Highlights of PIB Interim Union Budget 2024-25

Union Minister of Finance and Corporate Affairs Smt. Nirmala Sitharaman presented the Interim Union Budget 2024-25.

Highlights of PIB Interim Union Budget 2024-25

In a significant step, Union Minister of Finance and Corporate Affairs Smt. Nirmala Sitharaman presented the Interim Union Budget 2024-25 in Parliament, reiterating the government's commitment to inclusive growth with the mantra of 'Sabka Saath, Sabka Vikas and Sabka Vishwas'. Underlined. 'Everyone's effort' approach. This budget aims to address the upliftment of key social classes and steer the nation towards a comprehensive growth path.

Part A

social justice

• The Prime Minister has to focus on the upliftment of four major castes, i.e. 'Poor', 'Women', 'Youth' and 'Annadata' (Farmers).

'Welfare of the poor, welfare of the country'

• The government helped lift 25 crore people out of multidimensional poverty in the last 10 years.
• The government saved Rs 2.7 lakh crore from DBT of Rs 34 lakh crore by using PM-Jan Dhan accounts.
• PM-SVANidhi provided loan assistance to 78 lakh street vendors. 2.3 lakh have got credit for the third time.
• PM-Janman Scheme to assist in the development of Particularly Vulnerable Tribal Groups (PVTGs).
• PM-Vishwakarma Yojana provides end-to-end support to artisans and craftsmen engaged in 18 professions.

Welfare of 'Annadata'

• PM-Kisan Samman Yojana provided financial assistance to 11.8 crore farmers.
• Under PM Crop Insurance Scheme, crop insurance is given to 4 crore farmers.
• The Electronic National Agriculture Market (e-NAM) integrates 1361 mandis, serving 1.8 crore farmers with a trade volume of Rs 3 lakh crore.

inspiration for women power

• Mudra Yojana loan of Rs 30 crore was given to women entrepreneurs.
• Female enrollment in higher education increased by 28%.
• Girls and women account for 43% of enrollment in STEM courses, one of the highest in the world.
• Under PM Awas Yojana, more than 70% houses were given to women from rural areas.

PM Awas Yojana (Rural)

• Despite Covid challenges, the target of three crore houses under PM Awas Yojana (Rural) will be achieved soon.
• Two crore more houses will be built in the next five years.

Rooftop solarization and free electricity

• Through rooftop solarization, 1 crore families will get 300 units of free electricity per month.
  Each family is expected to save Rs 15000 to 18000 annually.

Ayushman Bharat

• Health care cover under the Ayushman Bharat scheme will be extended to all Asha workers, Anganwadi workers and helpers.

Agriculture and Food Processing

• Pradhan Mantri Kisan Sampada Yojana has benefited 38 lakh farmers and created 10 lakh jobs.

Pradhan Mantri Micro Food Processing Enterprises

• The formalization scheme has provided credit linkage assistance to 2.4 lakh SHGs and 60000 individuals.

Research and innovation to catalyze growth, employment and development

• A fund of Rs 1 lakh crore will be set up with fifty-year interest-free loans to provide long-term financing or refinancing with long tenures and low or zero interest rates.
• A new scheme will be launched to strengthen deep-tech technologies for defense purposes and accelerate 'self-reliance'.

basic infrastructure

• Capital expenditure outlay for infrastructure development and employment generation will be increased by 11.1 per cent to Rs 11,11,111 crore, which will be 3.4 per cent of GDP.

railway

3 key Economic Railway Corridor programs identified under PM Gati Shakti to be implemented to improve logistics efficiency and reduce costs

• Energy, Mineral and Cement Corridors
• port connectivity corridor
• high traffic density corridors

• Forty thousand general railway coaches will be converted as per Vande Bharat standards.

aviation sector

• The number of airports in the country doubled to 149.
• Five hundred and seventeen new routes carrying 1.3 crore passengers.
• Indian aviation companies have ordered more than 1000 new aircraft.

green energy

• 100 MT coal gasification and liquefaction capacity will be installed by 2030.
• Phased blending of compressed natural gas (CNG) for transportation and piped natural gas (PNG) for domestic purposes will be mandated.

tourism sector

• States will be encouraged to comprehensively develop iconic tourism destinations including their branding and marketing at the global level.
• Long term interest free loans will be provided to the States on an equitable basis to finance such development.

Investment

• FDI inflows of US$596 billion during 2014–23 were double the inflows during 2005–14.

Reforms in states for 'developed India'

• A provision of Rs 75,000 crore is proposed as a fifty-year interest-free loan to support the milestone reforms by state governments.

Revised Estimates (RE) 2023-24

• RE total receipts other than borrowings are Rs 27.56 lakh crore, of which tax receipts are Rs 23.24 lakh crore.
• RE of total expenditure is Rs 44.90 lakh crore.
• Revenue receipts of Rs 30.03 lakh crore are expected to exceed the budget estimates, reflecting strong growth momentum and formalization in the economy.
• The fiscal deficit target for 2023-24 is 5.8 per cent of GDP.

Budget Estimates 2024-25

• Total receipts and total expenditure, excluding borrowings, are estimated at Rs 30.80 and Rs 47.66 lakh crore respectively.
• Tax receipts are estimated at Rs 26.02 lakh crore.
• The scheme of fifty-year interest free loans to states for capital expenditure will continue this year with a total outlay of Rs 1.3 lakh crore.
• Fiscal deficit is estimated to be 5.1 percent of GDP in 2024-25.
• Gross and net market borrowings through dated securities are estimated to be Rs 14.13 lakh crore and Rs 11.75 lakh crore, respectively, during 2024-25.

Part B

direct tax

• The Finance Minister has proposed to maintain the same tax rates for direct taxes.
• Direct tax collections tripled in the last 10 years, the number of return filings increased 2.4 times.

Government will improve taxpayer services

• Outstanding direct tax demands up to Rs 25,000 relating to the period up to FY 2009-10 were withdrawn.
• Outstanding direct tax demands up to Rs 10000 for the financial years 2010-11 to 2014-15 were withdrawn.
• One crore taxpayers will benefit from this.

• Tax benefits on investments made by start-ups, sovereign wealth funds or pension funds extended till 31.03.2025.
• Tax exemption on certain income of IFSC units extended by one year from 31.03.2024 to 31.03.2025.

indirect tax

• The Finance Minister has proposed to maintain the same tax rates for indirect taxes and import duties.

GST unified the highly fragmented indirect tax system in India.

• Average monthly gross GST collections doubled this year to Rs 1.66 lakh crore.
  The GST tax base has doubled.
• State SGST revenue growth (including compensation released to states) increased to 1.22 in the post-GST period (2017-18 to 2022-23) from 0.72 in the pre-GST period (2012-13 to 2015-16).
• 94% of industry leaders consider the changes in GST largely positive.
• GST led to supply chain optimization.
• GST reduced the compliance burden on business and industry.
• Lower logistics costs and taxes helped lower the prices of goods and services, benefiting consumers.

Tax rationalization efforts over the years

• There will be no tax liability on income increasing from Rs 2.2 lakh to Rs 7 lakh in the financial year 2013-14.
• The presumptive taxation limit for retail businesses was increased from Rs 2 crore to Rs 3 crore.
• The presumptive taxation limit for professionals was increased from Rs 50 lakh to Rs 75 lakh.
• Corporate income tax for existing domestic companies reduced from 30% to 22%.
• The corporate income tax rate for new manufacturing companies increased to 15%.

Achievements in Tax Payer Services

• The average processing time of tax returns has reduced from 93 days in 2013-14 to 10 days.
• Faceless assessment and appeals were introduced for greater efficiency.
• Updated income tax returns, new Form 26-AS and pre-filled tax returns for simplified return filing were introduced.

Customs reforms have reduced the time for import release-

• 47% reduction in hours at inland container depot to 71 hours
• 28% to 44 hours reduction in air cargo complex
• Reduction of 27% to 85 hours at sea ports

Economy-then and now

In 2014, it was responsible for reforming the economy and streamlining governance systems. The need of the hour was:

• attracting investment
• Building support for much-needed reforms
• give people hope

• Government succeeded with strong belief of 'Nation-First'
• “Now it is appropriate to look at where we were till 2014 and where we are now”: FM

• The government will lay the white paper on the table of the House.