On Thursday, Union Finance Minister Nirmala Sitharaman presented the interim budget ahead of the 2024 Lok Sabha elections’ likely to be held in the month April -May. This marks her sixth Budget in her role as finance minister and the final one in the second term of the Modi government. In adherence to tradition, Sitharaman visited President Droupadi Murmu at Rashtrapati Bhawan before unveiling the pre-election Budget for 2024-25. Following the meeting, she proceeded to Parliament.
Sitharaman faces the dual challenge of sustaining India’s position as the world’s fastest-growing economy while demonstrating fiscal responsibility and addressing public expectations for tax reductions in an election year. According to official estimates, the economy is projected to expand by 7.3 percent in the current fiscal year.
Here are the key highlights from the 2024 interim budget:
No Changes in Tax Slab: There will be no tax on income up to Rs 7 lakh. No change in the income tax slab.
Rooftop solarisation and free electricity: 1 crore households will benefit from rooftop solarisation, providing up to 300 units of free electricity monthly. Expected benefits include savings of up to Rs. 15,000 – Rs. 18,000 and opportunities to sell surplus electricity at discounts.
Charging of electric vehicles: Entrepreneurship opportunities for vendors and employment prospects for youth skilled in manufacturing, installation, and maintenance of electric vehicles.
Promotion of post-harvest activities: Government to promote private and public investment in post-harvest activities, including aggregation, modern storage, supply chains, processing, marketing, and branding.
Expansion of Nano DAP application: Following the success of nano urea, Nano DAP application on various crops will be expanded across all agroclimatic zones.
Housing for the middle class: Launch of a scheme to assist deserving sections of the middle class living in rented houses, slums, chawls, or unauthorized colonies to buy or build their own houses.
Expansion of medical colleges: The government plans to establish more medical colleges by utilizing existing hospital infrastructure, with a committee to be set up for examination and recommendations.
Vaccination for girls: Encouragement of vaccination for girls aged 9 – 14 years to prevent cervical cancer.
Comprehensive maternal and child healthcare program: Various schemes under maternal and child healthcare to be amalgamated into one comprehensive program for improved synergy in implementation.
Extension of Ayushman Bharat coverage: Extension of healthcare coverage under Ayushman Bharat to all ASHA workers, Anganwadi workers, and helpers.
Agriculture and food processing: Intensified efforts in value addition to boost farmers’ income, with a focus on reducing post-harvest losses and improving productivity and incomes.
Aatma Nirbhar Oilseeds Abhiyan: Strategy formulation to achieve self-reliance in oilseeds through research, adoption of modern farming techniques, market linkages, and crop insurance.
Dairy development program: Formulation of a comprehensive program to support dairy farmers, leveraging existing schemes to enhance productivity.
Matsya Sampada: Promotion of investments in fisheries to generate employment opportunities, with a separate department set up for fisheries under the government’s initiative.
Promoting investments: Measures to encourage sustained foreign investment, including negotiating bilateral investment treaties and provision of Rs. 75,000 crores as interest-free loans to support milestone-linked reforms by state governments.
Societal changes: Formation of a high-powered committee to comprehensively address challenges arising from population growth and demographic changes, with recommendations for comprehensive solutions.
Tech Investment Initiative: For our tech-savvy youth, this will be a golden era. A corpus of Rs 1 lakh crore will be established with 50-year interest-free loan provided. It will be for long-term financing or re-financing with low or nil interest rates.
