Interim budget for financial year 2024
On 1st February, Nirmala Sitharaman, Minister of Finance presents the Interim budget for Financial Year 2024. This budget is ‘interim’ in nature as the government is set to face Lok Sabha polls slated to take place in the coming months in April-May this year. The full budget will be presented in July by the coming new government.
Finance Minister, Nirmala Sitharaman highlighted achievements in poverty reduction, fiscal management, and the success of schemes like PM Jan Dhan. The Finance Minister addressed the importance of Digital Public Infrastructure, emphasizing its role as a new factor of production. Sitharaman discussed the growth in real incomes, macroeconomic stability, and the government's focus on governance, development, and performance. Reforms in collaboration with states, plans for rooftop solar power generation, and commitments to Panchamrit climate goals were also outlined. Additionally, the Finance Minister announced 2 crore more houses under Pradhan Mantri Awas Yojana – Gramin and revealed the fiscal deficit at 5.8%, slightly below the targeted 5.9%. The budget, a vision statement for the government's third term, demonstrated confidence in continuity, with no new welfare schemes or major increases in existing ones.
There will be no changes to taxation and proposed to retain the same direct and indirect tax rates including import. Nirmala Sitharaman in her speech gave the references to the union government schemes in the social sectors. The four castes Garib, Mahilayen, Yuva and Annadata mentioned by the honourable Prime Minister Narendra Modi mentioned earlier in December 2023.
Finance Minister, Nirmala Sitaram put forward the government's measures on the agricultural sector. She highlighted that in over the past 10 years, 25 crore people came out of multi dimensional poverty. The government saved 2.7 lakhs crore by preventing leakages through direct benefit transfers worth a total of 34 lakhs crore rupees through Prime Minister Jan Dhan accounts under the government's electronic National agriculture market e- nam. 1,361 mundies have been integrating benefiting 1.8 crore farmers and accounting for trading volumes worth 3 lakhs crore rupees.
Nirmala Sitaram spoke about digital public infrastructure and termed it as a new factor of production. Combined with social and physical infrastructure, Digital Public Infrastructure is aiding the progress. The average real incomes have increased by 50% in the last 10 years and presented the data. Apart from delivering high growth in the gross domestic product, the government is equally focused on a comprehensive Gross domestic product (GDP) governance, development and performance. She further added that there is macroeconomic stability including in the external sector. Investments are robust and the economy is at its pace and people are doing well and better for themselves as there is an increment in the average real incomes by 50% whereas moderate inflation, people are enabled and equipped to pursue their aspirations. She also said that there is effective and timely delivery of programs and large projects.
The Finance Minister Nirmala Sitaram also highlighted Reforms in Consensus with states and how the Indian economy is expected to grow in the near future. She said, "Our government will adopt economic policies that would foster growth and will take Next Generation reforms and will build consensus with the states.
The Finance Minister also highlighted the benefits of rooftop solar power generation and the government's plans for the same. She also mentioned that through rooftop solarization 1 crore households will be able to obtain up to 300 units of electricity for free.
The Finance Minister Nirmala Sitaram spoke of the Panchamrit goals at the 2021 United Nations climate change conference COP 26 in Glasgow. PM announced that India would adhere to the so-called Panchamrit climate goal. The Finance Minister has announced 2 crore more houses under the Pradhan Mantri Awas Yojana. She announced the fiscal deficit comes in at 5.8% lower than the target of 5.9% fiscal deficit. The target for financial year 25 is set at 5.1%.
The interim budget is overall a vision statement of the Modi government for a third term. The widely expected increase in the transfers under Prime Minister Kisan from the existing 6000 rupees per year hasn't materialized and as mentioned earlier, there was no change in tax rate.
Mallikarjun Kharge, Congress National President on the Interim Budget 2024
Mallikarjun Kharge, Congress National President said, “I listened to the budget carefully, nothing was mentioned in this budget for the poor, lower middle class and the middle class...This is their budget only for day-to-day affairs. They did not give the details of promises made for 10 years, they should have compared how many promises were made and how many were fulfilled...They should give a comparative statement..."
