Summary of India’s Interim Budget 2024-25

The Interim Union Budget for 2024-2025 was recently presented by Finance and Corporate Affairs Minister Smt. Nirmala Sitharaman in Parliament. Let’s break down the key highlights for better understanding:

1. GDP Projection: India’s real GDP is projected to grow at 7.3% in FY 2023-24. This growth reflects the country’s resilience despite global economic challenges.
2. Capital Expenditure: The capital expenditure outlay for the next year will be Rs 11,11,111 crore, which accounts for 3.4% of the GDP. This increase builds upon the substantial tripling of capital expenditure over the past 4 years, contributing significantly to economic growth and job creation.
3. Fiscal Deficit: The fiscal deficit for 2024-25 is estimated to be 5.1% of GDP. This reflects the government’s commitment to balancing expenditure and revenue.
4. FDI Inflow: India witnessed a remarkable FDI inflow of USD 596 billion during 2014-23, double the inflow recorded from 2005-14.
5. Priority Areas: The government prioritizes uplifting the poor (‘Garib’), empowering women (‘Mahilayen’), supporting youth (‘Yuva’), and ensuring the welfare of farmers (‘Annadata’). A corpus of Rupees One Lakh Crore will be established with a 50-year interest-free loan for youth. Additionally, the scheme for interest-free loans for capital expenditure to states continues this year with a total outlay of Rs 1.3 lakh crore¹.
6. Development Approach: The budget outlines an all-encompassing approach to development—sarvāṅgīṇ, sarvasparśī, and sarvasamāveśī—aiming to make India a developed nation by 2047¹.
7. Eastern Region Focus: The government aims to make the eastern region a powerful driver of India’s growth. A high-powered committee will address challenges arising from fast population growth and demographic changes¹.
8. Tax Rates: No changes are proposed in tax rates in the interim budget. Approximately one crore taxpayers are expected to benefit from the withdrawal of certain petty and disputed direct tax demands¹.

In summary, India’s interim budget emphasizes sustainable growth, fiscal responsibility, and targeted welfare measures. It sets the stage for India’s journey towards becoming a Viksit Bharat by 2047