Budget 2024 Highlights
Budget 2024 Highlights: Today, Finance Minister Nirmala Sitharaman presented the Interim Union Budget for 2024-25 in Parliament. Let’s explore important Budget 2024 Highlights from taxes to infra and green energy. The current FM has presented six budgets, and this is the last one of Prime Minister Narendra Modi’s second term. The complete budget will come in July, after the new government forms following the Lok Sabha Elections.
Budget 2024 Highlights
The budget aimed to improve finances, build infrastructure, support agriculture, promote green initiatives, and enhance railways. However, there were no tax rate changes, disappointing many employees.
The Fiscal Deficit target for FY25 is 5.1% of GDP, better than expected, with FY24 revised to 5.8%. Additionally, the FY25 capex target increased by 11.1% to ₹11.1 lakh crore.
Key focuses include infrastructure, tourism, logistics, and research innovation for sustainable economic growth. The government remains committed to reducing fiscal deficit to 4.5% of GDP by FY26.
Explore important Budget 2024 Highlights from income tax to green energy and infrastructure:
Finance Minister’s Bold Dairy Plan
In her Budget 2024 speech, Nirmala Sitharaman talked about making a big plan to help dairy farmers. They’re already working hard to stop foot and mouth disease. India makes the most milk in the world, but the cows and buffaloes don’t give as much milk as they could. The plan will use successful projects like Rashtriya Gokul Mission, National Livestock Mission, and funds for improving dairy processing and taking care of animals.
India’s Finance Minister Nirmala Sitharaman said that even though India makes the most milk in the world, the cows and buffaloes here don’t make as much milk as they could. She said the government is trying to help farmers who raise these animals and is working hard to stop a disease that affects them. She mentioned some plans already in place to help farmers and improve the milk industry.
Last year, India made 4% more milk than the year before, totalling 230.58 million tons. In the past nine years, milk production in India has gone up by 58%.
The state of Uttar Pradesh makes the most milk, followed by Rajasthan, Madhya Pradesh, Gujarat, and Andhra Pradesh. The states with the biggest increases in milk production are Karnataka, West Bengal, and Uttar Pradesh.
Income Tax Updates
Sitharaman maintains tax rates and said “I do not propose any changes in tax rates in direct and indirect taxes including import duties,” Sitharaman said, during her Budget speech, emphasizing a doubling of tax collections over the past decade. The process time for tax returns has reduced to 10 days, enhancing efficiency.
Infrastructure Boost
FM increases infrastructure spending by 11.1% to ₹11.1 lakh crore, stimulating economic growth and job creation.
Railway Upgrades
FM Sitharaman announced the conversion of 40,000 rail bogies to Vande Bharat, enhancing passenger safety and comfort. Key rail projects like Metro Rail and Namo Bharat will expand to more cities. Additionally, three major railway corridors were unveiled, aiding in decongesting high-traffic routes and improving passenger train operations. This initiative is expected to boost GDP growth and reduce logistic costs, promoting competitiveness, particularly in manufacturing.
‘Lakhpati Didi’ Scheme
FM announced that 83 lakh self-help groups, consisting of 9 crore women, are transforming rural areas by promoting empowerment and self-reliance. Nearly one crore women have already become ‘Lakhpati Didi’ through their success. Encouraged by this achievement, the target for ‘Lakhpati Didi’ has been raised from 2 crore to 3 crores. This scheme aims to uplift rural women’s economic status by providing financial assistance, potentially reducing financial stress on micro-financiers.
Electricity
Using rooftop solar panels, 10 million households will get 300 units of free electricity monthly. This plan aligns with the Prime Minister’s vision on the day of the Shri Ram Mandir’s consecration in Ayodhya. It could save households ₹15,000-18,000 yearly by using free solar power and selling excess to utility companies.
Green Energy
To achieve ‘net zero’ emissions by 2070, several initiatives were announced:
- Funding for offshore wind energy projects.
- Setting up coal gasification and liquefaction capacity by 2030.
- Mandating blending of compressed biogas in natural gas for transport and domestic use.
- Providing financial aid for biomass aggregation machinery to support collection.
Electric Vehicle Support
Efforts to expand EV infrastructure and incentivize adoption aim to overcome barriers and promote sustainable transportation.
Tourism Development
States encouraged for comprehensive tourism development, with emphasis on quality facilities and services, generating employment.
Promoting Investments
The government aims to sustain FDI inflow with bilateral investment treaties and long-term interest-free loans for research and innovation.
Technological Advancements
FM announces a corpus of ₹1 lakh crore for long-term financing, encouraging private sector innovation in sunrise domains.
Ayushman Bharat
Finance Minister Sitharaman announced that all Anganwadi and Asha workers will now be covered by Ayushman Bharat. Additionally, she mentioned that all programs related to healthcare for mothers and children will be combined into one comprehensive scheme.
PM Awas Yojana
Despite COVID challenges, the government has been working on the PM Awas Yojana (Grameen) and is close to reaching the goal of providing three crore houses. Sitharaman stated that they plan to build two crores more houses in the next five years to accommodate the growing number of families.
Veer Trivedi, a Research Analyst at SAMCO Securities, noted that the Pradhan Mantri Awas Yojana (Urban), which aims to ensure housing for everyone, was launched in 2015. The government’s goal was to construct three crore sturdy houses by March 2024, and they are nearing this target. The plan to build an additional two crore houses in the next five years shows a continued commitment. This increased focus on PMAY is expected to boost investments and activity in the construction sector, benefiting industries like Housing Finance, Cement, Steel, and Paints, leading to positive effects across various sectors.
MSME Support
Emphasis on training and growth facilitation for MSMEs to enhance competitiveness and meet investment needs.
Agricultural Development and food processing
Efforts focus on value addition, with schemes like PM Kisan Sampada Yojana and promoting investment in post-harvest activities.
Pradhan Mantri Formalisation of Micro Food Processing Enterprises Yojana has assisted 2.4 lakh SHGs and sixty thousand individuals with credit linkages. Other schemes are complementing the efforts for reducing postharvest losses and improving productivity and incomes.
The minister also said they’re planning to help us grow more oilseeds on our own. They’re also working on ways to make our farming better so we can earn more money.
Fiscal Outlook
FY25 fiscal deficit target set at 5.1% of GDP, with increased capital expenditure, indicating a positive economic outlook.
- Fiscal Year 2025 targets a fiscal deficit of 5.1% of GDP.
- FY24 revised fiscal deficit target lowered to 5.8% from 5.9%.
- FY24 fiscal deficit until December stood at ₹9.82 lakh crore.
- FY25 capital expenditure raised to ₹11.1 lakh crore, up 11.1%.
- FY25 total expenditure estimated at ₹30.80 lakh crore.
- FY24 revenue receipts expected to surpass estimates at ₹30.03 lakh crore.
- FY25 gross market borrowing set at ₹14.13 lakh crore, net borrowing at ₹11.75 lakh crore.
- FY25 gross tax receipts targeted at ₹26.02 lakh crore.
Expansion of Medical Education Infrastructure
Sitharaman also revealed intentions to establish additional medical colleges by leveraging existing hospital infrastructure across various departments. “A dedicated committee will be formed to assess the challenges and provide appropriate recommendations,” she stated.
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