Finance Minister Nirmala Sitharaman, on 1 February, presented her sixth Union Budget 2024 in the Lok Sabha; this was an interim budget that came just prior to the general elections later this year. The full-fledged budget will be announced by the new government that comes into power post-election. This is a short-term financial plan to seek the parliament’s approval to meet the government’s essential expenditure for the first four months of the new fiscal year. 

The Finance Minister (FM) said that our Prime Minister believes that for the growth of our nation, it’s crucial to focus on four major castes, including ‘Garib’ (Poor), ‘Yuva’ (Youth), ‘Mahilayen’ (Women), and ‘Annadata’ (Farmer) and their well-being and empowerment will take the country to new heights. The budget was focused on youth and women empowerment along with maintaining fiscal consolidation and continuing capex. In this article, we will understand all the key highlights and changes that have been made to transform India into a developed nation by 2047. 

Eliminating Poverty in India 

In the budget, FM Sitharaman announced that they have empowered the poor to become their partners and have helped more than 25 crore people in the last 10 years to escape from the clutches of multi-dimensional poverty. Furthermore, PM Street Vendor’s AtmaNirbhar Nidhi (PM SVANidhi) has also provided credit assistance to 78 lakh street vendors, of whom 2.3 lakh have received credit for the third time. 

Welfare Of Farmers

The government has provided direct financial assistance to 11.8 crore farmers, including marginal and small farmers, under the PM-KISAN SAMMAN Yojana. The PM Fasal Bima Yojana has provided 4 crore farmers with crop insurance. Moreover, the Electronic National Agriculture Market has integrated 1361 mandis, which provide services to over 1.8 crore farmers with a trading volume of around Rs 3 lakh crore. 

Empowering The Youth For A Brighter Future

The government has been ushering in transformational reforms since 2020 and has been striving towards delivering quality teaching and nurturing holistic and well-rounded individuals. The Skills India Mission has helped train more than 1.4 crore youth, reskilled and upskilled 54 lakh youths, and has established 3,000 new ITIs, including 7 IITs, 7 IIMs, 16 IIITs, 15 AIIMS, and 390 universities have been set up. Moreover, PM Mudra Yojana has sanctioned 43 crore loans aggregating to Rs 22.5 lakh crore for the entrepreneurial aspirations of our youth. 

Empowerment Of Women

The government has provided 30 crore Mudra Yojana loans to women entrepreneurs to help them achieve their entrepreneurial dreams. Female enrollment in higher education has gone up by 28% in the last 10 years, whereas in STEM courses, women and girls constitute 43% of the total enrollment, which is one of the highest in the world. 

Withdrawal of Outstanding Income Tax Demand 

In line with the government’s vision to ease living and conducting business, it has been proposed to withdraw outstanding direct tax demands up to Rs 25,000 until the fiscal year 2009-10 and withdraw outstanding direct tax demands up to Rs 10,000 for the fiscal year 2010-11 to 2014-15. 

Capex Spend for 2024-25

The government is planning on spending Rs 11.11 trillion on infrastructure creation during the upcoming fiscal year 2024-25, ensuring the country remains one of the world’s fastest-growing economies. The capital expenditure for the upcoming fiscal year starting on 1 April 2024 is 11.1% higher than the capex set for the ongoing fiscal year. 

Budget Allocation For Major Ministries

Sector	Budget in Lakh Crore
Ministry of Defence	Rs 6.2
Ministry of Road Transport and Highways	Rs 2.78
Ministry of Railways	Rs 2.55
Ministry of Consumer Affairs, Food & Public Distribution	Rs 2.13
Ministry of Home Affairs	Rs 2.03
Ministry of Rural Development	Rs  1.77
Ministry of Chemicals and Fertilisers	Rs 1.68
Ministry of Communications	Rs 1.37
Ministry of Agriculture and Farmers Welfare	Rs 1.27

Income Tax Slabs

The Finance Minister leaves income tax rates and slabs unchanged during the interim budget 2024

Income	Tax
Income up to Rs 3 lakh	No tax to be levied
Income between Rs 3-6 lakh	5% Tax
Income between Rs 6-9 lakh	10% Tax
Income between Rs 9-12 lakh	15% Tax
Income between Rs 12-15 lakh	20% Tax
Income of Rs 15 lakh and above	30% Tax

Indian Railways On The Fast-Track

The government has lined up a capital expenditure of Rs 2.55 trillion for the railways, which is marginally higher by 5.8% from the revised estimates of the last budget. Three major economic railway corridor programmes will be implemented, including energy, mineral and cement corridors, port connectivity corridors, and high-traffic density corridors that will help improve the operation of passenger trains, resulting in improved safety and travel speed. Moreover, 40,000 normal bogies will be converted to Vande Bharat standards to enhance the safety, comfort, and convenience of passengers. 

Aviation To Soar Higher 

Finance Minister Nirmala Sitharaman, on 1 February, announced that the number of airports have doubled to 149 and also increased the number of air routes to 517. The budgetary allocation for the civil aviation ministry has been set to Rs 2,300 crore for the upcoming fiscal year from Rs 2,922.12 crore spent during the current fiscal year. The country’s regional air connectivity scheme, Udan will receive Rs 502 crore for the upcoming fiscal year 2025. The fund will be used to revive 22 airports, start 124 air routes, and finance viability gap funding for north-east connectivity.

Bolstering The Green Energy Sectors

The budget has highlighted a comprehensive road map for sustainable economic growth and has also announced a new scheme for converting biomass into CBG (Compressed Bio Gas) and phased mandatory blending of CBG with natural gas that can be used as fuel for vehicles and domestic supplies. Moreover, FM Sitharaman, in her Interim Budget speech, added that more than 10 million homes in India will get rooftop solar power for free electricity. Through this, 1 crore homes will get 300 units of free electricity every month, and help them save Rs 15,000 to 18,000 annually. 

Blue Economy 2.0

In the Interim Budget 2024, Nirmala Sitharaman proposed the launch of ‘Blue Economy 2.0’, which is aimed towards boosting India’s aquaculture, which is also known as aquafarming. 

Housing For Middle Class

Finance Minister Nirmala Sitharaman launched a scheme to help the deserving section of the middle class who are living in rented houses, slums, chawls, or authorised colonies to help them build or buy their own homes. Moreover, the Pradhan Mantri Awas Yojna is close to reaching its target of three crore houses, and two crore more houses will be added in the next coming 5 years to help meet the requirements that are arising from an increase in the number of families. 

Healthcare and Child Health Care Plan

In the budget, various schemes for maternal and child health care will be brought under one program for battery synergy and implementation. The Anganwadi centres will be upgraded under the “Saksham Anganwadi and Poshan 2.0” to help improve nutrition delivery, early childhood care and development. Furthermore, the newly designed U-WIN platform that is used for managing immunisation and intensified efforts of Mission Indradhanush will be rolled out in India. Healthcare coverage will also be provided to all ASHA workers, Anganwadi Workers and helpers under the Ayushman Bharat scheme. The Union Health Ministry has been allocated Rs 90,658.63 crore for the financial year 2024-25, marking a hike of 12.59% from Rs 80,517.62 crore for the fiscal year 2023-24.

Automotive And EV Ecosystem Boost

The automotive industry is expected to grow in the upcoming years, along with the adaptation of the electric vehicle (EV) ecosystem. The government has announced a seven-fold increase in the allocation for the industry’s expenditure budget to Rs 3,500 crore for 2024-25 towards the Production Linked Incentive (PLI) scheme for automobiles and auto components from Rs 483.77 crore allocated for the current fiscal year. Moreover, to strengthen the country’s EV ecosystem further, the government has announced its continued support for manufacturing and charging infrastructure. 

Conclusion 

To sum up, the interim budget highlights a strategic plan aimed at promoting economic growth and social progress. By prioritising fiscal responsibility and making focused investments, the government lays the groundwork for a vibrant and enduring economic path. As the country confronts forthcoming challenges, these budgetary actions aim to steer India toward a more promising future, tackling present issues while also nurturing future ambitions.