Union Budget 2024 Highlights, Interim Budget Key Features

Union Budget 2024

Today, Union Finance Minister Nirmala Sitharaman is poised to present the Interim Budget for the Financial Year 2024-2025 in Parliament. As it is a Vote on Account preceding the general elections, analysts anticipate limited government policy reforms but emphasize potential support for rural growth. The government is likely to adhere to its fiscal consolidation strategy while ensuring expenditure quality remains uncompromised. Read this article to know about the Union Budget 2024 Highlights and Key Features of the Interim Budget 2024-25 in detail.

Interim Budget 2024 Important Dates

Highlights of Union Budget 2024-25

Fiscal Deficit Targets

• The revised fiscal deficit for FY24 is 5.8% of GDP, expected to be 5.1% in FY25.
• The target is set to reduce the fiscal deficit to below 4.5% of GDP in FY26.

Taxation Policies

• No changes in income tax slabs.
• Withdrawal of outstanding direct tax demands up to Rs 25,000 for FY 2009-10 and up to Rs 10,000 for FY 2010-11 to 2014-15.
• Tax exemptions for start-ups are extended till March 31, 2025.
• Tax filers increased by 2.4 times, with tax receipts projected at Rs 26.02 lakh crore in 2024-25.

Infrastructure and Railway Corridors

• Introduction of three major economic railway corridor programs: energy, mineral, and cement corridors; port connectivity corridors; high traffic density corridors.
• Aims to improve logistics efficiency, reduce costs, and enhance passenger train operations.

Housing and Social Initiatives

• Addition of 2 crore houses under Pradhan Mantri Awas Yojana – Gramin (PMAY-G).
• Setting up a corpus of Rs 1 lakh crore for tech-savvy youth, providing interest-free loans to encourage research and innovation.
• New scheme for strengthening deep tech technology for defence purposes.

Education and Healthcare

• Plans to set up more medical colleges using existing hospital infrastructure.
• Focus on enhancing the dignity of women through legal measures and housing initiatives.

Energy and Environment

• Rooftop solarisation to enable 1 crore households to obtain up to 300 units of free electricity every month.
• Commitment to achieve ‘net zero’ by 2070.
• Long-term interest-free loans to states for tourism development.

Economic Growth and Transformation

• Positive transformation in the Indian economy over the last 10 years.
• Government’s vision for ‘Viksit Bharat’ by 2047 with a focus on inclusive growth.
• Emphasis on GDP – Governance, Development, and Performance.

Social Justice and Inclusivity

• The government’s approach to development is all-round, all-pervasive, and all-inclusive.
• Affirmative actions such as making triple talaq illegal, women’s reservation in legislatures, and housing initiatives for women.

Economic Outlook

• Projection of over 7% growth in the coming years.
• Aspiration is to become the third-largest economy globally in the next three years, with a GDP of $5 trillion.

Viksit Bharat by 2047

In Budget 2024, the Finance Minister envisions a transformative path for India, emphasizing comprehensive development that transcends societal boundaries. The commitment to a “Viksit Bharat” by 2047 reflects a holistic approach, targeting all castes and socio-economic strata. Prioritizing social justice, the government adopts a saturation approach, ensuring inclusivity, secularism, and reducing corruption. This mission represents a commitment to a flourishing, developed nation that benefits every segment of society.

People-Centric Inclusive Development

Budget 2024 champions “People-Centric Inclusive Development” as the Finance Minister outlines a vision that transcends conventional boundaries. With a commitment to comprehensive progress, the government aims to uplift citizens from all castes and socio-economic backgrounds. The goal is to transform India into a “Viksit Bharat” by 2047, emphasizing development that permeates every level of society. The strategy prioritizes social justice, employing a saturation approach to cover all eligible individuals, fostering secularism, reducing corruption, and preventing nepotism.

Garib Kalyan, Desh ka Kalyan

“Garib Kalyan, Desh ka Kalyan” encapsulates the essence of Budget 2024. The Finance Minister’s vision focuses on the welfare and well-being of the underprivileged, echoing a commitment to the nation’s prosperity through the upliftment of the poor. By prioritizing the “Kalyan” (welfare) of the “Garib” (poor), the government aims to ensure inclusive development, fostering a socially just and equitable society. This approach aligns with the broader mission of transforming India into a developed nation that flourishes at every level by 2047.
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What is Interim Budget?

The Interim Budget 2024 is a vote-on-account budget that will allow the government to meet short-term expenses until a new government takes over. The budget is set against the backdrop of India’s economic resilience and global instability.

• An interim budget is presented when time constraints or impending elections prevent a full budget.
• During general elections, it is customary for the incoming government to formulate and present a comprehensive budget.
• A full budget provides spending rights until the financial year concludes on March 31.
• If a full budget isn’t presented before the financial year ends, parliamentary approval is necessary for expenditures in the new fiscal year.
• Until the new budget is approved, the government utilizes a vote-on-account through the interim budget.
• The vote-on-account allows the government to meet essential administrative expenses temporarily.
• It serves as a bridge until the Parliament discusses and approves the comprehensive budget for the entire fiscal year.

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Why an Interim Budget in 2024?

Given that 2024 is an election year, Finance Minister Nirmala Sitharaman’s presentation of the interim budget is strategic. The interim budget is not intended to bring about significant policy changes but serves as a vote on account before the general elections. Sitharaman confirmed at an industry event in December that there would be no “spectacular announcement” in the interim budget. Instead, its purpose is to plan and authorize government expenditures to avoid financial difficulties during the transition period.

Interim Budget 2024 Facts and Records

• Finance Minister Sitharaman’s “bahi-khata” choice for carrying the budget speech and documents symbolizes a departure from the traditional budget briefcase.
• This Interim Budget of 2024 marks Sitharaman’s sixth budget and the 12th budget of the Modi administration, making her the second finance minister to present six consecutive budgets after Morarji Desai.
• Breaking records set by predecessors, Sitharaman is the first full-time female finance minister to present more than five consecutive budgets, surpassing Yashwant Sinha, Arun Jaitley, Manmohan Singh, and P Chidambaram.

Interim Budget 2024 UPSC

The Interim Budget 2024, presented by Finance Minister Nirmala Sitharaman, addresses short-term financial needs amid impending elections. Focused on rural development and social schemes, the budget prioritizes farmers and the underprivileged. Key expectations include increased capital expenditures, fiscal consolidation, and sustained infrastructure spending. The budget, marked by a departure from tradition, symbolizes Sitharaman’s sixth consecutive budget and her historic achievement as the first full-time female finance minister to present more than five consecutive budgets. The interim budget bridges expenses until the new government takes charge in April 2024.

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