BUDGET 2024: The Interim Budget

BUDGET 2024: The Interim Budget
BUDGET 2024: The Interim Budget

BUDGET 2024: The Interim Budget.

Finance Minister Nirmala Sitharaman is presenting an interim budget - a temporary financial plan during an election year, aimed at meeting immediate financial needs before a new government is formed. The full-fledged budget will be presented by the new government after the Lok Sabha elections in July. This budget primarily focused on essential expenditure and avoided major policy announcements. This is Nirmala Sitharaman’s 6th Union Budget.

A budget is a financial plan that outlines an organization's or government's anticipated revenues and expenditures for a specific period. It serves as a roadmap for managing finances, allocating resources, and achieving financial goals. In the context of government, the budget typically includes details on taxes, spending priorities, and economic policies aimed at achieving fiscal objectives.

During her address, President Murmu highlighted key government priorities, including economic recovery, social welfare, and legislative initiatives aimed at addressing pressing national issues.

However, no changes were made in the tax rates, which was a disappointment to salaried individuals.

Highlights of the Union Budget 2024 by FM Nirmala Sitharaman:

  1. The fiscal deficit is projected to decrease from 5.8% of GDP in FY24 to an expected 5.1% in FY25, with a target of further reduction to below 4.5% in FY26.
  2. No changes made to income tax slabs.
  3. The government has announced the withdrawal of outstanding direct tax demands, up to Rs 25,000 for up to financial year 2009-10 and up to Rs 10,000 for financial years 2010-11 to 2014-15, in a move to ease tax liabilities.
  4. FM Sitharaman reported 2.4 times increase in the number of tax filers, highlighting a threefold surge in direct tax collection since 2014. Projections for 2024-25 anticipate tax receipts reaching Rs 26.02 lakh crore.
  5. FM announced 2 crores more houses under the Pradhan Mantri Awas Yojana – Gramin (PMAY-G).
  6. “We need to have programmes that combine the powers of our youth and technology. A new scheme will be launched for strengthening deep tech technology for defense purposes and expediting Atma Nirbharta.”
  7. For boost to tourism, "long-term interest free loans to be provided to States to encourage development."
  8. Commencing her address, Sitharaman highlighted the positive transformation observed in the Indian economy over the past decade.
  9. "Poor, women, youth and farmers their needs, their aspirations will guide country's growth."
  10. "The government is working towards making India 'Viksit Bharat' by 2047, Our focus is SABKA SATH, SABKA VIKAS," Sitharaman said.
  11. "The government is equally focused on GDP - Governance, Development and Performance."
  12. Addressing social justice, the finance minister stated, "Our government is committed to a development approach that is comprehensive, widespread, and inclusive at all levels."
  13. The Ministry of Finance, in a pre-interim Budget review report, forecasts a growth rate of over 7 per cent for the Indian economy in the upcoming years. Additionally, the report anticipates India becoming the world's third-largest economy within the next three years, achieving a GDP of $5 trillion.

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