union-interim-budget-2024-key-highlights-and-reactions

In a significant announcement, Finance Minister Nirmala Sitharaman outlined the government's ambitious vision to transform India into 'Viksit Bharat' (Developed India) by the year 2047. Underlining the principle of "sabka sath, sabka vikas" (inclusive development for all), she articulated a focused approach targeting four major groups - the poor, women, youth, and farmers.

 

One of the key highlights of the budget is a groundbreaking initiative for rooftop solarisation, set to provide 1 crore households with 300 units of free electricity per month. This move aligns with the government's commitment to promoting sustainable and clean energy solutions.

 

Another noteworthy announcement is the extension of the benefits of Ayushman Bharat to all ASHA and Anganwadi workers, emphasising the government's commitment to enhancing healthcare accessibility for those at the grassroots level.

 

A substantial corpus of ₹1 lakh crore is slated to be established through a 50-year interest-free loan, aimed at providing long-term financing with extended tenure and minimal interest rates. This move is anticipated to stimulate economic growth by facilitating significant capital investment.

 

In a significant stride towards technological advancements, a new initiative is set to be launched to strengthen deep tech for defence purposes, underlining the government's commitment to bolstering national security through innovation.

 

Under the Pradhan Mantri Awas Yojana, the budget announces the construction of 5 crore new houses, marking a significant stride towards addressing housing needs and improving living conditions.

 

Recognising the importance of the fisheries sector, the budget proposes the establishment of a separate department for fisheries, to promote sustainable practices and boost the livelihoods of those involved in the industry.

 

Infrastructure development takes centre stage with the announcement of three major economic railway corridor programmes, indicating a strategic focus on enhancing transportation networks to stimulate economic activities.

 

In a bid to modernise rail transportation, the budget reveals plans to convert 40,000 normal rail boggies into Vande Bharat Boggies, showcasing a commitment to technological advancements in the railway sector.

 

An innovative scheme on bio-manufacturing and bio-foundry is set to be launched, focusing on enhancing green energy consumption and contributing to the country's environmental sustainability goals.

 

Turning attention to fiscal matters, the budget projections for FY24 reveal a fiscal deficit of 5.8% of GDP, with total expenditure revised to ₹44.90 lakh crore. The fiscal deficit for FY25 is estimated at 5.1%, and there is a clear aim to reduce it to below 4.5% by FY26. Gross market borrowing for FY25 is projected to be ₹14.13 lakh crore.

 

In a move aimed at supporting businesses, the presumptive taxation limit has been increased to ₹3 crore, providing relief to small and medium enterprises.

 

Crucially, there is no change in direct and indirect taxation rates, providing stability for businesses. Additionally, the withdrawal of disputed direct tax demands up to ₹25,000 is anticipated to benefit around 1 crore taxpayers.

 

While the interim budget has received widespread acclaim from Union ministers and industry leaders for its forward-looking and inclusive approach, some sectors, such as pharmaceuticals, express specific concerns. Despite the interim nature of the budget, the government's proactive stance and comprehensive vision set the stage for further developments in the upcoming full-fledged budget, fostering optimism for India's economic trajectory and development goals.