Post announcing the Interim Budget 2024, Finance Minister Nirmala Sitharaman held a press conference where she abbreviated GDP to governance, development and performance, at the backdrop of Interim Budget 2024. She said that the incumbent government had achieved all the three.
’India has seen three consecutive years of seven percent growth, Sitharaman said, while highlighting the government’s performance over the last 10 years. “We have a better managed economy with the right intent and policies,” she added.
She stressed on the promising fiscal deficit target of 5.1% of the GDP for 2024-25, and that it reflects the path of meeting a 4.5 percent by 2025-26, said Sitharaman.
The Finance minister made note that the five Disha Nirdeshak Baatein that were outlined by the Prime Minister in his post budget address should also be paid heed to. The first is social justice as an effective governance model. The second to be special focus on the poor, youth, women and the Annadata(Farmers).
Infrastructure and use of technology to improve productivity and the last being a high power committee for challenges arising owing to demographic changes.
#WATCH | Union Finance Minister Nirmala Sitharaman holds a press conference after presenting Interim #Budget2024 pic.twitter.com/U1iN9drPTx
— ANI (@ANI) February 1, 2024
1. Tax Stability and Economic Growth Dominate Budget FY 2024-25
In a major announcement ahead of the elections, Finance Minister Nirmala Sitharaman unveiled the much-anticipated Budget for the fiscal year 2024-25, maintaining stability in tax slabs and rates. One of the key highlights is the decision to keep the income tax slabs unchanged, providing relief to taxpayers across the nation. Additionally, there will be no alterations in tax rates for companies, LLPs, or any other entities.
The Finance Minister also extended tax concessions to startups and sovereign wealth funds until March 2025, fostering a conducive environment for entrepreneurial growth. The government’s commitment to addressing long-standing tax issues is evident with the withdrawal of direct tax demands for periods up to ₹25,000, benefiting around 1 crore people.
A groundbreaking move includes the allocation of a ₹1 lakh crore corpus, providing a 50-year interest-free loan to encourage private sector research and development in sunrise domains. This commitment towards fostering innovation reflects the government’s vision for a technologically advanced and research-driven economy.
2. Housing and Empowerment: Transformative Schemes Unveiled in Interim Budget
In a landmark development ahead of the upcoming elections, Finance Minister Nirmala Sitharaman presented the Interim Budget for the fiscal year 2024-25, focusing on housing and empowerment initiatives. The Budget includes a significant allocation of ₹2.78 lakh crore to the Ministry of Road Transport and Highways, indicating a strong emphasis on infrastructure development.
A major highlight is the announcement of a new scheme targeting the middle class living in rented houses or slums, allowing them to build their own houses. This move aligns with the government’s commitment to provide housing for all, with a goal of constructing 2 crore houses in the next five years under the PM Awas Yojana-Grameen.
Empowerment takes center stage with the extension of the Ayushman Bharat scheme to all ASHA and Anganwadi workers, showcasing the government’s dedication to women’s health and well-being. Additionally, the Finance Minister highlighted the schemes supporting female entrepreneurs, such as the MUDRA Yojana, which has provided loans to 30 crore women entrepreneurs.
3. Fiscal Discipline and Social Justice: Budget FY 2024-25 Unveils a Comprehensive Approach
As the nation gears up for elections, Finance Minister Nirmala Sitharaman presented an interim budget that underscores fiscal discipline and a comprehensive approach to social justice. The fiscal deficit for FY24 is estimated at 5.8% of GDP, below the budgeted 5.9%, signaling effective fiscal consolidation.
Key economic indicators, including GST, have played a pivotal role in achieving the government’s vision of ‘One Nation One Market One Tax.’ The Finance Minister announced the allocation of Rs 6.2 lakh crore to the Ministry of Defence, the highest among all allocations, showcasing the government’s commitment to national security.
The budget places a strong emphasis on social justice, with initiatives like the extension of the Ayushman Bharat scheme to cover all ASHA and Anganwadi workers. The Finance Minister highlighted the government’s efforts in empowering women, increasing female enrollment in higher education by 28% in the past decade and ensuring over 70% of houses under PM Awas Yojana in rural areas are owned by women.
Amidst the various measures and initiatives presented in the interim budget, the common thread is the government’s commitment to stability in taxation and fiscal discipline. The decision to keep income tax slabs unchanged and maintain consistent tax rates sends a strong signal of economic stability, providing a sense of assurance to taxpayers and businesses alike. This commitment to fiscal discipline is crucial in the lead-up to elections, emphasizing the government’s dedication to responsible economic management.
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