Highlights of the Interim Budget 2024-2025
Finance and Corporate Affairs Minister Smt. Nirmala Sitharaman today presented the Interim Budget 2024-25 in Parliament with the mantra of ‘Sabka Saath, Sabka Vikas, and Sabka Vishwas’ and a whole-of-nation vision of ‘Sabka Prayas’. The main points of this budget are as follows:
Social Justice
Prime Minister’s focus on the upliftment of four major sections i.e. poor, women, youth, and Annadata (farmers).
‘Welfare of the poor, welfare of the country’
- During the last 10 years, the government helped 25 crore people come out of multidimensional poverty.
- Direct transfer of Rs 34 lakh crore to bank accounts using PM-Jan Dhan accounts. This saved the government Rs 2.7 lakh crore.
- Loan assistance to 78 lakh street vendors under PM-Swanidhi. 2.3 lakh hawkers got loans for the third time.
- Emphasis on the development of Particularly Vulnerable Tribal Groups (PVTGs) through PM-Janman Yojana.
- End-to-end support to artisans and craftsmen associated with 18 businesses under the PM-Vishwakarma Scheme.
Welfare of ‘Annadata’
Under PM-Kisan Samman Yojana, financial assistance was provided to 11.8 crore farmers.
Under the PM-Fasal Bima Yojna, crop insurance was provided to 4 crore farmers.
1,361 mandis have been integrated under the Electronic National Agriculture Market (e-NAM). Due to this, services are available to 1.8 crore farmers with purchase and sale worth Rs 3 lakh crore.
Empowering the Youth
1.4 crore youth trained under the Skill India Mission.
Fostering entrepreneurial aspirations of Youth-43 crore loans sanctioned under PM Mudra Yojana.
Emphasis on women’s power
30 crore Mudra Yojana loans were given to women entrepreneurs.
Women’s enrollment in higher education increased by 28 percent.
43 percent enrollment of girls and women in STEM courses, which is the highest in the world.
1 crore women assisted by 83 lakh SHGs to become Lakhpati Didis.
Under PM-Awas Yojana, 70 percent of houses were given to rural women.
PM Awas Yojana (Rural)
Despite COVID-related challenges, the target of three crore houses under PM-Awas Yojana (Rural) will be achieved soon.
A target of 2 crore additional houses will be taken in the next five years.
Sustainable Development
Commitment to meet ‘Net Zero’ by 2070:
- Viability gap funding for wind energy.
- Setting up of coal gasification and liquefaction capacity.
- The phased mandatory blending of CNG, PNG and compressed biogas.
- Financial assistance for procurement of biomass aggregation machinery.
Rooftop solarization and free electricity
By installing a rooftop solar system, 1 crore families will be able to get up to 300 units of free electricity every month.
Every family is expected to save Rs 15,000 to 18,000 annually.
Transport Network
- Adoption of e-buses for public transport network.
- Strengthening e-vehicle ecosystem by supporting manufacturing and charging.
- New scheme of biomanufacturing and bio-foundry to be launched to support environment friendly alternatives
Health
All Asha workers, Anganwadi workers, and assistants will also be included in health care coverage under the Ayushman Bharat scheme.
Encourage Cervical Cancer Vaccination for girls (9-14 years) Saksham Anganwadi and Poshan 2.0 to be expedited for improved nutrition delivery, early childhood care and development.
U-WIN platform for immunization efforts of Mission Indradhanush to be rolled out.
Agriculture and Food Processing
38 lakh farmers have benefited from the Pradhan Mantri Matsaya Sampada Yojana and 10 lakh employment opportunities have been created.
Pradhan Mantri Formalization Scheme for Micro Food Processing Enterprises has helped 2.4 lakh Self-Help Groups (SHGs) and 60,000 people to get credit facilities.
Application of Nano-DAP to be expanded in all agro-climatic zones.5 Integrated Aquaparks to be set up.
Research and development
A fund of Rs 1 lakh crore will be set up with a 50-year interest-free loan. Long-term financing or refinancing will be provided from this fund at low or zero interest rates.
A new scheme will be launched to strengthen deep-tech technology for defense purposes and accelerate self-reliance.
Infrastructure
Capital expenditure outlay for infrastructure development and employment generation is being increased by 11.1 percent to Rs 11,11,111 crore. This will be 3.4 percent of the gross domestic product (GDP).
Railway
Three major Economic Rail Corridor programs have been identified under PM GatiShakti to improve logistics efficiency and reduce costs.
- Energy, Mineral, and Cement Corridor
- port connectivity corridor
- high traffic corridor
40,000 general railway coaches will be converted to ‘Vande Bharat’ standards.
Aviation Sector
The number of airports in the country doubled to 149.
517 new air routes are taking 1.3 crore passengers to their destinations.
The country’s aviation companies placed orders for more than 1,000 new aircraft.
Green Energy
A coal gasification and liquefaction capacity of 100 MT will be set up by the year 2030.
Phased mandatory blending of Compressed Biogas (CBG) with Compressed Natural Gas (CNG) for transportation and Piped Natural Gas (PNG) for domestic purposes will be mandated.
Tourism Sector
States will be encouraged to undertake holistic development of iconic tourist destinations, branding and marketing them on a global scale.
A framework will be created to give ratings to tourist centers based on the quality of facilities and services available there.
To finance such activities, states will be given interest-free long-term loans on a matching basis.
Investment
FDI inflow from 2014 to 2023 stood at $596 billion, which is double the FDI inflow from 2005 to 2014.
Reforms in states for ‘developed India’
It is proposed to make a provision of Rs 75,000 crore as a 50-year interest-free loan for various milestone improvements by the State Governments.
Revised Estimates (RE) 2023-24
- The revised estimate of total receipts excluding borrowing is Rs 27.56 lakh crore, of which tax receipts are Rs 23.24 lakh crore.
- The revised estimate of total expenditure is Rs 44.90 lakh crore.
- Revenue receipts of Rs 30.03 lakh crore are expected to exceed the budget estimates, reflecting the strong growth rate in the economy and its formalization.
- A revised estimate of fiscal deficit for the financial year 2023-24.
Tax Proposals
Continuity in taxation: Certain tax benefits to Start-ups and investments made by sovereign wealth funds/pension funds, tax exemption of some IFSC units earlier expiring on 31.03.2024 extended up to 31.03.2025
Withdrawal of outstanding direct tax demand:
- Up to ₹25,000 pertaining up to FY10
- Up to ₹10,000 for FY11-FY15
- Expected to benefit approx. 1 crore taxpayers
Retention of same tax rates:
- For direct and indirect taxes, including import duties.
- For Corporate Taxes-22% for existing domestic companies, 15% for certain new manufacturing companies.
- No tax liability for taxpayers with income up to ₹7 lakh under the new tax regime
Click Here to Download the Official Notification of Union Budget 2024-25
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