Written by:Geetanjali
Budget 2024: Key takeaways from Interim-Budget(Aims to reduce fiscal deficit below 4.5% by FY26)
Union Finance Minister, Nirmala Sitharaman presented her sixth budget in a row on 1st of February 2024, at the new Parliament building. The 2024 Budget is the 1st budget to get passed in the new parliament building inaugurated in may 2023.This is the interim-budget, that’s presented before the commencement of General Election and the Final Budget will be announced in July.
Finance Minister,presented the interim-budget with the “mantra” of “sabka saath, sabka vikas,sabka vishwas” which means trinity of democracy,demography and diversity backed by “Sabka vikas” , pushing the idea of “ Viksit Bharat” by 2047.
Budget 2024-25 announced a hike in capital spending of Rs.11,11,111 crore for the coming fiscal year which is 11.1% more than current year’s Budget. With an estimated fiscal deficit of 5.1% of GDP than the 5.8% of GDP in 2023.
This year’s budget focuses on women, poor,farmers, and youth.Developing these four castes will result in the development of the country.No changes were made in the existing tax rates,inclusive of direct, indirect taxes, and export duties.
Let’s take a look at the key highlights from the 2024 Interim Budget.
1) Boost to EV manufacturing and charging stations.
In the Interim budget, FM Nirmala Sitharaman announced a plan to boost the EV manufacturing and Charging station by creating a supporting and strengthening environment for the EV sector. That also includes replacing traditional petrol, diesel, CNG buses with electrical buses at central and state level. The government plans to encourage manufacturing of e-buses by incentivising manufacturers.
2) Any good news for the Taxpayers?
Budget 2023 turned out to be a landmark year for the general public, as notable changes were made in the new tax regime. These changes will be continued in FY 24-25 as no changes were made in the taxes, continuing the existing income tax rates. Below are the tax benefits that were included in the Budget 2023 new tax regime that every salary individual must be aware about :
- Income tax slabs got revised from six to five.
- Zero income tax for income groups not exceeding Rs. 7 lakh due to rebate being increased under section 87A.
- Basic exemption Limit increased from Rs. 2.5 lakh to Rs.3 lakh.
- There is no choice to choose from as the new tax regime will be the default tax regime.
- Surcharge reduced from 37% to 25% for income groups above Rs. 5 crore.
- Income tax law has provided marginal relief to those whose income does not exceed Rs. 7 Lakh income bracket.
3) House pucca: Housing scheme(Budget 2024)
House pucca, the housing scheme announced at the Interim budget 2024 under the PMAY(Pradhan Mantri Awas Yojna) flagship program.House pucca scheme is targeted towards people from lower and middle income background living in rented rooms, cramped areas like slums, chawls, and unauthorised areas. The House Pucca scheme will help people from lower and middle-income groups to buy their own houses. As, of now the Budget for Pradhan Mantri Awas Yojana has been increased from 79,590 crore in FY24 to 80,671 crore in FY 25. Announcements have been made to build 2 crore more houses in the next five years.
4) Health Sector: Women’s health in focus.
Finance Minister mentioned in her speech that the vaccination of girls between the age of 9 to 14 years will be encouraged for the prevention of cervical cancer which is the second most prevalent cancer among women in India with mortality rate of 12.4%(data by George institute of global health). Also various schemes are launched which includes integration of child and maternal health programmes, the Saksham Aanganwadi and Poshan 2.0 scheme for improving nutritional health in children, adolescent girls, pregnant women, and lactating mothers.
Sitharamana, highlights the extension of Ayushman Bharat healthcare scheme for ASHA workers, Aanganwadi workers and helpers. Health care sector got allocated a significantly more amount in the 2024-25 Budget, and got Rs. 90,658.63 crore which is 12.59% more than 2023-24 budget of Rs. 80,517.62 crore
5) Encouragement to use Solar Energy.
The Finance Minister, on Thursday announced to support clean and new energy in Budget 2024-25. Following PM Modi’s plan to have rooftop solar panels on one crore households, the budget set aside Rs.10,000 crores as starting money. The government promised 300 units of free electricity and the hope of saving Rs.15,000 to Rs.18,000 every year on electricity bills for each household benefiting from “Pradhan Mantri Suryodaya Yojna”. PM Suryodaya Yojna will also provide an additional income to the household with every unit of excess electricity they will produce.
Neeraj Kuldeep of CEEW(Council on Energy, Environment and Water) said “solarisation of demand from these households will save about 2 lakh crore for discoms over the 25 year life of the solar plant.” The PM Suryodaya Yojna will boost investment in unconventional sources of energy such as, biofuel, biogas, biodiesel, offshore wind energy and coal-to-gas projects.
6) A hike of 4.7% in the Defence Budget.
Defence budget saw a minimal hike of 4.7% over the 2023-24 defence budget. Overall, Rs. 6.2 lakh have been allocated which is only 1.9% of the projected budget of the FY 2024, critiques are not satisfied with this allocation as there is continuous tension at the LAC(line of actual control).
Though Finance Minister announced schemes for “strengthening deep-tech technology for defence purpose and expediting (Atma Nirbhar)” will be launched. Deep tech areas will help in surveillance and warfare. For example: it will be much faster and easier to surveillance the area for soldiers with the integrated deep technology.
7) Youth Empowerment
While presenting budget 2024, the Finance Minister(FM) heavily emphasised on the skill enhancement of the people of the country especially the youth to fulfil the vision of “Viksit Bharat” by 2047. Referring the youth as “Amrit Peedhi”, Finance Minister, mentioned in her budget speech to map out a plan for empowering youth that will include implementing NEP(New Education Policy), quality teaching, boost to startup culture by giving loans under (PMMY)Pradhan Mantri Mudra Yojna, focus on skill enhancement through schemes like: Skill India digital platforms, and (PMKVY)Pradhan Mantri Kaushal Vikas Yojna 4.0 will also be launched.
Government plans to help boost the tourism sector by constructing connectivity infrastructure and amenities which in turn will generate more employment opportunities. Apart from this Government projects to give interest-free loans to startups in the MSME(Micro, Small, and Medium enterprises) sector.
