Presenting the Narendra Modi government’s last budget before the Lok Sabha elections, Finance Minister Nirmala Sitharaman stated today that India’s economy is undergoing a significant transition. She further added that the government is committed to improving the lives of the poor, women, youth, and farmers. This statement set the stage for the announcement of welfare initiatives in these focus areas.
This article highlights the key takeaways from FM’s Interim Budget 2024 speech. The Budget 2024 highlights can be downloaded from here.
Table of Contents
Budget 2024 Highlights: Direct and Indirect taxes
The FM proposes no changes in direct and indirect taxation, including import duty.
The tax rates for direct and indirect taxes remain the same.
The government proposes to will withdraw old disputed direct tax demands of up to INR 25,000 related to F.Y. 2009-2010. In addition, outstanding direct tax demands of up to INR 10,000 will be withdrawn pertaining to F.Y. 2010-2011 to F.Y. 2014-2015.
The Tax Breaks for startups, sovereign wealth investors, and pension funds will be extended until March 31, 2025.
The expected tax receipts for 2024-2025 are INR 26.02 Lakh Crore.
To address the challenges of a higher population, a panel will be set-up.
To develop and improve the tourism industry in Lakshadweep, the government will provide monetary aid and assistance.
Budget 2024 Highlights: Fiscal Related Proposals
The F.Y. 2024 Fiscal Deficit target has been revised from 5.9% to 5.8% of GDP.
The Fiscal Deficit target for F.Y. 2025 is budgeted at 5.1% of GDP.
The total expenditure for F.Y. 2024 has been revised to INR 44.90 Lakh Crore.
The total revenue receipts in F.Y. 2024-2025 is estimated at INR 30 Lakh Crore, compared to the earlier revised estimate of INR 26.99 Lakh Crore.
Moreover, a food subsidy of INR 2.12 Lakh Crore is proposed.
The government has reduced its F.Y. 2024 divestment target from INR 51,000 Crore to INR 30,000 Crore.
The CAPEX outlay for next year is budgeted at INR 11.11 Lakh Crore.
Estimates for gross and net market borrowings through issuance of securities in 2024-2025 are INR 14.13 Lakh Crore and INR 11.75 Lakh Crore respectively.
Connecting through Air
With the successful launch of Udan Schemes, the government proposes to launch 517 new routes.
Connecting through Rail
High-density corridor decongestion. The government proposed to decongest the high-traffic density corridors.
PM Gati Shakti’s 3 major economic railway corridors will improve the efficiency of logistics while keeping the cost low. Energy, minerals, and cement to have dedicated corridors.
To enhance safety, convenience, and comfort of passengers, 40,000 normal bogies will be converted into high speed Vande Bharat.
The government proposed to promote urban transformation through Metro Rail and NaMo Bharat.
Initiatives for the Agricultural Sector
Encourage private and public sector investment in post-harvest activities.
To empower dairy farmers.
To increase the efforts to reduce foot and mouth disease.
To provide crop insurance to 4 Crore farmers via PM Fasal Bima Yojana.
Direct financial assistance for 11.8 Crore farmers under PM-KISAN Scheme.
The government will launch Blue Economy 2.0 to promote aquaculture.
Establish 5 integrated aqua parks.