Interim Budget Highlights 2024: Key Takeaways

01 February 2024
4 min read
Interim Budget Highlights 2024: Key Takeaways
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The Interim Union Budget 2024 was unveiled on February 1 by Finance Minister, Smt. Nirmala Sitharaman against the backdrop of impending Lok Sabha Elections.

The Indian economy has witnessed a great transform in the last ten years, according to the Finance Minister. Accordingly, the Finance Minister gave a vision for the next few years, focusing more on tourism, air connectivity, fiscal announcements, railways and agricultural sectors. 

In this blog, we will closely examine the most important announcements from the Interim Budget 2024 as well as other significant alterations and modifications made during the Budget.

Primary Goals of the Interim Union Budget

According to our Finance Minister, the following eight priorities are included in the budget, which will help together to witness unprecedented growth in the next five years:

  1. Tourism.
  2. Air Connectivity.
  3. Railways.
  4. Empowering Amrit Peedhi.
  5. Agriculture.
  6. Healthcare.
  7. Housing.
  8. India Growth.

Key Takeaways of the Interim Budget 2024

Please take note that the information in this blog has been sourced from the Finance Minister's speech in the Indian government's interim budget announcement. Here are the Interim Union Budget Highlights 2024:

  • Direct and Indirect Tax

  • As per Finance Minister Nirmala Sitharaman, no changes in the direct and indirect tax have been proposed, including import tax.
  • The same tax rates for both direct and indirect taxes have been retained.
  • The tax break for startups has been extended to March 31, 2025.
  • Government to withdraw old disputed direct tax demands of up to Rs.25,000 till FY 2009 and Rs.10,000 for FY 2010-11 to FY 2014-15. This will benefit 1 crore taxpayers.
  • Tax reforms have widened the tax base and increased tax collections.
  • Tourism

  • Providing funds for the development of tourism in Lakshwadeep.
  • Provide interest-free loans to the states to promote tourism.
  • Air Connectivity

517 new routes will be launched under the Udan Scheme.

  • Fiscal Announcements

  • FY24 Fiscal Deficit target has been revised to 5.8 percent of GDP from 5.9 percent.
  • The government plans to reduce the fiscal deficit to 4.5 percent in 2025-26.
  • Total revenue receipts in the year 2024-25 are estimated to be Rs.30 lakh crore vs revised estimation of Rs. 26.99 lakh crore.
  • Nominal GDP growth is seen at 10.5%.
  • The revised expenditure for FY24 is Rs.44.90 crore.
  • FY 24 Divestment Target Cut to Rs 30,000 crore.
  • FY 25 Divestment Target set at Rs 50,000 crore.
  • Railways

  • Three major economic railway corridors are to be constructed under the PM Gati Shakti to improve logistics efficiency and reduce cost.
  • Promotion of urban transformation via Metro Rail and NaMo Bharat.
  • To decongest high-traffic density corridors.
  • 40,000 normal train bogies to be converted to high speed Vande Bharat ones.
  • Agriculture

  • To empower dairy farmers.
  • To promote investment in post-harvest activity by both private and public sector support.
  • 4 crore farmers have been provided with crop insurance under the PM Fasal Bima Yojana.
  • Five integrated aqua parks are to be set up.
  • To provide direct financial assistance to 11.8 crore farmers under PM Kisan.
  • Implementation of PM Matsaya Sampada Yojana to improve aquaculture productivity, double exports, and generate more jobs.
  • Blue Economy 2.0 is to be launched by the government to promote aquaculture.
  • Expansion of Nano-DAP application in all agro-climatic zones.
  • Healthcare

  • All the healthcare facilities under the Ayushman Bharat scheme will be extended to all Aasha and Aanganwadi workers.
  • Government to set up hospitals in all districts.
  • To provide vaccination for cervical cancer to all 9-14 year old girls.
  • To expedite Saksham Anganwadi and Poshan 2.0 to improve nutrition delivery, early childhood care and development.
  • Renewable Energy

  •  1 crore households will be enabled to get 300 units of free electricity per month.
  • Government to provide financial assistance for procurement of biomass aggregation machinery. 
  • Housing

  • Plan to build 2 crore houses under the PM Awas Yojana.
  • PM Awas Yojana (Grameen) is close to achieving a target of 3 crore houses, with an additional target of 2 crore houses for the next 5 years.
  • India Growth

  • Rs.30 crore Mudra Yojana has been provided to women entrepreneurs. 
  • Over 22 crore Mudra loans have been disbursed in the last ten years.
  • Participation of women in higher education has risen to 28 percent in the last ten years.
  • Credit assistance has been provided to 78 lakh street vendors under PM-SVANidhi. 
  • Over 1 crore houses to get 300 units of free electricity under the new Solar Power policy.
  • 3 major railway corridors under the project PM Gati Shakti are to be implemented. These will include the energy, mineral and cement corridors, including port connectivity corridors and high-traffic density corridors.
  • Initiatives such as making Triple Talaq illegal, one-third of women's reservation in Lok Sabha and State Assemblies and providing over 70% of houses under the PM Awas Yojana in rural areas for women.
  • Empowering Amrit Peedhi

  • Skill India Mission has trained over 1.4 crore youth, upskilled and reskilled 54 lakh youth. It also established 3000 new ITIs.
  • 7 IITs, 16 IIITs, 7 IIMs, 15 AIIMs and 390 universities have been set up.
  • PM Mudra Yojana has sanctioned 43 crore loans amounting to Rs.25 lakh crore for the entrepreneurial aspirations of the youth. 
  • Fund of Funds, Startup India and Startup Credit Guarantee Schemes played a key role in assisting our youth.

To read the RA disclaimer, please click here
Research Analyst - Aakash Baid

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