Charting a Course for the Future: An Introduction to the Budget FY24
The Union Budget for FY24, presented on February 1st, 2024, by Finance Minister Nirmala Sitharaman, outlines the government’s economic roadmap. It strikes a delicate balance between fiscal consolidation, promoting growth, and addressing social welfare needs.
Finance Minister Nirmala Sitharaman said the government is focusing on four major groups – poor, women, youth and the farmers.
Building on the previous overview, let’s dive deeper into specific numbers and facts regarding key allocations in Budget FY24:
Fiscal Consolidation:
Deficit target: The revised estimate of the fiscal deficit is 5.8% of GDP, improving on the budget estimate notwithstanding moderation in the nominal growth estimates
Capital expenditure: Capital expenditure increased by 11.1% to over ₹ 11.18 lakh crore, or 3.4% of GDP.
Specific Areas:
Airport Expansion: Number of airports have doubled to 149. Rollout of air connectivity to Tier-2 and Tier-3 cities under UDAAN scheme has been widespread. 517 new routes are carrying 1.3 crore passengers. Expansion of existing airports and development of new airports will continue expeditiously.
Rail Infrastructure: FM Sitharaman announced that 40,000 normal rail bogies will be converted to Vande Bharat to enhance the safety, convenience, and comfort of passengers. Key rail infrastructure projects including Metro Rail and Namo Bharat will be expanded to more cities.
Electricity: Rs 20,000 crore allocated for renewable energy, with a target of achieving 500 GW of installed capacity by 2030. Rooftop solarisation to give 1 crore households 300 units of free electricity per month.
Interest Free Loan: A corpus of ₹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.
Electric vehicles: The government will expand and strengthen the EV ecosystem by supporting manufacturing and charging infrastructure, the finance minister said. Greater adoption of e-buses for public transport networks will be encouraged through payment security mechanisms, she added.
Relief for outstanding tax demands: In line with our Government’s vision to improve ease of living and ease of doing business, the Finance Minister announced to improve tax payer services. There are a large number of petty, non-verified, non-reconciled or disputed direct tax demands, many of them dating as far back as the year 1962, which continue to remain on the books, causing anxiety to honest tax payers and hindering refunds of subsequent years. It was propose to withdraw such outstanding direct tax demands up to twenty-five thousand rupees (Rs 25,000) pertaining to the period up to financial year 2009-10 and up to ten-thousand rupees (Rs 10,000) for financial years 2010-11 to 2014-15. This is expected to benefit about a crore tax-payers.
The success of Interim Budget FY24 hinges on its effective implementation. Monitoring progress, addressing challenges, and adapting to changing economic conditions will be crucial. While the budget offers a promising pathway for India’s economic future, its ultimate impact will depend on collective efforts and a shared commitment to building a stronger, more inclusive nation.
