As Finance Minister Nirmala Sitharaman prepares to present the interim Budget for 2024, a customary practice during election years, it’s essential to address common questions about this crucial financial statement.
What is an Interim Budget?
An interim budget is a financial plan that covers government expenses and revenues for a brief period during an election year, bridging the gap until a new government is elected. It outlines expenditure and revenue proposals until the presentation of a comprehensive budget by the new administration. In contrast, the Union Budget serves as the annual financial statement detailing estimated costs and expenses for the upcoming fiscal year.
What items are included in the interim Budget?
The interim Budget encompasses estimates for government expenditure, revenue, fiscal deficit, and financial performance for a limited duration. However, it typically refrains from major policy announcements.
What is the duration covered by an interim Budget?
Usually, an interim budget addresses immediate financial needs and allocates resources for the next few months until the new government presents a complete budget for the entire fiscal year.
Can significant policy changes be introduced in the interim Budget?
While interim budgets primarily focus on maintaining continuity, they may include minor policy adjustments or new initiatives if urgently needed or aligned with ongoing government priorities.
Who presents the interim budget?
The incumbent government’s finance minister typically presents the interim budget before the conclusion of their term.
What is the difference between an interim Budget and a regular Budget?
An interim budget is a shorter-term financial statement facilitating the government’s smooth operation until a new administration can present a full budget for the entire fiscal year.
What happens to the interim budget after the new government takes office?
The new government can choose to continue with the allocations and proposals outlined in the interim budget or make revisions based on its priorities and policies. The interim budget serves as a provisional guide until the comprehensive budget is presented.
In Sitharaman’s sixth budget under Prime Minister Narendra Modi’s leadership, the 2023–24 budget proposed a total expenditure of Rs 45,03,097 crore. Key allocations were directed towards sectors such as defence, road transport and highways, railways, health and family welfare, and Jal Shakti. Stay tuned for the unveiling of the interim Budget as the nation awaits important financial insights.
No Alterations in Tax Rates; FY25 Fiscal Deficit Target Set at 5.1%
- In her sixth Budget presentation on February 1, Finance Minister Nirmala Sitharaman delivered an interim budget in anticipation of the upcoming general elections later this year. The Interim Budget 2024 prioritized youth and women’s empowerment, maintaining fiscal consolidation, and ongoing capital expenditure. Sitharaman revised the fiscal deficit target for FY25, setting it at 5.1% of the GDP. Notably, there were no adjustments made to the direct and indirect tax rates.
Budget 2024: Key Highlights LIVE: Insights from FM Sitharaman’s Post-Budget Briefing
Top 10 takeaways from Finance Minister Nirmala Sitharaman’s post-budget press conference, covering crucial aspects from fiscal targets to government expenditure.
- FM Sitharaman emphasized 5 key principles: Implementing social justice for effective governance; Prioritizing the welfare of the poor, youth, women, and farmers; Focusing on infrastructure development; Harnessing technology for enhanced productivity; Establishing a high-power committee to address challenges stemming from demographic shifts.
- India boasts three consecutive years of 7% GDP growth, securing its position as the fastest-growing economy in the G20.
- GDP, according to FM Sitharaman, stands for Government, Development, and Performance. Despite challenging circumstances, the government has delivered on development and demonstrated effective economic management, reducing the fiscal deficit.
- The Finance Minister emphasized the government’s steadfast dedication to capital expenditure, deeming it essential for continual advancement.
- The India, Middle East, and European Corridor (IMEC) project will move forward, overcoming disruptions in the Red Sea region.
- According to Revenue Secretary Sanjay Malhotra, the removal of 1.1 crore of outstanding small direct tax demands from particular years will incur a cost of less than ₹3,500 crore to the exchequer.
- Clarifying, FM asserted that the lower tax rate extension will not apply to new manufacturing units established after March 2024.
- Dismissing the idea of a fixed disinvestment target for FY25, DIPAM Secretary Tuhin Kanta Pandey provided insights into the government’s approach.
- FM Sitharaman conveyed that the government is not only aligning with the previously set fiscal consolidation path but surpassing it, addressing credit rating agencies directly.
- Regarding the target to reduce the Centre’s debt-to-GDP ratio to 40%, Finance Secretary TV Somanathan highlighted that this goal, established pre-COVID-19, now warrants reassessment. Stay tuned for more updates on the aftermath of Budget 2024.
Budget 2024 Key Highlights: Noteworthy Announcements for Various Sections of Society
In the Interim Budget 2024, Finance Minister Nirmala Sitharaman introduced a series of measures aimed at sustaining growth, fostering inclusive and sustainable development, improving productivity, and creating opportunities for all. Here are some key announcements:
- PM Awas Yojana (Grameen): The government plans to undertake the construction of 2 crore additional houses in the next five years to address the growing demand resulting from an increase in the number of families.
- Rooftop Solarization and Muft Bijli: Through rooftop solarization, one crore households will have the opportunity to receive up to 300 units of free electricity every month.
- Housing for the Middle Class: A scheme will be launched to assist deserving sections of the middle class, residing in rented houses, slums, chawls, and unauthorized colonies, to either purchase or build their own houses.
- Medical Colleges: The government aims to establish more medical colleges by utilizing existing hospital infrastructure across various departments. A dedicated committee will be formed to examine related issues and provide relevant recommendations.
- Cervical Cancer Vaccination: The government will promote vaccination for girls aged 9 to 14 years to prevent cervical cancer.
- Maternal and Child Health Care: The enhancement of Anganwadi centres under “Saksham Anganwadi and Poshan 2.0” will be expedited, focusing on improved nutrition delivery, early childhood care, and development.
- Ayushman Bharat: The healthcare coverage under the Ayushman Bharat scheme will be expanded to include all ASHA workers, Anganwadi workers, and helpers.
Budget 2024: Significant Announcements for Agriculture and Food Processing
In a commitment to enhancing value addition in the agricultural sector and boosting farmers’ income, FM Sitharaman outlined key proposals for the industry:
- Pradhan Mantri Kisan Sampada Yojana: This initiative has already benefited 38 lakh farmers and generated 10 lakh employment opportunities.
- Pradhan Mantri Formalization of Microfood Processing Enterprises Yojana: This scheme has assisted 2.4 lakh Self-Help Groups (SHGs) and sixty thousand individuals by facilitating credit linkages. Other schemes complement these efforts by addressing postharvest losses, improving productivity, and increasing incomes.
- Faster Growth of the Sector: The government aims to accelerate the growth of the agricultural sector by promoting private and public investment in post-harvest activities.
- This encompasses activities such as aggregation, advanced storage, streamlined supply chains, primary and secondary processing, along with marketing and branding, as emphasized by Sitharaman.
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