Budget 2024 Key Highlights

Finance and Corporate Affairs Minister Smt Nirmala Sitharaman, while presenting the Interim Union Budget for 2024-2025 in Parliament announced that the capital expenditure outlay for the next year is being...

Ruby Thakur
February 2, 2024
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Finance and Corporate Affairs Minister Smt Nirmala Sitharaman, while presenting the Interim Union Budget for 2024-2025 in Parliament announced that the capital expenditure outlay for the next year is being increased by 11.1 percent to Rs 11,11,111 crore, which would be3.4 percent of the GDP.

Budget 2024

Finance and Corporate Affairs Minister Smt Nirmala Sitharaman, while presenting the Interim Union Budget for 2024-2025 in Parliament announced that the capital expenditure outlay for the next year is being increased by 11.1 percent to Rs 11,11,111 crore, which would be3.4 percent of the GDP.
As per the First Advance Estimates of National Income of FY 2023-24, presented along with the Finance Minister’s speech, India’s Real GDP is projected to grow at 7.3 percent. This is also in line with the upward revision in growth projections for FY2023-24 by the RBI (in its December 2023 Monetary Policy Committee meeting) from 6.5 percent to 7 percent, prompted by strong growth in Q2 of FY2023-24.

As per the IMF, India is likely to become the third-largest economy in 2027 (in USD at market exchange rate) and it is also estimated that India’s contribution to global growth will rise by 200 basis points in 5 years. Moreover, various international agencies such as the World Bank, the IMF, OECD, and ADB project India to grow between 6.4 percent, 6.3 percent, 6.1 percent, and 6.7 percent, respectively in 2024-25.
The Finance Minister stated that strong growth in economic activity has imparted buoyancy to revenue collections and pointed out that GST collection stood at ₹1.65 lakh crore in December 2023. This is the seventh time that gross GST revenues have crossed ₹1.6 lakh crore benchmark.
She said, coming to 2024-25, the total receipts other than borrowings and the total expenditure are estimated at Rs30.80 and 47.66lakh crore respectively.The tax receipts are estimated at Rs 26.02 lakh crore.
In a major announcement, the Finance Minister said, the scheme of a fifty-year interest-free loan for capital expenditure to states will be continued this year with total outlay of Rs1.3 lakh crore. A provision of seventy-five thousand crore rupees as a fifty-year interest-free loan is proposed this year to support the milestone-linked reforms of Viksit Bharat by the State Governments.

Referring to the fiscal consolidation, as announced in her Budget Speech for 2021-22, to reduce the fiscal deficit below 4.5 percent by 2025-26, Smt.
Sitharaman said, that the fiscal deficit in2024-25 is estimated to be 5.1 percent of GDP, adhering to that path.
Similarly, the gross and net market borrowings through dated securities during 2024-25 are estimated at Rs 14.13 and 11.75 lakh crore respectively and both will be less than that in 2023- 24.
Pointing out some of the bright spots of the economy, the Finance Minister informed that the Revised Estimate of the total receipts other than borrowings is Rs 27.56 lakh crore, of which the tax receipts are Rs 23.24 lakh crore. The Revised Estimate of the total expenditure is Rs 44.90 lakh crore. The revenue receipts at Rs 30.03 lakh crore are expected to be higher than the Budget Estimate, reflecting strong growth momentum and formalization in the economy.
Smt Sitharaman also stated that the gross and net market borrowings through dated securities during 2024-25 are estimated at Rs14.13 and 11.75 lakh crore respectively and both will be less than that in 2023-24.
She announced that the FDI inflow during 2014-23 was USD 596 billion marking a golden era and this is twice the inflow during 2005-14.
Prime Minister Shri Narendra Modi firmly believes and focuses on four major castes. They are, ‘Garib’ (Poor), ‘Mahilayen’ (Women), ‘Yuva’ (Youth), and ‘Annadata’(Farmer). She said, their needs, their aspirations, and their welfare are the government’s highest priority because the country progresses when they progress.

Smt Nirmala Sitharaman elaborated that this government’s humane and inclusive approach to development is a marked and deliberate departure from the earlier approach of ‘provisioning up-to-village level’. Development programmes, in the last ten years, have targeted each and every household and individual, through ‘housing for all’, ‘har ghar jal’, electricity for all, cooking gas for all, bank accounts and financial services for all, in record time, she added.
The Finance Minister stressed that this Government is working with an approach to development that is all-round, all-pervasive, and all-inclusive (सवाɍगीण,सव[èपशȸऔरसव[समावेशी).
She also pointed out, “Previously, social justice was mostly a political slogan. For our Government, social justice is an effective and necessary governance model”.
The Finance Minister announced amidst thumping of desks that the Indian economy has witnessed a profound positive transformation in the last ten years and the people of India are looking ahead to the future with hope and optimism. She added, “Conditions were created for more opportunities for employment and entrepreneurship. The economy got a new vigour. The fruits of development started reaching the people at scale. The country got a new sense of purpose and hope”.
The Finance Minister informed that with the pursuit of ‘SabkakaSaath’ in these 10 years, the Government has assisted 25 crore people to get freedom from multi-dimensional poverty and the Government’s efforts are now getting synergized with the energy and passion of such empowered people.

She informed that PM Mudra Yojana has sanctioned 43 crore loans aggregating to Rs 22.5 lakh crore for entrepreneurial aspirations. It may be mentioned that thirty crore Mudra Yojana loans have been given to women entrepreneurs.
The interim budget contains a number of announcements and strategies indicating directions and development approaches for making India Viksit Bharat by 2047.
Making a slew of announcements, Smt Nirmala Sitharaman said, the Government will pay utmost attention to making the eastern region and its people a powerful driver of India’s growth, PM Awas Yojana (Grameen) is close to achieving the target of three crore houses and two crores. More houses will be taken up in the next five years to meet the requirement arising from an increase in the number of families. Similarly, through rooftop solarization, one crore households will be enabled to obtain up to 300 units of free electricity every month.

Pradhan Mantri Kisan Sampada Yojana has benefitted 38 lakh farmers and generated 10 lakh employment. Pradhan Mantri Formalisation of Micro Food Processing Enterprises Yojana has assisted 2.4 lakh SHGs and sixty thousand individuals with credit linkages.
Smt Nirmala Sitharaman announced that for our tech-savvy youth, this will be a golden era, as a corpus of rupees one lakh crore will be established with a fifty-year interest-free loan.
Moreover, forty thousand normal rail bogies will be converted to the Vande Bharat standards to enhance the safety, convenience, and comfort of passengers.
In the Aviation Sector, the number of airports has doubled to 149 and today five hundred and seventeen new routes are carrying 1.3 crore passengers. Indian carriers have proactively placed orders for over 1000 new aircraft.
Smt Nirmala Sitharaman announced that the Government will form a high-powered committee for an extensive consideration of the challenges arising from fast population growth and demographic changes and the committee will be mandated to make recommendations for addressing these challenges comprehensively in relation to the goal of ‘Viksit Bharat’.

Social Justice : Prime Minister to focus on upliftment of four major castes, that is, ‘Garib’ (Poor), ‘Mahilayen’ (Women), ‘Yuva’ (Youth) and ‘Annadata’(Farmer).
‘Garib Kalyan, Desh ka Kalyan’
Government assisted 25 crore people out of multi-dimensional poverty in last 10 years.
DBT of Rs. 34 lakh crore using PM-Jan Dhan accounts led to savings of Rs. 2.7 lakh crore for the Government.
PM-SVANidhi provided credit assistance to 78 lakh street vendors. 2.3 lakh have received credit for the third time.
PM-JANMAN Yojana to aid the development of particularly vulnerable tribal groups (PVTG).
PM-Vishwakarma Yojana provides end-to-end support to artisans and crafts people engaged in 18 trades.

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Ruby Thakur

General Studies Lecturer SSBCrackExams, BSc In PCM, Trained Students For State Services Exams. Expertise in Geography ,Polity & Current Affairs. Love Travelling.