On Thursday, February 1, one day after the Budget Session began, Finance Minister Nirmala Sitharaman gave her budget speech and introduced the Interim Budget 2024–25 before Parliament.
PM Modi praised the interim budget, stating that capital expenditure investments reached a record high of ₹11,11,111 crore. Referring to India’s capital expenditure and infrastructure investment position as being in a “sweet spot,” Prime Minister Modi highlighted the generation of numerous job possibilities for youth in the upcoming years.
“This budget has a reflection of the young aspirations of a young India. Two important decisions were made within the Budget. For research and innovation, a fund of ₹1 Lakh Crore has been announced,” stated PM Modi.
Key announcements:
-The expected gross borrowing for FY25 is ₹14.13 trillion, which is less than that of FY24.
– To make India self-sufficient, research steered the growth and development of local oilseeds including sesame, mustard, and groundnut.
-FM Nirmala Sitharaman increased infrastructure spending for FY 25 by 11%, from ₹10,000,000 crore to ₹11,11,111 crore.
– Against the projected 5.3% fiscal deficit, she has declared a 5.1% objective for FY25.
-FM offers persons residing in rental homes, slums, and unapproved colonies an opportunity to own or construct their own home as part of a middle-class housing initiative.
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-More medical schools will be established utilizing the current infrastructure. All people to receive healthcare coverage under the Ayushman Bharat plan for Anganwadi workers
-A greater effort will be made to increase farmers’ revenue. In an effort to decrease subsidies and imports of fertilizer, the government will promote the quicker adoption of nano DAP. Government will encourage private funding for post-harvest endeavors
– The removal of unresolved tax requests was announced by Finance Minister Sitharaman. One crore taxpayers stand to gain from the action.
– The FM decided to maintain the current tax rates, including import duty, in the interim Budget 2024, which disappointed the taxpayers. Nonetheless, certain tax exemptions for specific IFSC units and startup-related perks that expire in March will be extended until March 2025.
Any changes in the tax reforms?
Nirmala Sitharaman, the minister of finance, made no significant pronouncements regarding income taxes. There was no modification made to the tax rates. The deadline for targeting special tax benefits to startups and exemptions to particular IFSC units has been extended by the government until March 2025.
The status of fiscal deficit?
The FM set the FY 25 fiscal deficit target at 5.1%, compared to the expected 5.3% level.
Any provisions in the Railways sector?
Three significant economic railway corridor programs under PM Gati Shakti were introduced by FM Sitharaman in the interim budget: port connectivity corridors, high traffic density corridors, and energy, mineral, and cement corridors.
