On February 1, Union Finance Minister Nirmala Sitharaman unveiled her sixth Budget, which served as an interim budget preceding the upcoming general elections later this year. The Interim Budget 2024 prioritized initiatives for youth and women empowerment, while also emphasizing fiscal consolidation and sustaining capital expenditure.
Key areas addressed in the budget encompassed fiscal consolidation, infrastructure development, agriculture, environmental sustainability, and enhancements to the railway system. Despite these efforts, there were no alterations to tax rates, disappointing many salaried individuals.
Prime Minister Narendra Modi highlighted that the Union Budget 2024, presented by Finance Minister Nirmala Sitharaman, ensures the “guarantee” of fortifying the groundwork for a developed India.
10 Major Takeaways from Budget 2024
Here are the 10 major key takeaways from Budget 2024 proposed by FM Nirmala Sitharaman:
- The fiscal deficit for FY24 is anticipated to be lower than the target, standing at 5.8% of GDP. It is projected to be pegged at 5.1% for FY25, to further reduce it to 4.5% by FY26.
- The government is planning to construct an additional 20 million affordable houses over the next five years, in addition to the 30 million houses already built.
- There were no alterations made to taxation, including both direct and indirect taxes.
- Tax advantages for startups and investments made by sovereign wealth and pension funds will be extended until March 2025.
- In her interim Budget 2024 speech, Finance Minister Nirmala Sitharaman announced that the government would make substantial investments in the country’s tourism sector.
- The nation’s capital expenditure for 2024-25 has been increased by 11 percent to ₹11.11 lakh crore, equivalent to 3.4 percent of GDP.
- The government plans to establish a corpus of ₹1 lakh crore through a 50-year interest-free loan structure, providing long-term financing or refinancing options with extended tenors and low to negligible interest rates. This initiative aims to enhance research and development activities in emerging sectors.
- The scope of healthcare coverage under Ayushman Bharat will be expanded to include ASHA workers, Anganwadi workers, and Helpers.
- 40,000 regular rail coaches will undergo conversion to meet the standards of Vande Bharat, aiming to improve the safety, convenience, and comfort of passengers.
- Three significant railway corridor programs will be executed, including: (1) corridors for energy, minerals, and cement, (2) corridors for port connectivity, and (3) corridors with high traffic density.