In full Budget in July, Govt will present detailed roadmap for ‘Viksit Bharat’: FM
Digital Goa, Feb 1 – Finance Minister Nirmala Sitharaman delivered her Budget speech today, presenting the Interim Budget 2024-25 , a day after the commencement of the Budget Session. While populist measures were missing from Sitharaman’s budget speech, she maintained the government’s focus on creating jobs through a sustained infrastructure push, in addition to prioritising groups such as farmers, youth, women and the poorest households. The next ‘full budget’ will be presented in July, once a new government has been sworn in after the Lok Sabha elections.
Budget 2024: Top Highlights from Union Budget 2024-25 by FM Nirmala Sitharaman
➤ No changes in income tax: Finance Minister Nirmala Sitharaman announced that there will be no changes in income tax for FY25.
➤ Big infrastructure push : Infrastructure outlay for the next year is being increased by 11.1 per cent to over Rs 11 lakh crore. This would be 3.4 per cent of the GDP
➤ The fiscal deficit target — the gap between government’s revenue and expenses — for 2024-25 (FY25) was set at 5.1% of the gross domestic product (GDP).
➤ For boost to tourism, “long-term interest free loans to be provided to States to encourage development.”
➤ States will be encouraged to take up comprehensive development of iconic tourist centres, branding and marketing them at global scale. Long-term interest free loans will be provided to States for financing such development on matching basis.
➤ A provision of Rs 75,000 crore as fifty-year interest free loan is proposed this year to support milestone-linked reforms by the State Governments.
➤ Total resources being transferred to the States including the devolution of State’s share, Grants/Loans and releases under Centrally Sponsored Schemes, etc. in BE 2024-25 is Rs 22,22,264 crore, which shows an increase of Rs 4,13,848 crore over Actuals of FY 2022-23.
➤ The revised fiscal deficit — the gap between government’s revenue and expenses — is at 5.8% of the GDP for 2023-24 (FY24). Fiscal deficit in FY25 is expected to be 5.1% of GDP. The target is to reduce the fiscal deficit to below 4.5% of the GDP in 2025-26 (FY26).
➤ The number of tax filers swelled by 2.4 times, Sitharaman said. The direct tax collection has trebled since 2014. In 2024-25, the tax receipts are projected at Rs 26.02 lakh crore.
➤ The Finance Minister has announced 2 crore more houses under the Pradhan Mantri Awas Yojana – Gramin ( PMAY-G).
➤ “For our tech-savvy youth, this will be a golden era. A corpus of Rs 1 lakh crore will be established with 50-year interest free loan provided. The corpus will provide long term financing and re-financing with long tenures at low or nil interest rates. This will encourage the private sector to scale up research and innovation significantly in sunrise domains.”, she said
➤ Capex outlay for next year increased by 11.1%
➤ The total expenditure in BE 2024-25 is estimated at Rs 47,65,768 crore of which total capital expenditure is Rs 11,11,111 crore.
➤ The scheme of fifty-year interest free loan for capital expenditure to states will be continued this year with total outlay of Rs 1.3 lakh crore.
➤ Tax break for start-up extended to March 31, 2025
➤ Funds will be provided for development of tourism in Lakshwadweep
➤ Panel to be formed for tackling the challenges of higher population
➤ 517 new routes to be launched under Udan Scheme
➤ A new scheme will be launched for strengthening deep tech technology for defence purposes and expediting atma nirbharta.
➤ Sitharaman also announced plans to set up more medical colleges through utilisation of the “existing hospital infrastructure under various departments”.
➤ Through roof-top solarisation, 1 crore households will be enabled to obtain up to 300 units of free electricity every month. government aims to achieve ‘net zero’ by 2070.
➤ On social justice, Finance Minister said, “Our government is working with an approach to development that is all-round, all pervasive and all inclusive.”
➤ The total capital expenditure in RE 2023-24 is estimated at Rs 9,50,246 crore.
➤ Tax reforms have widened the tax base and increased tax collections
➤ Govt to withdraw old disputed direct tax demands of up to Rs 25,000 till
FY2009 and Rs 10,000 for 2010-11 to 2014-15. It will benefit 1 crore taxpayers
➤ FM also proposes some tax benefits for pension funds
➤ Processing time of tax returns reduced from 93 days in FY14 to 10 days
➤ Tax base of GST more than doubled, says FM
➤ Number of tax filers swelled by 2.4 times, direct tax collection trebled since
2014
➤ Tax receipts for 2024-25 projected at Rs 26.02 lakh crore
