New Delhi: Presenting the Interim Budget 2024, Union Minister of Finance and Corporate Affairs Niramala Sitharaman on Thursday outlined the government’s vision for Viksit Bharat 2047.
Tabling the vote-on-account, the Finance Minister said the government targets to increase the capability of all to empower all.
Sitharaman declared a hike in capital expenditure to Rs 11.11 lakh crore for Financial Year (FY) 2024-25 while trimming this year’s fiscal deficit from 5.9 per cent to 5.8 per cent budgeted GDP. The fiscal deficit target for 2024-25 FY was further lowered to 5.1 per cent.
Direct & Indirect Tax
Taxpayers with income up to Rs 7 lakh will continue to have no tax liability under the new tax regime.
The direct and indirect taxes including import duties remained unchanged while Corporate Taxes was kept at 22 per cent for existing domestic companies and 15 per cent for certain new manufacturing companies.
The direct tax demand up to Rs 25,000 for the period up to financial year 2009-10 and up to Rs 10,000 for financial years 2010-11 to 2014-15 will be withdrawn. It is expected to benefit at least one crore people, as per the government.
Tax benefits provided to start-ups and investments made by sovereign wealth funds/pension funds and tax exemption of some IFSC units were extended up to March 2025. The tax benefit was expiring this fiscal end.
The government declared direct tax collections more than trebled in the last ten years and the number of return filers went up by 2.4 times.
Allocations To Different Ministries
Ministry of Defence: Rs 6.2 lakh crore
Ministry of Road Transport and Highways: Rs 2.78 lakh crore
Ministry of Railways: Rs 2.55 lakh crore
Ministry of Consumer Affairs, Food & Public Distribution: Rs 2.13 lakh crore
Ministry of Home Affairs: Rs 2.03 lakh crore
Ministry of Rural Development: Rs 1.77 lakh crore
Ministry of Chemicals and Fertilisers: Rs 1.68 lakh crore
Ministry of Communications: Rs 1.37 lakh crore
Ministry of Agriculture and Farmer’s Welfare: Rs 1.27 lakh crore
Allocation To Major Schemes
The Finance Minister announced two crore more houses under the Pradhan Mantri Awas Yojana (PMAY) Grameen in the next five years. About three crore houses have already been constructed, informed the Minister.
Allocation for Mahatma Gandhi National Rural Employment Guarantee Scheme saw an increase to Rs 86,000 crore in 2024-25 from Rs 60,000 crore in 2023-24 while the allocation for Ayushman Bharat Pradhan Mantri Yojana (Ab-PMJAY) saw an increase from Rs 7,200 crore in 2023-24 to 7,500 crore in 2024-25. All ASHA, Anganwadi workers and helpers will get the benefit of Ayushman Bharat.
The allocation for developing semi-conductors and display manufacturing ecosystem increased from Rs 7,200 crore to Rs 7,500 crore for FY 2024-25.
Production linked incentive scheme which was 4,645 crore in 2023-34 FV saw a raise to Rs 6,200 crore.
The government will also launch “Housing for Middle Class” scheme to encourage middle-class individuals to purchase or construct their own homes.
Commitment To Net Zero Emission
Highlighting the government’s global commitment to achieve Net Zero emissions by 2070, The Finance Minister announced that through roof-top solarisation, 1 crore households will be enabled to obtain up to 300 units of free electricity every month. The allocation for solar powergrid was raised from Rs 4,645 crore to Rs 6,200 crore while the National Green Hydrogen Mission got a raise from Rs 3,000 crore to 6,903 crore in the 2024-25 FY.
The Finance Minister announced support for manufacturing and charging infrastructure to strengthen the electric vehicle (EV) ecosystem and added that blending compressed biogas into compressed natural gas for transport and piped natural gas would be made mandatory.
Shares of EV manufacturers jumped immediately after the announcement.
Agriculture & Food Security
The allocation for blue revolution was increased to 2,352 from 2025 in 223-24 FY while the allocation for micro food processing enterprises was increased from Rs 639 crore to Rs 880 crore for 2024-25 FY.
The government will promote private and public investment in post-harvest activities.
Atmanirbhar Oilseeds Abhiyaan-Strategy will be formulated for self-reliance in oilseeds while a comprehensive programme for dairy development will also be formulated.
Pradhan Mantri Matsaya Sampada Yojana will be stepped up to enhance aquaculture productivity, double exports and generate more employment opportunities
The government will set up five Integrated Aquaparks.
Focused on improved healthcare of children and women, Sitharaman announced the promotion of Cervical Cancer Vaccination for girls in the 09-14 years age group while Saksham Anganwadi and Poshan 2.0 will be accelerated for improved nutrition, early childhood care and development.
The government will roll out U-WIN platform for the immunisation programme under Mission Indradhanush.
Rooftop Solarization & Muft Bijli
1 crore households to obtain 300 units free electricity every month through rooftop solarization. Each household is expected to save Rs 15,000 to Rs 18,000 annually.
Research & Innovation
A corpus of Rs.1 lakh crore to be established with fifty-year interest free loan to provide long-term financing or refinancing with long tenors and low or nil interest rates. A new scheme to be launched for strengthening deep-tech technologies for defence purposes and expediting ‘atmanirbharta’.
States to be encouraged to take up comprehensive development of iconic tourist centres including their branding and marketing at global scale.
Framework for rating of the tourist centres based on quality of facilities and services to be established.
Long-term interest free loans to be provided to States for financing such development on matching basis.
The government has proposed to expand existing airports and undertake comprehensive development of new airports under the UDAN scheme.