President Droupadi Murmu said, "In the past years, the world witnessed two major wars and faced a pandemic like Corona. Despite such global crises, my government kept inflation under control in the country and did not let the burden on common Indians increase."
- The finance minister will present the budget with 'disha-nirdeshak baatein'.
- His government will continue with the tradition of presenting an interim budget when the election is around. “We will present the full budget after we form the government after the election.”
- The government reduced import duty on mobile phone parts to boost the manufacturing ecosystem.
- Ashwini Vaishnaw, Union Minister for Electronics & Information Technology said, "This rationalisation of custom duties brings much-needed certainty and clarity for the industry and in customs processes. I thank Hon’ble PM & FM for this step towards strengthening the mobile phone manufacturing ecosystem."
The Union Finance Minister is ready to release the interim budget for FY 2024-2025. The interim budget is likely to provide the government’s estimates for expenditure, revenue, fiscal deficit, financial performance, and projections for the upcoming months. The new government will present the full budget for the year after the general election scheduled for the year.
Welcome to Angel One’s live coverage of the Union Budget 2024. Our team will bring you instant coverage of the Finance Minister's budget speech. Get the most recent information on budget right here.
The government is likely to expand the capital expenditure target while maintaining its focus on fiscal prudence. The Finance Minister is likely to allot a record ₹11 lakh crore for capital expenditure for 2024-25. The allocation is expected to grow at a rate that is much slower annually than it has in previous years.
Experts anticipate a growth in investments for the defence sector, and the government may plan to increase capex spending in FY25. In an effort to encourage independence and lessen reliance on imports, the government reserved almost 68% of the FY23–24 Budget for the defense sector.
Given that the government prioritises expanding renewable energy, the power industry is expected to receive more attention in the interim budget. The market experts anticipate a higher capex outlay to be announced for renewable energy, incentives for green initiatives, and production-linked incentives (PLIs) for solar module manufacturing.
Compared to the 2013 allocation, the Ministry of Railways received a nearly nine-fold increase in capital expenditures in the Union Budget 2023–2024. Experts seek this trend to continue in 2024 with expectations of higher allocations and ongoing investments in safety improvements, equipment replacement, and large-scale projects like the bullet train.
In order to facilitate business dealings, the Union Budget may include modifications to the GST rates on insurance products, input tax credits, and minimum thresholds.
In order to facilitate business dealings, the Union Budget may include modifications to the GST rates on insurance products, input tax credits, and minimum thresholds.
Retailers Association of India (RAI) said: “The budget must prioritise growth-oriented measures to stimulate demand and consumption. The budget should outline supportive policies, simplified regulations, focus on skill development, and simplify goods and services tax (GST) norms to aid in developing the retail industry.”
The Indian healthcare sector is expecting fresh steps to cement its global reputation as the pharmaceutical powerhouse and a renewed focus on regional healthcare. The Indian Pharmaceutical Alliance, an association of major Indian pharma manufacturers, has proposed that the 2024 Budget should accelerate the pace of life-sciences innovation & R&D.
The Edtech industry expects fiscal policies that could shape the future of digital education. Edtech companies are optimistic that tax incentives and benefits may be announced in the interim budget.
FM Nirmala Sitharaman will release her sixth Budget and the last one for the second term of the Modi government.
Interim Budget copies have arrived in Parliament, FM is to present her sixth straight budget today.
Nirmala Sitharaman arrived at parliament carrying the Budget tablet, to present the interim Budget.
In order to reduce inflation in the election economy, Indian corporates anticipate that the RBI will keep rates steady till the middle of the year. In the first half of 2024, there is a likelihood of persistently high food inflation, which might impact the central bank's stance on repo rates, barring favourable adjustments in the supply chain.
Before presenting the budget, Union Minister of Finance and Corporate Affairs Smt Nirmala Sitharaman along with Ministers of State Dr Bhagwat Kishanrao Karad and Shri Pankaj Chaudhary and senior officials of the Ministry of Finance met President Droupadi Murmu at Rashtrapati Bhavan.
The government is being urged by the space tech industry to extend the GST exemption to manufacturing of launch vehicles, satellites, and base equipment.
Confederation of Indian Industry (CII) suggestions for the next Interim Budget 2024 include increasing capital expenditure, expediting the divestiture process, and broadening the PLI scheme.
Hospitality sector is expecting a transformative Budget for 2024-25 after the FY 2023-24 Budget proved instrumental in reviving the hospitality industry and providing a lifeline during challenging times due to the COVID-19 impact.
Increased funding for the National Digital Library Mission—which was established to meet the e-learning requirements of students across the board—is probably in store for the Interim Budget 2024–2025.
Real estate players are hopeful that the vote-on Budget will address some of their demands, which include raising the maximum amount of interest that may be deducted from house loans, changing the definition of affordable housing, and giving the sector industry status.
A government official said: The Finance Ministry expects the urea import bill to substantially reduce by one-third to ₹ 21,000 crore in 2024-25 owing to the Centre’s push for the use of nano urea, urea gold, etc., which will help contain the total fertiliser subsidy next year, In the current fiscal year, the urea import bill is likely to touch ₹31,000 crore.
Due to the growth of the Center's free food programme and increased support under the Pradhan Mantri Ujjwala Yojana (PMUY), the government's subsidy bill is probably going to increase in the upcoming Union Budget for the financial year 2024–2025.
The MGNREGA budget allocation for 2022–2023 was drastically reduced by 33% to ₹60,000 crore from the revised estimate of ₹89,400 crore. Government data indicates that the current fiscal year has seen a sharp increase in demand for MGNREGA, perhaps as a result of the monsoon's unpredictability and the shortage of urban jobs.
The upcoming Interim Budget is likely to include a budget allocation for the recently introduced rooftop solar scheme for households, known as the Pradhan Mantri Suryoday Yojna. It is expected that the budget will unveil enhanced subsidies as part of the scheme.
KV Subramaniam, IMF Executive Director: The government will build on the previous year’s progress since the economy is at a good position of 7.3%. The government may increase allocation in PM Kisan from ₹6,000 to ₹8,000 (per farmer) and enhance Nari Shakti schemes in this interim budget.
Tax experts expect the possibility of few changes and anticipate that the emphasis will be on facilitating corporate transactions and supporting the "Make in India" campaign.
The government is planning to establish a National Digital Library for Children & Adolescents - Books, physical library, and providing infrastructure for physical library to states (encouraged) - age-appropriate reading material to the library.
PM’s structural reforms were undertaken. The government handled the COVID-19 crisis - focused on Atmanirbhar Bharat, the foundation of Amrit Kaal. The 2nd tenure of PM targeted every individual for household, bank, and electricity.
The Indian Economy has witnessed profound positive transformation in the last 10 years. FM says, "When our govt. took office, the country was facing enormous challenges. We have overcome them. The economy got a new vigor and the fruits of development reached people at scale".
The Finance Minister speaks on the themes of Sabka Saath, Sabka Vikaas, and Atmanirbhar Bharat. She says, “We expect that our govt., based on its stupendous work, will be blessed with a resounding mandate.”
The government will focus on a saturation approach of covering - reducing corruption, preventing nepotism, more transparency and assurance, fair distribution of resources, access to opportunities, and addressing system inequalities.
The government’s development programs in the last 10 years have targeted each and every individual through schemes relating to free rations, bank accounts for all, and drinking water for all, in record time. This has strengthened real income in the rural areas.
FM Sitharaman: Our young country has high aspirations, pride in its present, and hope in the future. Our young country has pride in its presence and hope and confidence in the future. The worries about food have been eliminated through free ration for 80 crore people.
- Earlier approach of tackling poverty had resulted in modest outcomes.
- With the pursuit of Sabka Saath, we have assisted 25 crore people to get freedom from multi-dimensional poverty.
- We believe in empowering the poor, the earlier strategy of entitlement didn’t work. With the pursuit of Sabka Saath in these 10 years, the government has assisted 25 crore people to get rid of multi-dimensional poverty.
- This is truly elevating them from poverty. Direct Benefit Transfer of Rs. 34 lakh crore through PM Jan Dhan Yojana accounts has led to savings of ₹2.7 lakh crore for the government, which has helped in providing more funds for Garib Kalyan.
- From 78 lakh street vendors, 2.3 lakh have received credit for the third time under the PM Swanidhi Yojana.
Direct development of 4 crore farms through crop assistance provided ₹3 lakh crore to 1.8 crores farmers.
The government focused on desh ka yuva through national policy 2020, quality teaching under the PM plan. Skill India added 1.4 lakh youth. Focused on education via 3000 ITIs, 7 IITs, 16 IIITs, 15 AIMs, and 390 universities, PM Mudra Yojna sanctioned loans for more than ₹4 crore. The country received over 80 chess grandmasters.
The government focused on mudra yojna and supported 30 crores of women entrepreneurs. The government reserved ⅓ seats in Lok Sabha to Women. PM Awas yojna focused on 70% of houses in rural areas.
The government has provided crop insurance to 4 crore farmers under the PM Fasal Bima Yojana. This helped the annadata in producing food for the country and the world. 1361 mandis integrated with 3 lakh crore trading volume: FM said
Government focuses on - poor, women, youth, and the farmers. In the last 10 years, 25 crore people got freedom from multidimensional poverty: says FM
The government focused dIgital public infrastructure, which has been instrumental in the formalization of the economy. PM Modi government focused on GST and tax reforms for strengthening the financial sector, which has helped in making savings and investments more efficient.
Average Real income has risen by 50%, and inflation is moderate. People are getting empowered, and enabled to pursue their aspirations, says FM Sitharaman.
FM Says "All forms of infrastructure – digital, social, physical – are being built in record time," Sitharaman said. Empowerment of women has gained momentum with 30 crore Mudra Yojana loans, she added. Around 70% of houses in rural areas under PM Awas Yojana are given to women as single or joint owners, Sitharaman pointed out.
FM Says: The government is focussed on GDP. In her budget speech ahead of the upcoming general election where the Narendra Modi administration is set to seek a third straight term. GDP (also called national income) is conventionally defined as gross domestic product. It is the sum total of all output in India. India’s real GDP clocked a growth of 7.7% between April and Sept 2023), which is the highest among the major economies.
Ms Sitharaman presents a vision for “Viksit Bharat” (Developed India) Our vision for Viksit Bharat, is that of prosperous Bharat, in harmony with nature, with modern infra and proving opportunities for all citizens.
FM Says: The next five years will be years of unprecedented development, and golden moments to realise the dream of developed India by 2047.
FM Says: Trinity of Democracy, Demography and Diversity, has the potential to fulfil the aspiration of every Indian.
FM says: "A new world order is emerging after the Covid pandemic India assumed the G20 Presidency during very difficult times for the world. The pandemic has led to a crisis of food, fertiliser, food, and finances for the world while India successfully navigated its way, she added.
The government is close to achieving the target of 3 crore houses and planning over 2 crore houses in the next 5 years. FM says: Rooftop solarisation and free electricity bill up to 300 units.
FM said: 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. "Our vision for Viksit Bharat is one of prosperity in harmony with nature and providing opportunity to all to reach their potential," she added.
The Indian rupee grew 7 paise to 82.9725 against the US dollar on February 1 after Finance Minister Nirmala Sitharaman began her interim budget speech.
The government is planning to launch a scheme for providing houses to the middle class
The government to focus on various schemes for maternal and child health care. The government to seek upgradation of Anganwadi centres.
- The Government will adopt economic policies which will strengthen and sustain growth, improve productivity, create opportunities for all, and help people enhance their capabilities. Guided by the principle of Reform, Perform and Transform, the government will take next-generation reforms.
- Our government will focus on sustaining more efficient growth by aligning with the Panchamrut goals. We will build a financial sector with scale, capacity and regulatory frameworks for meeting investment needs. Development of the East - Our government is committed to making the Eastern region and its people a major engine of India's economic growth.
- Awas Yojana (Gramin) - Notwithstanding the difficulties, the project is almost completed, with a further 2 crore homes scheduled to be occupied over the following five years. Savings of Rs. 18,000 crore are expected for households annually through free energy and selling their excess generation to the grid.
The Finance Minister continues outlining the government’s strategy for Amrit Kaal, speaking on the following areas:
- Dairy -The development of a comprehensive support programme for dairy farmers is underway, and the fight against foot and mouth disease is well underway. Despite having poor milch yield, India is the world's top producer of dairy products.
- Matsya Sampada - FM: It was our govt. which set up a separate department of fisheries realizing the importance of assisting fishermen. Seafood exports since 2013-14 have doubled. The implementation of the PM Matsya Sampada Yojana will be stepped up.
- Lakhpati Didi - FM said: 83 lakh SHGs (self help groups) with 9 crore women are transforming the rural social economic landscape with empowerment and self-reliance. Their achievements will be recognized by honouring them. It has been decided to raise the target for such Lakhpati Didis from 2 crore to 3 crore.
- Technological changes - A corpus of Rs. 1 lakh crore will be established with 50-year interest free loans for providing long term financing or refinancing with long tenors and low or nil interest rates.
The next 5 years will be of unprecedented development, aiming to become a developed country by 2047, FM Sitharaman said. She emphasised PM’s words that there is no dearth of opportunity, adding that the "trinity of democracy, demography and diversity can fulfil aspirations of every Indian".
Harnessing shore-wind energy potential through viability gap funding
Set up Coal gasification and liquefaction capacity of 100 metric tons by 2030. Phased and mandatory implementation of blending compressed biogas with compressed natural gas for transportation and piped natural gas for domestic use.
FM Sitharaman said that the capital expenditure target of FY 2025 has been set at ₹11.1 lakh crore, up by 11.1%
FM announced the extension of the Ayushman Bharat scheme will be extended to all ASHA and Anganwadi workers and helpers.
- FM said the total receipts, apart from borrowings and total expenditure, are estimated at ₹30.80 and ₹47 lakh crore. The interest-free loans schemes will continue next year with an outlay of ₹1.3 lakh crore.
- The Fiscal Deficit in 2024-25 is estimated to be 5.1% of GDP, in line with the commitment of reducing the deficit to 4.5% of GDP by 2025-26.
The EV ecosystem will be expanded and strengthened by supporting manufacturing and charging infrastructure. A new scheme of bio-manufacturing will be launched to promote green growth.
For FY 2024-25, the tax receipts are estimated at ₹26.02 lakh crore. FM Sitharaman also pointed out that the average processing time of tax returns has been reduced to 10 days this year.
"I do not propose any changes in tax rates in direct and indirect taxes including import duties,” FM Sitharaman said. She further added, “However, certain tax exemptions for startups and IFSC units are expiring on March 31, 2023. To provide continuity in taxation, I propose to extend these till March 31, 2025."
As per the new tax scheme, there is now no liability for those earning upto ₹7 lakh a year. Additionally, the threshold for presumptive taxation for retails businesses was increased to ₹3 crores from ₹2 crores.
- The government is to implement three major railway corridor programs, which include energy, mineral and cement corridor, port-connectivity corridor and high-traffic density corridor
- FM Said: These corridors will improve logistics efficiency and reduce cost. She added: that this will also improve safety for passenger trains as well. In addition, the government will work on converting 40,000 normal rail bogeys to Vande Bharat standards.
FM: The success of G20 events organised across 60 cities has helped India. Our middle class also now aspires to travel more. Tourism, including spiritual tourism, is booming, and States will be encouraged to develop tourism centres and market them globally. States will be provided long-term interest-free loans on a matching basis to develop such tourism centres.
FM: The FDI inflow from 2014-23 was 596 billion USD, marking a golden era. She added: we are negotiating bilateral treaties with the spirit of ‘First, Develop India’.
FM: The government has strengthened the aviation sector over the last 10 years, and as a result, the number of airports doubled to 149 in the last decade.
- The FY24 fiscal deficit has been revised down to 5.8% of the GDP. The revised estimate of revenue receipts is expected higher than budgeted, she added. Modi government is focused on more comprehensive GDP, governance, development, and performance.
- The FY25 fiscal deficit target has been set at 5.1% of GDP.FY25 gross market borrowing pegged at ₹14.13 lakh crore, net borrowing at ₹11.75 lakh crore.
Tax base of GST has doubled, said FM Sitharaman, she also added that the average GST monthly collection has almost doubled to ₹1.66 lakh crore this year.
FM proposed to withdraw a large number of petty or disputed tax demands up to ₹25,000 pertaining to years up to 2009-10 and ₹10,000 for the period from 2010 to 2015. This will help 1 crore taxpayers.
For FY2024-25, the tax receipts are estimated at ₹26.02 lakh crore. The finance minister also pointed out that the average processing time of tax returns was reduced to 10 days this year.
The start-up tax incentive will last until March 31, 2025. Sovereign wealth funds and pension funds will receive an additional year of tax-free investments. There are certain lingering direct tax requests that the government will remove.
FM Nirmala Sitharam concluded her interim budget speech, which ran for almost an hour.
- FY24 fiscal deficit seen at 5.8% of GDP.
- FY24 total expenditure revised to ₹ 44.90 lakh crore.
- FY24 total receipts other than borrowings were ₹ 27.56 lakh crore.
- FY24 tax receipts were ₹23.24 lakh crore.
- FY25 fiscal deficit expected to be at 5.1%.
- Aim to reduce fiscal deficit to below 4.5% by FY26.
- FY25 gross market borrowing seen at ₹14.13 lakh crore.
- FY25 capex target has been increased by 11.1% to ₹11.1 lakh crore.
- No change in direct, or indirect taxation.
- Government to focus on four major pillars -- poor, women, youth and annadaatas.
- For FY25, tax receipts estimated at ₹26.02 lakh.
- Average GST monthly collection has doubled to ₹1.66 lakh crore
- Projects for tourism to be taken up in islands including Lakshadweep.
- Govt to support EV manufacturing, charging infrastructure
- Golden era for tech-savvy youth, 50-yr interest-free loans to be rolled out
- Ayushman Bharat cover extended to all Anganwadi and Asha workers
- Govt to help in providing housing for the middle class.
- The India-Middle East-Europe corridor is a game changer for India and others.
Finance Minister Nirmala Sitharaman presented the interim Union Budget 2024-25, outlining priorities in key sectors and tax regulations. The complete budget is slated for July 2024 post-elections. Click here to delve into the specifics of Budget 2024-25.
The Interim Budget 2024 brought good news for the agriculture sector in the form of initiatives aimed at boosting farmers’ income, promoting value addition, and enhancing overall growth. Here’s a breakdown of the key announcements:
- Pradhan Mantri Kisan Sampada Yojana (PMKSY)
This scheme has already benefitted 38 lakh farmers and created 10 lakh jobs. The government plans to step up efforts under PMKSY to promote value addition and further increase farmers’ income. - Pradhan Mantri Formalisation of Micro Food Processing Enterprises Yojana (PMFMEY)
This scheme has helped 2.4 lakh Self Help Groups (SHGs) and 60,000 individuals with credit linkages. The government will continue to support micro-processing to reduce post-harvest losses and improve incomes.
Continue to read other initiatives here: Boost for Farmers in Budget 2024
