Key Highlights: Interim Union Budget 2024
February 01, 2024 (Thursday), New Delhi: India’s Finance Minister, Ms. Nirmala Sitharaman, presented the Interim Union Budget 2024 earlier today, packed with promises for the future and insights into the government’s vision for a “Viksit Bharat.” From healthcare and agriculture to infrastructure and technology, the announcements span diverse sectors, each aiming to empower citizens and propel India’s growth trajectory.
The government also highlighted improved economic performance since 2014, overcoming previous crises, announcing a whitepaper presentation comparing the current state with pre-2014 period. Here are some bytes encapsulating the major announcements from today:
Boost to Technology, Innovation and Infrastructure
The government announced a Rs. 1 lakh crore corpus for long-term financing of research & innovation. A new scheme will be launched soon for strengthening deep-tech technologies for defense.
Additionally, an 11.1% increase was announced in infrastructure expenditure to Rs. 11.11 lakh crore (3.4% of GDP). Three major economic railway corridor programs are on the cards for improving logistics efficiency, along with 40,000 railway bogies to be converted to Vande Bharat standards. Continued expansion of existing airports will be coupled with the development of new airports. Metro & NaMo Bharat will be expanded for urban transformation.
Vision for India’s Developmental Roadmap
The vision for ‘Viksit Bharat’ is that of “Prosperous Bharat in harmony with nature, with modern infrastructure, and providing opportunities for all citizens and all regions to reach their potential”. To achieve the goals of Amrit Kaal, the government plans to adopt economic policies that foster and sustain growth, facilitate inclusive and sustainable development, improve productivity, create opportunities for all, help them enhance their capabilities, and contribute to generation of resources to power investments and fulfil aspirations.
Grassroots Development
The government stands ready to assist the states in faster development of aspirational districts and blocks, including generation of ample economic opportunities. It plans to pay utmost attention to make the eastern region and its people a powerful driver of India’s growth.
Despite the challenges due to COVID, implementation of PM Awas Yojana (Grameen) continued, close to achieving the target of three crore houses.
Focus on Inclusive Development and Social Justice
The government’s approach to development is comprehensive and inclusive, covering all castes and people at all levels. The ultimate goal is to make India a ‘Viksit Bharat’ by 2047 by improving and empowering capabilities. The government has adopted social justice as a necessary governance model, following the saturation approach of covering all eligible people to reduce corruption and nepotism, ensuring transparency and fair distribution of resources.
With the pursuit of ‘Sabka ka Saath’ in these 10 years, the government has assisted 25 crore people in getting freedom from multi-dimensional poverty. Through rooftop solarization, one crore households will be enabled to obtain up to 300 units free electricity every month. The government plans to launch a scheme to help deserving sections of the middle class “living in rented houses, or slums, or chawls and unauthorized colonies” to buy or build their own houses.
Empowering Farmers, Youth, and Women
The government recognizes the contribution of farmers as ‘Annadata’ and has launched several initiatives to assist them. Under PM-KISAN SAMMAN Yojana, 11.8 crore farmers, including marginal and small farmers, receive direct financial assistance every year. Additionally, 4 crore farmers benefit from crop insurance under PM Fasal Bima Yojana.
Through existing schemes, the government is focusing on value addition & boosting farmer income. It promoted private & public investment in post-harvest activities and announced expansion of application of Nano DAP across various crops. A strategy for “atmanirbharta” in oil seeds like mustard, groundnut, etc. was announced, along with a comprehensive program to support dairy farmers through existing schemes. PMMSY will be stepped up to enhance aqua-productivity, exports & employment.
The National Education Policy 2020 is a significant step towards transformational reforms in education for youth empowerment. The PM ScHools for Rising India (PM SHRI) are also contributing to this goal by providing quality teaching and nurturing well-rounded individuals.
Women empowerment has gained momentum in the last decade, and entrepreneurship, ease of living, and dignity for them are at the forefront of these efforts. Various initiatives have been launched to facilitate their participation in the workforce and enable them to realize their full potential. A high-powered committee will be set up to address challenges arising from population growth
Metrics for Growth
The government highlighted transparent, accountable, people-centric and prompt trust-based administration with 8 ‘citizen-first’ and ‘minimum government, maximum governance’ approach, showcasing its exemplary track record of Governance, Development and Performance (GDP). They also highlighted multipronged economic management over the past ten years, complementing people-centric inclusive development. Following are some of the major elements of this approach:
- All forms of infrastructure, physical, digital or social, are being built in record time.
- All parts of the country are becoming active participants in economic growth.
- Digital Public Infrastructure, a new ‘factor of production’ in the 21st century, is instrumental in formalization of the economy.
- Goods and Services Tax has enabled ‘One Nation, One Market, One Tax’. Tax reforms have led to deepening and widening of tax base.
Other Announcements
Major healthcare and social welfare announcements included the expansion of medical colleges to utilize existing hospital infrastructure, vaccination for girls against cervical cancer (9-14 years), a comprehensive program for maternal & child health, including anganwadi upgrade, extension of Ayushman Bharat health cover to ASHA, Anganwadi workers & helpers, and Lakhpati Didi target increase from 2 crores to 3 crores for empowering women.
A viability gap funding has been announced for harnessing 1 GW offshore wind energy potential. The government plans to set up 100 MT coal gasification & liquefaction capacity by 2030, along with phased mandatory blending of CBG in CNG & PNG. Bio-manufacturing & bio-foundry schemes were announced for facilitating green alternatives. An impetus to Blue Economy 2.0 scheme was also announced for climate-resilient activities.
The government plans to encourage comprehensive development of iconic tourist centers with global branding. Long-term interest-free loans will be offered to states for financing tourism infrastructure. Reforms have been planned in states for “Viksit Bharat” with interest-free loans.
Tax Reform Highlights
Direct Taxes:
- Reduced and rationalized tax rates, with higher thresholds for both individuals and businesses.
- Improved taxpayer services like Faceless Assessment and Appeal, faster processing times, and simplified returns.
Indirect Taxes:
- Successful implementation of GST, improving compliance and revenue collection for both central and state governments.
- Reduced logistics costs and taxes benefiting consumers.
- Streamlined customs procedures for faster international trade.
Tax Proposals:
- No changes to current direct and indirect tax rates.
- Extension of certain tax benefits for startups, sovereign wealth funds, and IFSC units.
- Withdrawal of outstanding small, old demands up to ₹25,000 (pre-2010) and ₹10,000 (2010-2014) to benefit millions of taxpayers.
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