Interim Union Budget for 2024-2025

In her presentation of the Interim Union Budget for 2024-2025 in Parliament, Finance and Corporate Affairs Minister Smt. Nirmala Sitharaman declared an 11.1% increase in the capital expenditure outlay for the upcoming year, reaching Rs 11,11,111 crore, equivalent to 3.4% of the GDP. This surge is a continuation of the significant threefold rise in capital expenditure over the past four years, contributing to substantial economic growth and job creation.

According to the First Advance Estimates of National Income for FY 2023-24, India's Real GDP is projected to grow by 7.3%, aligning with the revised upward growth projections by the RBI. Despite global economic challenges, the Indian economy has shown resilience, with various international agencies, including the IMF, World Bank, OECD, and ADB, forecasting growth rates ranging from 6.1% to 6.7% for 2024-25.

Smt. Sitharaman highlighted the government's commitment to the holistic development of all sections of society, focusing on the four major categories - 'Garib' (Poor), 'Mahilayen' (Women), 'Yuva' (Youth), and 'Annadata' (Farmer). She emphasized that their needs, aspirations, and welfare are the government's top priority, as the country progresses when they progress.

The Finance Minister outlined various achievements and initiatives, such as the Mudra Yojana, which has sanctioned 43 crore loans totaling Rs 22.5 lakh crore for entrepreneurial aspirations. She reiterated the government's commitment to 'SabkakaSaath' and announced a corpus of Rs one lakh crore for a fifty-year interest-free loan to support long-term financing or refinancing with low or nil interest rates, fostering research and innovation.

The Interim Budget also includes announcements for infrastructure development, such as three major economic railway corridor programs, improvements in the aviation sector, and the formation of a high-powered committee to address challenges arising from fast population growth and demographic changes.

Smt. Sitharaman affirmed that there would be no changes in taxation rates in the Interim Budget. Tax benefits for start-ups and investments by sovereign wealth or pension funds have been extended for an additional year, up to March 31, 2025. Additionally, she announced the withdrawal of outstanding direct tax demands up to Rs. 25,000 for the period up to the financial year 2009-10, benefiting around a crore taxpayers.

The Finance Minister concluded by expressing optimism for India's future, acknowledging the positive transformation witnessed in the last ten years and the people's hopeful outlook. She mentioned that a white paper on the Indian economy's status will be released, providing insights into the progress made since 2014.

• India's Real GDP is anticipated to register a growth of 7.3% in the fiscal year 2023-24, as revealed by Finance and Corporate Affairs Minister Smt. Nirmala Sitharaman during the presentation of the Interim Union Budget for 2024-2025 in Parliament. The capital expenditure outlay for the upcoming year is set to increase by 11.1%, reaching Rs 11,11,111 crore, equivalent to 3.4% of the GDP. The fiscal deficit for 2024-25 is estimated to be 5.1% of the GDP.

• In a noteworthy announcement, the Finance Minister emphasized the government's commitment to uplifting the 'Garib' (Poor), 'Mahilayen' (Women), 'Yuva' (Youth), and 'Annadata' (Farmer), making them the highest priority. A corpus of Rs one lakh crore will be established with a fifty-year interest-free loan, specifically for the youth. The scheme of a fifty-year interest-free loan for capital expenditure to states will continue this year, with a total outlay of Rs 1.3 lakh crore.

• The government is working with an all-encompassing approach to development, focusing on inclusivity and comprehensiveness. The budget contains numerous announcements and strategies outlining the directions and development approach aimed at making India 'Viksit Bharat' by 2047. There is a strong emphasis on paying attention to the eastern region, ensuring its role as a powerful driver of India's growth.

• To address the challenges arising from fast population growth and demographic changes, the government will establish a high-powered committee. Despite these developments, there are no proposed changes in tax rates in the Interim Budget. Approximately one crore taxpayers are expected to benefit from the withdrawal of certain petty and disputed direct tax demands, showcasing the government's commitment to ease the tax burden on citizens.

Thanks For visiting!!