Top 10 Key Points of 2024 Budget in India

The Interim Union Budget for 2024-2025 was presented by Finance Minister Nirmala Sitharaman on February 1, 2024. The budget lays out the government’s spending plans for the first half of the upcoming fiscal year, with a focus on inclusive development, infrastructure, green growth, youth, and financial sector. Here are the top 10 key points of the budget that you need to know:

1. Capital expenditure outlay increased by 11.1%: The budget proposes to increase the capital expenditure outlay for the next year by 11.1% to Rs 11,11,111 crore, which would be 3.4% of the GDP. This is in line with the government’s aim to boost public investment and create a multiplier effect on economic growth and employment.
2. Real GDP projected to grow at 7.3%: The budget projects India’s real GDP to grow at 7.3% in FY 2023-24, reflecting the resilience and recovery of the economy amid the global challenges. The IMF has also revised its growth projection for India upwards to 6.3% for FY 2023-24, indicating the increasing global confidence in India’s economic prowess.
3. No change in tax rates: The budget does not propose any change in the tax rates for the interim period. However, the budget expects to benefit about one crore tax payers by withdrawing certain petty and disputed direct tax demands. The budget also proposes to lay a white paper on the Indian economy now and then, to provide a comprehensive and transparent account of the economic situation and reforms.
4. One lakh crore corpus for youth scheme: The budget announces a new scheme for the youth, called the 50-year interest free loan for youth scheme, which will provide a corpus of Rs one lakh crore for the youth to pursue their entrepreneurial and educational aspirations. The scheme will be implemented through the National Skill Development Corporation and the National Bank for Agriculture and Rural Development.
5. Continuation of interest free loan for capex to states: The budget proposes to continue the scheme of 50 year interest free loan for capex to states, which was launched in 2022-23, with a total outlay of Rs 1.3 lakh crore. The scheme aims to support the states in enhancing their capital expenditure and creating productive assets in various sectors such as health, education, water supply, urban development, etc.
6. Green growth as a priority: The budget emphasizes the importance of green growth and environmental sustainability, and allocates Rs 50,000 crore for the National Clean Air Programme, which will cover 100 cities with high levels of air pollution. The budget also allocates Rs 30,000 crore for the Jal Jeevan Mission, which will provide piped water supply to every household in rural areas. The budget also announces a new scheme called the Green India Mission, which will promote afforestation, biodiversity conservation, and climate change mitigation.
7. Youth power as a driver of growth: The budget recognizes the potential of the youth as a driver of growth and innovation, and allocates Rs 40,000 crore for the National Education Mission, which will implement the National Education Policy 2020 and improve the quality and access of education at all levels. The budget also allocates Rs 20,000 crore for the National Research Foundation, which will fund and coordinate research and innovation across various domains and disciplines.
8. Financial sector reforms and stability: The budget proposes several measures to strengthen the financial sector and enhance its stability and efficiency. The budget announces the setting up of a new Development Financial Institution, which will provide long-term financing for infrastructure and industrial projects. The budget also announces the privatization of two public sector banks and one general insurance company, as part of the strategic disinvestment policy. The budget also proposes to increase the foreign direct investment limit in the insurance sector from 49% to 74%, and to introduce a new bill to regulate the cryptocurrency market.
9. Special focus on the eastern region: The budget announces that the government will pay utmost attention to make the eastern region and its people a powerful driver of India’s growth. The budget allocates Rs 25,000 crore for the development of the North Eastern Region, and Rs 15,000 crore for the development of the Eastern Dedicated Freight Corridor, which will connect the eastern states with the rest of the country and boost trade and commerce. The budget also allocates Rs 10,000 crore for the development of the Sundarbans region, which is a unique ecosystem and a UNESCO World Heritage Site.
10. High-powered committee on population growth and demographic changes: The budget announces that the government will form a high-powered committee for an extensive consideration of the challenges arising from fast population growth and demographic changes. The committee will examine the implications of the population trends on various aspects of the economy and society, and suggest appropriate policies and interventions to address them.