Budget 2024: Five Major Takeaways From The Interim Budget

Fiscal Prudence

Revised fiscal deficit for FY24 came in at 5.8% of GDP, lower than the budgeted 5.9%. FY25 target is set at 5.1%, aiming to reach 4.5% by FY26. Net borrowing for FY25 is seen at Rs 11.75 lakh crore, indicating responsible spending.

Infrastructure Push

Infrastructure outlay increased by 11.1% to Rs 11.11 lakh crore for FY25, reflecting a focus on growth. Initiatives include coal gasification & liquefaction, converting 40,000 rail bogeys to Vande Bharat standards, and building 2 crore rural houses under PM Awas Yojana.

Boost for Key Sectors

Rs 1 lakh crore corpus set up to back innovation across various sectors. Extension of tax benefits for startups until March 2025. Rs 75,000 crore offered as 50-year interest-free loans to states for undertaking reforms.

Social Welfare Measures

No changes in tax slabs. Consideration of a housing scheme for the deserving middle class living in rented accommodation or slums. Govt will encourage vaccination for girls for prevention of cervical cancer. Rs 26.02 lakh crore estimated tax receipts for FY25, indicating potential for future benefits.

Boost to Agriculture and Food Processing

Application of Nano-DAP to be expanded in all agro-climatic zones. Atmanirbhar Oilseeds Abhiyaan to be formulated to achieve Atmanirbharata for oilseeds. Allocation for PM-Formalization of Micro Food Processing Enterprises scheme increased from $639 crore in 2023-24 to $7880 crore in 2024-25.

Viksit Bharat by 2047: Garib Kalyan, Desh ka Kalyan

Direct Benefit Transfer of ₹34 lakh crore using PM Jan Dhan accounts; 2.7 lakh crore saved due to avoidanace of leakages. Credit assistance to 78 lakh street vendors under PMSVA Nidhi, out of which 2.3 lakh received credit for the third time.

Looking ahead to the Full Budget

This interim budget provides a glimpse into the governments priorities for the upcoming full budget, expected after upcoming Lok Sabha Elections 2024.