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The Union Budget 2024 also referred to as the Interim Budget took place on February 1st with a goal of highlighting the current government’s achievements and their prospects for another ten years keeping in view of the upcoming Lok Sabha elections around the corner. The government reclarified its position by stating its focus will always remain on enhancing the ‘Garib’ (Poor), ‘Mahilayen’ (Women), ‘Yuva’ (Youth) and ‘Annadata’(Farmer).
Some of the most notable achievements made during this period include: -
(a) Improved the prospects for 25 crore citizens out of multidimensional poverty across the last ten years,
(b) Availability of credit under the PM-SVANidhi scheme reaches 78 lakh street vendors and 2.4 lakh of them get additional coverage for the third time,
(c) Approximately 12 crore farmers received economic assistance from the PM-KISAN SAMMAN Yojana,
(d) Loans worth 30 crores were disbursed to first-time businesswomen under the Mudra Yojana schemes, and
(e) The government was able to save 2.8 lakh crores by ensuring the smooth flow of direct-benefit transfers of 35 lakh crores by using the PM-Jan Dhan accounts.
(f) For all incomes earned up to Rs. 7 lakhs, there will be no taxes charged. This is an improvement since 2013-14 wherein the slab was kept as Rs. 2.2 lakhs
(g) Tax return processing times dropped from 93 days in 2013–14 to 10 days on average.
Additionally, the budget and revised estimates were also provided: -
(a) Revised estimates for fiscal deficit stand at 5.8% (2023-24) while the fiscal deficit targets under the budget estimates are set at 5.1% (2024-25).
(b) Total expenditures (revised) stand at Rs. 44.90 lakh crores and tax receipts under the total receipts will amount to Rs. 23.24 lakh crores.
Latest objectives for 2024-2025
Despite the Budget maintaining the status of an ‘interim’ one, it had directly pushed forward with some of the grand plans it lays ahead for 2025. From keeping the direct and indirect tax rates at previous levels for both old and new regimes to confirming that 40,000 normal train bogeys will now be updated to Vande Bharat standards; there is something for almost every sector in this Budget.
(1) Defense budget is set to rise by 13% with increased funding aimed toward military capital expenditure (1.72 lakh crores) and defense services (2.8 lakh crores).
(2) Infrastructure will receive Rs. 11.11 lakh crores (2025) and Rs. 1.68 lakh crores will be used for development of National Highways.
(3) The railways will receive an upward investment of Rs. 2.55 lakh crores (2024-25) thereby recording a 5.8% jump since 2023-24. Economic Rail Corridors connecting energy, cement, and minerals are sanctioned with a budget of Rs. 11 lakh crores and will be covering 434 programs under this initiative.
(4) The PM-Awas Yojana (Gramin) will include the construction of an additional two crore homes by 2029. Similarly, people from the middle class and slum-dwelling residents will also get additional coverage under various housing schemes.
(5) The health sector will witness the merging of multiple schemes that support nursing mothers and children that target early childhood. Girl children between the ages of 9-14 will receive vaccination against cervical cancers and Ayushman Bharat will expand its coverage to include all Anganwadi and ASHA workers.
(6) In the energy sector, plans are being made to channel offshore wind energy up to 1 GW capacity. By 2030, the Government envisions the setting up of 100 MT capacity for coal gasification and liquefaction which could further aid in lesser imports of ammonia, natural gas, and methanol. Meanwhile, the avenues are also kept open for the promotion of electric vehicles as part of a sustainable India campaign.
However, each core component of the Budget will fully be explored in July 2024 post-elections when the new government comes to power. It has been to see how many initiatives will directly be channeled into an implementation mode and what the political scenario looks like in a few months.
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