Interim Budget Of India 2024-2025

Interim Budget

Theme

The Interim Budget 2024–25 was just presented to the legislature. By 2047, it aims to create a “Viksit Bharat” with inclusive, all-encompassing, and all-round growth.

What is an Interim Budget?

  • A government that is in its final year in office, going through a transition phase, or facing general elections presents an interim budget.
  • The interim budget’s goal is to maintain government spending and vital services until the next administration is in place and ready to publish a formal budget.

What is the Difference Between Vote on Account and Interim Budget?

FeatureVote on AccountInterim Budget
Constitutional ProvisionArticle 116Article 112
PurposeTo cover necessary government spending for a certain amount of time until the budget is authorized.The government releases a financial statement before to the general elections.
Duration of ExpenditureThe government releases a financial statement before the general elections.Covers a certain time frame, sometimes a few months until the formation of a new administration and the presentation of a complete budget.
Policy changesCannot, under any circumstances, alter the tax scheme.Able to suggest alterations to the tax system
Impact on GovernanceThat the government and public services continue to run smoothly until the regular budget is approved.Maintains governance throughout the time when two governments are changing.

Which Interim Budget 2024–25 Highlights Are the Most Important?

  • Capital Expenditure
    • The capital expenditure budget for 2024–2025 was increased by 11.1%.
    • The capital budget, which amounts to Rs 11,11,111 crore or 3.4% of GDP, has been established.
  • Economic Growth Projections
    • In line with the RBI’s updated growth prediction, the real GDP growth for FY 2023–24 is estimated at 7.3%.
    • India’s GDP forecast for FY 2023–2024 was raised by the IMF to 6.3% projections. Additionally, it predicts that in 2027, India’s GDP will rank third.
  • GST Collections
    • Reached ₹1.65 lakh crore in December 2023, marking the eighth time that the ₹1.6 lakh crore threshold was crossed.
  • Fiscal Deficit and Market Borrowing
    • Estimates for the fiscal deficit in 2024–2025 place it at 5.1% of GDP, in line with the budget 2021–2026 aim of bringing it to 4.5% by 2025–2026.
    • It is projected that in 2024–25, gross and net market borrowings through dated securities will be Rs 14.13 and 11.75 lakh crore, respectively.
  • Taxation
    • The current rates of import tariffs and other indirect and direct taxes are preserved in the interim budget.
    • corporate taxes: 15% for some newly established manufacturing businesses, and 22% for domestic enterprises already in operation.
    • Under the new tax regime, people with income up to ₹7 lakh would not be required to pay any taxes.
    • Up to March 31, 2025, a few tax breaks for investments and start-ups will be extended by one year.
  • Priorities
    • The emphasis is on the impoverished, women, young people, and farmers.
  • Poor
    • 25 crore individuals have been successfully lifted out of multifaceted poverty.
    • Under PM-SVANidhi, 78 lakh street sellers received credit assistance.
  • Women
    • 30 crore Mudra Yojana loans are being disbursed to female entrepreneurs.
    • 43% of women who enroll in STEM programs.
    • 83 lakh Self-Help Groups (SHGs) provide support to one crore women, cultivating ‘Lakhpati Didis.’
    • A 28% rise in female enrollment in postsecondary education during ten years.
  • Youth
    • 1.4 crore youngsters are receiving training under the Skill India Mission.
    • Encouraging entrepreneurial goals through the PM Mudra Yojana, which has approved loans totaling 43 crore.
  • Farmers
    • 11.8 crore farmers received direct cash help under PM-KISAN.
    • 4 crore farmers received crop insurance under the Fasal Bima Yojana.
    • 1,361 Mandis are integrated under eNAM to facilitate agricultural trading.
  • Infrastructure
    • Railways: Energy, mineral, and cement corridors, port connection corridors, and high traffic density corridors are the three main economic railway corridor programs that will be put into action.
    • To improve passenger comfort, safety, and convenience, 40,000 regular rail bogies will be modified to Vande Bharat standards.
    • Aviation: Under the UDAN concept, the building of new airports and the extension of existing ones.
    • Urban Transport: Metro rail and NaMo Bharat are used to promote urban change.
  • Clean Energy Sector
    • Wind energy financing during the viability gap
    • It will assist in using the potential for offshore wind energy, with a goal of a gigawatt of initial capacity.
    • 100 million tonnes of coal must be created for gasification and liquefaction by 2030.
    • phased-in requirement for compressed biogas, PNG, and CNG to be blended
    • financial support for the purchase of equipment for aggregating biomass
    • Solarization of rooftops: It will be possible for 1 crore homes to receive up to 300 units of free power each month.
    • bolstering the ecosystem for electric vehicles by facilitating production and charging
    • A new biomanufacturing and bio-foundry initiative will be introduced to promote environmentally sustainable substitutes.
  • Housing Sector
    • The government intends to finance the building of 30 million reasonably priced homes in rural regions.
    • Launching the Housing for Middle-Class plan would encourage the middle class to own or construct their own homes.
  • Healthcare Sector
    • Encouraging girls (9–14 years old) to be vaccinated against cervical cancer.
    • The U-WIN technology will be implemented for Mission Indradhanush’s vaccination campaigns.
    • extending the reach of the Ayushman Bharat program to encompass all ASHA employees, Anganwadi staff, and attendants.
  • Agricultural Sector
    • Promoting the application of “Nano DAP” for a range of crops in all agroclimatic zones.
    • Creating regulations to aid dairy producers and fight foot-and-mouth illness.
    • Developing an oilseeds strategy centered on AtmaNirbharta (self-reliance), which includes value addition, research, procurement, and crop insurance.
  • Fishery Sector
    • Creating the “Matsya Sampada” department to cater to the demands of fishermen.

What Funds Are Included in India’s Budget?

  • Consolidated Fund of India
    • The Union Government receives all income, loans, and loan repayments into a single fund known as the Consolidated Fund of India, which is established under Article 266 (1) of the Constitution.
    • Parliamentary approval is required for withdrawals (except from charged expenses such as judges’ salaries).
  • Public Account of India
    • It comprises incoming funds from provident funds, small savings accounts, postal deposits, etc. under Article 266 (2).
    • Parliamentary approval is not required since the government functions similarly to a banker moving money from one place to another.
  • Contingency Fund of India
    • It functions as an imprest in line with Article 267(1) and was created by the Contingency Fund of India Act, 1950.
    • Its function is to provide the government with advances for unanticipated expenses during the fiscal year, subject to Parliament’s approval.
    • Supplementary Demands for Grants are used to restore funds that are taken out of the Contingency Fund after receiving legislative approval.

Conclusion

The Interim Budget 2024-2025 strives to lay the foundation for a comprehensive and inclusive growth trajectory, aiming for a “Viksit Bharat” by 2047. Key highlights include significant increases in capital expenditure, optimistic economic growth projections, stable taxation policies, and targeted initiatives to uplift the impoverished, empower women, educate youth, support farmers, and develop infrastructure. This budget reflects a strategic roadmap towards sustainable development and equitable progress.

Frequently Asked Questions(FAQs)

What is new in the interim budget for 2024?

The government’s emphasis on infrastructure development was reaffirmed in the budget, which suggested increasing capital spending by 11.1% to Rs. 11.11 lakh crore. This represents 3.4% of GDP, which is excellent news for businesses involved in building and developing infrastructure. Power and roads will be the main topics.

What is the interim budget?

To assist the economy and investors, the Interim Budget places a strong emphasis on budgetary restraint, policy consistency, and investment in important industries.

Why interim Budget 2024?

The government’s ability to strike a careful balance between continued growth and budgetary discipline is essentially demonstrated by the Interim Budget for 2024–25, which paves the way for a strong and sustainable economy. The Federal Reserve meeting and the Interim Union Budget last week contributed to increased volatility in the Nifty.

What are the full budget and interim budget?

The Union Budget covers the full fiscal year. All of the previous year’s income and spending are summarized in the interim budget. Union Budget is expected to A detailed breakdown of the prior year’s income and spending would be given. The revenue from tax collection will not be included in the Interim Budget.

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