Introduction:

Union Finance Minister Nirmala Sitharaman presented the Interim Budget for 2024, her last before the upcoming Lok Sabha elections. The budget emphasises fiscal prudence, significant infrastructure spending, and several targeted initiatives. Here are six key takeaways from her speech.

Fiscal Prudence:

• The fiscal deficit for FY24 is lower than expected at 5.8% of GDP, with an estimated further reduction to 5.1% in the next fiscal year.

• Sitharaman's commitment to maintaining stability is evident as there are no changes in direct or indirect tax rates, providing relief to taxpayers.

Housing for Rural Poor:

• While no major rural transfers were announced, Sitharaman pledged to build 2 crore more houses for the rural poor in the next five years under the PM Awas Yojana (Grameen).

• The government is nearing its target of 3 crore affordable houses, demonstrating a continued focus on rural development.

Infrastructure Boost:

• Capital spending for 2024-25 sees an 11% increase to ₹11.11 lakh crore, constituting 3.4% of GDP.

• The emphasis on infrastructure development aligns with the government's commitment to economic growth and job creation.

Taxation and Startups:

• No changes were proposed in the taxation structure, ensuring stability for businesses.

• Tax benefits for startups and investments made by sovereign wealth or pension funds, set to expire on March 31, 2024, are extended to March 31, 2025.

Defence Spending:

• A modest increase of 4.72% in defence spending, amounting to ₹6.21 lakh crore for 2024-25.

• A new scheme aims to strengthen deep tech in the defence sector, aligning with the goal of self-reliance and boosting exports.

Ayushman Bharat Scheme Expansion:

• The Ayushman Bharat-Pradhan Mantri Jan Arogya Yojna will now cover all ASHA workers, Anganwadi workers, and helpers.

• The allocation for the scheme is marginally increased to ₹7500 crore for 2024-25, reflecting the government's commitment to public health.

India-Middle East-Europe Economic Corridor (IMEC):

• Sitharaman highlighted the strategic significance of the India-Middle East-Europe Economic Corridor, calling it a game-changer for member countries.

• The corridor aims to boost economic development by enhancing connectivity and integration between India, the Middle East, and Europe.

Conclusion:

Nirmala Sitharaman's Interim Budget 2024 focuses on maintaining fiscal discipline, promoting infrastructure development, and extending social welfare measures. The proposed initiatives reflect the government's commitment to economic growth, job creation, and building a prosperous Bharat. As the nation approaches the Lok Sabha elections, the budget sets the stage for a vision of sustained development and progress.