India’s Finance Minister Nirmala Sitharaman presented the Interim Budget 2024-25 on Thursday, focusing on inclusive development, infrastructure spending, and fiscal prudence. The budget outlines a multi-pronged strategy to sustain high economic growth and facilitate India’s vision to become a “Viksit Bharat” or developed nation by 2047.
You can also read the entire speeh in PDF format as per official Govt. of India website here:
https://www.indiabudget.gov.in/doc/budget_speech.pdf
https://www.indiabudget.gov.in/
Key Highlights
- Record capital expenditure (capex) of Rs 11.11 lakh crore for 2024-25 to boost infrastructure and job creation
- GDP growth expected at 7% in 2023-24 on the back of economic reforms and formalization
- Fiscal deficit target of 5.1% of GDP for 2024-25 shows commitment to fiscal consolidation
- No changes in income tax slates and GST rates to provide stability to taxpayers
Top Focus Areas
The budget focuses on welfare of the poor, youth, women and farmers, in line with the government’s inclusive development approach:
- PM Awas Yojana (Rural) to build 2 crore more houses
- Interest-free loans to states for tourism infrastructure projects
- Lakhpati Didi target raised from 2 crore to 3 crore women entrepreneurs
- Nano Urea adoption to be expanded across India after success of Nano DAP
Economic Reforms to Unlock Growth Potential
Nirmala Sitharaman stated that the economy has witnessed profound transformation in the last decade due to structural reforms. People now have great aspirations and confidence in the future.
The budget outlines next generation reforms in areas like MSME growth, renewable energy, and tourism. Key initiatives include:
- GIFT IFSC emerging as global gateway for capital and financial services
- India-Middle East-Europe corridor to transform trade and logistics
- New scheme for bio-manufacturing to promote sustainable growth
Amrit Kaal Focused on Infrastructure Building
With the economy back on track after handling COVID challenges, the finance minister termed the next 25 years as “Amrit Kaal” or the era of duty and committed to nation building.
The highest ever capex allocation of Rs 11.11 lakh crore will go towards creating infrastructure in roads, railways, airports, clean energy and tourism.
Some major projects are:
- 3 railway corridors for cement, minerals and port connectivity
- 40,000 rail coaches to be upgraded to Vande Bharat standards
- 5 integrated aqua parks to boost fish production and exports
Steady Growth and Financial Stability
Nirmala Sitharaman stated that high capital spending has led to a multiplier effect on growth. Tax reforms have also expanded the tax base contributing to economic formalization.
As a result, the Indian economy is poised for sustained high growth in the next decade. The budget estimates for 2024-25 highlight:
- GDP growth of 7% in 2023-24
- Tax revenue of Rs 26 lakh crore
- Fiscal deficit reducing to 5.1% of GDP
With strong economic fundamentals, the finance minister expressed confidence that India under PM Modi is progressing swiftly towards the goal of a developed nation.
The interim budget strikes a fine balance between welfare spending, growth orientation and fiscal prudence. With the economy firing on all cylinders, the stage seems set for India to realize its vision of becoming a Viksit Bharat in the Amrit Kaal.
Frequently Asked Questions on the Interim Budget 2024-25
What is the total capital expenditure allocated in the budget?
The budget has allocated a record capital expenditure of Rs 11.11 lakh crore for 2024-25. This is the highest ever allocation.
What is the GDP growth estimate for 2023-24?
The GDP growth for 2023-24 is estimated to be 7%. This reflects the strong recovery of the Indian economy.
What is the fiscal deficit target set for 2024-25?
The budget has set a fiscal deficit target of 5.1% of GDP for 2024-25, lower than 5.8% in 2023-24. This shows commitment to fiscal consolidation.
Have income tax or GST rates been changed?
No changes have been made in income tax slabs or GST rates. The focus is on providing stability to taxpayers.
How many houses will be built under PM Awas Yojana (Rural)?
The budget has outlined building 2 crore more houses under PM Awas Yojana (Rural) over the next 5 years.
What is the Lakhpati Didi target in this budget?
The budget has raised the Lakhpati Didi target from 2 crore to 3 crore women entrepreneurs over the next few years.
What are the 3 railway corridor projects announced?
The budget announced 3 major railway corridor projects – for cement, minerals and port connectivity across India.
How many rail coaches will be upgraded to Vande Bharat standards?
The budget outlined upgrade of 40,000 normal rail coaches to Vande Bharat standards over the next few years.
What is the estimated tax revenue collection for 2024-25?
The budget has estimated tax revenue collection to the tune of Rs 26 lakh crore in 2024-25.
What is the theme of the budget?
The overarching theme is inclusive development, infrastructure growth and fiscal prudence to realize the vision of a Viksit Bharat.
Conclusion
The interim budget provides continuity, stability and clarity for steering the economy towards the goal of a developed nation in the Amrit Kaal. With the strong foundation laid in the last decade, India seems set to attain double-digit growth soon.
