Union Finance Minister Nirmala Sitharaman who presented the Interim Budget 2024 on Thursday said Prime Minister Narendra Modi led government’s policies benefiting farmers, women, youth, and the underprivileged have ensured an equal distribution of resources, signifying government’s focus on “growth in action.” The Ayushman Bharat-Pradhan Mantri Jan Arogya Yojana (AB-PMJAY) being extended to all ASHA and Anganwadi workers is seen as a step to boost women’s empowerment.
Fiscal Deficit shows that Fiscal Consolidation is going well
The Finance Minister said that the FY24 fiscal deficit is estimated at 5.8% of GDP, below the budgeted 5.9%. She stressed that the FY25 target at 5.1%, with an aim to reduce it to 4.5% by FY26.
Borrowings have gone down
FY25 gross market borrowings have been estimated at Rs 14.13 lakh crore, lower than a number of Rs 15 lakh crore that economists had expected. Net borrowings seen at Rs 11.75 lakh crore.
Infrastructure development to remain key point
With outlay for infrastructure taking the upside by 17% to Rs 11.11 lakh crore, 3.4% of GDP, replacing the estimate of Rs 9.5 lakh crore in FY24, the Infrastructure sector is also showing much promise.
No tax relief to New Manufacturers
The Concession of 15% which was applied in the Corporate tax for upcoming companies being incorporated in Bharat before March 31,2024 has not been extended. The provision was introduced in Budget 2019 to boost domestic manufacturing. The provision was introduced in Budget 2019 to boost domestic manufacturing. Several manufacturers had benefited from the move, incorporating new units.
Push for Innovation
The government plans to set up a Rs 1 lakh crore. This includes 50-year interest-free loan, long-term financing or refinancing with long tenures with low or nil interest rates. The move is aimed at encouraging the private sector to scale up research and innovations “significantly in sunrise domains”, Sitharaman said.
Other Key Highlights
Housing Stays in Spotlight
The government plans to launch a scheme for certain sections of the middle class living in rented houses or slums to build their own houses. The government aims to make 2 crore houses in the next five years under the PM Awas Yojana-Grameen and is close to achieving the 3 crore target.
Budgetary allocations
The interim Budget has allocated Rs 6.2 lakh crore to the Ministry of Defence, the highest among all allocations, followed by Rs 2.78 lakh crore to the Ministry of Road Transport and Highways. Additionally, the Ministry of Railways received Rs 2.55 lakh crore in allocations while the Ministry of Consumer Affairs, Food and Public Distribution received Rs 2.13 lakh crore.
The Ministry of Home Affairs received Rs 2.03 lakh crore while the Ministry of Rural Development has been allocated Rs 1.77 lakh crore. The Ministry of Chemicals and Fertilizers received Rs 1.68 lakh crore, the Ministry of Communications received Rs 1.37 lakh crore and the Ministry of Agriculture and Farmers Welfare secured Rs 1.27 lakh crore in allocation.
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