INDIAN BUDGET ANALYSIS
2024
BY – PRATIK BHUYAN
2482051
Highlights of the
interim union
budget 2024-2025
With the “mantra” of “sabka saath , sabka
vikas , and sabka vishwas’ and the whole
of nation approach of “sabka prayas” , the
union minister for finance and corporate
affairs smt Nirmala sitaraman presented
the interim union budget 2024-25 in
Parliament , 01 February 2024
The key highlights of the budget are as
follows:
Part A
Social Justice
Prime Minister to focus on upliftment of four major castes,
that is, 'Garib' (Poor), 'Mahilayen' (Women), 'Yuva' (Youth)
and 'Annadata' (Farmer).
'Garib Kalyan, Desh ka Kalyan'
Government assisted 25 crore people out of multi-
dimensional poverty in last 10 years.
DBT of Rs. 34 lakh crore using PM-Jan Dhan accounts led to
savings of Rs. 2.7 lakh crore for the Government.
PM-SVANidhi provided credit assistance to 78 lakh street
vendors. 2.3 lakh have received credit for the third time.
PM-JANMAN Yojana to aid the development of particularly
vulnerable tribal groups (PVTG).
PM-Vishwakarma Yojana provides end-to-end support to
artisans and crafts people engaged in 18 trades
Welfare of 'Annadata'
PM-KISAN SAMMAN Yojana provided financial assistance to
11.8 crore farmers.
Under PM Fasal Bima Yojana, crop insurance is given to 4
crore farmers Electronic National Agriculture Market (e-
NAM) integrated 1361 mandis, providing services to 1.8
crore farmers with trading volume of Rs. 3 lakh crore.
Momentum for Nari Shakti
30 crore Mudra Yojana loans given to women entrepreneurs.
Female enrolment in higher education gone up by 28%. In
STEM courses, girls and women constitute 43% of enrolment,
one of the highest in the world.
Over 70% houses under PM Awas Yojana given to women
from rural areas.
Agriculture and food processing
Pradhan Mantri Kisan Sampada Yojana has benefitted 38
lakh farmers and generated 10 lakh employment.
Pradhan Mantri Formalisation of Micro Food Processing
Enterprises Yojana has assisted 2.4 lakh SHGs and 60000
individuals with credit linkages.
Research and Innovation for catalyzing growth,
employment and development
A corpus of Rs.1 lakh crore to be established with fifty-year
interest free loan to provide long-term financing or
refinancing with long tenors and low or nil interest rates.
A new scheme to be launched for strengthening deep-tech
technologies for defence purposes and expediting
'atmanirbharta'.
Infrastructure
Capital expenditure outlay for Infrastructure development
and employment generation to be increased by 11.1 per cent
to Rs.11,11,111 crore, that will be 3.4 per cent of the GDP.
PM Awas Yojana (Grameen)
Despite COVID challenges, the target of three crore houses
under PM Awas Yojana (Grameen) will be achieved soon.
Two crore more houses to be taken up in the next five years.
Rooftop solarization and muft bijli
1 crore households to obtain 300 units free electricity every
month through rooftop solarization. Each household is
expected to save Rs.15000 to Rs.18000 annually.
Ayushman Bharat
Healthcare cover under Ayushman Bharat scheme to be
extended to all ASHA workers, Anganwadi Workers and
Helpers.
Railways
3 major economic railway corridor programmes identified
under the PM Gati Shakti to be implemented to improve
logistics efficiency and reduce cost
Energy, mineral and cement corridors
Port connectivity corridors
High traffic density corridors Forty thousand normal rail
bogies to be converted to Vande Bharat standards.
Aviation Sector
Number of airports in the country doubled to 149. Five
hundred and seventeen new routes are carrying 1.3 crore
passengers.
Indian carriers have placed orders for over 1000 new
aircrafts.
Green Energy
Coal gasification and liquefaction capacity of 100 MT to be
set up by 2030. Phased mandatory blending of compressed
biogas (CBG) in compressed natural gas (CNG) for transport
and piped natural gas (PNG) for domestic purposes to be
mandated.
Tourism sector
States to be encouraged to take up comprehensive
development of iconic tourist centres including their
branding and marketing at global scale.
Framework for rating of the tourist centres based on quality
of facilities and services to be established.
Long-term interest free loans to be provided to States for
financing such development on matching basis.
Investments
FDI inflow during 2014-23 of USD 596 billion was twice of the
inflow during 2005-14.
Reforms in the States for 'Viksit Bharat'
A provision of Rs. 75,000 crore rupees as fifty-year interest
free loan is proposed to support milestone-linked reforms by
the State Governments.
Revised Estimates (RE) 2023-24
RE of the total receipts other than borrowings is Rs.27.56
lakh crore, of which the tax receipts are Rs.23.24 lakh crore.
RE of the total expenditure is Rs.44.90 lakh crore.
Revenue receipts at Rs.30.03 lakh crore are expected to be
higher than the Budget Estimate, reflecting strong growth
momentum and formalization in the economy. RE of the fiscal
deficit is 5.8 per cent of GDP for 2023-24.
Budget Estimates 2024-25
Total receipts other than borrowings and the total
expenditure are estimated at Rs.30.80 and Rs.47.66 lakh
crore respectively.
Tax receipts are estimated at Rs.26.02 lakh crore.
Scheme of fifty-year interest free loan for capital expenditure
to states to be
continued this year with total outlay of Rs.1.3 lakh crore.
Fiscal deficit in 2024-25 is estimated to be 5.1 per cent of GDP
Gross and net market borrowings through dated securities
during 2024-25 are estimated at Rs.14.13 and Rs.11.75 lakh
crore respectively.
Part B
Direct taxes
FM proposes to retain same tax rates for direct taxes
Direct tax collection tripled, return filers increased to 2.4
times, in the last 10 years
Government to improve tax payer services Outstanding
direct tax demands upto Rs 25000 pertaining to the period
upto FY 2009-10
withdrawn
Outstanding direct tax demands upto Rs 10000 for financial
years 2010-11 to 2014-15 withdrawn
This will benefit one crore tax payers
Tax benefits to Start-Ups, investments made by Sovereign
wealth funds or pension funds extended to 31.03.2025
Tax exemption on certain income of IFSC units extended by a
year to 31.03.2025 from 31.03.2024
Indirect taxes
FM proposes to retain same tax rates for indirect taxes and
import duties
GST unified the highly fragmented indirect tax regime in India
Average monthly gross GST collection doubled to Rs 1.66
lakh crore this year
GST tax base has doubled
State SGST revenue buoyancy (including compensation
released to states) increased to 1.22 in post-GST
period(2017-18 to 2022-23) from 0.72 in the pre-GST period
(2012-13 to 2015-16)
94% of industry leaders view transition to GST as largely
positive
GST led to supply chain optimization
GST reduced the compliance burden on trade and industry
Lower logistics cost and taxes helped reduce prices of goods
and services, benefiting the consumers
Tax rationalization efforts over the years
No tax liability for income upto Rs 7 lakh, up from Rs 2.2 lakh
in FY 2013-14
Presumptive taxation threshold for retail businesses
increased to Rs 3 crore from Rs 2 crore
Presumptive taxation threshold for professionals increased
to Rs 75 lakh from Rs 50 lakh
Corporate income tax decreased to 22% from 30% for
existing domestic companies
Corporate income tax rate at 15% for new manufacturing
companies
Achievements in tax-payer services
Average processing time of tax returns has reduced to 10
days from 93 days in
2013-14 Faceless Assessment and Appeal introduced for
greater efficiency
Updated income tax returns, new form 26AS and prefilled tax
returns for
simplified return filing
Reforms in customs leading to reduced Import release time
Reduction by 47% to 71 hours at Inland Container Depots
Reduction by 28% to 44 hours at Air Cargo complexes
Reduction by 27% to 85 hours at Sea Ports
Economy-then and now
In 2014 there was a responsibility to mend the economy and
put gove systems in order. The need of the hour was to:
Attract investments Build support to the much-needed
reforms
Give hope to the people
The government succeeded with a strong belief of 'nation-
first'
"It is now appropriate to look at where we were till 2014 and
where we are now": FM
The Government will lay a White Paper on the table of the
house.
THANK YOU
