Interim Budget 2024: Highlights

Finance Minister Nirmala Sitharaman presented the Interim Budget today in the Lok Sabha, following approval from the Union Cabinet earlier in the morning.

Sitharaman in her budget speech underscored the various programmes aimed at uplifting women, youth, the poor, and farmers. She emphasized the significant transformation witnessed in the Indian economy, attributing it to the government’s implementation of structural reforms. She reiterated the government’s focus on four major segments — women, youth, the poor, and farmers — stating, “The country progresses when they progress.”

Here are the key highlights from her speech:

· The revised fiscal deficit for this financial year stands at 5.8%.The fiscal deficit in 2024-25 is estimated to be 5.1% of GDP, Sitharaman said, which is in line with the commitment to bring down the deficit to 4.5% of GDP by 2025-26.

·  While claiming a large jump in FDI inflows, Sitharaman said all bilateral treaty arrangements with foreign partners would be based on ‘First Develop India (FDI)’ policy.

·  The Finance Minister stated that the Government has uplifted 25 crore people out of poverty in the past ten years and provided free food for 80 crore people through various schemes.

·  Direct Benefit Transfers amounting to Rs. 34 lakh crore through PM Jan Dhan Yojana accounts resulted in savings of Rs 2.7 lakh crore.

·  Various schemes such as PM Vishwakarma Yojana, PM-SVANidhi scheme, and Mudra Yojana have provided substantial support to artisans, street vendors, and women entrepreneurs.

· Over 1.4 crore youth were trained under the Skill India Mission, and 43 crore loans were sanctioned under PM Mudra Yojana.

·  The Government emphasized the significance of the India-Middle East-Europe Economic Corridor in global trade and pledged to focus on the development of Eastern regions to fuel India’s growth.

·   Inflation has moderated and remains within the target band of 2%-6%, while economic growth has witnessed an increase, leading to a 50% rise in the average real income of people.

·  Plans include subsidizing the construction of 30 million affordable houses in rural areas and expanding healthcare schemes like Ayushman Bharat.

· The Government aims to achieve self-reliance in various sectors, including oilseeds, dairy farming, and fisheries, and announced the establishment of a new department — Matsya Sampada — to address fishermen’s needs.

·  Additionally, initiatives to enhance rail infrastructure, promote renewable energy, and increase capital expenditure were highlighted, along with maintaining tax rates and fiscal consolidation.

Interim Budget vs Union Budget

The Interim Budget is presented by the Central Government shortly before General Elections, while the Union Budget is an annual presentation. The Interim Budget is passed quickly in Lok Sabha without much discussion, whereas the Union Budget undergoes thorough discussions.

In the Interim Budget, the previous year’s income and expenses are summarized, along with projected expenses until the next government takes over.

However, details about income sources are not provided. On the other hand, the Union Budget consists of two parts: one detailing past financial data and another outlining plans for revenue generation and expenditure for the nation’s development.

The Interim Budget covers a short period, typically 2 to 4 months of the fiscal year, whereas the Union Budget is for the entire fiscal year. The Interim Budget offers a brief overview of financial matters, while the Union Budget provides detailed information about income and expenses, including strategies for revenue generation through taxes for social welfare measures and national development.

Additionally, the Interim Budget does not include components related to income from tax collection, whereas the Union Budget details spending on various social welfare measures and outlines ways to raise funds through taxes.

MTNews Desk