Interim Budget 2024: Key Highlights Shaping India’s Economic Landscape

Finance Minister Nirmala Sitharaman unveiled the interim budget for 2024-25, with a focus on development across all sectors and inclusivity. The capital expenditure target for FY25 is set at Rs 11.1 lakh crore, marking an 11.1% increase. The government aims to transform the country into a developed nation by 2047.

Key points from the budget speech include:

• -The revised estimate of fiscal deficit stands at 5.8% of GDP.
• -The government highlighted the transformative journey over the last decade under the “Sabka Sath, Sabka Vikas” mantra.
• -Direct benefit transfers of Rs 34 lakh crore through PM Jan Dhan accounts resulted in savings of Rs 2.7 lakh crore by eliminating leakages.
• -Emphasis on the poor, women, youth, and farmers as priority groups.
• -The Skill India Mission trained 1.4 crore youth and established various educational institutions.
• -GST has facilitated a unified market and tax system.
• -The average real income of people increased by 50%.
• -Despite Covid challenges, the PM Awas Yojana Rural continued, targeting 3 crore houses, with plans for an additional 2 crore houses in the next 5 years.
• -Seafood exports doubled, and the India Middle East Europe Economic Corridor is anticipated to be a game-changer.
• -The government plans to increase defence outlay by 11.1% to Rs 11,11,111 crore.
• -Infrastructure development includes converting 40,000 rail bogies to Vande Bharat standards, doubling airports to 149, and Indian carriers ordering 1,000 new aircraft.
• -A Rs 1 lakh crore corpus with a 50-year interest-free loan for tech-savvy youth aims to boost research and innovation.
• -Rs 34 crore Mudra Yojana loans have been given to women entrepreneurs.
• -The FY25 GDP growth is projected at around seven percent.

Fiscal details:

• -Revised estimate for total receipts (excluding borrowing) is Rs 27.56 lakh crore, with tax receipts at Rs 23.24 lakh crore.
• -FY25 fiscal deficit pegged at 5.1%, aiming to reduce it below 4.5% by FY26.
• -Gross market borrowing for FY25 is set at Rs 14.13 lakh crore.
• -Tax benefits for startups and extended investment incentives.
• -Tax rates for direct and indirect taxes remain unchanged.

The government’s focus is on boosting domestic consumption, reducing rural stress, generating employment, and easing compliance burdens. In the pursuit of a developed India, the full budget will provide a detailed roadmap. The FY25 GDP growth target aligns with the RBI’s projections, with cautious optimism about economic performance. The total expenditure in Budget 2023-24 reached Rs 10 lakh crore, with the highest-ever capital outlay of Rs 2.40 lakh crore allocated to Railways.