Table of Contents
Introduction
PM Modi applauds Nirmala Sitharaman’s Budget 2024 for ‘Viksit Bharat Budget’.
Finance Minister Nirmala Sitharaman emphasized the government’s commitment to transforming India into a ‘Viksit’ (developed) nation by 2047. As she presented the last budget before the upcoming Lok Sabha polls, Sitharaman highlighted the profound transformation underway in India’s economy.
Nirmala Sitharaman’s Budget 2024
The Finance Minister outlined the government’s priorities, placing a strong focus on improving conditions for various segments of the population, including the poor, women, youth, and farmers. Sitharaman’s speech set the stage for the announcement of welfare schemes aimed at addressing the needs of these key demographics.
Key takeaways from Nirmala Sitharaman’s Budget 2024:
Comprehensive GDP focus: Nirmala Sitharaman stressed governance, development, and performance.
2. Poverty reduction: The government successfully lifted 250 million people out of poverty in the past decade.
3. Crop insurance impact: The benefits of the crop insurance scheme will reach 40 million farmers.
4. Economic indicators: Inflation has moderated, and economic growth has shown improvement.
5. Tax reforms success: Tax reforms have broadened the tax base and increased collections, according to Sitharaman.
6. Unprecedented economic growth: The Finance Minister predicted unprecedented economic growth in the next five years.
7. India’s economic transformation: India, the fastest-growing major economy, is profoundly changing.
8. Vision for 2047: The government aims to develop India into a ‘Viksit’ (developed) nation by 2047.
9. Golden years ahead: Sitharaman envisions the next five years as unprecedented development and golden moments.
10. Deep tech for defence: A new scheme will be launched to strengthen deep tech for defense purposes.
11. Affordable housing initiatives: The government will assist deserving middle-class sections in building their own houses.
12. Massive housing project: Plans to build 20 million affordable houses in the next five years, in addition to the existing 30 million.
13. Empowering women: Self-help groups empowered 1 crore women to become “Lakhpati didis,” as highlighted in Budget 2024.
14. Fiscal deficit targets: FY24 fiscal deficit expected at 5.8% of GDP, with a target of 5.1% in FY25 and an aim to reduce it to 4.5% by FY26.
15. Tax stability: No changes in taxation, both direct and indirect, were announced.
16. Extended benefits: Tax benefits for startups and investments by sovereign wealth and pension funds are extended until March 2025.
17. Tourism sector focus: Significant investments are planned for the tourism sector, as mentioned in the interim Budget 2024.
18. Lakshadweep development: Special attention will be given to improving tourist infrastructure in the island Union Territory of Lakshadweep.
Budget Speech 2024-25
FAQ
What is the Union Budget?
The Union Budget is the annual financial statement of the Government of India, presented in the Parliament by the Finance Minister. It outlines the government’s revenue and expenditure plans for the upcoming fiscal year, which runs from April 1 to March 31.
What is Interim Budget?
An interim budget is a temporary financial plan presented by the government during the transition period between two full-fledged budgets. It is typically presented in an election year when a new government is likely to take office after the elections. The purpose of an interim budget is to meet the government’s expenditure needs until a new government can present a full budget.
What are the 6 key takeaways in Budget 2024-2025
1. Nirmala Sitharaman stuck to fiscal prudence with a lower-than-expected fiscal deficit of 5.8 percent (of GDP) in FY24 and an estimated 5.1 percent next year – lower than estimated.
2. There are no shops or big rural transfers, but she announced building 2 crore more houses for the rural poor in the next five years under the continuing PM Awas Yogna
3. The country’s capital spending for 2024-25 has been raised 11 percent to ₹11.11 lakh crore, or 3.4 percent of GDP.
4. No changes to direct or indirect tax rates
5. The government will set up ₹1 lakh crore corpus with 50 50-year interest-free loans – long-term financing or refinance with long tenor and low or nil interest rates: to scale up R&D in sunrise sectors.
6. Average real income of people increased by 50%.