India's Finance Minister Nirmala Sitharaman unveiled the Interim Budget today for the upcoming fiscal year starting April 1, 2024. As anticipated, the budget emphasizes fiscal responsibility over major policy shifts, aligning with expectations ahead of the looming Lok Sabha elections.

Here are the key highlights from the Interim Budget 2024:

  • The fiscal deficit target for FY25 is set at 5.1%, with the FY24 target revised slightly to 5.8%.
  • A substantial capex outlay of Rs 11.11 lakh crore is earmarked.
  • Tax receipts for 2024-25 are projected to reach Rs 26.02 lakh crore.
  • A divestment target of Rs 50,000 crore is set for FY25.
  • The railway sector is allocated Rs 2.55 lakh crore, a slight increase from the previous year.
  • Gross market borrowing for FY25 is targeted at Rs 14.13 lakh crore.
  • Nominal GDP growth is anticipated at 10.5%.
  • The Production Linked Incentive (PLI) scheme receives Rs 6,200 crore.
  • The healthcare sector is allocated Rs 90,170 crore, reflecting a 13.8% increase from the previous year.
  • The education budget for 2024-25 is set at Rs 1.25 lakh crore.

Now, let's break down some key aspects of the budget for you:

Income Tax:

  • No changes in income tax slabs or rates are proposed.
  • Direct and indirect tax rates, including import taxes, remain untouched.
  • All outstanding disputed direct tax demands up to Rs 25,000 are withdrawn.

Housing Scheme:

  • A new housing scheme is announced for the middle class, aiming to construct 2 crore houses under the PM Aavas Yojana.
  • Additionally, 10 million houses will receive free electricity through a rooftop solar program.

Capex Target:

  • The capital expenditure (capex) target is increased by 11.1% to Rs 11.11 lakh crore, indicating a crucial investment for India's growth.

Tax Targets:

  • Total revenue receipts for FY25 are estimated at Rs 30 lakh crore, up from the revised estimate of Rs 26.99 lakh crore in FY24.

Tourism:

  • Interest-free loans will be provided to states to promote tourism, with a focus on developing tourism in Lakshadweep.

Defence:

  • The defence budget sees a 4% increase to Rs 6.2 lakh crore, aiming to bolster border security.

Healthcare:

  • Healthcare facilities under Ayushman Bharat will be extended to all Aasha and Aanganwadi workers.
  • Plans are in place to establish hospitals in every district, alongside the vaccination of 9-14-year-old girls for cervical cancer.

Aviation Plan:

  • 517 new routes will be launched under the Udan Scheme, catering to the growing demand for air travel.

Allocation for Schemes:

  • Significant increases are noted in allocations for major schemes in FY25, including MNREGA, Ayushman Bharat-PMJAY, and PLI Schemes.

Divestment Plan:

  • The divestment target for FY24 is reduced to Rs 30,000 crore, with a target of Rs 50,000 crore set for FY25. However, no new announcements regarding the privatization of state-owned companies are made.

The Interim Budget 2024 prioritizes continuity and responsible fiscal management while addressing key sectors crucial for India's development and growth.