Interim Budget 2024

On February 1 , Finance Minister Nirmala Sitharaman presented an interim Budget 2024 .

A final budget  will be presented after genreal elections in July .

Govt plans to present a detailed roadmap for its vision to developed India by 2047 during full budget in July  , said FM Nirmala Sitharaman .

Ms. Sitharaman also emphasised that govt wants to make eastern part of India in coming years under vision 2047 .

Highlights of Budget 2024

●     Total Expedititure Estimated 2024-25 –47.66 lakh crore . Total receipts other than borrowing for 2024-25 estimated 30.80 lakh crore .

●     Fisc deficit estimated for 2024-25 is 5.1% of GDP .

●     Fiscal Deficit – Revised estimate of Fiscal deficit for 2023-24 – 5.8% of GDP .

Goverement targetted Fiscal deficit to  5.1% for 2024-25 .

Government in Budget 2023 had targetted fiscal Deficit to be below 5.9%.

Fiscal Deficit = Total expenditure of govt ( capital and revenue )  – Total Income of Govt ( revenue + loan recovery + others )

Expenditure –

●     Capital Expenditure – A moderate increase by 11.1%. The capital expenditure estimated for 2024- 25 is 11,11,111 crore .

●     Interest Payment – ₹11,90,440 crore (+1.48 % up ) were allocated to interest payment .

●     Loan to states – Interest free Capex loans to states raised to ₹1.3 lakh cro

Tax , Pension

Govt to drop Old Pension demands , small payers get relief

●     Tax demands of upto ₹25,000 of the period FY 2009 -10 , upto ₹10000 for period FY 20010 -15 would be withdrawn .

Tax exemption expiry date for startups gets one Year extension

Social Sector ( MGNREGA , Education , Job , Health  )

MGNREGA

●     Increased allocation – ₹86,000 crore for MGNREGA , this is 43.33% higher than the previous budget .

In previous budget govt has allocated ₹60,000 crore however ministry of rural development data shows that govt spent ₹88,309 crore in 2023-24 .

MGNREGA is still facing problem , center as on February 1 owes ₹ 16,000 crore to the states. Govt has suspended the scheme in West Bengal citing corruption .

School and Higher Education Department get more money

●     Total allocation for school education department is ₹73,008.10 crore .

Prevous budget estimated: ₹68,804 crore .

●     For higher Education ₹47,619.77 crore has been allocated.

In the last budget it was ₹44, 094 crore

●     PM SHRI allocation increased – PM SHRI ( School for Rising India ) , got almost 50 % more allocation to ₹6050 crore .

●     PM POSHAN ( PM Poshan Shakti Nirman ) earlier known as midday meal scheme got allocation of ₹12,467.30 crore .

ASHA , Anganwadi staff get health cover

●     Allocation – Interim  Budget enhances Budget for Ministry of Health and Family Welfare to ₹90,658 crore .from ₹89,155 crore in 2023-24 .

●     ASHA and Anganwadi workers to be included in Ayushman Bharat Scheme – Health Cover under Ayushman Bharat Yojna will be extended to Accreditted Social Health Activists ( ASHA ) and Anganwadi workers and helpers .

●     UWIN portal for vaccination – Newly designed U WIN portal will be used for managing  Immunisation and intensifying efforts under “ Mission Indradhanush “ .

●     HPV vaccination – HPV vaccination for girls between age group 9- 14 to prevent cervical cancer .

●     Saksham Anngawadi , Poshan 2.0 – Anganwadi center’s would be upgraded under “ Saksham Anganwadi “ while Poshan 2.0 would be expedited to improve nutritional delivery and ensure early childhood care and development  .

Saksham Anganwadi and Poshan 2.0 saw highest allocation of ₹21,000crore .

Center raises Lakhpati Didi target

●     1 crore more “ Lakhpati Didi “ will be made – Center has decided to increase the target for “ Lakhpati Didi “ scheme from the existing 2 crore to 3 crore .

Lakhpati Didi Schemes – It aims to train women Self Help Groups ( SHGs ) to earn a sustainable income of at least ₹1lakh per annum by setting up micro enterprises within their village.

Currently there are 83 lakh self help groups with a total of 9 crore women enrolled in it .

 Affordable Housing Scheme for middle class to be launched

●     Allocation – The Allocation. for housing And Urban Ministry for 2024-25 is ₹ 77, 523 crore .

Allocation for PMAY for 2024-25 is ₹80,671 crore , of which ₹ 54,550 crore is for PMAY ( Rural )

●     Scheme for those at rent or livingbin slums or Chawls – FM Nirmala Sitharaman  announced that govt would launch a scheme to help “ deserving section of middle class living in rented houses or slums or chawls and unauthorised colonies “ .

●     2 crore more houses in next five years under PMAY ( Rural ) – Despite Pandemic target of building 3 crore houses under PMAY ( Rural ) has been achieved . For next five years there is target to build two crore more houses .

Agriculture and Fertilizer

Marginal rise in allocation  for farming , fisheries

●     Allocation – The Allocation for the Minsitry of Agriculture is ₹₹1,17,528 lakh crore . A rise of ₹1997 crore from previous year .

●     The major schemes are  Pradhan Mantri Krishi Sinchayi Yojna ( PMKSY ) , Pradhan Mantri Fasal Bima Yojana ( PMFBY ) , PM Kisan Samman Nidhi ( PM Kisan ) .

Allocation for PM KISAN remains same at ₹60,000 crore .

●     The focus will be on existing schemes such as PM Matsya Yojna , National Gokul Mission .

Fertilizer subsidy set to decline , Food subsidy sees increase

●     Fertilizer subsidy set to decline – Budget has allocated ₹1,64,150 crore  for fertilizer subsidy . It was ₹1,75,148 crore  in 2023-24 ,with revised estimates of ₹1,88,942 crore . The subsidy was 2.51 lakh crore in 2022-23 .

After the successful adoption of Nano Urea and Nano Di Ammonium Phosphate ( DAP ) ,the need for fertilizers will decrease .

●     Food subsidy ( PM GKAY ) – ₹2,05 , 250 crore has been allocated for Food subsidy and other under PM Garib Kalyan Anna Yojna .

Under PM GKAY free ration is given to 80 crore people .

Power

Solar panels to give free power to 1 crore homes

●     1 Crore household to get rooftop solar panel – Government will install 1 crore rooftop solar panels on house . Household will be able to get 300 units of free electricity  every month this would , translate to benefit of ₹15,000 to ₹18,000 annually for these households . The surplus electricity will be sold to electricity distribution companies .

However it has not been specified whether govt would fund these or will subsidise it .

At present India has about 11 GW of          installed rooftop solar capacity , of which only 2.7 GW is in residential units .

Infrastructure

Road Sector sees a nominal hike of 2.7%

●     Allocation – ₹ 2,78,000 crore has been allocated to Ministry of Road Transport and Highways compared to 2,70 , 434 crore in the budget estimates .

●     Bharat mala – Of the total allocation to Road and Transport minsitry ₹1,68,000 crore have been allocated to Bharat mala Pariyojana . As of November 2023 , 15,045 km road has been completed out of a total 26,418 km . A total amount of ₹4.1 lakh crore has been spent under Bharat Mala Project

Bharat mala Project is ambitious project of govt of India under which 550 district headquarters  will be connected with a minimum four lane road . Govt has plans to build Logistics park . It aims to move 80 % of freight traffict ( current. 40% ) through these .

Three Economic rail Corridors on the anvil

●     Allocation – Railways has been allocated ₹2.55 lakh crore  for the financial year 2024 – 25 , up by 5.8% from last year .

●     Three major Economic Corridor programme : – FM Nirmala Sitharaman said that govt will implement three major economic corridor programme .

            Energy Economic Corridor – Energy , Mineral and Cement Corridor .

       Rail Sagar : – Port Connectivity programme

      Amrit Chaturbhuj – High traffic density corridor

     A total of 434 projects with a total investment of ₹11 lakh crore will be rolled out under these .

●     44,000 coaches overhauled to Vande Bharat standard –. Over next five years 44,000 coaches will be overhauled to give passenger similar expert as Vande Bharat trains .

●     Investment in PSUs decreased –  Budget allocation for investment in public sector units and Joint ventures decreased from ₹34, 353 crore in 2023-24 to ₹31,101 crore in 2024-25 . Experts say that this is to opening up market for private sector .

●     Bullet train allocation in creased to ₹25,000 crore than previous ₹ 19,592 crore .

UDAN hits and airpocket , 60% cut in Budget allocation.

●     Allocation – Allocation for civil Aviation minsitry dropped by 26% to ₹2300 crore .

●     The Allocation for UDAN scheme has been dropped to 60% to ₹502 crore . Last Budget has allocated  ₹1502 crore .

●     FM said that  number of Airports in the country doubled to 149 .  Five hundred and seventeen new routes are carrying 1.3 crore passengers . Indian carriers have placed orders of 1000 new aircraft ..

Industry welcomes plan to augment electric vehicle ecosystem

●     FM Nirmala Sitharaman said that Center will focus of strengthing Electric Vehicle ecosystem by supporting Electric Charging ecosystem . It will also push for greater adoption of electric public transport network buses

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  R&D , Space , Biotechnology

Centre moots ₹1 lakh crore corpus for R&D

●     FM Nirmala Sitharaman announced that a corpus of ₹1 lakh crore wlild be made available on “  minimal “ or “ nil “ interest rates to encourage the private sector to invest in Research and Development  of “ sunrise sector “ .The Loans will be interest free for five decades .

●     ₹2,819 crore has been set aside for National Quantum Mission .

 Sunrise sector – Artificial Intelligence , Semiconductor , Space Economy , Genomics and Pharma , Clean Mobility , Food Processing are among Sunrise sector .

New Scheme for Bip Manufacturing , , Bio foundry on the Cards

●     A new scheme of Biotechnology -+ FM announced “  a new scheme of biomanufactiring and biofoudry “ to provide “ environmental friendly alternatives such as biodegradable polymers , bio plastics , bio pharmaceutical , and bio agro inputs “

 This is a part of govt vision that bio economy will contribute to 300 Billion dollar by 2030 , a jump of ₹18 lakh crore from current level.  The target for 2047 is that bio economy will contribute 1 trillion dollar .

Space Programmes get nominal hike of 4%

●        Allocation – Allocation for space sector has been increased marginal to ₹13043 crore , the previous budget had allocated ₹12,525 crore .

●     This year NISAR  mission is expected to be launched , also several test will be conducted for Gaganyaan Mission.

Committee will study “ fast population growth and demographic Changes “ : FM

FM Nirmala Sitharaman on Thursday announced that a committee will be formed to look into the challenges arising from “ fast population growth and demographic challenges “ Finance Minister Nirmala Sitharaman said in her interim budget .

The commitree would be mandated to make recommendation to address these challenges in relation to the goal of Viksit Bharat .

FM said that changing demography in border areas pose a concern as well .

World

EU agrees on 50 billion euros  relief package for Ukraine

The 27 member EU countries sealed a deal on Thursday to provide Ukriane with a new support package of 50 billion Euros ( 54 billion dollar )  for its economic revival . The package would run through 2024 -27 .

EU leaders had agreed on this package in December but , Hungry had vetoed , Hungry removed its veto on Wednesday . But this time Hungry agreed over the package .

“ Continued EU Financial support will strengthen long term economic and financial support will strengthen long term Economic and financial stability “

India concerned about UNRWA staff’s Hamas attack link

India on Thursday expresse “ deep concern “ over involvement of UNRWA staffs in  October 7 Hamas attack .

Randhir Jaiswal MEA spokesperson said this .

Pegasus used to hack phones of journalists and activists in Jordan

Pegasus software was used in Jordan to hack account of at least 30 people , including , journalist and lawyers human rights activists , the  Digital rights Groups access said on Thursday .