Finance Minister Nirmala Sitharaman has presented the Interim Budget 2024-25, setting the stage for the government’s final push before the Lok Sabha elections later this year.
Here are the key highlights and expectations from this crucial financial announcement Budget 2024
1. Government Priorities:
Nirmala Sitharaman emphasized that the government’s top priority is the welfare of the poor, women, youth, and farmers. She stated, “We need to focus on – Garib, Mahilayen, Yuva, and Annadata (Poor, women, youth, and farmers); Their needs and aspirations are our highest priorities.”
2. Boosting Farmers’ Income:
The finance minister highlighted the government’s efforts to enhance farmers’ income. She mentioned the periodic increases in minimum support prices for crops and the direct financial assistance provided to 11.8 crore farmers under the PM Kisan Samman Yojana. Additionally, crop insurance is extended to 4 crore farmers through PM Fasal Bima Yojana.
3. Economic Outlook:
Nirmala Sitharaman presented an optimistic view of the Indian economy, stating that it is performing well, with robust investments and macroeconomic stability. She reassured that inflation is under control and has moderated.
4. Fiscal Prudence:
Despite the need for increased spending, maintaining fiscal discipline remains a priority. The government aims to reduce the fiscal deficit to 4.5% of GDP by FY26, showcasing a balanced approach between expenditure and revenue.
5. Income Tax Relief:
While major changes in personal taxation are unlikely, there may be additional benefits under the old and new income tax regimes to provide relief to taxpayers impacted by high inflation.
6. Social Security Boost:
There is speculation about the introduction of a social security fund for informal sector workers, including those in gig jobs, aligning with the government’s focus on inclusive growth.
7. Affordable Housing:
The budget may see increased funding for low-cost housing projects to address housing needs and stimulate the construction industry.
8. Divestment and Asset Monetization:
To improve fiscal health, the government may continue its divestment drive, aiming to raise funds through strategic asset sales.
9. Women Empowerment:
Special measures to empower women, such as increased subsidies for cooking gas and loans, are anticipated, recognizing their crucial role in the electorate.
10. Green Energy Investments:
With a global shift towards sustainable energy, the budget could allocate funds for green hydrogen and electric vehicle initiatives, positioning India at the forefront of the green revolution.
As India awaits the outcome of this interim budget, these proposed measures reflect the government’s strategic focus on inclusive development, economic stability, and sustainable growth.