Finance Minister Nirmala Sitaraman recently presented the interim Budget for 2024, marking her sixth budget announcement.
For those who don’t know, the Interim budget is presented by the government in the last year of its term. It avoids introducing new policies or making significant changes to existing ones.
It provides continuity in the government's financial functioning and prevents a potential funding gap during the transition from one government to another.
With a focus on youth and women empowerment, the budget also emphasizes fiscal consolidation and continued capital expenditure.
Our experts at KarrTax have brought you the key highlights and updates from the live coverage of Budget 2024. Let’s have a look.
Fiscal Outlook
The fiscal deficit target was lowered for FY25 to 5.1% of GDP.
No changes were made to the direct and indirect tax rates, providing stability in the tax regime.
Tax Benefits
The tax benefits for some startups and sovereign wealth or pension fund investments got extended upto 31st March 2025.
IFSC units tax exemption got extended upto 31st March 2025.
The budget proposes to withdraw disputed outstanding tax demands. Here’s the breakdown.
Up to Rs. 25,000 from the FY 1962-63 till FY 2009-2010
Up to Rs. 10,000 from the FY 1910-11 till FY 2014-2015
Revenue Expenditures
The Budget Estimates for FY 2024-25 reveal a revenue account expenditure of approximately ₹36.55 lakh crore, representing 11.2% of GDP.
Key components under revenue expenditure include interest payments, major subsidies, Finance Commission grants, and pensions.
Focus on Startups and Innovation
FM Sitharaman announced a corpus of ₹1 lakh crore for India's tech-savvy youth, aimed at encouraging private sector investment in research and innovation in emerging domains.
Infrastructure Development
The budget allocated ₹11.11 lakh crore for infrastructure development, with a focus on economic railway corridors, port connectivity, and safety enhancements in the rail network.
Long-term financing of ₹1 lakh crore was set aside for sunrise sectors, promoting research and innovation.
Social Welfare Measures
The government proposed various measures to benefit different sections of society, including housing schemes for the middle class, healthcare coverage extension under Ayushman Bharat, and support for farmers and dairy development.
Sectoral Allocations
Specific allocations were made for various ministries, including Defence, Road Transport, Railways, Consumer Affairs, and Rural Development, showcasing the government's targeted approach to different sectors.
Government Schemes
PM Awas Yojana (Grameen) will add 2 crore houses in the next five years.
Rooftop solarization for one crore households to receive up to 300 units of free electricity monthly.
Allocation to Specific Ministries
Allocations include ₹6.2 lakh crore for the Ministry of Defence, ₹2.78 lakh crore for Road Transport and Highways, and ₹2.55 lakh crore for Railways.
Healthcare and Social Welfare
Ayushman Bharat coverage extended to ASHA workers, Anganwadi workers, and helpers.
Vaccination for girls aged 9-14 to prevent cervical cancer.
Commitment to 'Net-Zero' by 2070
Measures include offshore wind energy, coal gasification, compressed biogas blending, and financial assistance for biomass aggregation.
Our experts believe that Interim Budget 2024 emphasizes fiscal responsibility, targeted initiatives for various sectors, and aims to set the stage for further economic growth and inclusivity. The allocations and policy directions reflect the government's commitment to addressing key challenges and fostering sustainable development.
What are your views on this budget? Let us know in the comment section below!
Author's Bio: Jyoti Agarwal is a creative content writer who has worked on different niches and helped multiple brands rank on top of SERPs. She turns jargon into plain English and transforms ideas into stories that won't make your head spin!