Interim Budget 2024 Key Highlights: A Comprehensive Set-by-Step Update

Union Finance Minister Nirmala Sitharaman recently unveiled the Budget 2024 for the fiscal year 2024-25 on February 1, 2024. This interim budget, crucially presented in an election year, provides a snapshot of the government’s fiscal plans until a new government is formed post the upcoming Lok Sabha elections. As the final comprehensive budget is anticipated in July, this interim budget marks the concluding financial roadmap of Narendra Modi’s second term as Prime Minister.

Step 1: Understanding the Significance Explore the unique context of an Interim Budget, emphasizing its temporal nature and how it acts as a financial bridge until a new government takes charge. Discuss the importance of this budgetary framework in an election year and its role in setting the tone for future financial policies.

Step 2: Taxation Landscape Dive into the details of the income tax landscape, highlighting a significant aspect of the Interim Budget—the absence of changes in income tax slabs. Analyze the implications for both new and old income tax regimes, shedding light on the government’s approach to taxation stability during this interim period.

Step 3: Social Welfare Priorities Examine the budget’s core focus on uplifting marginalized sections, including the poor, women, youth, and farmers. Uncover the announced initiatives and schemes aimed at empowerment and socio-economic development within these targeted groups, showcasing the government’s commitment to inclusive growth.

Step 4: Sectoral Allocations Provide an in-depth analysis of budgetary allocations to various sectors, spotlighting the highest allocation of Rs 6.1 lakh crore for the Defence Ministry. Contrast this with the allocation for the Ministry of Agriculture and Farmer’s Welfare, which received the least at Rs 1.27 lakh crore. Unpack the implications of these allocations on national priorities and economic sectors.

Step 5: Historical Context: Poverty Alleviation Explore the government’s claim of assisting 25 crore people out of multi-dimensional poverty over the last decade. Delve into specific policies and programs that contributed to this achievement, offering a historical perspective on the government’s efforts in poverty alleviation.

Interim Budget 2024 Key Highlights

Tax slabs remain unchanged. Same direct and indirect tax rates, including import duties to be retained.

India’s capital spending for 2024-25 has been raised 11 per cent to Rs 11.11 lakh crore, or 3.4 per cent of GDP Nirmala Sitharaman said on Thursday.

Accomodation

It was announced that despite challenges posed by the Covid-19 pandemic, the target of three crore houses under PM Awas Yojana (Grameen) will be achieved soon. Also, two crore more houses will be taken up in the next five years.

The FM also announced that the Government will start a scheme to support middle class people living in rented houses to buy their own houses.

The Pradhan Mantri Janjati Adivasi Nyaya Maha Abhiyan (PM-JANMAN) Scheme will aid the development of particularly vulnerable tribal groups (PVTGs).

Green Energy

One crore households will receive 300 units free electricity every month through rooftop solarization.

Defence

The Defence Ministry has been given the highest allocation of Rs 6.1 lakh crore.

A new scheme will be launched for strengthening deep-tech technologies for defence purposes it was announced on Thursday.

Research and Innovation

An amount of Rs.1 lakh crore will be established with 50-year interest free loan to provide long-term financing or refinancing for research and innovation with long tenors and low or nil interest rates.

Railways and Aviation

Three major economic railway corridor programmes for Energy, mineral and cement have been identified under the PM Gati Shakti to be implemented to improve logistics efficiency and reduce cost.

A total of 40,000 normal rail bogies will be converted to Vande Bharat standards for comfort and convenience of passengers while traveling.

Indian carriers have placed orders for over 1000 new aircrafts.

Healthcare

Healthcare cover under Ayushman Bharat scheme will be extended to all ASHA workers, Anganwadi Workers and Helpers.

The government will encourage the vaccination against cervical cancer of girls in the age group of 9-14 years for the prevention of the disease.

The government plans to set up more medical colleges by utilising the existing hospital infrastructure under various departments.

Education and Women Empowerment

Talking about women empowerment, the Finance Minister announced that 30 crore Mudra Yojana loans have been given to women entrepreneurs while over 70% houses under PM Awas Yojana have been given to women from rural areas.

Focusing on education of girls, she said that enrolment of girl students in higher education has gone up by 28%, while in STEM courses, girls and women constitute 43% of enrolment, which is one of the highest in the world.

PM Modi’s reaction on Interim Budget 2024

Reacting to the Interim Budget 2024 presented on Thursday, Prime Minister Narendra Modi called it ‘inclusive’ and ‘innovative’.

He said, “Today’s Budget, though an Interim Budget, is an inclusive and innovative Budget. This Budget carries the confidence of continuity. This Budget will empower all four pillars of ‘Viksit Bharat’ — youth, the poor, women, and farmers. Two important decisions have been taken in the Budget. A fund of Rs. 1 lakh crore has been announced for research and innovation. There has also been an announcement in the Budget to expand the tax exemption for start-ups.”

“While keeping the fiscal deficit under control in this Budget, a historic high of Rs. 11 lakh 11 thousand 111 crore has been allocated for capital expenditure. This will not only lead to the construction of 21st-century modern infrastructure in Bharat, but also create countless new opportunities for employment for the youth. In the Budget, it has been announced to manufacture 40,000 modern coaches under the ‘Vande Bharat Standard’ and induct them in regular passenger trains.

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