India Interim Budget 2024-25: Key Highlights and Takeaways

Abhishek Kumar

30 Mar, 2024

In Union Budget 2024-25, FM Nirmala Sitharaman sets the stage for a transformative year with a financial commitment to continuity, innovation, and sustainability. She confirmed the continuity of existing tax rates for direct and indirect taxes and export duties. Considering there has been an 11% increase in upcoming year capital expenditure, reaching ₹11.1 lakh core. The fiscal gap has been revised to 5.8% of GDP. The finance minister introduced a housing scheme for the deserving middle class, especially for those who live in rented houses, slums, chawls, or unauthorized colonies. Our Prime Minister, Narender Damodar Das Modi, emphasized that such an initiative will definitely support the middle-class segment in acquiring or constructing their homes. Moreover, the Interim budget 2024 comprises diverse announcements to benefit the Indian youth and impoverished women and farmers. The finance minister also extended Ayushman Bharat’s health care coverage to all ASHA and Anganwadi workers and helpers.

Key Highlights of Interim Budget 2024-25: Inclusive Growth and Sustainability”

The interim 2024 budget key highlights showcase the government’s commitment towards socio-welfare and inclusive development, which promised to shape the Indian economic trajectory and address environmental challenges.

Poverty Alleviation and Social Welfare:

1. In Budget 2024, the government highlights the successful upliftment of the number of 25 core people out of the poverty line during the last decade.
2. Under social welfare, the government made free food provisions for 80 core people through diverse schemes.

Financial Inclusion and Skill Development:

1. Over 1.4 core youth trained under the scheme Skill India mission emphasize the significance of upskilling and reskilling.
2. A direct transfer of 34 lakhs core amount in substantial savings accounts under the PM Jan Dhan Yojana.

Economic Growth and Infrastructure Development:

1. The India- Middle East-Europe Economic corridor is acknowledged to be a key player in global trade.
2. The government emphasizes developing the eastern part of India for overall economic growth.
3. Inflation within the target band (2%-6%) and with an increase of 50% in average real income showcase the positive economic trends.

Healthcare and Agriculture Initiatives:

1. The government expanded the coverage of Ayushman Bharat to all Asha workers, including Anganwadi workers and helpers.
2. Introduction of Nano DAP for different crops in the country and various policies to help and uplift the dairy farmer’s growth.

Environmental Sustainability:

1. The government is committed to achieving Net Zero by 2070 with various innovative initiatives like harnessing offshore wind energy and promoting the e-vehicle sector in Budget 2024.
2. The government increased the spending upon capital expenditure to promote sustainable development under the interim budget 2024.

Fiscal Management and Taxation:

1. The gross tax revenue target for FY25 has increased by 11.46% to ₹38.31-lakh core.
2. Continued with fiscal consolidation, aims to reduce the fiscal deficit to 4.5% in 2025-26.
3. Continuance in the existing tax rates for both the direct and indirect taxes along with the import duties.

Future Reforms and Population Challenges:

1. Plans for the next generation reforms in consulting with the Indian states and stakeholders.
2. Created a high-powered panel to address the population’s growing challenges and demographic changes.

Interim Budget 2024-2025 Speech of Nirmala Sitharaman

Conclusion:

The union budget 2024-25 showcases a holistic approach towards inclusive growth, economic stability, and environmental sustainability. The government of India, under the Interim budget, highlights commitment to social welfare and infrastructure development towards a resilient and self-reliant India. As India navigates through the fiscal year 2024-25, the implementation of government initiatives will be closely monitored for its impact on the lives of Indian populations and the country’s overall development and progress.