India Budget 2024: ‘Garib, Mahilayen, Yuva, Annadata,’ key takeaways from Sitharaman’s speech
Union Finance Minister Nirmala Sitharaman
Union Finance Minister Nirmala Sitharaman on Thursday (Feb 1) addressed the lower house of the parliament and presented the interim Budget in a speech that lasted an hour.
Here are the key takeaways from the Sitharaman's budget speech:
- No change intaxation scheme
Sitharaman said there will be no change in the taxation scheme, both in direct and indirect brackets. Notably, there is no tax liability for individuals with income up to Rs 7 lakh under the new regime. - India’s real GDP projected to grow at 7.3 per cent in FY 2023-24
As per the First Advance Estimates of National Income of FY 2023-24, presented with the Finance Minister’s speech, India’s Real GDP is projected to grow at 7.3 per cent. This is in line with the upward revision in growth projections for FY2023-24 by the RBI in December 2023 from 6.5 per cent to 7 per cent, prompted by strong growth in Q2 of FY2023-24. Fiscal deficit in 2024-25 is estimated to be 5.1 per cent of GDP
Referring to the fiscal consolidation, as announced in her Budget Speech for 2021-22, to reduce fiscal deficit below 4.5 per cent by 2025-26, Sitharaman said, the fiscal deficit in2024-25 is estimated to be 5.1 per cent of GDP, adhering to that path.
Capex outlay increased by 11.1 per cent to Rs 11,11,111 crore
Sitharaman announced that the capital expenditure outlay for the next year is being increased by 11.1 per cent to Rs 11,11,111 crore, which would be 3.4 per cent of the GDP.She said, this is in the wake of building on the massive tripling of the capital expenditure outlay in the past fouryears resulting in huge multiplier impact on economic growth and employment creation.
- Focus on four major castes
During the speech, Sitharaman said the PM Modi government was focusing on four major castes viz.‘Garib’ (Poor), ‘Mahilayen’ (Women), ‘Yuva’ (Youth) and ‘Annadata’ (Farmer).
"Their needs, their aspirations, and their welfare are our highest priority. The country progresses, when they progress. All four require and receive government support in their quest to better their lives. Their empowerment and well-being will drive the country forward," she said. - Revised estimate for fiscal deficit
Revised estimate for fiscal deficit is 5.8 per centof GDP. FY25 fiscal deficit budgeted at 5.1 per centof GDP. The finance minister said the borrowing by the central government will facilitate credit to the private sector. - Domestic tourism
The government will be giving a major filip to the domestic tourism industry, including spiritual tourism, reflecting the recent Hindu renaissance.
"Our middle class also now aspires to travel and explore. Tourism, including spiritual tourism, has tremendous opportunities for local entrepreneurship. States will be encouraged to take up comprehensive development of iconic tourist centres, branding and marketing them at the global level." Medical colleges
The government is planning to set up more medical colleges by utilising existing hospital infrastructure. A committee will be set up to examine issues and make recommendations.
300 units free electricity
People availing the government’s newly-announced rooftop solar programme would be entitled to free electricity worth 300 units every month.
"Savings up to fifteen to eighteen thousand rupees annually for households from free solar electricity and selling the surplus to the distribution companies," she said.Housing for middle class
A scheme to be launched to help deserving sections of the middle class living in rented houses or slums or chawls or unauthorised colonies to buy or build their own houses.PM Awas Yojana aims to build twocrore houses
Also read |India Budget 2024: Govt to launch housing scheme for middle classRailways: Vande Bharat trains
Sitharaman said as many as 40,000 normal train bogeys across the country will be converted to "Vande Bharat" coaches to enhance passenger comfort as well as safety.
"We have a fast-expanding middle class, and rapid urbanisation is taking place. Metro and NaMo Bharat can be the catalyst for the required urban transformation."
Also read |India budget 2024: For railways, FM Sitharaman says 3 major economic corridor programmes to be implementedMaternal and child health care
Various schemes under maternal and child health care to be brought under one comprehensive programme for synergy in the implementation.FDI now means First Develop India
Sitharaman said FDI now means 'First Develop India' and between 2014 to 2023, FDI stood at $596 billion, five times the amount received during 2005-14.
(With inputs from agencies)