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    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

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