Budget Day holds great anticipation in India, with both businesses and the general public eagerly awaiting the unveiling of schemes and initiatives that could impact them. This year, due to the upcoming elections, Budget 2024 has been replaced by an Interim Budget. Nevertheless, Finance Minister Smt. Nirmala Sitharaman has successfully introduced schemes and benefits, bringing satisfaction to the public.
On February 1, 2024, the finance minister declared that the theme for this year’s budget would be “Viksit Bharat Budget 2024.” She underscored the continuous pursuit of Atmanirbhar Bharat while giving top priority to the welfare and aspirations of the poor, women, youth, and farmers in the Interim Budget 2024.
The Viksit Bharat theme envisions a developed India by 2047, focusing on the four pillars of the poor, women, youth, and farmers. The finance minister, aligning with the people-centric inclusive development plan, announced substantial measures to uplift these crucial sectors.
Comprehensive progress is anticipated in various infrastructure realms, encompassing physical, digital, and social domains. The promotion of Digital Public Infrastructure (DPI) aims to encourage formalization and enhance financial inclusion. The government intends to expand and intensify the tax base through the Goods and Services Tax (GST). The reinforced financial sector is expected to restore momentum to savings, credit, and investment. An effective gateway named GIFT IFSC will be established to facilitate global capital and financial services for the economy. Proactive measures will be taken to manage inflation effectively.
Garib Kalyan, Desh ka Kalyan
- Direct Benefit Transfer (DBT) has resulted in savings amounting to Rs. 2.7 lakh crore.
- Multidimensional poverty has seen improvement with 25 crore individuals uplifting from such conditions.
- Credit support has been extended to 78 lakh street vendors through the PM-SVANidhi initiative.
Empowering the Youth
- 4 crore youth have received training through the Skill India Mission.
- Supporting youth entrepreneurship – 43 crore loans have been approved under the PM Mudra Yojana.
- A fund of Rs.1 lakh crore has been established to provide tech-savvy youth with a 50-year, interest-free loan at low or nil interest rates for financing and re-financing.
Welfare of Farmers (Annadata)
- Direct financial support has been extended to 11.8 crore farmers through PM-KISAN.
- Crop insurance coverage has been granted to 4 crore farmers under PM Fasal Bima Yojana.
- Integration of 1,361 mandis under eNAM has facilitated trading volume amounting to Rs. 3 lakh crores.
Nari Shakti
- 30 crore Mudra Yojana loans have been distributed to women entrepreneurs.
- Female enrollment in higher education has risen by 28% over the last decade.
- STEM courses boast a 43% enrollment of female students.
- 83 lakh Self-Help Groups (SHGs) are aiding one crore women to achieve financial prosperity as Lakhpati Didis.
The budget 2024 strategy is shifted for Amrit Kaal as Kartavya Kaal.
Sustainable Development/Green Energy
The finance minister emphasized the imperative of sustainable development by committing to achieve ‘Net Zero’ by 2070 under Amrit Kaal. In this context, the following proposals were put forth:
- Providing viability gap funding to harness offshore wind energy, starting with an initial capacity of one gigawatt.
- Establishing coal gasification and liquefaction capacity of 100 MT by 2030.
- Implementing phased mandatory blending of CNG, PNG, and compressed biogas for domestic purposes.
- Offering financial support for the procurement of biomass aggregation machinery.
- Introducing rooftop solarization, enabling one crore households to receive up to 300 units of free electricity per month.
- Adopting e-buses for public transport and enhancing the e-vehicle ecosystem by supporting manufacturing and charging of electric vehicles.
- Launching a new scheme for biomanufacturing and bio-foundry to promote environmentally friendly alternatives.
- Installing 1.3 crore LED street lights under the SNLP scheme.
- Introducing the Blue Economy 2.0 scheme to revive and adapt coastal aquaculture and mariculture.
Infrastructure and Investment
- The government aims to execute three significant railway corridor programs, encompassing the energy, minerals, and cement corridor, port connectivity corridor, and high traffic density corridor as part of the PM Gati Shakti initiative. This initiative is designed to enhance logistics efficiency and minimize costs.
- Promotion of foreign investment will be facilitated through the negotiation of bilateral investment treaties.
- The expansion of current airports and the holistic development of new airports will be carried out as part of the UDAN scheme.
- Urban transformation initiatives will be implemented through the Metro rail and NaMo Bharat projects.
Inclusive Development
The finance minister emphasized the importance of inclusive development during Amrit Kaal, introducing an aspirational District Programme to support states in achieving accelerated development, including the generation of employment opportunities.
Healthcare
- The government actively promotes cervical cancer vaccination for girls aged 9-14 years.
- Implementation of the Saksham Anganwadi and Poshan 2.0 scheme will accelerate the enhancement of Anganwadi centers, focusing on improving nutrition delivery and early childhood care and development.
- Introduction of the U-WIN platform is planned for the immunization efforts associated with Mission Indradhanush.
- Health coverage under the Ayushman Bharat scheme will be expanded to include all ASHA, Anganwadi workers, and helpers.
- A committee will be established to examine the challenges encountered in establishing additional medical colleges in India.
Housing
- The Pradhan Mantri Awas Yojana (Grameen) is nearing the goal of 3 crore houses, and an extra 2 crore houses are set as the target for the next 5 years.
- A scheme promoting housing for the middle class will be introduced to incentivize middle-class individuals to either purchase or construct their own homes.
Tourism
- States will be incentivized to engage in the enhancement of iconic tourist centers, fostering business attraction and creating opportunities for local entrepreneurship.
- Long-term interest-free loans will be extended to states to stimulate development initiatives.
- Initiatives for port connectivity, tourism infrastructure, and amenities will be initiated in islands, including Lakshadweep.
Agriculture and Food Processing
- Private and public investment in post-harvest activities will be actively promoted by the government.
- The application of Nano-DAP will be expanded across all agro-climatic zones.
- A strategy for Atmanirbhar Oilseeds Abhiyan will be devised to attain self-reliance in oilseeds.
- A comprehensive program for dairy development will be formulated.
- The implementation of the Pradhan Mantri Matsya Sampada Yojana will be intensified to boost aquaculture productivity, double exports, and create more employment opportunities.
Additionally, the establishment of five integrated aquaparks is planned. Meanwhile, the proposed allocations for major ongoing schemes in the Interim Budget 2024 are as follows:
- Mahatma Gandhi National Rural Employment Guarantee Scheme – Rs. 86,000 crores
- Ayushman Bharat-PMJAY – Rs. 7,500 crores
- Production Linked Incentive Scheme – Rs. 6,200 crores
- Modified Programme for Development of Semiconductors and display manufacturing ecosystem – Rs. 6,903 crores
- Solar Power (Grid) – Rs. 8,500 crores
- National Green Hydrogen Mission – Rs. 600 crores
Although the 2024 interim budget may not bring revolutionary changes, it offers significant insights into the nation’s economic well-being and forthcoming priorities. For businesses and individuals, comprehending the budget’s emphasis and trajectory is crucial for strategic planning and decision-making.
It is important to note that the interim budget does not mark the conclusion. The comprehensive budget for FY 2024-25 will be unveiled post-elections, showcasing the vision and strategies of the incoming government. Therefore, keep an eye out for the forthcoming phase in India’s economic narrative!
(Images Source – PIB)
