The 2024 & 25 budget was presented on February 1, 2024, by Finance Minister Nirmala Sitharaman. This budget 2024 has five major takeaways for the poor, women, youth, and farmers. This budget is for the remaining months of the financial year before the general elections scheduled for later in 2024. It primarily focuses on government spending in the last months before the upcoming total budget and is considered an interim budget for 2024. The budget presented information on the government's forthcoming total budget and priorities. This year's budget comes with a downfall for taxpayers, as there is no change in the tax slab and still no comment by Finance Minister Nirmala Sitharaman. There are many changes compared to the previous year. Let's discuss all the significant takeaways from the budget 2024.
The revised estimate for total receipts, excluding borrowings, is Rs 27.56 lakh crore, as announced by the finance minister. The revised estimate for total expenditure stands at Rs 44.90 lakh crore. The revenue receipts are expected to be higher than the budget estimate, amounting to Rs 30.03 lakh crore, indicating strong growth momentum and formalization in the economy.
For the fiscal year 2024-2025, the government has increased the capital expenditure outlay to ₹11.1 lakh crore, up from ₹9.5 lakh crore in the previous fiscal. The proportion of capital expenditure, excluding grants in aid, in relation to total expenditure now stands at 23.31%. This percentage is consistent with the trend of increased capital expenditure in recent years. Capital expenditure refers to the government's spending on long-lasting assets, such as the construction of infrastructure.
These are some of the major takeaways from the budget. Let's discuss them briefly, one by one:
The government has repeatedly expressed its commitment to maintaining fiscal prudence and aims to reduce the fiscal deficit to 4.5% of GDP by FY26. During the interim budget, FM Sitharaman revised the previous target of 5.9% of GDP downward to 5.8% of GDP. The target for FY25 has been set at 5.1% of GDP. The net borrowings for FY25 are projected at Rs 11.75 lakh crore, while the center's gross borrowing is expected to be Rs 14.13 lakh crore.
The allocation to defence has been increased by 4% to Rs 6.2 lakh crore for the financial year 2025. This is an increase from the budgeted estimate of Rs 5.94 lakh crore in the financial year 2024. The government has made this decision.
FM Sitharaman has confirmed that no changes will be made to either direct or indirect tax structures. However, sovereign wealth funds and pension funds will continue to enjoy tax-free investments for another year. The estimated total revenue receipts for FY25 have been increased to Rs. 30 lakh crores, which is higher than the revised estimate of Rs. 26.99 lakh crores for FY24.
The Finance Minister, Nirmala Sitharaman, has announced that the budget for capital expenditure outlay for FY25 has been increased by 11% to Rs 11.11 lakh crore, which is equivalent to 3.4% of GDP. According to her, the tripling of capex in the last four years has had a significant impact on economic growth and employment generation. As part of the plan to enhance passenger safety and comfort, approximately 40,000 standard rail bogies will be converted to the Vande Bharat Standards. Additionally, three significant economic railway corridors, including energy, mineral, and cement corridors, port connectivity corridors, and high-traffic density corridors, will also be implemented.
Thirty crore loans have been provided to women entrepreneurs under the Mudra Yojana initiative by the government. The enrolment of girls and women in STEM courses has reached 43 per cent, which is among the highest in the world. Rural women have received over 70 percent of houses under the PM Awas Yojana. The government plans to promote the Cervical cancer vaccination for girls aged 9 & 14 years. The government will expedite Saksham Anganwadi and Poshan 2.0 to enhance nutrition delivery, early childhood care, and development.
The Pradhan Mantri Awas Yojana (Grameen) aims to construct two crores more houses within the next five years, as per the government's target. Additionally, a new housing scheme will be introduced by the government, which will provide aid to the middle class in buying or building their own houses.
States will be encouraged by the government to develop tourist centers that are iconic. Additionally, to encourage development, long-term interest-free loans will be given to states. The government has stated that projects for port connectivity, tourism infrastructure, and amenities will be undertaken on islands, including Lakshadweep.
In conclusion, the budget's overarching vision is to pave the way for a developed India [Viksit Bharat] by 2047. The government's emphasis on inclusive growth, economic stability, strategic global positioning, sector-specific developments, environmental sustainability, and tax reforms is reflected in the Interim Budget 2024 & 25. To learn more about these types of topics and the general knowledge of India, join our online GK classes at SSSi. SSSi is one of the best online class providers in the whole market with its quality learning, teaching, content, and cost-effective pricing.
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