The 2024 Union Budget of India, also known as the Interim Budget 2024, was presented by Finance Minister Nirmala Sitharaman on February 1, 2024. This budget serves as a temporary measure until the new government is formed after the general elections. Here are the key details and highlights from the budget:
Expected Date and Time Frame
The Interim Budget 2024 was presented on February 1, 2024, and it will provide funding for the government for a part of the financial year until the main budget is passed after the general elections.
Budget Highlights
Expenditure
The government is estimated to spend Rs 47,65,768 crore in 2024-25, which is 6% higher than the revised estimate of 2023-24. Interest payments account for 25% of the total expenditure, and 40% of revenue receipts.
Receipts
Receipts (other than borrowings) in 2024-25 are estimated to be Rs 30,80,274 crore, about 12% higher than the revised estimate of 2023-24. Tax revenue is expected to increase by 12% over the revised estimate for 2023-24.
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GDP
The government has estimated a nominal GDP growth rate of 10.5% in 2024-25 (i.e., real growth plus inflation).
Deficits
Revenue deficit in 2024-25 is targeted at 2% of GDP, which is lower than the revised estimate of 2.8% in 2023-24. Fiscal deficit in 2024-25 is targeted at 5.1% of GDP, lower than the revised estimate of 5.8% of GDP in 2023-24.
New Schemes
Rs 70,449 crore has been allocated to the Department of Economic Affairs for New Schemes, which accounts for 7.5% of the total capital outlay.
Tax Proposals
Tax Rates Unchanged
Direct and indirect tax rates have remained unchanged.
Tax Benefits Extended
Certain direct tax benefits to startups, sovereign wealth funds and pension funds, and some IFSC units have been extended until March 2025.
Policy Highlights
Railways
Three major economic railway corridor programs will be implemented, including energy, mineral, and cement corridors, port connectivity corridors, and high traffic density corridors. Forty thousand normal rail bogies will be upgraded to Vande Bharat standards to ensure passenger safety and comfort.
Welfare of Women and Children
Programmes for the welfare of women and children have been allocated Rs 4,19,183 crore in 2024-25, an increase of 18.6% over the revised estimate of 2023-24. These allocations include programmes being implemented across all ministries.
Fiscal Responsibility and Budget Management Targets
The Fiscal Responsibility and Budget Management (FRBM) Act, 2003 requires the central government to progressively reduce its outstanding debt, revenue deficit, and fiscal deficit, and to give three-year rolling targets for these. The government aims to reduce fiscal deficit to below 4.5% of GDP by 2025-26.
Key Takeaways
- The budget focuses on sustainable development, infrastructure, and inclusive development.
- The theme for this year’s budget is “Viksit Bharat Budget 2024,” which envisions a developed India by 2047.
- The budget highlights the need for a shift from Amrit Kaal to Kartavya Kaal, emphasizing sustainable development and inclusive growth.