The Interim Budget presented by Finance Minister, Nirmala Sithraman on 1st February 2024 envisions ‘Viksit Bharat‘ by 2047, with all-round, all-pervasive, and all-inclusive development.
Its Major Highlights are as follows:
- Capital Expenditure: An 11.1% increase in the capital expenditure outlay for 2024-2025 was announced, constituting 3.4% of the GDP.
- Economic Growth Projections: The GDP growth for FY 2023-24 real GDP growth is projected at 7.3%, aligning with the RBI’s revised growth projection. The International Monetary Fund anticipates India becoming the third-largest economy in 2027.
- GST Collections: Reached ₹1.65 lakh crore in December 2023, crossing the ₹1.6 lakh crore benchmark for the seventh time.
- Fiscal Deficit and Market Borrowing: Fiscal deficit is estimated at 5.1% of GDP in 2024-25, aligning with the goal of reducing it below 4.5% by 2025-26 (announced in budget 2021-22).
- Taxation: The Interim Budget maintains the existing rates for direct and indirect taxes, including import duties.
- For Corporate Taxes: 22% for existing domestic companies, 15% for certain new manufacturing companies.
- No tax liability for taxpayers with income up to ₹7 lakh under the new tax regime.
- Priorities: Emphasizing the focus on the Poor, Women, Youth and Farmer.
- Poor: Successful movement of 25 crore people out of multidimensional poverty. Credit assistance was provided to 78 lakh street vendors under PM-SVANidhi.
Assistance to 1 crore women through 83 lakh SHGs, fostering ‘Lakhpati Didis’ and 28% increase in female enrolment in higher education over a decade.
- Youth: Training of 1.4 crore youth under the Skill India Mission.
- Fostering entrepreneurial aspirations with 43 crore loans sanctioned under PM Mudra Yojana.
- Farmers: Direct financial assistance was provided to 11.8 crore farmers under PM-KISAN. Crop insurance extended to 4 crore farmers through Fasal Bima Yojana. Integration of 1,361 mandis under eNAM for streamlined agricultural trade.
- Major Development Plans:Infrastructure: Railways: Three major economic railway corridor programmes will be implemented- energy, mineral & cement corridors, port connectivity corridors, and high traffic density corridors.
- Aviation: Expansion of existing airports and comprehensive development of new airports under the UDAN scheme.
- Urban Transport: Promotion of urban transformation via Metro rail and NaMo Bharat.
- Clean Energy Sector: Viability gap funding for wind energyIt will help in harnessing offshore wind energy potential, aiming for an initial capacity of 1 gigawatt.Establishment of coal gasification and liquefaction capacity of 100 million tonnes by 2030.Phased mandatory blending of CNG, PNG and compressed biogasFinancial assistance for procurement of biomass aggregation machineryRooftop solarization: 1 crore households will be enabled to obtain up to 300 units of free electricity per month. Strengthening e-vehicle ecosystem by supporting manufacturing and charging New scheme of biomanufacturing and bio-foundry to be launched to support environment friendly alternatives.
- Housing Sector: Government plans to subsidize the construction of 30 million affordable houses in rural areas.
- Healthcare Sector: Encouraging Cervical Cancer Vaccination for girls (9-14 years).
- Expanding the Ayushman Bharat scheme to include all ASHA workers, Anganwadi workers, and helpers.
- Agricultural Sector: Encouraging the use of ‘Nano DAP’ for various crops across all agro-climatic zones.
- Fishery Sector: Establishing a new department, ‘Matsya Sampada,’ to address the needs of fishermen.For States Capex: The continuation of the fifty-year interest-free loan scheme for capital expenditure to states was announced.
- Others:Establishment of a corpus of Rs 1 lakh crore with a fifty-year interest-free loan to encourage research and innovation in sunrise domains.Also, aiming to boost private sector participation in research and innovation.To address rapid population growth and demographic shifts, the government will form a high-powered committee.
The committee will provide comprehensive recommendations aligned with the goal of ‘Viksit Bharat.’
