Nirmala Sitharaman Unveils Visionary Interim Budget 2024-25: A Comprehensive Overview
In a momentous session at the Lok Sabha on February 1, 2024, Finance Minister Nirmala Sitharaman presented the interim budget for the financial year 2024-25, laying out a roadmap for India's economic trajectory. This budget, presented during the second term of the Modi government, reflects optimism, resilience, and a commitment to propelling the nation towards a brighter future.
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| Finance Minister Nirmala Sitharaman presented the interim budget for the financial year 2024-25 in the Lok Sabha. |
Economic Transformations and Achievements
Sitharaman highlighted the positive changes witnessed in the Indian economy over the last decade, instilling hope and confidence in the citizens. Notably, key targets such as housing for all, water for every house, electricity for all, cooking gas for all, and universal access to banking and financial services were achieved in record time.
Budget Highlights: A Comprehensive Overview
Revised Estimates (RE) 2023-24
- Total Receipts: Rs 27.56 lakh crore (excluding borrowings)
- Tax Receipts: Rs 23.24 lakh crore
- Total Expenditure: Rs 44.90 lakh crore
- Fiscal Deficit: 5.8 percent of GDP
- GDP Growth: Estimated at 7.3 percent in fiscal year 2023-24
Budget Estimates 2024-25
- Total Receipts: Rs 30.80 lakh crore (excluding borrowings)
- Total Expenditure: Rs 47.66 lakh crore
- Tax Receipts: Estimated at Rs 26.02 lakh crore
- Capital Expenditure Outlay: Increased by 11.1 percent to Rs 11,11,111 crore (3.4 percent of GDP)
- Fiscal Deficit: Estimated at 5.1 percent of GDP
- Market Borrowings: Rs 14.13 lakh crore (Gross), Rs 11.75 lakh crore (Net)
International Recognition and Economic Projections
International institutions, including the IMF, have revised India's growth projection for fiscal year 2023-24 to 6.3 percent, emphasizing India's potential to become the third-largest global economy by 2027. The World Bank, IMF, OECD, and ADB estimate further growth between 6.1 to 6.7 percent for the fiscal year 2024-25.
Tax Reforms: Direct and Indirect Taxes
Direct Taxes
- Tax Rates: Maintained at current levels
- Direct Tax Collections: Tripled in the last 10 years
- Taxpayer Services: Enhanced for improved efficiency
- Tax Benefits: Extended for startups, sovereign wealth funds, pension funds
Indirect Taxes
- Tax Rates: Maintained at existing levels
- GST Impact: Unified and doubled the tax base
- Average Monthly GST Collection: Doubled to Rs 1.66 lakh crore
- State SGST Revenue Growth: Increased significantly post-GST period
Social and Economic Welfare Initiatives
Upliftment of Key Segments
- 'Garib', 'Mahilaein', 'Yuva', 'Annadata': Focus of Prime Minister's initiatives
- PM-SVANidhi: Loan assistance to 78 lakh street vendors
- PM-Janman Scheme: Development support for Particularly Vulnerable Tribal Groups (PVTGs)
- PM-Vishwakarma Yojana: Support for artisans and craftsmen
Farmer and Agriculture Initiatives
- PM-Kisan Samman Yojana: Financial assistance to 11.8 crore farmers
- Crop Insurance Scheme: Providing coverage to 4 crore farmers
- e-NAM: Integrating 1361 mandis, benefiting 1.8 crore farmers
Infrastructure, Energy, and Green Initiatives
- Capital Expenditure: Increased by 11.1 percent for infrastructure development
- PM Gati Shakti: Identifying key economic railway corridor programs
- Aviation Sector: Doubling the number of airports to 149, ordering over 1000 new aircraft
- Green Energy: Installing 100 MT coal gasification and liquefaction capacity by 2030
Tourism and Basic Infrastructure
- Tourism Development: Encouraging states to enhance iconic tourism destinations
- Infrastructure Loans: Providing long-term interest-free loans to states for development
Empowering Women and Social Justice
- Mudra Yojana: Rs 30 crore loan to women entrepreneurs
- Education Enrolment: 28% increase in female enrolment in higher education
- PM Awas Yojana (Rural): Over 70% houses allocated to women in rural areas
Health and Social Welfare
- Ayushman Bharat: Expanding healthcare coverage to Asha workers, Anganwadi workers, and helpers
- PM Kisan Sampada Yojana: Benefitting 38 lakh farmers and creating 10 lakh jobs
Forward-Looking Initiatives
- Research and Innovation Fund: Rs 1 lakh crore fund for long-term financing or refinancing with low or zero interest rates
- Deep-Tech Technologies: Launching a scheme to strengthen deep-tech technologies for defense
Conclusion
Finance Minister Nirmala Sitharaman's interim budget for the financial year 2024-25 is a testament to India's resilience and commitment to inclusive growth. The budget not only addresses economic complexities but also focuses on social welfare, gender empowerment, and sustainable development, reflecting a holistic approach towards nation-building.
