Interim Budget 2024 – Key Highlights

Finance Minister Ms Nirmala Sitharaman presented the last budget of the incumbent NDA government at the parliament on 1 February 2024. Sitharaman, who is India’s first full-time woman finance minister, presented her sixth consecutive budget. At 58 minutes, it was also her shortest presentation.

Interim Budget 2024 carefully avoided populist measures and sweeping policy changes, which is somewhat of a norm with interim budgets. The speech was also generously peppered with highlights of the Modi government’s achievements in the 10 years. Pragmatic spending targets and fiscal deficit reduction aside, the interim budget does have its share of announcements. Here are the key highlights of the budget, all encapsulated in one place!

The Budget Highlights

The finance minister started by stating that the government is driven by the goal of a Vikasit Bharat by 2047. Ms Sitharaman said that the Prime Minister believes in four pillars of development, known as GYAN. It stands for Garib, Yuva, Annadata and Narishakti. Focus was also stressed on a more comprehensive GDP, i.e., Governance, Development and Performance.

Fiscal Announcements

• Capex outlay for FY 2023-24 is Rs 11.11 lakh crore, which is 3.4 per cent of GDP
• Revised expenditure for FY 2023-24 Rs 44.90 lakh crore
• The FY2023-24 Fiscal Deficit target revised to 5.8 per cent of GDP from 5.9%
• 5.1% Fiscal Deficit target for FY 2024-25
• FY 2024-25 gross market borrowing target is Rs 14.13 lakh crore, net market borrowing target is Rs 11.75 lakh crore

Taxation

• The finance minister didn’t alter the existing direct and indirect tax regimes.
• Tax benefits to startups, investments made by sovereign wealth or pension funds, and certain incomes of IFSC units that are expiring on 31 March 2024 will now remain in force for one more year.
• Disputed tax demands of up to Rs 25,000 for 2009-10 or earlier, and less than Rs 10,000 for 2010-11 to 2014-15, will be dismissed.
• The government will focus on improving taxpayer’s service.

MSME and Entrepreneurship

• The government aims to continue its support to the MSME sector with sufficient and timely finance, technology, and training.
• The regulatory environment will be molded to ensure the growth of the MSME sector and increase its global competitiveness.
• A corpus of Rs 1 lakh crore was announced to promote research and innovation in sunrise sectors. The corpus will be used through long-term financing and refinancing with little or no interest rate.
• A new scheme to strengthen deep-tech technologies in the defence sector was announced.

Real Estate

• The PM Awas Yojana (PMAY) Grameen is nearing the completion of three crore homes. The budget announced an additional target of two crore more houses in the next five years.
• Sections of the middle class living on rent or in chawls and unauthorized colonies will receive support under a new scheme to build or buy houses.

Energy and Power

• To make India net zero by 2070, the government will emphasize areas such as offshore wind energy generation, coal gasification and liquefaction, compressed biogas, CNG, piped natural gas, etc.
• E-vehicle infrastructure to be broadened, while more e-buses will ply the roads.
• A new bio-manufacturing and bio-foundry scheme was announced.
• The Pradhanmantri Surydaya Yojana will provide solar panels to 1 crore households, which can generate 300 units per month per household. This can amount to an annual saving of Rs 15,000-18,000 per household.

Medical & Healthcare

• The government plans to open new medical colleges using the existing departmental hospital infrastructure.
• Vaccination for the prevention of cervical cancer is to be promoted for girls in the age group of 9 to 14.
• A new comprehensive programme will cover the various maternal and childcare schemes.
• Angadvaadi and Poshan 2.0 programmes will be upgraded to fasten the delivery of better nutrition, early childhood care and development.
• The government plans to accelerate immunisation through the U-Win platform and Mission Indradhanush.
• Ayushman Bharat Health Care scheme to cover all Asha workers, Angadvaadi workers, and helpers.

Agriculture and related sectors

• Private and public investments in post-harvest activities will be promoted. Activities include storage, supply chain, processing, marketing and branding, etc.
• Expansion in the use of Nano DAP on crops in all agro-climatic zones is planned.
• Aatmanirbhar Oilseeds Abhiyan was announced. It will aim for self-reliance in oilseeds like mustard, soybean, sesame and sunflower.
• A comprehensive programme for dairy farmers was announced. It will be built on existing schemes like the Rashtriya Gokul Mission, National Livestock Mission, and Infrastructure Development Funds for dairy processing and animal husbandry.
• Pradhan Mantri Matsya Sampada Yojana will now work towards the enhancement of productivity, doubling exports, generating 55 lakh job opportunities and setting up five aquaparks.

Travel and tourism

• Three new major economic railway corridors were announced. This includes the decongestion of high-density corridor and a dedicated corridor for energy, mineral and cement.
• Indian Railways will convert 40,000 existing railway bogies to Vande Bharat quality and safety standards.
• Expansion of metro rail and NaMo Bharat in large cities.
• Long-term interest-free loans were earmarked for states to develop their iconic tourist spots.
• Infrastructural projects like port connectivity, tourism infrastructure, and amenities will be taken up to develop island tourism, including Lakshadweep.
• Expansion of airports and development of new ones will continue on priority.

Special Highlights: The India Growth Story

• The next five years will be years of unprecedented growth
• The next generation of reforms is to be taken in consultation with state governments.
• Eastern region to be made a key driver in India's growth
• Female higher education rose to 28 per cent in the last 10 years
• Over Rs 22 lakh crore Mudra loans disbursed in the last 10 years. 30 crore loans to women entrepreneurs.
• Jan Dhan accounts help the government to save over Rs 2 lakh crore
• Skill India mission has trained over 1.4 crore youths
• Direct transfers of Rs 34 lakh crore to the beneficiaries
• 25 crore people are out of poverty in the last 10 years
• The worry of food has been eliminated for 80 crore people through free ration
• MSP has increased periodically for the Anna Data