JAMMU, FEB 01: Union Finance Minister Nirmala Sitharaman unveiled the interim budget on Thursday, just ahead of the upcoming 2024 Lok Sabha elections. This presentation marks her sixth budget as the finance minister and the final one in the second term of the Modi government.
Maintaining tradition, Sitharaman visited President Droupadi Murmu before presenting the pre-election budget for the fiscal year 2024-25 and held discussions with the President at Rashtrapati Bhawan before heading to Parliament.
Sitharaman in her pre-election Budget, technically a vote on account and popularly termed an interim Budget, said people of India are looking ahead to the future with hope and options.
Finance Minister Nirmala Sitharaman on Thursday, while presenting the interim Budget, said that the Indian economy has undergone a positive transformation in the last 10 years, instilling hope for the future. “In 2014, the nation confronted significant challenges, which were successfully addressed by the Narendra Modi-led government through ‘Sabka Saath, Sabka Vikaas’,” the finance minister said.
Sitharaman revealed a notable 11.1% increase in the capital expenditure outlay for the next year, totaling Rs 11,11,111 crore, constituting 3.4% of the GDP. Emphasizing the impact of the past four years’ tripling of the capital expenditure, she noted the substantial multiplier effect on economic growth and employment creation.
As per the First Advance Estimates of National Income for FY 2023-24, India’s Real GDP is anticipated to grow at 7.3%, aligning with the RBI’s revised projection of 7%. The International Monetary Fund (IMF) has also revised its growth projection for India upwards to 6.3%, reflecting global confidence in India’s economic prowess.
Sitharaman underlined the government’s commitment to fiscal consolidation, aiming to reduce the fiscal deficit below 4.5% by 2025-26. The fiscal deficit for 2024-25 is estimated at 5.1% of GDP, adhering to this path.
For the fiscal year 2024-25, total receipts, excluding borrowings, and total expenditure are estimated at Rs 30.80 and 47.66 lakh crore respectively. Tax receipts are anticipated to reach Rs 26.02 lakh crore. The Minister also announced the continuation of the fifty-year interest-free loan scheme for capital expenditure to states, with a total outlay of Rs 1.3 lakh crore.
FDI inflow during 2014-23 reached USD 596 billion, marking a golden era and doubling the inflow during 2005-14. The Minister emphasized ongoing negotiations for bilateral investment treaties to encourage sustained foreign investment, aligning with the government’s ‘first develop India’ spirit.
Minister Sitharaman highlighted Prime Minister Shri Narendra Modi’s focus on ‘Garib’ (Poor), ‘Mahilayen’ (Women), ‘Yuva’ (Youth), and ‘Annadata’ (Farmer), stating that their needs, aspirations, and welfare are the government’s highest priority.
The government, led by Prime Minister Modi since 2014, successfully navigated significant challenges through the ‘Sabka Saath, Sabka Vikas’ mantra, implementing structural reforms and pro-people programs.
In the second term, the government intensified its commitment to ‘Sabka Saath, Sabka Vikas, and Sabka Vishwas,’ emphasising inclusivity both socially and geographically. ‘Sabka ka Saath’ has assisted 25 crore people in breaking free from multi-dimensional poverty, fostering a sense of empowerment.
The ‘whole of nation’ approach, exemplified by ‘Sabka Prayas,’ facilitated the country’s resilience during the pandemic, progress towards ‘Atmanirbhar Bharat,’ and the establishment of foundations for the ‘Amrit Kaal.’
Departing from past strategies, the government adopted a more inclusive approach, targeting every household and individual with initiatives like ‘housing for all,’ ‘Har ghar jal,’ and widespread financial services.
Initiatives such as free ration for 80 crore people and increased minimum support prices for farmers have not only addressed concerns about food security but also boosted rural income, fostering growth and job creation.
The government’s commitment to all-round, all-pervasive, and all-inclusive development aligns with the vision of making India a ‘Viksit Bharat’ by 2047, focusing on empowering individuals and enhancing capabilities.
Social justice is not merely a slogan but an effective governance model. The saturation approach ensures transparency, reduces corruption, and eliminates nepotism, promoting fairness in resource distribution and providing equal opportunities for all.
In the pursuit of national development and well-being, the government has implemented and supported various initiatives over the past ten years.
The government’s efficient use of PM-Jan Dhan accounts for DBT has resulted in a transfer of ₹34 lakh crore, saving ₹2.7 lakh crore by eliminating leakages.
These savings have been redirected towards ‘Garib Kalyan’ initiatives, reinforcing the government’s commitment to poverty alleviation. PM-SVANidhi has provided credit assistance to 78 lakh street vendors, with 2.3 lakh receiving credit for the third time. PM-JANMAN Yojana and PM-Vishwakarma Yojana target particularly vulnerable tribal groups, artisans, and craftspeople, showcasing the government’s inclusive approach.
Farmers are supported through PM-KISAN SAMMAN Yojana, providing direct financial assistance to 11.8 crore farmers, including marginal and small farmers. PM Fasal Bima Yojana ensures crop insurance for 4 crore farmers, contributing to food security.
The Electronic National Agriculture Market has integrated 1361 mandis, serving 1.8 crore farmers with a trading volume of ₹3 lakh crore. Farmer-centric policies, risk coverage, and technology promotion are driving inclusive growth in the agriculture sector.
National Education Policy 2020 and PM SHRI aim to transform education, nurturing well-rounded individuals. Skill India Mission has trained and upskilled 1.4 crore youth, with new institutions established for higher learning. PM Mudra Yojana has sanctioned 43 crore loans totaling ₹22.5 lakh crore, fostering entrepreneurial aspirations.
Thirty crore Mudra Yojana loans have been provided to women entrepreneurs. Female enrolment in higher education has increased by twenty-eight per cent, with substantial representation in STEM courses. Legal measures, such as making ‘Triple Talaq’ illegal and reserving one-third seats for women, enhance women’s dignity.
The government’s focus on ‘Governance, Development, and Performance’ has led to transparent, accountable, and people-centric administration. High growth in Gross Domestic Product (GDP) is complemented by a holistic approach to governance, ensuring citizen-first policies and ‘minimum government, maximum governance.’
In a promising interim budget speech, Finance Minister outlines macro-economic stability, robust investments, and improved living standards.
The Finance Minister presented an optimistic overview of India’s economic landscape, emphasizing macro-economic stability, robust investments, and improved living standards in the interim budget. The economy is flourishing, with a fifty per cent increase in the average real income of the people. Inflation remains moderate, and citizens are empowered to pursue their aspirations.
The Finance Minister highlighted the achievements in economic management over the past decade, including rapid infrastructure development, the formalization of the economy through Digital Public Infrastructure, and the success of Goods and Services Tax (GST) in creating ‘One Nation, One Market, One Tax.’ Strengthening the financial sector and the establishment of GIFT IFSC and IFSCA were also noted as crucial steps.
Addressing global challenges, the Finance Minister acknowledged the complexity of geopolitics and the redefinition of globalization post-COVID. India, having assumed the G20 Presidency during a challenging global scenario, successfully navigated crises and built consensus on solutions.
The vision for ‘Viksit Bharat’ envisions a prosperous India in harmony with nature, featuring modern infrastructure and opportunities for all citizens and regions to reach their potential. The Finance Minister expressed confidence in the next five years as a period of unprecedented development, aiming to realize the dream of a developed India by 2047.
The government’s strategy for ‘Amrit Kaal’ focuses on economic policies fostering inclusive and sustainable development, improving productivity, creating opportunities, and ensuring timely financial support for Micro, Small, and Medium Enterprises (MSMEs). The regulatory environment for MSMEs will be aligned to facilitate their growth.
Several key initiatives were announced, including a housing scheme for the middle class, the expansion of medical colleges, cervical cancer vaccination, and the comprehensive integration of maternal and child healthcare programs. The government also aims to enhance the agriculture and food processing sector, promote value addition, and boost farmers’ income.
In a commitment to environmental sustainability, the government will focus on green energy, electric vehicle ecosystems, and bio-manufacturing. A significant financial boost to research and innovation, particularly in deep-tech technologies for defence purposes, was announced, along with measures to support the blue economy.
The Finance Minister highlighted the government’s commitment to infrastructure development, with a substantial increase in capital expenditure. In terms of tax proposals, the existing tax rates for both direct and indirect taxes, including import duties, will be retained. Certain tax benefits for start-ups and investments by sovereign wealth or pension funds will be extended until March 31, 2025.
The Finance Minister concluded the interim budget speech by reiterating the government’s commitment to strengthening the economy and creating conditions for citizens to realize their aspirations. A White Paper detailing the economic progress since 2014 will be presented to the House, underscoring the government’s dedication to transparency and accountability.
