What to expect in Budget 2024?

Today’s budget is not a comprehensive annual plan but rather an interim budget, commonly referred to as a vote on account, applicable for the first four months of the upcoming fiscal year (April-July). It serves as a temporary measure to fund crucial expenses until a new government assumes office post-elections. Although not as detailed as a regular budget, it may provide valuable indications of the potential priorities of the incoming government.

Get the Latest Updates on Budget 2024 in Summary With Key Highlights

Fiscal Deficit:

• Revised deficit for FY24: 5.8% of GDP
• Expected deficit for FY25: 5.1% of GDP
• Target: Reduce deficit to below 4.5% by FY26

Taxation:

• The number of tax filers increased 2.4 times since 2014
• Direct tax collection tripled since 2014
• Projected tax receipts for FY25: Rs 26.02 lakh crore

Housing:

• 2 crore more houses under Pradhan Mantri Awas Yojana – Gramin (PMAY-G)

Technology & Innovation:

• Rs 1 lakh crore corpus established for long-term financing and refinancing of research and innovation in sunrise domains
• New scheme for strengthening deep tech technology for defence purposes

Healthcare:

• Plans to set up more medical colleges by utilizing existing hospital infrastructure

Women Empowerment:

• Making triple talaq illegal, reserving 1/3rd seats for women in Lok Sabha and state assemblies, and granting over 70% of PM Awas Yojana houses in rural areas to women

Renewable Energy:

• 1 crore households to get up to 300 units of free electricity per month through rooftop solarization
• Aim to achieve net zero by 2070

Tourism:

• Long-term interest-free loans to States for tourism development

Overall Focus:

• Ensuring the requirements and dreams of the underprivileged, women, young individuals, and farmers
• Aiming to achieve a “Developed India” by 2047
• Emphasizing “inclusive development” through “unity and progress for all”
• Giving priority to “GDP” – Governance, Development, and Performance
• Comprehensive, widespread, and inclusive strategy for development

India’s Finance Minister Nirmala Sitharaman delivered the eagerly awaited Interim Budget, detailing the government’s expenditure plans. Acting as a stopgap measure until the establishment of a new government post-elections, the budget introduced various significant measures to enhance economic growth and enhance social welfare. The complete speech of the Finance Minister can be found here.

Key Highlights of Budget 2024 to 2025

• Nominal GDP growth for FY 25 is projected.India has had three consecutive years of 7% GDP growth and is the fastest-growing economy in G20.
• Fiscal deficit for FY 25 projected at 5.1% lower than the revised estimate (5.8%) in FY24.
• Capital expenditure hiked 11% to Rs. 11.11 lakh Crore. Capex from the government will continue, it is important to continue it, FM said.
• India, Middle East, European Corridor (IMEC) project to be taken forward despite disturbances in Red Sea.
• No Changes in direct and indirect tax rates. The Government withdrew income tax demands up to Rs.25000(till 2009-10) and Rs.10000(From 2010-11to 2014-15), which will benefit around one crore tax payers.
• No extension of lower tax rate to new manufacturing units coming into place after March 2024.
• Gross Tax revenue targets for FY25 hiked 11.46% to Rs. 38.31 lakh crore from Rs. 34.37 lakh crore in FY 24.
• The relevance of the target to reduce the Centre’s debt-to-GDP ratio to 40% was set before COVID-19 period will be examined.
• Next generation reforms will be unveiled in consultation with states and stakeholders.
• Government to form high powered panel to address population growth challenges and demographic changes.
• The Government will release a white paper on mismanagement of economy prior to 2014.
• A scheme to help middle class living in rented house to buy or build their own houses will be launched.
• Tax benefits to startups and investments made by sovereign wealth or pension funds extended by one year till 31st march, 2025.