Union Finance Minister Nirmala Sitharaman is delivering the Interim Budget in anticipation of the 2024 Lok Sabha elections, marking the final budget of Prime Minister Narendra Modi's second term. This interim budget serves as a stopgap measure, with the comprehensive budget for the fiscal year 2024-25 scheduled for introduction only after the formation of the new government following the general elections.

The Interim Budget, a live event featuring Finance Minister Nirmala Sitharaman, delineates expenditures and revenues until the establishment of a new government, aiding in the management of financial obligations.

In anticipation of the Interim Budget, President Droupadi Murmu emphasized India's sustained status as the fastest-growing major economy, stating, “In 2023, India achieved unprecedented growth despite global challenges, expanding at approximately 7.5 percent for two consecutive quarters.”

What constitutes an Interim Budget?

During an election year, the sitting government is unable to present a complete budget. Therefore, an Interim Budget, covering the government's financial activities for a brief period, is proposed.

What elements are encompassed in the Interim Budget?

The Interim Budget comprises estimates of government expenditures, revenues, fiscal deficit, financial performance, and projections for a limited duration.

What defines the Union Budget?

The Union Budget is an annual financial statement detailing the government's projected expenses and revenues for the fiscal year.

When will the full Budget be released?

Following the Lok Sabha elections, the incoming government will unveil a comprehensive Budget.

Revised Fiscal Deficit and Tax Rates

Finance Minister Nirmala Sitharaman has revised the FY24 fiscal deficit down to 5.8 percent of the GDP. Additionally, she announced that there will be no changes in direct or indirect tax rates, including import duties. Net direct tax collection reached a record ₹16.91 lakh crore in 2022-23 (14.3% growth YoY).
 

Port Connectivity with Islands

Sagarmala program seeks to improve port infrastructure and connectivity with India's island territories. (Investment: ₹6 lakh crore across projects)

The Andaman and Nicobar Islands Integrated Development Plan aims to boost infrastructure and tourism in the region. (Allocation: ₹3,392 crore in 2024-25)

Tourism Projects in Lakshadweep

Sitharaman revealed plans for tourism projects in various islands, particularly highlighting Lakshadweep. She emphasized the vast opportunities in tourism, including spiritual tourism, and encouraged states to develop iconic tourist spots.

Expansion of Metro Rail and Namo Bharat

In her budget speech, Nirmala Sitharaman stated that significant rail infrastructure projects like Metro Rail and Namo Bharat will be expanded to more cities. She also mentioned the conversion of around 40,000 rail bogies into Vande Bharat coaches.

Benefits for Anganwadi and Asha Workers

As part of her announcements, Finance Minister Nirmala Sitharaman disclosed several benefits for Anganwadi and Asha workers. This includes extending Ayushman Bharat cover to all workers, consolidating maternal and child healthcare schemes into one comprehensive scheme, and increasing the target for the Lakhpati Didi scheme to ₹3 crore from ₹2 crore.

Aviation Sector Galvanized

Nirmala Sitharaman highlighted the government's efforts in the aviation sector, noting that the number of airports has doubled to 149 over the last decade.

Defense Outlay as Percentage of GDP

In her budget announcement, FM Sitharaman stated that the defense outlay will be 3.4% of the GDP.

Housing Plan for Middle Class

Addressing housing concerns for the middle class, Sitharaman declared the government's commitment to assisting those living in rented accommodations, slums, or unauthorized colonies to either build or purchase their own homes.

Focus on MSMEs

Sitharaman emphasized the policy priority of providing training for Micro, Small, and Medium Enterprises (MSMEs) to enhance their global competitiveness. Additionally, she highlighted the importance of facilitating their growth and announced plans to prepare the financial sector to meet their investment needs.

Sustaining Growth

FM Sitharaman reaffirmed the government's commitment to adopting economic policies aimed at sustaining growth and fostering investment. She mentioned the intention to implement next-generation reforms while building consensus with states and stakeholders for effective implementation.

Next Five Years: Vision for Development

During the budget speech, Nirmala Sitharaman articulated a vision for the next five years, foreseeing a period of unprecedented development aimed at achieving the goal of India becoming a developed country by 2047. She echoed the Prime Minister's assertion that the trinity of democracy, demography, and diversity holds the potential to fulfill the aspirations of every Indian.

India-Middle East-Europe Corridor: Game-Changer

Sitharaman emphasized the significance of the India-Middle East-Europe trade corridor, announced during the G20 Summit, as a transformative initiative for India and the rest of the world. She outlined a vision for Viksit Bharat characterized by prosperity in harmony with nature and providing opportunities for all to realize their potential.

Navigating the New World Order

Commenting on the evolving global landscape post-Covid, the Finance Minister acknowledged India's leadership during challenging times as it assumed the G20 Presidency. She highlighted India's successful navigation through crises in food, fertilizers, and finances amidst the pandemic.

Inflation Management

Sitharaman noted the effectiveness of proactive inflation management strategies in keeping inflation within the targeted band.

Praise for PM Modi's Initiatives

Sitharaman commended Prime Minister Modi's initiatives, specifically mentioning plans to provide up to 300 units of electricity per month to one crore households through rooftop solarisation, following the inauguration of the Ram Mandir.

Infrastructure Growth and Women Empowerment

Highlighting the rapid development of various forms of infrastructure including digital, social, and physical, Sitharaman also underscored the momentum gained in women's empowerment, citing the distribution of 30 crore Mudra Yojana loans and the allocation of around 70% of rural homes under PM Awas Yojana to women as single or joint owners.

Skill India Mission Achievements

Nirmala Sitharaman highlighted the achievements of the Skill India Mission, revealing that it has successfully trained 1.4 crore youth, upskilled and re-skilled 54 lakh youth, and established 3000 new ITIs. Additionally, she mentioned the establishment of various institutional higher learning centers, including 7 IITs, 16 IIITs, 7 IIMs, 15 AIIMS, and 390 universities.

Women Participation in Workforce

Sitharaman discussed the increasing participation of women in the workforce, citing a 28% rise in female enrolment in higher education over 10 years. She noted that in STEM courses, girls and women comprise 43% of enrolment, one of the highest rates globally. The Finance Minister also highlighted government initiatives such as making triple talaq illegal, reserving 1/3 seats for women in Parliament and state assemblies, and allocating over 70% of PM Awas Yojana houses to women, which have contributed to enhancing their dignity.

Crop Insurance and Agriculture Support

Addressing agricultural support, Sitharaman mentioned that crop insurance has been provided to 4 crore farmers under the PM Fasal Bima Yojana. She emphasized the importance of this support in ensuring food production for the nation and the world, along with the integration of 1361 mandis with a trading volume of ₹3 lakh crore.

Empowerment of the Poor

Sitharaman underscored the government's commitment to empowering the poor, stating that Garib Kalyan is desh ka kalyan. She mentioned that the government has assisted 25 crore people in escaping multidimensional poverty through the pursuit of Sabka Saath over the past decade.

Youth Aspirations and Development Philosophy

In her speech, Sitharaman acknowledged the high aspirations of the country's youth, expressing pride in the present and hope for the future. She highlighted the government's development philosophy, noting that the fruits of development have begun reaching the people at scale, instilling a new sense of purpose in the country under the leadership of Prime Minister Modi during his second term.

Education and Employment

Female enrollment in higher education has increased by 28% in 10 years, with significant representation in STEM courses.

Various initiatives, including making triple talaq illegal and reserving one-third of seats for women in Parliament and state assemblies, have contributed to enhancing women's dignity and participation in the workforce.

Economy Now and Then

The Indian economy is projected to grow at 7% in 2024-25, despite global challenges.
Inflation remains a concern, though the government is taking measures to control it. (Retail inflation: 6.3% in December 2023)

Development Philosophy

The government's development philosophy revolves around the principles of 'Sabka Sath, Sabka Vikas,' emphasizing inclusive growth and development for all sections of society.

In conclusion, the Interim Budget 2024 reflects the government's commitment to sustaining economic growth, promoting social welfare, and addressing key developmental challenges while laying the groundwork for future reforms and initiatives.