Finance minister Nirmala Sitharaman seems to have clearly defined the meaning of an interim budget by presenting one of the shortest budget speeches (57 minutes) in history.
While FY24-25 Union Budget was big on macroeconomic frontiers with promising fiscal deficit targets to capital expenditure, it fell short of other big bang announcements primarily owing to an upcoming general election.
Here are some key takeaways.
Macroeconomy:
1. Government has pegged FY24 fiscal deficit at 5.8% of GDP and sees FY25 fiscal deficit at 5.1%. Finance minister said the idea was to bring it down to 4.5% by FY26.
2. Government has projected a nominal GDP for 2024-25 at Rs 3.3 trillion, assuming 10.5% growth year-on-year.
3. FY25 gross market borrowing seen at Rs 14.1 lakh crore and net market borrowing at Rs 11.75 lakh crore.
4. Centre increased FY25 capital expenditure outlay by 11.1% to Rs 11.11 lakh crore or at 3.4% of GDP
Taxation:
1. Government has retained most tax rates owing to vote on account. These comprise of direct and indirect taxes including import duties.
2. Corporate taxes at 22% for existing domestic companies and 15% for certain new manufacturing companies.
3. No tax liability for taxpayers with income up to Rs 7 lakh under new tax regime.
4. Continuity of certain tax benefits to startups and investments made by sovereign wealth funds/ pension funds.
5. Tax exemption of some IFSC units that were to expire on 31 March 2024, have been extended till 31 March 2025.
6. Average monthly gross GST collections stand at Rs 1.66 lakh crore
7. 94% industry leasers view transition to GST as largely positive
8. 80% of respondents feel GST has led to supply-chain optimisation
9. Centre has withdrawn some outstanding direct tax demands related to previous years - withdrawn pre-FY10 disputed tax demand of up to Rs 25,000 and FY10-15 disputed tax demand of up to Rs 10,000.
Budget allocations:
Defence Ministry - Rs 6.2 trillion
Roads and Transport - Rs 2.8 trillion
Railways - Rs 2.6 trillion
Consumer Affairs, Food and Distribution - Rs 2.1 trillion
Home Affairs - Rs 2 trillion
Chemicals and Fertilisers - Rs 1.7 trillion
Communications - Rs 1.4 trillion
MGNREGA - Rs 86,000 crore
Ayushman Bharat-PMJAY - Rs 7,500 crore
PLI scheme - Rs 6,200 crore
Solar Grid: Rs 8.500 crore
Housing:
1. Pradhan Mantri Awas Yojana (Grameen) is close to achieving 3 crore houses and targets additional 2 crore for the next five years.
2. Government has proposed a 'housing for middle class' scheme to promote middle class to buy/built their own homes.
Infrastructure:
1. Government has proposed implementation of three major railway corridor programmes under PM Gati Shakti to improve logistics efficiency and reduce cost.
2. Proposal to promote foreign investment via bilateral treaties.
3. Centre will expand existing airports and buid new ones under UDAN scheme.
Agriculture:
1. Crop insurance provided to four crore farmers under PM Fasal Bima Yojana.
2. Direct benefit transfer (DBT) to 11.8 crore farmers under Fasal Bima.3. Skill India Mission has trained more than 1.1 crore youth.
Renewable energy:
1. Centre has announced a viability gap funding for wind energy under its vision of 'net zero' carbon by 2070.
2. One crore households will be enabled to obtain 300 units of free electricity per month by rooftop solarisation.
3. New scheme for biomanufacturing and bio-foundry to be launched to support environment friendly alternatives.
Nari Shakti:
1. Finance Minister said 30 crore loans under the Mudra Yojana have been disbursed to women entrepreneurs.
2. There has been a 37% rise in female labour force participation rate as of 2023.
3. Centre says female enrolment in higer education has risen 28% over the last decade.
4. One crore women have been assisted by 83 lakh self-help groups to become 'Lakhpati Didis'.
Socio-economical upliftment:
1. Government said it has helped 25 crore people come out of multi-dimensional poverty in the last 10 years.
2. Direct transfer of Rs 34 lakh crore using PM Jan Dhan Yojana
3. PM Svanidhi has provided credit assitance to 78 street vendors
