Context:
This editorial is based on the news “Parliament Budget Session Live Updates: Day after interim Budget, INDIA party leaders to chalk out joint strategy” which was published in the Indian Express. Recently, the Finance Minister of India presented an interim budget 2024-25 in the Parliament.
Key Highlights of the Interim Union Budget 2024-25
| Relevancy for Prelims: Parliament Budget Session 2024 Live Updates, Union Budget 2024-25, $7-Trillion GDP: Indian Economy Review 2024, Foreign Flows, Ayushman Bharat, and Viksit Bharat @2047. Relevancy for Mains: Interim Budget 2024: Key Highlights, Fund Allocation Related Data, & More. |
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What is Interim Budget?
- There is no constitutional provision for an interim budget. However, it has become a common practice for outgoing governments ahead of polls.
- A Short Period Budget: During an election year, the finance ministers present an interim Budget that covers the government’s expenses and revenues for a short period. This is till a new government is elected and takes charge.
- Released: The presentation of an interim budget follows the same schedule as the Union budget would in a regular financial year.
What Can Be Included in Interim Budget?
- The interim Budget includes estimates for the government’s expenditure, revenue, fiscal deficit, financial performance and projections for just a few months.
What Cannot Be Included in Interim Budget?
- No major policy announcements that can burden the next government can be presented in the interim Budget.
About Full Budget
- A Financial Year Budget: The Union Budget is the annual financial statement with the estimated costs and expenses of the government for the following financial year.
- Released: After the Lok Sabha elections, the new government presents a full budget.
Highlights of Interim Budget 2024
- Economic growth: It has picked up and the average real income of people increased by 50%.
- On Borrowings: The Government borrowings on a gross and net basis for 2024-25, at Rs. 14.13 lakh crore and Rs. 11.75 lakh crore, respectively, lower than 2023-24.
- On Expenditure: Spends on capital expenditure have been increased to ₹11.11 lakh crore for Interim Budget 2024-25.
- On Inflation: Inflation has moderated and is within the target band (2%-6%).
- On Fiscal Deficit: Reduce fiscal deficit to 4.5% in 2025-26.
- On Tax Rates: The Government proposed to maintain the same tax rates for direct and indirect taxes, including import duties.
- On GST Collection: Average monthly Gross GST collectionsdoubled to 1.66 lakh crore in FY24.
- Positive sentiment about GST: 94% industry leaders view transition to GST as largely positive 80% of respondents feel GST has led to supply-chain optimisation.
- Welfare for Poor: The Government pulled 25 crore people out of poverty in ten years and provided free food for 80 crore people through various schemes.
- Direct Benefit Transfers (DBT): DBT of Rs. 34 lakh crore through PM Jan Dhan Yojana accounts has led to savings of ₹2.7 lakh crore.
- Interim Budget 2024 For Support Self-Sufficiency:
- For Artisans: The PM Vishwakarma Yojana scheme provides end-to-end support to artisans.
- For Street Vendors: The government provided credit assistance to 78 lakh street vendors under the PM-SVANidhi scheme.
- Interim Budget 2024 For Women
- 30 croreMudra Yojana loans disbursed to women entrepreneurs.
- Increased female enrolment in higher education by 28% in 10 years.
- 43% of female enrolment in STEM (science, technology, engineering and mathematics) courses.
Conclusion
The Interim Budget 2024-25 reflects the government’s continued focus on inclusive growth, economic stability, strategic global positioning, sector-specific developments, environmental sustainability, and tax reforms, with an overarching vision towards a developed India by 2047.
