In a pivotal move preceding the 2024 Lok Sabha elections, Union Finance Minister Nirmala Sitharaman unfolded the intricacies of the Interim Budget for the fiscal year 2024. The budget, lauded for its foresight and strategic allocations, presents a comprehensive roadmap for the nation’s economic trajectory. Let’s delve into the details of the six major takeaways from her impactful speech:
1. Fiscal Prudence and Deficit Management:
– Sitharaman demonstrated fiscal responsibility by revealing a lower-than-expected fiscal deficit of 5.8% (of GDP) for FY24, surpassing estimates. The projected deficit for the subsequent year stands at an impressive 5.1%, underscoring the government’s commitment to financial stability.
2. Rural Housing Revolution:
– While refraining from extensive rural transfers, the Finance Minister introduced an ambitious plan to construct an additional 2 crore houses for the rural poor within the next five years under the ongoing PM Awas Yojana (Grameen). The assurance of achieving the 3 crore affordable housing target signifies a robust approach to rural development.
3. Infrastructural Augmentation:
– A pivotal highlight of the budget is the substantial 11% increase in capital spending for 2024-25, amounting to ₹11.11 lakh crore, equivalent to 3.4% of the GDP. This augmented allocation underscores the government’s unwavering commitment to bolstering infrastructure development across the country.
4. Steadfast Tax Structure:
– In a welcome move for taxpayers, Sitharaman maintained stability in the tax structure by refraining from altering direct or indirect tax rates. Furthermore, she extended the validity of certain tax benefits, originally set to expire on March 31, 2024, to March 31, 2025.
5. Innovation and Research Endeavors:
– Focusing on fostering innovation and research, the government announced the establishment of a ₹1 lakh crore corpus. This corpus, facilitated by a 50-year interest-free loan, aims to incentivize long-term financing and refinance in sunrise sectors, promoting technological advancement.
6. Economic Prosperity and Income Growth:
– A noteworthy revelation in Sitharaman’s speech was the commendable 50% increase in the average real income of the populace. This remarkable upswing serves as a testament to the government’s dedicated efforts in propelling economic growth and enhancing the standard of living.
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