With no changes in taxes for individuals and corporates, Budget 2024-25 demonstrates stability in policy making by Finance Ministry. Furthermore, significant investment commitments in the Budget across energy, alternative materials, railways and marine life from will help to achieve a cleaner, greener and healthier India.
Key Highlights:
Government of India announced the interim budget for the financial year 2024-25 on February 01, 2024. The Union Minister for Finance in her speech highlighted that the Indian economy has experienced tremendous changes during the past decade, leading to the goal of making India "viksit" by the year 2047. The government has proven dedicated in overcoming the obstacles presented by the COVID-19 pandemic, emphasising equitable development and social justice.
The interim budget prioritises GDP, that is, 'Governance, Development, and Performance' along with significant advancements in the areas of infrastructure development, research and innovation, and fiscal management. The strategy of the government for this financial year is to adopt economic policies that foster and sustain growth, facilitate inclusive and sustainable development, improve productivity, create opportunities for all and contribute to generation of resources to power investments and fulfil aspirations.
The Indian Economy in Numbers:
The nominal Gross Domestic Product ("GDP") is estimated to grow at a rate of 10.5%.The tax receipts are estimated at INR 26.02 trillion, while the total receipts other than borrowing and total expenditure are estimated at INR 30.80 trillion and INR 47.66 trillion respectively. Finally, the fiscal deficit is estimated to be 5.1% of the GDP.
Sector-wise Highlights:
| Energy Sector & Alternative Materials |
|---|
| Rooftop solarisation of ten million houses will be taken up |
| To achieve 'net-zero' by 2070, blending of compressed biogas in CNG and PNG will be mandated in a phased manner |
| Coal gasification and liquefaction capacity of 100 metric tonnes will be installed by 2030 |
| A new scheme will be launched to provide environment friendly alternatives such as biodegradable polymers, bioplastics and biopharmaceuticals. |
| Automotives |
|---|
| Electric Vehicle manufacturing and charging infrastructure will be strengthen and expanded |
| Adoption of e-buses for public transport will be encouraged |
| Railways |
|---|
| Three major economic railway corridor programs are to be implemented under the PM Gati Shakti for enabling multi-modal connectivity and improving logistics efficiency and reduce cost. These are: (1) Energy, mineral and cement corridors; (2) Post connectivity corridors; (3) High traffic density corridors. |
| Forty thousand normal rail bogies will be converted to Vande Bharat standards to ensure passenger safety and comfort. |
| Health of Indian Nationals |
|---|
| Vaccination to prevent cervical cancer will be encouraged for girls between nine and fourteen years of age. |
| U-WIN, a new platform, will be rolled out for managing immunisation across the country. |
| Marine Life |
|---|
| Blue Economy 2.0 will be launched to restore coastal aquaculture and mariculture. |
| Five integrated aqua-parks are also proposed to be set up. |
| Pradhan Mantri Matsya Sampada Yojana will also be implemented to enhance aquaculture productivity. |
| Taxes |
|---|
| No changes in Income Tax Rates, Surcharge, threshold limit of Income Tax, Deduction/Exemptions. |
| No change in Corporate Tax Rates, Firms/LLP Tax Rates or Cooperative Society Rates. |
Authors: Sunil Jain and Kriti
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