Budget 2024 By Union Finance Minister Nirmala Sitharaman

Amid the impending Lok Sabha elections, Union Finance Minister Nirmala Sitharaman took the center stage to present the Interim Budget 2024, her sixth consecutive budget presentation. 

Avoiding populist measures, Sitharaman maintained the status quo on tax rates for both direct and indirect taxes, setting the stage for a fiscal plan that balances immediate needs with the outlook for the next five years.

Sitharaman's address presented a roadmap for unprecedented growth for the coming financial year supported by substantial capital expenditure of Rs 11.1 lakh crore, indicating an increase of 11% from the current fiscal. The government's ambitious target is to reduce the fiscal deficit target to 5.1% of GDP in the next financial year, with a target of bringing it down to 4.5% in FY2026. However, the comprehensive financial year budget will be revealed after the Lok Sabha elections once the new government is formed.

Following are the highlights of Finance Minister Nirmala Sitharaman's speech:

Direct and Indirect Taxes:

Sitharaman did not propose any changes in direct and indirect taxes, including import taxes. Same tax rates were retained for both, with tax exemption for investments by start-ups and sovereign wealth funds extended till March 31, 2025. The focus was on improving taxpayer service, withdrawal of old controversial direct tax demands and tax benefits for pension funds. Also announced

Tourism:

Interest free loans to states to promote tourism and funds for development of tourism in Lakshadweep were highlighted.

Air Connectivity:

An important announcement includes the launch of 517 new routes under the UDAN scheme to improve air travel.

Fiscal Announcements:

Emphasis was laid on increasing capital expenditure outlay to Rs 11.11 lakh crore with a target of 3.4% of GDP. The fiscal deficit target for FY2014 was revised to 5.8% of GDP, with a future target of 5.1% for FY2015. The plan outlined a reduction in fiscal deficit to 4.5% in 2025-26, along with other fiscal targets.

Rail:

A substantial allocation of Rs 2.55 lakh crore was announced for the rail sector, including planning for key economic railway corridors under the PM Gati Shakti initiative, conversion of ordinary train bogies to high-speed Vande Bharat and urban transformation through metro rail. Including promoting. And Namo Bharat.

PLI Scheme:

PLI scheme gets a boost with an allocation of Rs 6,200

Agriculture:

Various measures were presented to promote investment in post-harvest activities, empower dairy farmers, control foot and mouth disease and expand the application of Nano-DAP in agro-climatic zones. Plans for Aqua Park, Blue Economy 2.0 and enhanced implementation of Pradhan Mantri Matsya Sampada Yojana were also highlighted.

Suryoday Tech:

An important proposal included a Rs 1 lakh crore fund to promote private investment in sunrise technologies.

Health care:

Expansion of health facilities, establishment of hospitals in all districts and vaccination initiatives under Ayushman Bharat were outlined. Emphasis was laid on enabling Anganwadis and accelerating Nutrition 2.0 for better nutrition delivery and early childhood care.

Accommodation:

New housing scheme for the middle class, construction of 2 crore houses under PM Awas Yojana and additional targets for Pradhan Mantri Awas Yojana (Rural) were announced.

Renewable energy:

Several measures were introduced to promote renewable energy, including wind power, feasibility gap financing for coal gasification and liquefaction capacity, phased mandatory blending of CNG, PNG and compressed biogas and financial assistance for biomass aggregation machinery.

Development of India:

An outlook for the next five years was portrayed as a period of unprecedented growth. The government aims to make the eastern region the driver of India's growth with important announcements on women empowerment, credit support to street vendors and achievements in skill development and sports.

The interim budget session began with President Draupadi Murmu addressing the joint session of the Lok Sabha and the Rajya Sabha. The President highlighted the transformative achievements of the Modi government over the last decade, charting the positive trajectory of the Indian economy and attributing it to key reforms.

At the beginning of the budget session, Prime Minister Narendra Modi said that the interim budget will provide a direction for the future of India. Since the interim measures address immediate financial needs, the comprehensive Union Budget is expected after the April-May Lok Sabha elections