Today, Interim Budget 2024 was introduced in Parliament by Finance Minister Nirmala Sitharaman. This was an interim budget as it came just ahead of the Lok Sabha Elections. The full-fledged budget will be presented in July 2024 by the new government that comes to power after the elections. The interim budget proposal for 2024 unveiled an array of innovative programs designed to support different economic sectors and tackle urgent societal issues. This budget presents a vision for inclusive growth and sustainable development, ranging from creative programs encouraging the adoption of renewable energy to thoughtful investments in healthcare and agriculture.
Key Highlights from 2024-2025 Interim Budget:
The government will be focusing on Vikasit Bharat 2047 with a focus on four central pillars – Empowering the Poor, Women, Youth and Farmers.
Infrastructure Development:
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FY25 Capex Target: Set at Rs 11.1 lakh crore, up 11.1%, representing 3.4% of GDP.
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Implementation of 3 major railway corridor programmes under PM Gati Shakti-to improve logistics efficiency and reduce cost.
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Expansion of existing airports and comprehensive development of new airports under UDAN scheme.
Tax Reforms:
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Tax Withdrawals: Government to withdraw direct tax demands up to Rs.25,000 pertaining up to FY10 for individual taxpayers, benefiting 1 crore taxpayers.
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Tax Receipts Target: Rs 26.02 lakh crore for fiscal 2025.
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Tax Benefits Extension: Tax benefits for startups and funds extended to March 2025.
Rail and Aviation Expansion:
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Metro Rail and Namo Bharat: Expanded to more cities.
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Vande Bharat Coaches: Conversion of 40,000 rail bogies into Vande Bharat Coaches.
Green Push in Mobility and Energy:
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Coal Gasification and Liquefaction: Capacity of 100 million tonnes by 2030.
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E-mobility: Greater adoption of e-buses; blending of CNG and biogas mandated.
Electric Vehicle Support:
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EV Ecosystem Strengthening: Government support for manufacturing and charging infrastructure.
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Bio Manufacturing Scheme: To promote green growth.
Housing Scheme:
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Pradhan Mantri Awas Yojana (Grameen): Increased allocation for PMAY from Rs.79,590 cr. of 2023-24 to Rs.80,671 cr. in 2024-25.
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Housing for Middle Class scheme to be launched to promote middle class to buy/built their own houses
Innovation and Defence:
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Innovation Fund: Rs.1 lakh crore for deep tech, particularly in the defence sector.
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Private Sector Participation: Encouraging private players for R&D in defence.
Tourism Development:
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Island Projects: Tourism initiatives in islands, including Lakshadweep.
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Spiritual Tourism: Encouraging states to develop iconic tourist spots.
Agricultural Initiatives:
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PM Kisan Sampada Yojana: Benefitted 38 lakh farmers; emphasis on private and public investment in post-harvest activities.
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Application of Nano-DAP to be expanded in all agro-climatic Zones
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Combatting Diseases: Efforts to fight foot and mouth disease; support program for dairy farmers.
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Five integrated aqua parks to be established.
Technology and Youth Development:
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Interest-Free Loans for Innovation: Rs.1 lakh crore corpus with 50-year interest-free loans for tech-savvy youth to encourage research in sunrise sectors.
Revenue and Expenditure Estimates:
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Total Receipts (excluding borrowing): Estimated at Rs 30.80 lakh crore for FY25.
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Total Expenditure: Estimated at Rs.47.66 lakh crore for FY25.
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Tax receipts estimated at Rs.26.02 lakh crore in FY25.
Fiscal Deficit Update:
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Revised FY24 Fiscal Deficit: Down to 5.8% of GDP.
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FY25 Fiscal Deficit Target: Set at 5.1% of GDP.
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FY25 Market Borrowing: Gross market borrowing pegged at Rs.14.13 lakh crore, with net borrowing at Rs 11.75 lakh crore.
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