Explore the groundbreaking Interim Budget 2024 by Nirmala Sitharaman, unveiling strategic economic plans for growth. Discover key announcements, including fiscal prudence, affordable housing, infrastructure spending, R&D stimulation, agricultural reforms, and real income growth.
In a landmark move, Union Finance Minister Nirmala Sitharaman presented the Interim Budget for 2024, marking her last fiscal address before the upcoming Lok Sabha elections. The speech, laden with significant policy changes, highlighted the government’s commitment to fostering economic growth and addressing key challenges. Here are the six key takeaways that encapsulate the essence of Sitharaman’s budgetary vision.
1. Fiscal Prudence and Taxation Stability
Sitharaman adhered to fiscal prudence, presenting a lower-than-anticipated fiscal deficit of 5.8% (of GDP) for FY24, with a projected decrease to 5.1% in the following year. In a move aimed at providing relief to taxpayers, she announced the retention of existing tax rates for direct and indirect taxes, including import duties. Notably, tax benefits for startups, investments by sovereign wealth or pension funds, and certain income exemptions for IFSC units were extended until March 31, 2025.
2. Affordable Housing for the Rural Poor
While steering clear of major rural transfers, Sitharaman unveiled plans to construct an additional 2 crore houses for the rural poor over the next five years under the ongoing PM Awas Yojana (Grameen). With a firm eye on achieving the target of 3 crore affordable houses, this initiative aims to uplift the living standards of rural communities.
3. Boost to Infrastructure Spending
In a bid to propel economic development, the Finance Minister announced an impressive 11% increase in capital spending for 2024-25, amounting to ₹11.11 lakh crore or 3.4% of GDP. This significant allocation underscores the government’s commitment to bolstering infrastructure across sectors.
4. Stimulating Research and Development (R&D)
A pioneering move to encourage innovation and research, Sitharaman proposed the creation of a ₹1 lakh crore corpus with a 50 50-year interest-free loan. This fund is earmarked for long-term financing or refinance with extended tenors and low to nil interest rates, specifically geared towards scaling up R&D in sunrise sectors.
5. Agricultural Reforms and Atma Nirbharta
Addressing challenges in the agricultural sector, Sitharaman outlined strategies to enhance milk and dairy production, acknowledging India’s status as the world’s largest milk producer. The focus extends to achieving Atma Nirbharta in oilseeds production, emphasizing value addition in agriculture to increase farmers’ income.
6. Sustained Growth in Real Income
The Finance Minister reported a remarkable 50% increase in the average real income of the populace. This promising statistic signifies positive economic trends, contributing to the overall financial well-being of citizens.
Conclusion
In her concluding statements, Nirmala Sitharaman painted a picture of a budget that balances fiscal responsibility with strategic investments. The Interim Budget 2024 lays the groundwork for sustained economic growth, with a focus on infrastructure, affordable housing, agricultural reforms, and stimulating research and development. As the nation gears up for the Lok Sabha elections, these key takeaways will undoubtedly shape the economic discourse in the coming months.