Key Highlights & Announcements of Union Budget 2024-25:
Finance Minister Nirmala Sitharaman has confirmed that the current tax rates, including direct, indirect taxes, and export duties, will remain unchanged. Additionally, she has revealed a significant 11% increase in the capital expenditure outlay for the upcoming year, amounting to ₹11.1 lakh crore. During the announcement of the federal budget for the fiscal year, Sitharaman has revised the fiscal deficit to 5.8% of the gross domestic product. Furthermore, the Finance Minister has introduced a housing scheme specifically targeting the deserving middle class who reside in rented houses, slums, chawls, or unauthorized colonies. Prime Minister Modi has emphasized that this initiative will aid them in acquiring or constructing their own homes. Alongside various announcements benefiting the youth, impoverished individuals, women, and farmers, Sitharaman has highlighted the extension of Ayushman Bharat healthcare coverage to all ASHA and Anganwadi workers and helpers.
Key Features of the Interim Budget 2024-25.
- There are no changes in direct, indirect tax rates
- The government withdrew income tax demands up to ₹25,000 (till 2009-10) and ₹10,000 from 2010-11 to 2014-15. This will benefit about one crore taxpayers
- A scheme to help middle class living in rented houses to buy or build their own houses will be launched
- Tax benefits to start-ups and investments made by sovereign wealth or pension funds extended by 1 year till March 31, 2025
- Capital expenditure hiked 11% to ₹11.11-lakh crore
- Fiscal deficit for FY25 projected at 5.1%, lower than the revised estimate (5.8%) in FY24
- Govt to borrow ₹14.13-lakh crore in next fiscal, lower than ₹15.43 lakh crore in FY24
- Nominal GDP growth for FY25 is projected at 10.5%
- Mop-up from central public sector enterprises (CPSEs) disinvestment pegged at ₹50,000 crore for FY25, up from ₹30,000 crore in FY24
- Gross tax revenue target for FY25 hiked 11.46% to ₹38.31-lakh crore, from ₹34.37 lakh crore in FY24
- Direct tax collection target set at ₹21.99-lakh crore, while that of indirect tax is at ₹16.22-lakh crore
- The government will release a white paper on mismanagement of economy prior to 2014
- Next generation reforms will be unveiled in consultation with States and stakeholders
- Govt to form high-powered panel to address population growth challenges and demographic changes