Key Highlights of the Interim Budget 2024

The Interim Union Budget 2024-2025, presented by Finance Minister Nirmala Sitharaman, sets the stage for India’s economic landscape ahead of the 2024 elections. This budget outlines the government's financial roadmap, emphasising infrastructure, investment, and social welfare initiatives. Here are the key highlights that reflect the government’s focus on sustainable growth and development for the upcoming financial year.

• The fiscal deficit for 2024-25 is projected at 5.1% of GDP, with a commitment to reduce it to 4.5% by 2025-26.

• The 50-year interest-free Loan scheme for capital expenditure to states will continue, with a total outlay of ₹1.3 lakh crore.

• Estimated tax receipts stand at ₹26.02 lakh crore.

• The previous year’s tax regime will be retained.

• The expiry date for specific tax benefits for start-ups and investments is extended from 31st March 2024 to 31st March 2025.

• A significant announcement is the withdrawal of outstanding direct tax demand: up to ₹25,000 for FY2009-10 and up to ₹10,000 for FY2010-11 to FY2011-15.

• A new Form 26AS and pre-filling of tax returns aim to simplify the filing process.

• The tax base of GST has more than doubled, with average monthly gross GST collections reaching ₹1.66 lakh crore.

• The capital expenditure outlay has tripled over the past four years, increasing by 11.1% for the next year to ₹11,11,111 crore, which is 3.4% of GDP.

• The Foreign Direct Investment (FDI) inflow during 2014-23 reached a record USD 596 billion. The government is negotiating bilateral investment treaties to foster development.

• The government plans to enhance the e-vehicle ecosystem by supporting manufacturing and charging infrastructure and promoting the adoption of e-buses in public transport through payment security mechanisms.

• The government will prioritise timely financing, relevant technologies, and training for Micro, Small, and Medium Enterprises (MSMEs) to enhance their global competitiveness.

• The PM Mudra Yojana has sanctioned 43 crore loans amounting to ₹22.5 lakh crore to foster entrepreneurship among youth.

• The GIFT International Financial Services Centre and the International Financial Services Centre Authority (IFSCA) aim to create a robust gateway for capital and financial services.

• To achieve the vision of ‘Viksit Bharat’, the budget allocates ₹75,000 crore as a 50-year interest-free loan to support milestone-linked reforms in state governments. Long-term interest-free loans will also be available for the development of iconic tourist centres.

• Under the PM Awas Yojana Grameen (PMAY-G), the government is on track to deliver three crore houses, with an additional two crore houses planned over the next five years.

• The government has implemented a Direct Benefit Transfer of ₹34 lakh crore through PM-Jan Dhan accounts, resulting in a savings of ₹2.7 lakh crore for the government.