India’s Interim Budget 2024: New Delhi, February 1, 2024: In a strategic move preceding the general elections, Finance Minister Nirmala Sitharaman presented the Interim Budget 2024–25 in Parliament, unveiling the government’s fiscal roadmap. The budget, marked by continuity and fiscal prudence, aimed to address key sectors, emphasizing infrastructure, rural development, and the electric vehicle (EV) ecosystem.
India’s Interim Budget 2024: Fiscal Stability and Tax Structure
1. No major changes in tax rates: The Interim Budget provided relief to taxpayers by maintaining the existing direct and indirect tax structure, including income tax slabs. This move ensured stability and continuity for individuals and businesses.
Infrastructure Boost
2. Increased capital expenditure: Recognizing the pivotal role of infrastructure in economic growth, the government announced a substantial hike in capital expenditure to ₹11.11 lakh crore in 2024–25. This infusion aims to stimulate job creation and overall development.
Fiscal Responsibility
3. Focus on fiscal consolidation: Despite the impending elections, the budget underscored the government’s commitment to fiscal responsibility. A target was set to reduce the fiscal deficit to 4.5% by 2025–26, signaling a commitment to responsible fiscal management.
Electric Vehicle Push
4. Supporting the EV revolution: acknowledging the transformative potential of electric vehicles, the budget introduced measures to bolster manufacturing and charging infrastructure. The goal is to expedite India’s shift towards sustainable and clean mobility.
Empowering Rural India
5. Enhancing rural development: A substantial focus was placed on empowering rural communities and bolstering the rural economy. The budget extended the “Lakhpati Didi” scheme and announced increased support for artisans and street vendors.
Continued Social Welfare
6. Continued social welfare initiatives: The budget reiterated the government’s dedication to social welfare programs such as PM Jan Dhan Yojana and PM Vishwakarma Yojana. These initiatives aim to uplift marginalized sections of society.
Reactions and Outlook
The interim budget elicited mixed reactions, with commendation for its focus on fiscal stability. However, some expressed concerns about the absence of bold reforms and targeted measures for specific challenges.
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Conclusion
While the interim budget sets the tone for the upcoming year, a more comprehensive budget with detailed policy announcements is anticipated post-elections. As India grapples with a global economic slowdown and domestic challenges, the forthcoming budget will play a pivotal role in steering the trajectory for future growth and development.