The Highlights of Interim Budget 2024-2025
Created on 01 Feb 2024
Wraps up in 5 Min
Read by 675 people
Updated on 10 Feb 2024
We're back again! It's an Insider tradition to cover and decode the budget for our readers. After covering the expectations of the taxpayers and sectors this fiscal year, I'll cover the key highlights of the Interim Budget 2024-25.
The Union Budget, which contains estimates of the government's receipts and expenditures for a financial year, is passed by the Parliament.
The Interim Budget will be presented in Parliament by Finance Minister Nirmala Sitharaman on February 1, 2024. Since this year is an election year, the interim budget will comprise government expenditures before the election time.
If you're unfamiliar with the term "Interim Budget" and its implications, don't worry- I'll give you a quick overview.
However, if you're already familiar with this term, you may skip ahead to the section titled "Highlights of the Budget 2024"
The main budget will be presented in July, most likely after the new government has been formed.
What is the Interim Budget?
An Interim Budget is a temporary budget that the government presents during transition, typically before the general elections.
Its purpose is to meet the government's financial needs until the new administration presents a full-fledged budget after the elections.
Essentially, the Interim Budget covers essential expenses such as salaries, interest payments, and other routine expenditures to ensure the government can function smoothly during the transition period.
However, it does not include significant policy changes or long-term financial planning, as these are typically addressed in the full budget presented by the newly elected government.
Overall, the Interim Budget provides a financial roadmap for the government to operate until a new administration is formed and can present a comprehensive budget reflecting its policies and priorities.
Finance Minister's Key Points: A Quick Update on Government Actions
The government's second term is focused on creating a thriving India by 2047.
Their motto of "Sabka sath, sabka vikas" is aimed at uplifting underprivileged communities, women, youth, and farmers.
One initiative, PM Janman Yojana, focuses on improving the lives of tribal communities.
Over the past decade, female enrollment in higher education has increased to 28%.
The Skill India Mission has trained 1.4 crore youths, upskilled and reskilled 54 lakh people, and established 3000 new ITIs.
The government has also established esteemed institutions, such as 7 IITs, 16 IIITs, 7 IIMs, 15 AIIMS, and 390 universities.
Over the past decade, the government's interventions have lifted 25 crore people out of poverty.
The Goods and Services Tax (GST) has unified the nation under 'one nation, one market, one tax' resulting in a 50% increase in average income.
GST revenue for January 2024 was recorded at ₹1,72,129 crore, showing a remarkable Y-o-Y growth of 10.4%, marking the second-highest monthly collection ever.
The government's initiatives aim to bolster the nation's Gross Domestic Product (GDP).
Projects like rooftop solarisation aim to provide 1 crore households with 300 units of free electricity per month. Savings of up to ₹15,000 to ₹18,000 annually for households.
After the announcement, we wrote an article about the Pradhan Mantri Suryodaya Yojana, detailing everything you need to know about the scheme. Be sure to give it a read!
And if you're eager to explore the stocks that could benefit from this initiative, check out our article titled Solar Stocks to Watch in 2024.
Additionally, Ayushman Bharat will now encompass all ASHA and Anganwadi workers to expand healthcare access.
Major Announcements of Budget 2024
👉 The government plans to introduce a scheme to assist middle-class individuals living in rented houses, slums, or unauthorised colonies to purchase or construct their own homes.
👉 A fund of ₹1 lakh crore will be set up, offering 50-year interest-free loans for emerging sectors.
👉 This is expected to benefit industries like steel, cement, and building materials.
👉 Railway corridors linking ports through Dedicated Freight Corridors (DFC) to be expanded, with plans for over 2 new corridors. Additionally, 3 rail corridors will be established for energy, cement, and minerals, in addition to the DFC.
👉 40,000 bogies will be converted into Vande Bharat.
👉 More metro and NaMo Bharat trains will reach more cities.
Want to explore some exciting investment options? Check out these top 7 railway stocks as the sector gears up for growth and improvements!
👉 The government plans to spend ₹11.1 lakh crore on building infrastructure in the financial year 2025, which is an 11.1% increase from the previous year. This spending will be about 3.4% of the country's total economic output.
👉 The government aims to establish additional medical colleges by utilising existing hospital facilities. A committee will be formed to assess this plan and provide recommendations.
👉 States will be encouraged to enhance the development of tourist centres, with the provision of long-term interest-free loans to support their initiatives.
👉 The fiscal deficit is now projected to be 5.8% of GDP, while the target for the FY25 budget deficit is 5.1% of GDP.
Where does each ₹1 the government earns comes from, and how is it spent?
Let's take a look at two infographics below. The first one shows how the government earns ₹1 and the second one shows how it spends the amount.
Both infographics show the segmentation of the amounts in percentage terms. Take a look:
Capital Expenditure Trends
Let's examine the trend of capital expenditure (Capex) over the last four years:
Over the past four years, the amount of money spent on building things like roads and schools has been going up.
In the latest year, FY24, it was ₹10 lakh crore, which is the highest.
In the previous years, it was ₹6.48 lakh crore in FY23, ₹5.9 lakh crore in FY22, and ₹4.1 lakh crore in FY21.
So, each year, more money is being invested in improving our country.
The Bottom Line
As we wrap up our highlights of Budget 2024, it's clear that big things are happening to make India better.
We all need to pay attention and understand how these plans affect us. Let's stay hopeful and work together towards a brighter future for our country.
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