Budget 2024 Highlights; No Revolutionary Changes, Steady Progress, FM Sitharaman Proposes No Alteration In Tax Rates, Big On Middle Class Owning Homes
Finance Minister Nirmala Sitharaman presented the Interim Budget 2024 against the backdrop of impending Lok Sabha elections, marking her sixth consecutive budget presentation. Despite the absence of populist measures, Sitharaman articulated a vision for unprecedented growth in the coming years, accompanied by a significant increase in the capital expenditure target. Hereafter, we look into the key highlights of her Budget speech, encapsulating the government's initiatives and future plans outlined for economic development and social welfare.
Finance Minister Nirmala Sitharaman presented the Interim Budget 2024 amidst the backdrop of the looming Lok Sabha elections.
This marked her sixth consecutive budget presentation, equalling the record set by former Finance Minister Morarji Desai.
In the budget, there were no announcements of populist measures, and the tax rates for both direct and indirect taxes remained unchanged.
Sitharaman articulated a vision for the coming years, foreseeing unprecedented growth, and disclosed that the government had raised the capital expenditure target to Rs 11.11 lakh crore.
Commencing her Budget speech, Finance Minister Nirmala Sitharaman remarked on the significant transformation witnessed by the Indian economy over the last decade.
During the presentation of the Interim Budget for 2024, Union Finance Minister Nirmala Sitharaman unveiled a scheme aimed at assisting deserving sections of the middle class residing in rented accommodations, slums, chawls, or unauthorized colonies to purchase or construct their own homes.
Furthermore, Sitharaman announced, “Despite the adversities posed by COVID, the implementation of the PM Awas Yojana Rural persisted, and we are on the verge of achieving the target of 3 crore houses. An additional 2 crore houses will be initiated in the next five years to accommodate the growing number of families.”
In her address, the Finance Minister outlined a plan where rooftop solarization would enable 1 crore households to receive up to 300 units of free electricity per month. She emphasized that this initiative aligned with the Prime Minister’s commitment on the auspicious occasion of the consecration of Shri Ram Mandir in Ayodhya.
The government intends to enact next-generation reforms to foster growth, foreseeing the next five years as a period of unparalleled development and opportunities to realize the vision of a developed India by 2047.
Additionally, the Finance Minister highlighted the recently announced India Middle East Europe Economic Corridor as a transformative initiative for India.
She also acknowledged the International Financial Services Centres Authority (IFSCA) for establishing a robust gateway to facilitate the inflow of overseas capital.
Budget 2024 Highlights: Here are the key highlights from Finance Minister Nirmala Sitharaman Speech –
Budget 2024 Highlights: Direct and Indirect Tax
- Finance Minister Nirmala Sitharaman proposes no change in direct and indirect tax including import tax
- Same tax rates for Direct and Indirect tax retained
- Focus on improving tax payers service
- Tax reforms have widened the tax base and increased tax collections
- Govt to withdraw old disputed direct tax demands of up to Rs 25,000 till FY2009 and Rs 10,000 for 2010-11 to 2014-15. It will benefit 1 crore taxpayers
- FM also proposes some tax benefits for pension funds
- Processing time of tax returns reduced from 93 days in FY14 to 10 days
- Tax base of GST more than doubled, says FM
- Number of tax filers swelled by 2.4 times, direct tax collection trebled since 2014
- Tax receipts for 2024-25 projected at Rs 26.02 lakh crore
Budget 2024 Highlights: Tourism
- Interest-free loans to states to promote tourism
- Funds will be provided for developement of tourism in Lakshwadweep
- Panel to be formed for tackling the challenges of higher population
Budget 2024 Highlights: Air Connectivity
- Roll out of Udan Schemes have been very successful
- 517 new routes to be launched under Udan Scheme
- Defence allocation increased by nearly 20 percent to percent to Rs 6.22 lakh crore
Budget 2024 Highlights: Fiscal Announcements
- Capex outlay of Rs 11.11 lakh crore
- Capex outlay at 3.4 per cent of GDP
- FY24 Fiscal Deficit target revised to 5.8 per cent of GDP from 5.9 per cent.
5.1 % - Fiscal Deficit target for FY 25
- Govt plans to reduce fiscal deficit to 4.5 per cent in 2025-26FY 25
- Gross market borrowing target is Rs 14.13 lakh croreNet market borrowing seen at Rs 11.75 lakh crore
- Revised expenditure fexpenditure for FY 24 Rs 44.90 lakh crore
- Nominal GDP growth seen at 10.5%
- Food Subsidy 2.12 lakh crore
- FY 24 Divestment Target Cut to Rs 30,000 crore
- FY 25 Divestment Target set at Rs 50,000 crore
Budget 2024 Highlights: Rail
- Allocation
- Decongestion of high-density corridor
- Energy, Mineral, and Cement to get dedicated corridor
- 40,000 normal train bogies to be converted into high speed Vande Bharat ones
Budget 2024 Highlights: PLI Scheme
- PLI scheme gets Rs 6,200 crore
Budget 2024 Highlights: Agri
- Promote investment in post-harvest activity by both private and public sector support
- Empower dairy farmers
- More efforts to control Foot and mouth disease
- Crop insurance has been given to 4 crore farmers under PM Fasal Bima Yojana
Five integrated Aqua Park to be set up
Budget 2024 Highlights: Healthcare
- Healthcare facilities under Ayushman Bharat will be extended to all Aasha workers, Aanganwadi workers
- Government plans to set up hospitals in all districts
- Vaccination of 9-14 year old girls for cervical cancer
Budget 2024 Highlights: Housing
- New housing plan for the middle class
- 2 crore houses to be built under PM Aavas Yojana
Budget 2024 Highlights: India Growth
- Next five years will be years of unprecedented growth
- Next generation of reforms to be taken in consultation with state governments.
- The government wants to make eastern region the driver of India’s growth
- Over 1 crore houses will get 300 units of free power under new Solar power policy
- Women participation in higher education has risen to 28 per cent in the last 10 years
- Over Rs 22 lakh crore Mudra loans have been disbursed in the last 10 years
- Our GDP mantra is: Governance, Development and Performance
- Jan Dhan accounts have helped government save over Rs 2 lakh crore
- Making Triple Talaq illegal, reservation of one-third seats in Parliament has enhanced the dignity of women in India
- Rs 30 crore mudra Yojana given to women entrepreneurs.
- Skill India mission has trained over 1.4 crore youth to make them job ready
- The highest-ever medal tally in Asian Games reflects the high confidence level
- Direct transfers of Rs 34 lakh crore to the beneficiaries has led to big saving for the government
- In the last 10 years government has uplifted 25 crore people out of poverty
- Garaab, Yuva, Mahila and Annadata are our highest pripriority. Their kalyaan is desh ka Kalyaan
- The Indian economy has witnessed great transformation in the last 10 year
- The country is facing enormous challenges and government overcame those challenges with Sabka Saath Sabka Vishvaas
- The fruits of development reached to every strate.
- The people blessed the government with the stronger mandate in the second term
- The worries of the food has been eliminated through free ration
- MSP have increased periodically for the Annadata are our highest priority
