In a momentous event on Thursday, February 1, Finance Minister Nirmala Sitharaman unveiled the Interim Budget 2024-25 at Parliament, setting the stage for a pivotal year ahead. The budget, which outlined significant initiatives and financial strategies intended to steer India toward a more optimistic economic future, was praised by Prime Minister Modi.
Historic Capital Expenditure
Prime Minister Modi, in his commendation, highlighted the historic high investment for capital expenditure amounting to a staggering ₹11,11,111 crore. With this enormous amount, India’s infrastructure and capital expenditure spending is anticipated to reach a “sweet spot,” resulting in a plethora of employment opportunities for the nation’s youth.
Research and Innovation: Fueling Growth
Acknowledging the importance of research and innovation, PM Modi emphasized the allocation of ₹1 Lakh Crore for these critical areas. It is expected that this significant capital infusion will accelerate development and encourage durability and expansion across industries.
Key Highlights of Budget 2024-25
1. Fiscal Prudence
Finance Minister Sitharaman revealed a bold fiscal consolidation target, aiming for an FY25 fiscal deficit of 5.1%, surpassing expectations. With increased revenue mobilization, the FY24 fiscal deficit objective of 5.8% was successfully met, and this methodical approach is the next step.
2. Boosting Self-Sufficiency in Cooking Oil Production
A pivotal move in the budget focuses on research-led development of indigenous oilseeds like mustard, groundnut, and sesame. With the help of this strategic project, India hopes to become self-sufficient and stop importing 60% of its cooking oil, which currently costs more than ₹1.5 trillion a year.
3.The Middle Class Can Afford Affordable Homes
FM Sitharaman unveiled a ground-breaking plan to support middle-class access to affordable housing, giving people living in rental properties, slums, and unlicensed colonies the chance to buy or build their own dwellings.
4. Expanding Health Care
The budget calls for expanding medical institutions while utilizing the existing infrastructure, which is a significant advancement for the medical field. Furthermore, the Ayushman Bharat scheme’s healthcare coverage is set to be extended to all Anganwadi workers and helpers.
5. Empowering Farmers
The government’s commitment to elevating farmers’ income is reiterated, with a focus on promoting private investment in post-harvest activities. The goal of these actions is to strengthen India’s agriculture economy.
6. Tax Reforms and Benefits
While the budget disappointingly maintains unchanged tax rates, Finance Minister Sitharaman announced the withdrawal of outstanding disputed tax demands, a move expected to benefit a whopping 1 crore taxpayers. Additionally, certain benefits to startups and tax exemptions for specific IFSC units will be extended until March 2025.