-term, interest-free loans to finance this kind of development on a matching basis.

32. Our islands, especially Lakshadweep, will undertake initiatives for port connection, tourism infrastructure, and amenities in response to the growing demand for internal travel. This will also contribute to the creation of jobs.

33. A golden period was marked by the USD 596 billion in FDI influx between 2014 and 2023. That amounts to double the influx from 2005 to 2014. 

In the spirit of "first develop India," we are negotiating bilateral investment treaties with our international partners to encourage sustained foreign investment.

TAX REFORMS AND EASE OF DOING BUSINESS

34. Rates of direct and indirect taxes, including GST, should be rationalized to reduce tax burdens and enhance compliance.

35. Plans to remove unpaid direct tax requests for modest sums, helping around one crore taxpayers

FUTURE OUTLOOK AND ‘VIKSHIT BHARAT’VISION

'Viksit Bharat' (Developed India) by 2047 is envisioned in the budget, which focuses on the country's assets in variety, democracy, and population.

Commitment to the advancement of the country by fresh ideas and decisions, known as "Kartavya Kaal" (Era of Duty).In summary, with an overall goal of creating a developed India by 2047, the Interim Budget 2024–25 represents the government's ongoing emphasis on equitable growth, economic stability, strategic global positioning, sector-specific advancements, environmental sustainability, and tax changes.