NEW DELHI: Finance Minister Nirmala Sitharaman on Thursday announced the Interim Budget 2024-25, highlighting the government’s economic achievements during the past 10 years and how the nation has transformed into one of the fastest-growing economies in the world. Interim Budget 2024: While populist measures were missing from Sitharaman’s budget speech, she maintained the government’s focus on creating jobs through a sustained infrastructure push, in addition to prioritising groups such as farmers, youth, women, and the poorest households. No changes in income tax: Finance Minister Nirmala Sitharaman announced that there will be no changes in income tax for FY25. This was in line with what economists had expected ahead of the interim budget. “As for tax proposals, in keeping with the convention, I do not propose to make any changes relating to taxation and propose to retain the same tax rates for direct taxes and indirect taxes including import duties,” Nirmala Sitharaman said. Fiscal deficit for FY24 & FY25: Finance Minister Nirmala Sitharaman said in her speech that the updated fiscal deficit estimate stands at 5.8 percent of GDP for FY24, showcasing improvement compared to the initial Budget Estimate. Meanwhile, the projected fiscal deficit for FY25 is 5.1 per cent. “We continue on the path of fiscal consolidation, as announced in my Budget Speech for 2021-22, to reduce fiscal deficit below 4.5 per cent by 2025-26,” Sitharaman said. Big infrastructure cape push: Infrastructure has been a key area of focus for the government and Nirmala Sitharaman has maintained the momentum. “Building on the massive tripling of the capital expenditure outlay in the past 4 years resulting in huge multiplier impact on economic growth and employment creation, the outlay for the next year is being increased by 11.1 per cent to over Rs 11 lakh crore. This would be 3.4 per cent of the GDP,” Sitharaman said. Vision for ‘Viksit Bharat’: Finance Minister Nirmala Sitharaman also spoke about the government’s vision for a ‘Viksit Bharat’. “Our 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,” she said. She also proposed a provision of Rs 75,000 crore as 50-year interest-free loan this year to support those milestone-linked reforms by the state governments. Focus on poor, women, youth and farmers: Nirmala Sitharaman said the government is focused on prioritising these sections. “Their needs, their aspirations, and their welfare are our highest priority. The country progresses when they progress. All four require and receive government support in their quest to better their lives. Their empowerment and well-being will drive the country forward,” she said. Housing for middle class: The government is set to introduce a scheme aimed at assisting eligible segments of the middle class who currently reside in rented houses, slums, chawls, or unauthorised colonies in realizing their dream of purchasing or constructing their own homes. Ayushman Bharat expansion: Finance Minister Nirmala Sitharaman said healthcare cover under the ‘Ayushman Bharat’ scheme will be extended to all ASHA workers, Anganwadi workers and helpers.
