The Prime Minister Narendra Modi-led Union government presented the vote-on-account, or the Union Budget, on Thursday ahead of the 2024 Lok Sabha elections and in a boost to housing, renewable energy adoptions and tourism, Union finance minister Nirmala Sitharaman announced a slew of fiscal measures.
Gainers Of the 2024 Union Budget
Middle Class
The government announced a housing scheme for people living in rented homes, slums or unauthorized colonies. This scheme will enable them to buy or build their own houses in line with the government’s ‘housing for all’ drive. Sitharaman has announced a 66% increase to ₹79,000 crore under the Pradhan Mantri Awas Yojana for the financial year 2024.
Farmers
Although the Union ministry of agriculture and farmers’ welfare received the lowest of allocations, the government has set its target to promote private and public investments in post-harvest activities.
Sitharaman said during her budgetary speech that the government will expand the use of revolutionary Nano Urea.
Tourism
In a major push for tourism, Sitharaman announced that the government will provide interest-free loans to states to promote tourism. Amid recent diplomatic tensions between India and Maldives, she said the government will give undivided attention to Lakshadweep to boost tourism in the Union Territory.
Losers Of Union Budget
Disinvestment
Disinvestment is one of the key practices by the government to reduce fiscal deficit. However, after making a fallback in high-ticket sales of some stakes, the government has revised its disinvestment target to ₹300 billion of capital receipts by FY 2024, as opposed to an earlier target of ₹510 billion.
Jewelers
The jewelry and gems industry was hopeful for a progressive fiscal policy primarily focusing on reduced customs duties and boosting consumer spending through tax incentives. The government left the import tax at a high level of 15% in union budget.
EVs.
The government said it will expand and strengthen the adoption of electric vehicles in the form of public transport networks. It will also boost the development of public charging infrastructure. Meanwhile, Sitharaman did not mention a revamped FAME III scheme for FY 2024 in her speech.
The interim budget is presented to meet the government’s fiscal obligations during the election year until the new government is formed.