Interim Budget 2024: Live Commentary and Highlights from FM Smt. Nirmala Sitharaman
Finance Minister Nirmala Sitharaman will announce the interim budget 2024-2025 for the financial year 2024/25, which starts on April 1, at 11 a.m. IST.
Sitharaman addressed the profound positive transformation in the last 10 years and how the people of India are looking ahead with hope under the leadership of Honorable PM Shri Narendra Modi.
Budget 2024 LIVE: Structural Reforms Undertaken
Structural reforms undertaken, pro-people programs were formulated and employment and entrepreneurship oppo opportunities built, economy got a new vigor. She addressed the tremendous role of government at the interim budget 2024 in doubling down their responsibility to build the prosperous development of all people and all regions.
Budget 2024 LIVE: Social and Geographic Growth
Laid solid foundation for Amrit Kaal as a result the country has high aspiration and bright future addressed at the interim budget 2024.
Budget 2024 LIVE: Village-Level Growth Provisions
Inclusive development and growth Provisions up to village level. Targeted each and every household through
- Housing for all,
- Har Ghar Jaal,
- Electricity for all,
- Cooking gas for all,
- Banking and financial services for all in record time
The worries for food have been eliminated through free ration for 80 crore people. Minimum support prices for provision of “anadata” are periodically increased significantly.
Budget 2024 LIVE: Social Justice – Secularism in Action
Government working with an approach that is all-round and all-inclusive. It covers people at all levels and of all casts. Empowering the people with necessity of social justice, seen as the biggest necessity of the people of India. Government at the interim budget 2024 considers India as “secular in action”.
The resources are distributed fairly regardless of social standing, and the government is addressing inequalities for a focused growth in social-economic status of the nation.
Budget 2024 LIVE: 4 Major Cuss Addressed
The Honorable believes that 4 major cusses need to be addressed as high priority.
- Gareeb (Poor)
- Yuva (Youth)
- Mahila (Women)
- Anadata (Farmers)
Their needs, aspirations, and welfare are of the highest priority. Their empowerment and well-being will drive the country forward.
Budget 2024 LIVE: Gareeb Kalyan Desh Ka Kalyan
The government believes in empowering the poor. The earlier approach of entitlement had poor outcomes. With the pursuit of Sab ka Saath, the government has helped alleviate 25 crore people from multi-dimensional poverty. With the pursuit of Sabka Saath in the last 10 years, the government has assisted 25 crore people to get freedom from multidimensional poverty. Direct benefit transfer of 34 lakh crore from the government using PM Jan Dhan account has led to savings of 2.7 lakh crore for the government as addressed at the interim budget 2024.
Budget 2024 LIVE: Street Vendors
78 lakh street vendors provided credit through “PM – Sanvidhi Yojana”. From this total, 2.3 lakh have received credit for the third time.
Budget 2024 LIVE: Tribal Groups
The PM Jan Man Yojana has reached out to the tribunal that have remained outside of the realm of development so far.
Budget 2024 LIVE: PM Vishwakarma Yojana For Artisans
“PM Vishwakarma Yojana” provides end-to-end support to artisans and crafts people who are involved in all 18 arts.
Budget 2024 LIVE: Welfare of Our Annadata
Sitharaman addressed at the interim budget 2024 that Farmers are our “annadata”. Every year under PM Kissan Saman Yojana, direct financial assistance is provided to 11.8 crores kissans/ farmers including marginal and small farmers.
Crop insurance is given to 4 crore farmers under “PM Fasal Beema Yojana”.
Electronic national agricultural market has integrated 1,361 mandis and is providing services to 1.8 crore with trading volume of 3 lakh crore. The sector is poised for higher growth and inclusivity.
Budget 2024 LIVE: Youth is The Future
Finance minister Nirmala Sitharaman said in her speech, “Our young country has high aspirations, pride in its present, and hope in the future. Our young country has pride in its presence and hope and confidence in the future. The worries about food have been eliminated through free ration for 80 crore people.”
Budget 2024 LIVE: Nirmala Sitharaman on women participation in workforce
Nirmala Sitharaman says at the interim budget 2024, “Female enrolment in higher education up by 28% in 10 years, in STEM courses, girls & women make 43% of enrolment, one of the highest in the world. All these steps are reflected in the increasing participation of women in the workforce. Making triple talaq illegal, reservation of 1/3 seats for women in Parliament and state assemblies, over 70 % houses under PM Awas Yojana to women have increased their dignity.”
Budget 2024 Speech LIVE: Nirmala Sitharaman on Skill India Mission (Empowering The Amrit Peedi, The Yuva)
Nirmala Sitharaman says, “The Skill India Mission has trained 1.4 crore youth, upskilled and re-skilled 54 lakh youth, and established 3000 new ITIs. Many institutional higher learning, namely 7 IITs, 16 IIITs, 7 IIMs, 15 AIIMS, and 390 Universities, have been set up. “PM Schools for Rising India” is ushering holistic teaching and providing well-rounded knowledge to the youth.
PM Mudra Yojana has sanctioned 43 crore loans aggregating to 22.5 lakh crore rupees for the entrepreneurial aspirations of our youth.
Besides this, Fund of Funds, Startup India, and Startup Credit Guarantee is assisting our youth.
Budget 2024 Speech LIVE: Nirmala Sitharaman on infrastructure growth
Nirmala Sitharaman said, “All forms of infrastructure – digital, social, physical – are being built in record time,” Sitharaman said. Empowerment of women has gained momentum with 30 crore Mudra Yojana loans, she added. Around 70% houses in rural areas under PM Awas Yojana given to women as single or joint owners.”
Budget 2024 Speech LIVE: Nirmala Sitharaman’s praise for PM Modi plan
Nirmala Sitharaman said, “One crore households will get up to 300 units of electricity every month with rooftop solarisation following PM Modi’s plan after the inauguration of Ram Mandir.”
Budget 2024 Speech LIVE: Momentum to Nari Shakti
Finance Minister at Interim Budget 2024 – 30 crore “mudra yojana loans have been given to women entrepreneurs. Female enrolment in higher education has gone up by 28% in the last 10 years. In STEM courses, girls and women constitute 43% of the total, one of the highest in the world. The involvement of women in the workforce increased, making “triple talaq” illegal, making seats for women in Lok Sabha and State Assemblies, and 70% of houses under “PM Awaaz Yojana” in rural areas to women as sole or joint owners have enhanced their dignity.
Budget 2024 Speech LIVE: ‘Inflation within band’, FM says
Nirmala Sitharaman at the interim budget 2024 said that, “Proactive inflation management has helped keep inflation within the band.”
Budget 2024 Speech LIVE: Citizen-First, Minimum Government and Maximum Governance Approach
Nirmala Sitharaman at the interim budget 2024 says, Impact of all-round development discernible in all sectors and has increased the GDP – Growth, Development and Performance. People are living better and earning better, with the average real income of people increased by 50%, inflation is moderate.
Budget 2024 LIVE: Economic Management
The multi-pronged economic management over the past 10 years has complimented people-centric development.
- All forms of infrastructure, physical, social, and digital are built in record time.
- All parts of the country are becoming part of the economic growth.
- Digital public infrastructure, a new factor of production in the 21st century is being implemented.
- The Goods and Services economy has enabled One Nation, One Market, One Tax and the reforms have led to deepening and strengthening the tax base.
- The strengthening of the financial sector has led to savings, credits and investment.
- GIFT, IFSC and unified regulatory authority IFSCA are making a robust gateway for global capital and financial services for the economy.
- Proactive inflation management has helped in keeping a check on inflation within the policy band.
Budget 2024 LIVE: Global Context – India Middle East Corridor
Geo-politically are becoming more complex and challenging wars and conflicts. India assumed the G20 summit during difficult times. India Middle East Corridor is a strategic game changer for India and others. Our vision for Viksit Bharat is one of prosperity in harmony with nature and providing opportunity to all to reach their potential.”
Budget 2024 LIVE: India To Become Developed Country In Next Five Years
Nirmala Sitharaman was loud and clear at the interim budget 2024, “The next 5 years will be years of unprecedented development and to realise the goal of becoming a developed country by 2047. The trinity of demography, democracy, diversity backed by Sabka Prayas has the potential to fulfill aspirations of every Indian. The PM has said there is no dearth of opportunity as the trinity of democracy, demography and diversity can fulfill aspirations of every Indian”.
Budget 2024 LIVE: Strategy For Amrit Kaal
Our government will adopt economic policies that sustain growth, facilitate improved and sustained development, improve productivity, create opportunities for all and generate resources to improve investments and fulfill aspirations.
Budget 2024 LIVE: Reform, Perform and Transform
Guided by this principle, the government at interim budget 2024 announced they will take up next-generation reforms and build consensus with the states and stakeholders to ensure effective implementation.
Budget 2024 LIVE: MSMEs
Nirmala Sitharaman at the interim budget 2024, mentioned, “It is an important policy priority for our government to ensure timely and adequate finances, relevant technology and training for the Micro, Small and Medium Enterprises (MSMEs) to grow and compete globally.
Budget 2024 LIVE: Development for The East
Utmost priority and provisions to make Eastern people the powerful drivers of the Indian growth.
Budget 2024 LIVE: To Build Houses in Next 5 Years
PM Awaaz Yojana Grameen continued with building 3 crore houses, 2 crore more houses will be taken up in next 5 years to meet the requirements arising from increase in number of people in the families.
Budget 2024 LIVE: Rooftop Solarization and Free Electricity
“One crore household will get up to 300 units of electricity every month with rooftop solarization following PM Modi’s plan after the inauguration of Ram Mandir.” Savings upto 15-18 thousand rupees annually from free solar energy and selling the surplus to the electricity companies.
Budget 2024 LIVE: Housing Plan for Middle Class
The Government is set to launch a scheme for the discerning sector of the middle class who are living in rented houses, slums, chauls or unauthorized colonies to buy or build their own houses.
Cervical Cancer Vaccination
Our government encourages the vaccination of girls aged 9 to 14 to prevent cervical cancer.
Maternal and Child Healthcare
Maternal and Child Healthcare is a key priority at the interim budget 2024. Various maternal and childcare schemes will be consolidated under a comprehensive program named “Saksham Anganwadi and Poshan 2.0” for improved nutrition, early childhood care, and development.
The U-WIN platform for managing immunization and Mission Indradhanush efforts will be swiftly implemented nationwide.
Ayushman Bharat
Ayushman Bharat healthcare coverage will extend to all ASHA workers, Anganwadi Workers, and Helpers.
Agriculture and Food Processing
Efforts to enhance value addition in the agricultural sector and boost farmers’ income will intensify. Pradhan Mantri Kisan Sampada Yojana benefited 38 lakh farmers. It generated 10 lakh employment and Pradhan Mantri Formalization of Micro Food Processing Enterprises Yojana has assisted 2.4 lakh SHGs and sixty thousand individuals with credit linkages. These schemes continue to support reducing post-harvest losses and improving productivity.
For faster sector growth, private and public investments will be promoted in post-harvest activities.
Nano DAP
Following the success of Nano Urea, Nano DAP application on various crops will expand across all agro-climatic zones.
Atmanirbhar Oil Seeds Abhiyan
Building on the 2022 initiative, a strategy will be formulated to achieve self-sufficiency (‘atmanirbharta’) for oil seeds. This includes research, modern farming techniques, market linkages, procurement, value addition, and crop insurance.
Dairy Development
As proposed in the interim budget 2024, a comprehensive program will support dairy farmers, building on the success of existing schemes like Rashtriya Gokul Mission, National Livestock Mission, and Infrastructure Development Funds for dairy processing and animal husbandry.
Matsya Sampada
The implementation of Pradhan Mantri Matsya Sampada Yojana (PMMSY) will be accelerated to enhance aquaculture productivity, double exports, and generate employment opportunities to:
(1) enhance aquaculture productivity from existing 3 to 5 tons per hectare,
(2) double exports to ₹1 lakh crore and
(3) generate 55 lakh employment opportunities soon.
Five integrated aquaparks will be set up.
Lakhpati Didi
The success of Self-Help Groups (SHGs) will be recognized by honoring and expanding the Lakhpati Didi program. Buoyed by the success, it has been decided to enhance the target for Lakhpati Didi from 2 crore to 3 crore.
Technological Changes
New-age technologies and data are transforming lives and businesses. India’s solutions through innovation and entrepreneurship will be expanded globally to facilitate the provision of high-quality services at affordable prices for all, including those at the ‘bottom of the pyramid’.
Research and Innovation for Catalyzing Growth, Employment and Development
A corpus of one lakh crore rupees will be established for a fifty-year interest-free loan to encourage private sector research and innovation in sunrise domains. The corpus will provide long-term financing or refinancing with long tenors and low or nil interest rates.
A new scheme for deep-tech technologies for defense purposes and expediting ‘atmanirbharta’ will be launched.
Infrastructure Development
The capital expenditure outlay is increased by 11.1%, amounting to ₹11,11,111 crore. Three major economic railway corridor programs will be implemented under PM Gati Shakti.
Railways
The initiatives have been recognized as part of the PM Gati Shakti program, aiming to facilitate multi-modal connectivity. These measures will enhance logistics efficiency, leading to cost reduction.
The consequent easing of congestion in high-traffic corridors will not only improve the operations of passenger trains but also enhance safety and increase travel speed for passengers.
Alongside dedicated freight corridors, the implementation of these three economic corridor programs is anticipated to accelerate GDP growth and minimize logistic costs.
Furthermore, there are plans to convert forty thousand regular rail bogies to meet Vande Bharat standards, aiming to elevate the safety, convenience, and comfort of passengers.
Implementation of three major economic railway corridor programs are in order:
(1) energy, mineral and cement corridors,
(2) port connectivity corridors, and
(3) high-traffic density corridors.
Aviation Sector
The aviation sector will continue expanding, with a focus on the development of new airports and existing airport expansion.
Some developments in aviation sector include –
The number of airports has increased twofold, reaching 149. Implementing air connectivity to tier-two and tier-three cities through the UDAN scheme has been extensive. Five hundred and seventeen new routes are operational, catering to 1.3 crore passengers. Indian carriers have taken proactive steps by placing orders for more than 1000 new aircraft.
Metro and NaMo Bharat
Metro Rail and NaMo Bharat will be supported for urban transformation, focusing on transit-oriented development in large cities.
Green Energy
To fulfill government’s commitment to achieving ‘net-zero’ by 2070, the following measures will be implemented:
a. Viability gap funding will be allocated to harness the offshore wind energy potential, starting with an initial capacity of one gigawatt.
b. By the year 2030, coal gasification and liquefaction capacity will be established at 100 million Tonnes. This initiative aims to reduce imports of natural gas, methanol, and ammonia.
c. A phased mandatory blending of compressed biogas (CBG) in compressed natural gas (CNG) for transportation and piped natural gas (PNG) for domestic purposes will be enforced.
d. Financial assistance will be extended to facilitate the procurement of biomass aggregation machinery, supporting the collection of biomass resources.
Electric Vehicle Ecosystem
The e-vehicle ecosystem will be strengthened, supporting manufacturing and charging infrastructure. The adoption of e-buses for public transport networks will be encouraged.
Bio-manufacturing and Bio-foundry
A new scheme for bio-manufacturing and bio-foundry will be launched, promoting environmentally friendly alternatives.
Blue Economy 2.0
A scheme for climate-resilient activities in the blue economy, including coastal aquaculture and mariculture, will be launched.
Comprehensive Development of Tourist Centers
States will be encouraged to comprehensively develop iconic tourist centers, and a framework for rating them based on facilities and services will be established.
To address the emerging fervour for domestic tourism, projects for port connectivity, tourism infrastructure, and amenities will be taken up on our islands, including Lakshadweep. This will help in generating employment also
Promoting Investments
Mentioned at interim budget 2024, From 2014 to 2023, the Foreign Direct Investment (FDI) inflow reached USD 596 billion, signifying a golden era. This amount is twice the inflow recorded during the period from 2005 to 2014.
To encourage sustained foreign investment, bilateral investment treaties are being negotiated with foreign partners.
Reforms in the States
A provision of ₹75,000 crore as a fifty-year interest-free loan is proposed to support milestone-linked reforms by State Governments.
Societal Changes
A high-powered committee will be formed to address challenges arising from population growth and demographic changes.
Amrit Kaal as Kartavya Kaal
The government remains committed to strengthening the economy, creating conditions for people to realize their aspirations, and presenting a detailed roadmap for ‘Viksit Bharat’ in the full budget.
Revised Estimates 2023-24
The Revised Estimate indicates that total receipts, excluding borrowings, amount to ₹27.56 lakh crore, with tax receipts contributing ₹23.24 lakh crore. The Finance Minister highlighted in the interim budget 2024 that the Revised Estimate for total expenditure stands at ₹44.90 lakh crore.
Anticipating robust growth momentum and increased formalization in the economy, revenue receipts are expected to reach ₹30.03 lakh crore, surpassing the Budget Estimate.
Despite a moderation in nominal growth estimates, the Revised Estimate for the fiscal deficit is recorded at 5.8 percent of the GDP, showcasing an improvement compared to the Budget Estimate.
Budget Estimates 2024-25
For the fiscal year 2024-25, the estimated figures indicate that total receipts, excluding borrowings, are projected at ₹30.80 lakh crore, while total expenditure is anticipated to be ₹47.66 lakh crore. The estimated tax receipts for the year are ₹26.02 lakh crore as mentioned by finance minister at the interim budget 2024.
The scheme involving a fifty-year interest-free loan for capital expenditure in states will be extended with a total outlay of ₹1.3 lakh crore.
The government remains committed to the fiscal consolidation path outlined in the Budget Speech for 2021-22, with a target to reduce the fiscal deficit below 4.5 percent by 2025-26. In the fiscal year 2024-25, the estimated fiscal deficit stands at 5.1 percent of the GDP, aligning with this trajectory.
Projections for gross and net market borrowings through dated securities during 2024-25 are set at ₹14.13 and 11.75 lakh crore, respectively. Both figures are lower than those recorded in the fiscal year 2023-24. With private investments gaining momentum, the reduced borrowings by the Central Government are expected to enhance the availability of credit for the private sector.
Vote on Account
A ‘vote on account’ approval will be sought for the financial year 2024-25.
Economy – Then and Now
Talking about the direct taxes and its growth at the interim budget 2024, Sitharam mentioned, “Over the last ten years, the direct tax collections have more than trebled and the return filers swelled to 2.4 times. I would like to assure the taxpayers that their contributions have been used wisely for the development of the country and welfare of its people. I appreciate the taxpayers for their support.”
The government has undertaken substantial reductions and rationalizations in tax rates. In the new tax scheme, individuals with income up to ₹7 lakh now have no tax liability, a significant increase from the ₹2.2 lakh threshold in the financial year 2013-14. The threshold for presumptive taxation applicable to retail businesses was raised from ₹2 crore to ₹3 crore.
Similarly, professionals eligible for presumptive taxation saw an increase in the threshold from ₹50 lakh to ₹75 lakh. Furthermore, there was a notable decrease in the corporate tax rate, reducing it from 30 percent to 22 percent for existing domestic companies and to 15 percent for certain new manufacturing companies.
Tax Proposals
No changes are proposed for tax rates, but tax benefits for startups, investments by sovereign wealth or pension funds, and tax exemption on certain income of IFSC units are extended to 31.03.2025.
Indirect Taxes
The industry has widely acknowledged the advantages of the Goods and Services Tax (GST). As per a recent survey conducted by a leading consulting firm, a substantial 94 percent of industry leaders perceive the transition to GST as predominantly positive as mentioned at the interim budget 2024.
According to 80 percent of respondents, the implementation of GST has resulted in supply chain optimization, eliminating tax arbitrage and octroi, leading to the dismantling of check posts at state and city boundaries. Concurrently, the tax base of GST has more than doubled, and the average monthly gross GST collection has nearly doubled, reaching ₹1.66 lakh crore this year.
The states have also experienced significant benefits, with the States’ Goods and Services Tax (SGST) revenue, including compensation released to states, exhibiting buoyancy of 1.22 during the post-GST period from 2017-18 to 2022-23. In contrast, the tax buoyancy of state revenues from subsumed taxes in the pre-GST four-year period of 2012-13 to 2015-16 was a mere 0.72. The ultimate beneficiaries of these reforms are the consumers, as the reduction in logistics costs and taxes has led to a decline in the prices of most goods and services.
Additionally, several measures have been implemented in Customs to facilitate international trade. Consequently, the import release time has witnessed a significant reduction, declining by 47 percent to 71 hours at Inland Container Depots, by 28 percent to 44 hours at air cargo complexes, and by 27 percent to 85 hours at sea ports over the last four years since 2019, when the National Time Release Studies were initiated.
Tax Proposals
There will be no changes in direct and indirect tax rates. However, benefits for startups, sovereign wealth or pension fund investments, and tax exemptions for specific IFSC units are extended to 31.03.2025.
Outstanding Direct Tax Demands
Outstanding direct tax demands up to ₹25,000 for the period up to financial year 2009-10 and up to ₹10,000 for financial years 2010-11 to 2014-15 will be withdrawn to benefit around one crore taxpayers.
Takeaways From Interim Budget 2024
In conclusion, the Interim Budget 2024 reflects a strategic and forward-looking approach towards steering the nation on the path of economic growth and sustainability. The commitment to fiscal consolidation, coupled with innovative measures to address challenges and seize opportunities, sets a positive tone for the future. The emphasis on tax reforms, infrastructure development, and green initiatives demonstrates a concerted effort to create a conducive environment for businesses, individuals, and the overall economy.
The government’s focus on inclusive development, as seen in various schemes catering to healthcare, agriculture, and infrastructure, highlights a commitment to uplift all sections of society. The encouraging statistics on Foreign Direct Investment (FDI) and the positive reception of GST underscore the success of economic policies in attracting investments and streamlining taxation.
As we move ahead, the blueprint outlined in this interim budget instills confidence in the government’s vision for a resilient and thriving India. The commitment to technology, sustainability, and fiscal responsibility paints a promising picture for the coming years. As we eagerly await the detailed roadmap in the upcoming full budget, the interim budget 2024 sets the stage for a progressive and vibrant economic future.
