TFP Bureau, New Delhi, February 1, 2024: Finance and Corporate Affairs Minister Smt Nirmala Sitharaman presented the Interim Union Budget for 2024-2025 in Parliament, outlining key economic projections and policy directions. The budget emphasizes India’s robust economic growth, with real GDP projected to grow at 7.3% in FY 2023-24.
Key Highlights:
1. Capital Expenditure Boost: The capital expenditure outlay for the next year is increased by 11.1% to Rs 11,11,111 crore, constituting 3.4% of the GDP. This rise builds on the substantial increase in capital expenditure over the past four years.
2. Fiscal Deficit and Economic Growth: The fiscal deficit in 2024-25 is estimated to be 5.1% of GDP, in line with the government’s commitment to fiscal consolidation. The Indian economy has demonstrated resilience, maintaining healthy macro-economic fundamentals amid global challenges.
3. FDI Inflow: Foreign Direct Investment (FDI) inflow during 2014-23 reached USD 596 billion, twice the inflow during 2005-14, marking a golden era. The government is actively negotiating bilateral investment treaties to encourage sustained foreign investment.
4. Inclusive Development: The government’s top priority is the upliftment of the ‘Garib’ (Poor), ‘Mahilayen’ (Women), ‘Yuva’ (Youth), and ‘Annadata’ (Farmer). Smt. Sitharaman stressed an all-round, all-pervasive, and all-inclusive development approach.
5. Interest-Free Loan for Youth: A corpus of Rs 1 lakh crore will be established with a fifty-year interest-free loan to empower the youth, encouraging long-term financing and innovation.
6. High-Powered Committee: The government will form a high-powered committee to address challenges arising from fast population growth and demographic changes, aligning with the goal of ‘Viksit Bharat’ by 2047.
7. Taxation and Economic Transformation: No changes in tax rates are proposed in the interim budget. The Finance Minister highlighted the positive transformation in the Indian economy over the last ten years and announced a white paper on the Indian economy to draw lessons from past mismanagement.
8. Focus on Eastern Region: Special attention will be given to making the eastern region a powerful driver of India’s growth. Various initiatives, including PM Awas Yojana (Grameen), rooftop solarization, and rail corridor programs, aim to boost development.
9. Population Growth Challenges: A high-powered committee will extensively consider challenges arising from fast population growth and demographic changes.
10. Direct Tax Withdrawal: Petty and disputed direct tax demands up to Rs 25,000 (up to financial year 2009-10) and up to Rs 10,000 (financial years 2010-11 to 2014-15) will be withdrawn, benefiting about one crore taxpayers.
11. GST and Indirect Taxes: The Goods and Services Tax (GST) has reduced compliance burdens and led to positive outcomes for trade and industry. The tax base of GST has more than doubled, and average monthly gross GST collection has nearly doubled to Rs 1.66 lakh crore.
12. White Paper on Indian Economy: The government will release a white paper on the Indian economy, providing insights into the country’s economic journey.
In conclusion, Finance Minister Smt Nirmala Sitharaman expressed optimism about India’s future, emphasizing the government’s commitment to holistic development and sustained economic growth. The full budget, scheduled for July, will present a detailed roadmap for ‘Viksit Bharat.’
