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Union Budget 2024-25: Without populist measure in election year

By IndianMandarins- 01 Feb 2024
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New Delhi (01.02.2024): Union Finance Minister Nirmala Sitharaman has presented Vote on Account i.e. the interim budget ahead of the 2024 Lok Sabha elections. This was her sixth budget as the finance minister and the final one in the second term of the Modi government. Though the Budged was presented before the next general elections, it outlines the vision for 2047 of the Prime Minister Narendra Modi. Here are the key highlights from the interim budget 2024-2025.
  1. Finance Minister Nirmala Sitharaman presented the Interim Budget 2024 on Thursday, marking her sixth consecutive budget. The Finance Minister didn't announce any populist measures and left the tax rates for direct and indirect taxes unchanged. 
  2. Budget 2024 unfolds a significant Rs 11.11 lakh crore Capex, 3.4% of GDP, prioritizing economic stimulation. Key fiscal targets include a revised 5.8% Fiscal Deficit for FY24, 5.1% for FY25, and a commitment to reach 4.5% in 2025-26. Notable financial goals feature a Rs 14.13 lakh crore Gross market borrowing for FY25 and Rs 11.75 lakh crore net market borrowing. The budget emphasizes a balanced fiscal strategy for sustainable financial management, economic growth, and stability. 
  3. Moving towards expenditure planning, the revised outlay for FY24 is set at Rs 44.90 lakh crore, reflecting a meticulous allocation of resources to meet developmental objectives. This financial prudence aligns with the government's commitment to strategic spending, ensuring a balanced approach that addresses both short-term economic needs and long-term fiscal sustainability. 
  4. Finance Minister Nirmala Sitharaman maintains existing direct and indirect tax rates and extends tax breaks for start-ups and sovereign wealth fund investments till March 31, 2025. Focus on improving taxpayer services. Withdrawal of old disputed direct tax demands up to Rs 25,000 till FY2009 and Rs 10,000 for 2010-11 to 2014-15, benefiting 1 crore taxpayers. Also, proposes tax benefits for pension funds. 
  5. Budget 2024 highlights for Rail include three economic corridors under PM, Gati Shakti, focusing on energy, mineral, and cement, port connectivity, and decongesting high-traffic corridors. Emphasis on urban transformation through Metro Rail and NaMo Bharat, with plans to convert 40,000 normal train bogies into high-capacity ones. 
  6. The India-Middle East-Europe trade corridor, announced during the G20 Summit last year, will be a game-changer for India and the rest of the world. 
  7. The budget allocates interest-free state loans for tourism promotion and funds for Lakshadweep development. Under the Udan Scheme, 517 new routes will enhance air connectivity. 
  8. Budget 2024 earmarks Rs 6,200 crore for the PLI scheme. Agriculture focus includes post-harvest investment, empowering dairy farmers, Foot and Mouth Disease control, Nano-DAP expansion in agro-climatic zones, and crop insurance for 4 crore farmers under PM Fasal Bima Yojana. Plans also involve establishing five integrated Aqua Parks. 
  9. Extends Ayushman Bharat to Aasha and Aanganwadi workers, and aims to set up hospitals in all districts. Plans include cervical cancer vaccination for 9-14-year-old girls and expediting Saksham Anganwadi and Poshan 2.0 for improved nutrition and early childhood care. 
  10. Introduces a new housing plan for the middle class, aiming to build 2 crore houses under PM Aavas Yojana. Pradhan Mantri Awas Yojana (Grameen) is near its 3 crore house target, with an additional 2 crore houses planned for the next 5 years. 
  11. Budget 2024 promotes renewable energy with viability gap funding for wind, coal gasification, and liquefaction capacity. Phased mandatory blending of CNG, PNG, and biogas, along with financial aid for biomass machinery, is planned. Additionally, 1 crore households will receive up to 300 units of free electricity monthly. 
  12. The 2024 budget envisions unprecedented growth in the next five years, with reforms in consultation with states. The focus is on making the eastern region a growth driver, offering 1 crore houses 300 units of free power through the Solar power policy, and witnessing a 28% increase in women's participation in higher education over the last decade. 
  13. Govt milestones: Raised Lakhpati Didi target to 3 crore, aided 78 lakh street vendors, and disbursed 22 crore Mudra loans. Focused on governance, development, and performance, with substantial savings through Jan Dhan accounts and Rs 34 lakh crore in direct transfers. Achievements include legalizing Triple Talaq, empowering women in Parliament, and uplifting 25 crore people from poverty. 
  14. In Budget 2024 highlights, Lokpal receives Rs 47.73 crore (revised from Rs 44.46 crore) for the current fiscal, while CVC is allocated Rs 51.31 crore for the upcoming financial year. 
  15. Gareeb, Yuva, Mahila, and Annadata are top priorities, ensuring their well-being contributes to the nation's prosperity. Over the past decade, India's economy underwent significant transformation. Despite challenges, the government, with Sabka Saath Sabka Vishvaas, addressed them, resulting in broad development benefits. The strong mandate in the second term reflects public endorsement. Food insecurities have been alleviated through free initiatives. 
  16. The interim budget, a provisional financial plan in an election year, addresses immediate needs until a new government is formed. It avoids substantial policy declarations, reserving comprehensive changes for the post-election union budget scheduled for April-May.

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