Interim Budget 2024: Key Highlights | Download PDF

Context: 

This editorial is based on the news “Parliament Budget Session Live Updates: Day after interim Budget, INDIA party leaders to chalk out joint strategy” which was published in the Indian Express. Recently, the Finance Minister of India presented an interim budget 2024-25 in the Parliament.

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What is Interim Budget?

• There is no constitutional provision for an interim budget. However, it has become a common practice for outgoing governments ahead of polls.
• A Short Period Budget: During an election year, the finance ministers present an interim Budget that covers the government’s expenses and revenues for a short period. This is till a new government is elected and takes charge.
• Released: The presentation of an interim budget follows the same schedule as the Union budget would in a regular financial year.

What Can Be Included in Interim Budget?

• The interim Budget includes estimates for the government’s expenditure, revenue, fiscal deficit, financial performance and projections for just a few months.

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What Cannot Be Included in Interim Budget?

• No major policy announcements that can burden the next government can be presented in the interim Budget.

About Full Budget

• A Financial Year Budget: The Union Budget is the annual financial statement with the estimated costs and expenses of the government for the following financial year.
• Released: After the Lok Sabha elections, the new government presents a full budget.

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Highlights of Interim Budget 2024

• Economic growth: It has picked up and the average real income of people increased by 50%.
• On Borrowings: The Government borrowings on a gross and net basis for 2024-25, at Rs. 14.13 lakh crore and Rs. 11.75 lakh crore, respectively, lower than 2023-24.
• On Expenditure: Spends on capital expenditure have been increased to ₹11.11 lakh crore for Interim Budget 2024-25.
• On Inflation: Inflation has moderated and is within the target band (2%-6%).
• On Fiscal Deficit: Reduce fiscal deficit to 4.5% in 2025-26.
• On Tax Rates: The Government proposed to maintain the same tax rates for direct and indirect taxes, including import duties.
• On GST Collection: Average monthly Gross GST collections doubled to 1.66 lakh crore in FY24.
  • Positive sentiment about GST: 94% industry leaders view transition to GST as largely positive 80% of respondents feel GST has led to supply-chain optimisation.
• Welfare for Poor: The Government pulled 25 crore people out of poverty in ten years and provided free food for 80 crore people through various schemes.
• Direct Benefit Transfers (DBT): DBT of Rs. 34 lakh crore through PM Jan Dhan Yojana accounts has led to savings of ₹2.7 lakh crore.

• Interim Budget 2024 For Support Self-Sufficiency: 

• • For Artisans: The PM Vishwakarma Yojana scheme provides end-to-end support to artisans. 
  • For Street Vendors: The government provided credit assistance to 78 lakh street vendors under the PM-SVANidhi scheme. 

• Interim Budget 2024 For Women

• • 30 crore Mudra Yojana loans disbursed to women entrepreneurs.
    • Increased female enrolment in higher education by 28% in 10 years.
    • 43% of female enrolment in STEM (science, technology, engineering and mathematics) courses.

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• Interim Budget 2024 For Upskilling and Reskilling

  • Over 1.4 crore youth were trained under the Skill India Mission. 
  • 43 crore loans sanctioned under PM Mudra Yojana. 
  • Expansion of the ‘Lakhpati Didi’ scheme to empower rural women and boost the rural economy. 

• On Trade & Growth

  • IMEEC: The Government highlighted the role that the India-Middle East-Europe Economic Corridor (IMEEC) can play in world trade.
  • Fuel: The Government will pay more attention to developing the East to fuel India’s growth.

• Interim Budget 2024 For Tourism and Investment Promotion

  • Comprehensive development of tourist centers and infrastructure projects to boost domestic tourism. Projects for port connectivity, tourism infrastructure, and amenities will be taken up including islands, Lakshadweep.
  • Foreign Direct Investment (FDI) inflows marked a significant increase, with continued efforts to attract more foreign investment.

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• Interim Budget 2024 For Development & Support

  • Development Mantra: Comprehensive development of all- Sabka Saath, Sabka Vikas, and Sabka Vishwas
  • 3Ds: Trinity of demography, democracy and diversity, backed by ‘Sabka Prayas’
  • Affordable Houses: The Government will subsidize the construction of 30 million affordable houses in rural areas.
  • Health: The Centre will encourage cervical cancer vaccination and combine maternal and child health care schemes into one comprehensive programme.
  • The Ayushman Bharat scheme will be expanded to all ASHA workers, Anganwadi workers and helpers.

• Interim Budget 2024 For Farmers & Agriculture: 

  • PM KISAN: Direct financial assistance to 11.8 crore farmers under PM-KISAN.
  • PM Fasal Bima Yojana: Crop Insurance to 4 crore farmers under PM Fasal Bima Yojana.
  • e- NAM: Integration 1,361 mandis under e- NAM, supporting trading volume of 23 lakh crore.
  • Nano DAP: Government to encourage ‘Nano DAP’ for various crops and to expand its use for all agro-climatic zones.
  • Dairy Farmers: It will also formulate policies to support dairy farmers and defeat Foot and Mouth Disease.
  • Oilseeds: The government will formulate a strategy to achieve AtmaNirbharta (self-reliance) for oilseeds. This will cover research for high-yielding varieties, procurement, value addition and crop insurance.
  • Fishermen: A new department “Matsya Sampada” to be set up to address the needs of fishermen. 

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• Interim Budget 2024 For Connectivity

  • 40,000 normal rail bogies will be converted to Vande Bharat standards. 
  • Government to enhance safety, convenience and safety of passengers. 
  • Government to focus on metros in a bid to provide transit-oriented development.
  • Promotion of urban transformation via Metro rail and NaMo Bharat.
  • Implementation of 3 major railway corridor programmes under PM Gati Shakti to improve logistics efficiency and reduce cost.
  • Expansion of existing airports and comprehensive development of new airports under UDAN scheme.

• Interim Budget 2024 For Environment

  • Net Zero by 2070: The Government has announced several schemes. 
  • Renewable Energy: Funding to harness offshore wind energy generation for an initial capacity of 1 Giga Watt, procuring biomass aggregation machinery and expanding the e-vehicle sector by encouraging more manufacturing and charging infrastructure.
  • Rooftop solarization: 1 crore households will be enabled to obtain up to 300 units of free electricity per month.
  • Viability gap funding for wind energy
  • Setting up of coal gasification and liquefaction capacity 
  • Phased mandatory blending of CNG, PNG and compressed biogas
• Future Outlook and ‘Viksit Bharat’ Vision By 2047: The budget sets the foundation for the vision of a ‘Viksit Bharat’ (Developed India) by 2047, focusing on demographic, democratic, and diversity strengths.
• Kartavya Kaal: Commitment to national development with new inspirations and resolutions, termed as ‘Kartavya Kaal’ (Era of Duty).

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Conclusion

The Interim Budget 2024-25 reflects the government’s continued focus on inclusive growth, economic stability, strategic global positioning, sector-specific developments, environmental sustainability, and tax reforms, with an overarching vision towards a developed India by 2047.