Highlights of the Interim Budget 2024-25

Part A

Social Justice

  • Focus on four major castes: ‘Garib’ (Poor), ‘Mahilayen’ (Women), ‘Yuva’ (Youth) and ‘Annadata’ (Farmer).
  • PM-JANMAN Yojana to aid the development of particularly vulnerable tribal groups (PVTG).

PM Awas Yojana (Grameen)

  • Two Crore more houses to be taken up in the next five years.
  • Rooftop solarisation
  • 1 Crore households to obtain 300 units of free electricity every month through rooftop solarisation.
  • Each household is expected to save Rs.15000 to Rs.18000 annually.
  • Ayushman Bharat
  • Healthcare coverage under the Ayushman Bharat scheme is to be extended to all ASHA workers, Anganwadi Workers, and Helpers.

Research and Innovation

  • A corpus of Rs.1 lakh crore is to be established with a fifty-year interest-free loan to provide long-term financing or refinancing with long tenors and low or nil interest rates.
  • A new scheme is to be launched for strengthening deep-tech technologies for defence purposes.

Infrastructure

  • Capital expenditure outlay for Infrastructure development and employment generation to be increased by 11.1 per cent to Rs.11, 11,111 Crore, that will be 3.4 per cent of the GDP.

Railways

  • 3 major economic railway corridor programmes are to be implemented to improve logistics efficiency and reduce cost, Energy, mineral, and cement corridors, Port connectivity corridors, and High traffic density corridors.
  • Forty thousand normal rail bogies are to be converted to Vande Bharat standards.

Green Energy

  • Coal gasification and liquefaction capacity of 100 MT to be set up by 2030.
  • Phased mandatory blending of compressed biogas (CBG) in compressed natural gas (CNG) for transport and piped natural gas (PNG) for domestic purposes to be mandated.
  • Transport and piped natural gas (PNG) for domestic purposes are mandated.

Tourism sector

  • States are to be encouraged to take up comprehensive development of iconic tourist centres including their branding and marketing at a global scale.
  • Framework for the rating of tourist centres based on the quality of facilities and services to be established.
  • Long-term interest-free loans are to be provided to States for financing such development on a matching basis.

Reforms in the States

  • A provision of Rs.75, 000 Crore rupees as a fifty-year interest-free loan is proposed to support milestone-linked reforms by the State Governments.

Revised Estimates (Re) 2023-24

  • Revenue receipts at Rs.30.03 lakh Crore are expected to be higher than the Budget Estimate, reflecting strong growth momentum and formalization in the economy.
  • RE of the fiscal deficit is 5.8 per cent of GDP for 2023-24.

Budget Estimates 2024-25

  • Total receipts other than borrowings and the total expenditure are estimated at Rs.30.80 and Rs.47.66 lakh Crore respectively.
  • Tax receipts are estimated at Rs.26.02 lakh Crore.
  • Scheme of a fifty-year interest-free loan for capital expenditure to states to be continued this year with a total outlay of Rs.1.3 lakh Crore.
  • The fiscal deficit in 2024-25 is estimated to be 5.1 per cent of GDP.
  • Gross and net market borrowings through dated securities during 2024-25 are estimated at Rs.14.13 and Rs.11.75 lakh Crore respectively.

PART B

Direct Taxes

  • To retain the same tax rates for direct taxes.
  • Tax benefits to Start-Ups, investments made by Sovereign wealth funds, or pension funds extended to 31.03.2025.
  • Tax exemption on certain income of IFSC units extended by a year to 31.03.2025 from 31.03.2024 Indirect taxes.
  • To retain the same tax rates for indirect taxes and import duties.

Tax Rationalization

  • No tax liability for income up to Rs 7 lakh, up from Rs 2.2 lakh in FY 2013-14
  • The presumptive taxation threshold for retail businesses increased to Rs 3 Crore from Rs 2 Crore
  • The presumptive taxation threshold for professionals increased to Rs 75 lakh from Rs 50 lakh
  • Corporate income tax decreased to 22% from 30% for existing domestic companies
  • The corporate income tax rate at 15% for new manufacturing companies
Posted in Current Affairs.