Budget 2024 Highlights: Here are the key highlights from Finance Minister Nirmala Sitharaman’s Interim Budget Speech in February:
➤ 2024 Budget Highlights: Sitharaman did not introduce populist measures in the budget. The capital expenditure for the next fiscal year is set at Rs 11.1 lakh crore, an 11% increase from the current fiscal year.
➤ 2024 Budget Highlights, No change in Income Tax slabs: “Finance Minister Nirmala Sitharaman proposes no change in direct and indirect tax including import tax. Same tax rates for Direct and Indirect tax retained,” she stated during her speech.
➤ Budget 2024 Highlights: Tax breaks for start-up investments made by sovereign wealth funds have been extended till March 31, 2025. Additionally, old disputed direct tax demands of up to Rs 25,000 till FY2009 and Rs 10,000 for 2010-11 to 2014-15 will be withdrawn, benefiting 1 crore taxpayers. Sitharaman also proposed tax benefits for pension funds and announced a reduced processing time for tax returns from 93 days in FY14 to 10 days.➤ “The tax base of GST more than doubled,” she remarked, highlighting the growth in tax filings and collections. Direct tax collections have trebled since 2014, and tax receipts for 2024-25 are projected at Rs 26.02 lakh crore.➤ 2024 Budget Highlights: In tourism, interest-free loans will be provided to states, and funds will be allocated for developing tourism in Lakshadweep. Under the Udan Scheme, 517 new routes are set to be launched to enhance air connectivity.
➤ The budget outlines a capital expenditure outlay of Rs 11.11 lakh crore at 3.4% of GDP. The fiscal deficit target for FY24 has been revised to 5.8% of GDP from 5.9%, with aims for it to be reduced to 5.1% for FY25 and 4.5% by 2025-26. The net market borrowing for FY25 is projected at Rs 11.75 lakh crore.
➤ “The Railways gets an allocation of Rs 2.4 lakh crore,” announced Sitharaman. She also introduced three major economic railway corridors under the PM Gati Shakti initiative to improve logistics efficiency and reduce costs.
➤ In agriculture, the government will promote investments in post-harvest activities by both the private and public sectors, along with efforts to control foot and mouth disease and expand the application of Nano-DAP in all agro-climatic zones. Crop insurance has been provided to 4 crore farmers under the PM Fasal Bima Yojana, and five integrated Aqua Parks will be established to enhance aquaculture productivity and double exports.
➤ Sitharaman also announced direct financial assistance to 11.8 crore farmers under PM-KISAN and the launch of Blue Economy 2.0 to promote aquaculture.
➤ “FM Nirmala Sitharaman proposes Rs 1 lakh crore corpus to drive private investment in sunrise technologies,” she stated, addressing the tech sector. Healthcare facilities under Ayushman Bharat will be extended to all ASHA and Anganwadi workers, alongside plans to set up hospitals in all districts and vaccinate 9-14-year-old girls for cervical cancer. The health sector will receive Rs 90,170 crore, up by 13.8% from last year.
➤ The education budget for 2024/25 is projected at Rs 1.25 lakh crore, a 14.5% increase from the revised estimate for 2023/24. A new housing plan for the middle class was introduced, with a target of 2 crore houses to be built under the PM Aavas Yojana.
➤ “Pradhan Mantri Awas Yojana (Grameen) is close to achieving the target of 3 crore houses; an additional 2 crore houses are targeted for the next five years,” said Sitharaman.
➤ The budget allocates funds for viability gap funding for wind energy, setting up coal gasification and liquefaction capacity, phased mandatory blending of CNG, PNG and compressed biogas, and financial assistance for procuring biomass aggregation machinery. One crore households will be enabled to obtain up to 300 units of free electricity per month under the new Solar Power Policy.