India’s Budget 2024 is an eagerly awaited event, scheduled for presentation on February 1st, 2024. However, it’s important to note that this year’s budget will be an interim budget, presented by the outgoing government before the upcoming Lok Sabha elections. This means it will primarily focus on maintaining essential services and ongoing expenditures until the new government takes office and presents a full budget later in the year..

Live: Interim Union Budget 2024

Union Finance Minister Nirmala Sitharaman presented the interim budget 2024 on Thursday, February 1. The Defence sector was allocated ₹6.2 lakh crore, the biggest sectoral allocation this year. Finance Minister Nirmala Sitharaman also announced a new scheme to strengthen deep tech for the defence sector. Feb 1, 2024 2:31 PM

“The revised estimate of the fiscal deficit is 5.8% of GDP, improving on the budget estimate notwithstanding moderation in the nominal growth estimates,” says Union Finance Minister Nirmala Sitharaman.

Finance Minister Nirmala Sitharaman announced three new corridors for the railways – Energy, Mineral and Cement corridor, Port Connectivity Corridor and a High Traffic Density Corridor.

Presenting her pre-election budget, which is technically a vote on account and is popularly termed an interim budget, the FM said that direct benefit transfers of ₹34 lakh crore through Jan Dhan accounts have resulted in savings of ₹2.7 lakh crore. Sitharaman also said that 30 crore Mudra Yojana loans have been given to women in the last 10 years.

For those who are interested, the revised estimate for FY24 fiscal deficit is 5.8%. Fiscal deficit, the gap between the government’s revenue and expenses, is expected to 5.1% of gross domestic product.  Gross market borrowing for financial year ending March 2025 will be ₹14.3 lakh crore (less than the borrowing in the current financial year).

“This will encourage the private sector to scale up research and innovation in sunrise sectors,” Finance Minister Nirmala Sitharaman said.

The Finance Minister announces that the health coverage under the Ayushman Bharat scheme will be extended to all ASHA and Anganwadi workers and helpers.

Union Finance Minister Nirmala Sitharaman lists out ‘strategy for Amrit Kaal’. “Our government will adopt economic policies that foster and sustain growth, facilitate inclusive and sustainable development, improve productivity, create… pic.twitter.com/eP7mGAchuZ — ANI (@ANI) February 1, 2024

“Female enrolment in higher education up by 28% in 10 years, in STEM courses, girls & women make 43% of enrolment, one of the highest in the world. All these steps are reflected in the increasing participation of women in the workforce. Making triple talaq illegal, reservation of 1/3 seats for women in Parliament and state assemblies, over 70 % houses under PM Awas Yojana to women have increased their dignity,” Sitharaman highlights.

PM Vishwakarma Yojana provides end-to-end support to artisans and crafts people engaged in 18 trades. The schemes for empowerment of divyangs and transgender persons reflect firm resolve of our our government to leave no one behind. Every year, under PM Kisan Samman

Finance Minister says the government is focussed on GDP (governance, development and performance), in her budget speech ahead of the upcoming general election where the Narendra Modi administration is set to seek a third straight term.

“The Skill India Mission has trained 1.4 crore youth, upskilled and re-skilled 54 lakh youth, and established 3000 new ITIs. A large number of institutional higher learning, namely 7 IITs, 16 IIITs, 7 IIMs, 15 AIIMS and 390 Universities have been set up,” says Finance Minister.

Finance Minister says besides gross domestic product, the government is equally focused on a more comprehensive GDP – governance, development and performance.

The Finance Minister says that the needs and aspirations of Garib, Mahilayen, Yuva and Annadata are the government’s highest priorities.

What to expect from the Interim Budget 2024:

• Focus on fiscal prudence: The interim budget is unlikely to introduce any major new policy initiatives or announce significant changes in spending patterns. The main focus will be on maintaining fiscal discipline and keeping the government deficit under control.
• Continuation of existing schemes: Existing welfare schemes and social safety nets are likely to be continued, with possible minor adjustments. There might be some announcements regarding increased allocation of funds to crucial sectors like agriculture, healthcare, and education.
• Populist measures: Given the proximity of the elections, the interim budget may also include some populist measures aimed at appeasing voters. This could include tax relief for certain income groups, subsidies on essential goods, or increased spending on infrastructure projects in key constituencies.

Key areas of interest:

• Agriculture: Doubling the annual payout to female farmers who own land is a possibility. The flagship federal housing scheme offering low-cost loans might also be extended.
• Infrastructure: The budget is expected to prioritize infrastructure development, with potential increases in capital expenditure for projects like roads, railways, and renewable energy.
• Space program: With India’s ambitious space program gaining momentum, a significant increase in the space budget is anticipated.
• Fiscal deficit: Reducing the budget deficit by at least 50 basis points is a major goal for the government.
• Taxation: Income tax relief for certain income groups remains a popular demand, but any major changes are unlikely in the interim budget.

It’s important to remember that these are just expectations, and the actual contents of the budget will be revealed on February 1st. Stay tuned for further updates and analysis!

Here are some additional resources that you may find helpful:

• Official website of the Ministry of Finance, Government of India: https://www.indiabudget.gov.in/
• Live updates on Budget 2024: https://www.financialexpress.com/budget/
• Analysis of Budget 2024 expectations: https://www.moneycontrol.com/budget/

I hope this information is helpful! Let me know if you have any other questions.