Interim Union Budget 2024-25: Budget and Policy Highlights

Interim Union Budget 2024-25: Budget and Policy Highlights

 
On February 1, 2024, Finance Minister Smt Nirmala Sitharaman presented the interim budget for 2024-25. This will provide funds to the government for a few months of the fiscal year until the main budget plan is passed following the general election in India.

In this blog, we will try to explore the highlights of the Interim Union Budget 2024-25, including the budget, policy, receipts, and expenditures. We will try to simplify the budget so that readers will have an understanding what and how much each sector and industry received in the interim union budget 202-25.
 

Aim of Interim Union Budget 2024-25 – "Viksit Bharat by 2047"

Vision of Interim Union Budget 2024-25 – "Prosperous Bharat in Harmony with Nature, Modern Infrastructure and Opportunities for all." 

Interim Union Budget 2025-25 Highlights:

 
Here are the highlights of the Interim Union Budget 2024-25 in terms of expenditure, receipts, GDP, deficit, and new schemes.

Expenditure: As per the Interim budget 2024-25 government of India has estimated to spend Rs 47,65,768 crore in 2024-25 which is 6% higher than the revised estimate of 2023-24. Out of which Interest payments account for 25% of the total expenditure, and 40% of revenue receipts.

Receipts: The receipts (apart from borrowings) in 2024-25 are projected to be Rs 30,80,274 crore, which is approximately 12% higher than the revised estimate for 2023-24. Tax revenue, which accounts for the majority of collections, is anticipated to increase by 12% above the revised estimate for 2023-24.

GDP: The government predicts an annual nominal GDP growth rate - 10.5% in 2024-25.

Deficits: The revenue deficit in 2024-25 is set at 2% of GDP. This figure is less than the revised estimate of 2.8% for 2023-24. The fiscal deficit in 2024-25 is projected to be 5.1% of GDP, which is lower than the revised estimate of 5.8% in 2023-24.

New Schemes: The Department of Economic Affairs has been allotted Rs 70,449 crore for new schemes. The allocation is for capital spending and represents 7.5% of the overall capital expenditures. 

Tax Proposals in the Finance Bill:

• Tax Rates Remains Unchanged.
• Maintaining the same rates of taxation for direct and indirect taxes, including import duties.
• Corporate taxes: 22% for existing domestic enterprises; 15% for certain new manufacturing businesses.
• Under the new tax regime, taxpayers earning up to ₹7 lakh are not required to pay any taxes.
• Certain entities' tax benefits are extended for another year. Certain direct tax benefits have been extended for the following entities until March 2025: (i) Start-ups, (ii) sovereign wealth funds and pension funds, and (iii) some IFSCs. The benefits mentioned would have ended in March 2024. 

Interim Union Budget 2024-25 Sector wise Policy Highlights:

 
Aviation Sector: Under the UDAN scheme, current airports will be further expanded, and new airports will be developed comprehensively.
 

Railways Sector:

• Three significant economic railway corridor projects will be constructed. These include (i) energy, mineral, and cement corridors, (ii) port connectivity corridors, and (iii) high traffic density corridors.
• Forty thousand regular rail bogies will be modified to Vande Bharat levels to enhance passenger safety and comfort.
• Encouragement of urban development through Metro Rail and NaMo Bharat.

 

Housing and Infrastructer Sector:

• Since the government of India is nearing the objective of constructing 3 crore homes under the Pradhan Mantri Awas Yojana (Gramin). So, under the Pradhan Mantri Awas Yojana (Grameen) government of India targets to build an additional two crore homes over the next five years.
• A new initiative will be established to assist middle-class residents living in rented homes, slums, and unlawful colonies in buying or building their own homes.

 

Health Sector:

• Government of India will launch a program for Girls aged 9 to 14 will be encouraged to get vaccinated against cervical cancer.
• For Mission Indradhanush, a new platform called U-WIN would be implemented to manage immunization across the country.
• Healthcare coverage under the Ayushman Bharat initiative would be extended to all ASHA workers, Anganwadi workers, and helpers.
• Saksham Anganwadi and Poshan 2.0 will expedite improved nutrition delivery, early children care, and development.  

 

Energy Sector:

• Rooftop solarisation will be implemented in one crore households, allowing them to get up to 300 units of free electricity every month.
• To attain net-zero emissions by 2070, blending compressed biogas in CNG and PNG will be implemented in phased manner.
• By 2030, a 100-metric-ton coal gasification and liquefaction capability will be installed.
• Financial support for the purchase of biomass aggregating machinery.

 

Environment Sector:

• Electric vehicle manufacturing and infrastructure to charge them will be strengthened and expanded.
• The usage of electric buses for public transportation will be encouraged. The Blue Economy 2.0 initiative will be launched to revive coastal aquaculture and mariculture.
• A new initiative will be launched to offer alternatives that are environmentally friendly such as biodegradable polymers, bioplastics, and biopharmaceuticals.

 

Agriculture Sector:

• Both private and public investment will be encouraged in post-harvest operations such as aggregation, storage, supply chain, processing, and marketing.
• The use of Nano DAP fertiliser will be promoted throughout all agroclimatic zones.
• A program in order to help dairy farmers will be introduced.
• Atmanirbhar Oilseeds Abhiyaan - A strategy will be developed for achieving atmanirbharta for oilseeds.
• PM Matsya Sampada Yojana will be expanded to: (i) increase aquaculture output from three to five tons per hectare; (ii) doubles the seafood exports to rupees one lakh crore; (iii) create 55 lakh job opportunities; and (iv) establish five integrated aquaparks. 

 

For Demographic Changes: A high-powered committee will be formed to address the issues that come with rapid population increase and changing demographics.
 

Research Sector: A one lakh crore rupee fund will be established to encourage the business sector to expand its research and innovation efforts. This fund will provide long-term loans with low or no interest rates.
 

Tourism Sector:  

• States will be encouraged to establish widely recognized destinations for tourism in order to attract business and generate opportunities for local businesses.
• Long-term interest-free loans would be granted to states to promote tourism development.
• G20 meetings held in 60 cities showcased India's diversity to a global audience.
• Port connectivity, tourism infrastructure, and amenities Projects will be undertaken on islands such as Lakshadweep. 

Budget Allocated to Various Ministries as per Interim Budge 2024-24:

• Budget allotted to Ministry of Defence – ₹ 6.2 Lakh Crore
• Budget allotted to Ministry of Road Transport and Highways – ₹ 2.78 Lakh Crore
• Budget allotted to Ministry of Railways – ₹ 2.55 Lakh Crore
• Budget allotted to Ministry of Consumer Affairs, Food & Public Distribution – ₹ 2.13 Lakh Crore
• Budget allotted to Ministry of Home Affairs – ₹ 2.03 Lakh Crore
• Budget allotted to Ministry of Rural Development – ₹ 1.77 Lakh Crore
• Budget allotted to Ministry of Chemicals and Fertilizers – ₹ 1.68 Lakh Crore
• Budget allotted to Ministry of Communications – ₹ 1.37 Lakh Crore
• Budget allotted to Ministry of Agriculture and Farmer's Welfare – ₹ 1.27 Lakh Crore 

Budget Allocated to Major Schemes as per Interim Budge 2024-24:

• Budget allotted to Mahatma Gandhi National Rural Employment Guarantee Scheme – ₹ 86000 Crore
• Budget allotted to Solar Power (Grid) Scheme – ₹ 8500 Crore
• Budget allotted to Ayushman Bharat (PMJAY) Scheme – ₹ 7500 Crore
• Budget allotted to For Manufacturing Semi-Conductors and Display – ₹ 6903 Crore
• Budget allotted to Production Linked Incentive Scheme – ₹ 6200 Crore
• Budget allotted to National Green Hydrogen Mission Scheme – ₹ 600 Crore