Decoding India’s Interim Budget 2024-2025: A Comprehensive Analysis
India’s Interim Budget 2024-2025
The Interim Budget for the fiscal year 2024-2025, presented by Finance Minister Nirmala Sitharaman, outlines a strategic roadmap for India’s economic growth and development. This blog will delve into key aspects, including economic transformation, budget highlights, sector-specific initiatives, infrastructure and environmental initiatives, tourism and investment promotion, tax reforms, and the future outlook encapsulated in the ‘Viksit Bharat’ vision.
Economic Transformation and Vision
India’s positive transformation over the last decade serves as a backdrop to the budget. Emphasizing inclusive growth with the mantra “Sabka Saath, Sabka Vikas, Sabka Vishwas,” the government under Prime Minister Narendra Modi has implemented structural reforms and pro-people programs, fostering employment and entrepreneurship opportunities.
Budget in Numbers
The budget allocates free electricity through rooftop solarization to 10 million households, representing a commitment to sustainable energy practices. With a capital expenditure of ₹11.1 trillion for 2024-25, a notable 11.1% increase from the previous year, the government is focused on boosting infrastructure. Key allocations include ₹27.6 trillion for total non-debt receipts, ₹44.9 trillion for total expenditure, and a revised fiscal deficit of 5.8% of GDP for 2023-24.
Economic and Fiscal Management
The budget outlines a multi-pronged economic management strategy, including infrastructure development, digital public infrastructure, and tax reforms. With a goal to reduce the fiscal deficit below 4.5% by 2025-26, the government aims for sustainable economic and fiscal management.
Agriculture takes center stage with initiatives like Nano DAP and Aatmanirbhar Oil Seeds Abhiyan. Special attention is given to fisheries, dairy, and empowering women in rural areas. The youth are a priority, with initiatives in education, skill development, support for startups, and sports achievements. Healthcare initiatives include the expansion of Ayushman Bharat and cervical cancer vaccination.
Infrastructure and Environmental Initiatives
Massive capital expenditure is allocated for major railway corridors and aviation sector expansion. The budget places a strong focus on green energy, promoting offshore wind energy, coal gasification, and bio-manufacturing. Additionally, the promotion of electric vehicles and the establishment of a biomanufacturing and bio-foundry scheme contribute to environmental sustainability.
Tourism and Investment Promotion
Comprehensive development of tourist centers and infrastructure projects aims to boost domestic tourism. Efforts to increase Foreign Direct Investment (FDI) inflows highlight the government’s commitment to attracting global investments.
Tax Reforms and Ease of Doing Business
The budget rationalizes direct and indirect tax rates, including GST, to ease the tax burden and improve compliance. Proposals to withdraw outstanding direct tax demands for small amounts benefit around a crore taxpayers, contributing to ease of doing business.
Future Outlook and ‘Viksit Bharat’ Vision
The budget lays the foundation for a ‘Viksit Bharat’ (Developed India) by 2047, focusing on demographic, democratic, and diversity strengths. Coined as ‘Kartavya Kaal’ (Era of Duty), the budget reflects the government’s commitment to national development with new inspirations and resolutions.
In conclusion, India’s Interim Budget 2024-2025 reflects a comprehensive approach to inclusive growth, economic stability, strategic global positioning, sector-specific developments, environmental sustainability, and tax reforms. The overarching vision is towards a developed India by 2047, aligning with the government’s commitment to national development and duty.