🇮🇳 Interim Budget 2024: Explained
Catch up with all that happened at the Interim Budget this year!
Basics first: What is an Interim Budget?
It is a shorter Budget presented during election years.
It just considers the government’s revenues and expenditures until the new government is formed (April - July).
Now, let's answer the burning question first: will you get any tax reliefs?
Nuh-uh.
No changes in direct and indirect tax rates!
But, there is good news.
The economy has performed well despite global instabilities.
India was the fastest growing economy in the world in 2023. In FY25, nominal GDP growth is expected to be 10.5%
Let's take a look at our fiscal health:
FY25 fiscal deficit target at 5.1% of GDP. And the government aims to further reduce this to below 4.5% by FY26.
In FY25, revenue receipts are expected to be Rs 30 lakh crore
Over the last 10 years, tax collections have more than doubled
Average monthly GST collections doubled to Rs. 1.66 lakh crore in FY24
Now, let's look at other updates.
Infrastructure Initiatives
The government allocated Rs. 11.1 lakh crore as capital expenditure for the next fiscal, 11% up from FY24 (3.4% of the GDP)
40,000 normal rail bogies will be converted to Vande Bharat
1 crore households will get 300 units of free electricity per month under the PM Suryodaya Yojana
The government will strengthen the EV ecosystem by supporting manufacturing and charging
Healthcare Boost
Allocation for public healthcare has been increased to Rs 90,171 crore in FY24-25, 13.8% up from Rs 79,221 crore in FY24
The government will launch a programme to promote cervical cancer vaccination among girls aged 9 to 14
Health cover under Ayushman Bharat* scheme will be extended to all ASHA, Anganwadi workers and helpers
Agriculture and Food Processing
The government will promote public and private investments in post-harvest and storage activities
Aatmanirbhar Oilseeds Abhiyaan strategy will be formulated to make India self-sufficient in oilseeds (mustard, groundnut, sunflower, sesame)
The Budget also highlighted developments made by the country on four pillars: the poor, women, youth, and our farmers.
The full budget will have details around empowering each of them.
This is a move towards making India ‘Viksit Bharat’ (a developed nation) by 2047.
Let’s look at each pillar.
Garib Kalyan, Desh ka Kalyan
Over 25 crore people have moved out of multidimensional poverty over 10 years
PM SVANidhi has given credit assistance to 78 lakh streets vendors
Naari Shakti
30 Crore Mudra Yojana loans have been given to women entrepreneurs
Girls and women constitute 43% enrolment in STEM courses (one of the highest in the world)
Empowering the Youth
1.4 Crore youth trained under Skill India Mission
3,000 new Industrial Training Institutes (ITIs) have been established
7 IITs, 6 IIITs, 7 IIMs, 15 AIIMS and 390 universities have been set up
Welfare of Farmers
Every year, under PM-Kisan Samman Yojana, direct financial assistance is provided to 11.8 crore farmers, including marginal and small farmers
Under PM Fasal Bima Yojanscrop insurance to 4 crore farmers is provided
Pradhan Mantri Kisan Sampada Yojana has benefitted 38 lakh farmers
Didn't notice any new policy announcements or major changes?
Because there weren't any.
The government will present the full budget in July (after the elections).
FM Nirmala Sitaraman said:
“In the full Budget in July, Mr. Speaker, our government will present a detailed roadmap for the pursuit of ‘Vikasit Bharat’”
Want us to dive deeper into a particular announcement? Comment below!
Join us on WhatsApp to never miss an update 👇🏻