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Interim Budget 2024: Expenditure Boosted by 11%, but Taxpayers Await Relief, reveals FM Sitharaman

Interim Budget 2024

Nirmala Sitharaman announced on Thursday, February 1 during the presentation of the Interim Budget 2024-25 that the FY25 capital expenditures have been increased by 11.1% to a total of 11.11 lakh crores. The FY25 capital expenditures now amount to 3.4% of the GDP.

The fiscal deficit, the difference between government revenues and expenses, is expected to be 5.8% of GDP.

For the financial year ending March 2025, gross market borrowing will be ₹14.3 lakh crore (less than in the current year).”

“The Indian economy has witnessed positive transformation in the last 10 years. Our development steps have covered all elements of inclusivity,” she stated at the beginning of her speech.

As the country prepares for elections later this summer, this is the Interim Budget 2024 final budget of the second term of the Narendra Modi government.

During her sixth budget speech as the country’s finance minister, Sitharaman stressed the government’s goal to make India developed by 2047 – Viksit Bharat. The government has tried to provide inclusive development and growth, both socially and geographically, she said in the opening minutes of her speech.

It is important to note that this Vote on Account or an Interim Budget is only for the next three months as the next government will present a comprehensive budget for the financial year 2024-25 after the election. Budgets indicate how much money will be spent and collected until a new government is formed.

Nirmala Sitharaman’s key announcements-Interim Budget 2024

  • There will be no relief for taxpayers: The same tax slabs will remain, FM says. “I propose to retain the same indirect and direct tax rates.”
  • The FY25 divestment target has been lowered to 30,000 crores from the FY24 target of 50,000 crores.
  • The gross market borrowing for FY ending March 2025 will be ₹14.3 lakh crore.
  • The FY25 capex outlay is now at 3.4% of GDP, up 11.1% from FY24.
  • A revised estimate of the fiscal deficit is 5.8% of GDP, with a target of 5.1% for FY25.
  • As compared to the revised estimate of 2.8% for FY24, the FY25 revenue deficit is set at 2%
  • Over the past five years, India has received 6 billion in foreign direct investment. The government is currently negotiating bilateral agreements with foreign partners. FM adds that FDI is now the “First Develop India” policy.
  • An energy mineral and cement corridor, a port connectivity corridor, and a high traffic density corridor have been announced as three major economic railway corridors designed to boost GDP.
  • 40,000 rail bogies will be converted to Vande Bharat standards. The number of airports has doubled in the last decade to 149.
  • A boost for tourism: Projects will be undertaken to increase tourism revenue, especially for islands such as Lakshawdeep.
  • According to FM, the government has assisted 25 crore people to escape multidimensional poverty.
  • Food worries have been alleviated as 80 crore people have been provided with free rations.
  • As a result of Jan Dhan, the government has saved ₹2.7 lakh crore in direct benefits.
  • 2.3 lakh vendors have received loans more than twice under the PM PM SVANidhi scheme.
  • Under the PM Kisan Yojna, 11.8 crore farmers have received assistance.
  • In the last ten years, 30 crore Mudra loans have been given to women entrepreneurs.
  • The average real income of people has increased by 50%.
  • India and others in the region will benefit greatly from the India-Middle East-Europe Economic Corridor.
  • The PM Vishwakarma Yojana provides end-to-end support to artisans and craftspeople in 18 trades.
  • FM Sitharaman said that the government is focused on GDP (governance, development, and performance).
  • In five years, the government plans to build an additional two crore houses under the PM Awas Yojana Grameen.
  • Sustainability & free electricity: Rooftop solarization scheme announced to help 1 crore households, enabling free electricity and surplus energy sale. The first 300 solar homes have already been built.
  • Ayushman Bharat to extend free healthcare to Asha workers and Anganwadi workers under Nari Shakti. Female enrolment in higher education is up by 28% in 10 years.
  • The target for the Lakhpati Didi scheme has been increased from 2 crore to 3 crore.

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I'm Shruti Mishra, Editorial Director @Newsblare Media, growing up in the bustling city of New Delhi, I was always fascinated by the power of words. This love for words and storytelling led me to pursue a career in journalism. In this position, I oversee the editorial team and plan out content strategies for our digital news platform. I am constantly seeking new ways to engage readers with thought-provoking and impactful stories.

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