Interim Budget 2024-25, a beacon of hope for India’s growth amid challenges
The Interim Budget 2024-25, presented by Union Finance and Corporate Affairs Minister Nirmala Sitharaman seeks to inject the economy with policies and measures aimed at reigniting positive sentiments and accelerating growth. Can this budget be the catalyst for achieving these growth targets? Let’s delve into its key highlights.
Under the guiding principles of ‘Sabka Saath, Sabka Vikas, and Sabka Vishwas’ and the inclusive approach of “Sabka Prayas,” the Finance Minister presented the Interim Union Budget 2024-25 in Parliament. The budget focuses on social justice, particularly uplifting four major segments: the poor (‘Garib’), women (‘Mahilayen’), youth (‘Yuva’), and farmers (‘Annadata’).
Key Initiatives:
Poverty Alleviation: The budget emphasises ‘Garib Kalyan, Desh ka Kalyan,’ claiming to have lifted 25 crore people out of multi-dimensional poverty in the last decade. Direct Benefit Transfer (DBT) of Rs 34 lakh crore through PM-Jan Dhan accounts has resulted in government savings of Rs 2.7 lakh crore. The PM-SVANidhi scheme provided credit assistance to 78 lakh street vendors, with 2.3 lakh receiving credit for the third time.
Tribal and Artisan Support: Schemes like PM-JANMAN Yojana aid the development of particularly vulnerable tribal groups (PVTG), while PM-Vishwakarma Yojana provides end-to-end support to artisans and craftspeople in 18 trades.
Agricultural Initiatives: PM-KISAN SAMMAN Yojana provided financial assistance to 11.8 crore farmers, while PM Fasal Bima Yojana offers crop insurance to 4 crore farmers. The Electronic National Agriculture Market (e-NAM) integrated 1361 mandis, serving 1.8 crore farmers with a trading volume of Rs 3 lakh crore.
Women Empowerment: The budget highlights 30 crore Mudra Yojana loans given to women entrepreneurs. Female enrollment in higher education has increased by 28%, with girls and women constituting 43% of enrollment in STEM courses, one of the highest rates globally. Over 70% of houses under PM Awas Yojana in rural areas have been allotted to women.
Housing: Despite COVID challenges, the budget aims to achieve the target of three crore houses under PM Awas Yojana (Grameen) soon, with an additional two crore houses to be taken up in the next five years.
Strategic Initiatives:
Rooftop Solarisation and Free Electricity: A significant announcement is the provision of 300 units of free electricity per month through rooftop solarisation to one crore households, expected to save households Rs 15,000 to Rs 18,000 annually.
Healthcare: The Ayushman Bharat scheme will be extended to all Accredited Social Health Activist (ASHA) workers, Anganwadi Workers, and Helpers, ensuring broader access to healthcare services.
Agriculture and Food Processing: The Pradhan Mantri Kisan Sampada Yojana has benefited 38 lakh farmers and generated 10 lakh employment opportunities. The Pradhan Mantri Formalisation of Micro Food Processing Enterprises Yojana has assisted 2.4 lakh Self-Help Groups (SHGs) and 60,000 individuals with credit linkages, boosting the agricultural and food processing sectors.
Research and Innovation: A corpus of Rs 1 lakh crore will be established with a fifty-year interest-free loan to catalyse growth, employment, and development through research and innovation.
Infrastructure: An 11.1% increase in capital expenditure outlay for infrastructure development and employment generation, amounting to Rs 11,11,111 crore, is aimed at enhancing the country’s infrastructure and creating employment opportunities.
Railways: Under the PM Gati Shakti initiative, three major economic railway corridor programs will be implemented to improve logistics efficiency and reduce costs.
Aviation Sector: The plan to double the number of airports to 149 and the order of over 1000 new aircraft signals significant growth in the aviation sector.
Green Energy: Plans include setting up a coal gasification and liquefaction capacity of 100 MT by 2030 and a phased mandatory blending of compressed biogas (CBG) in compressed natural gas (CNG) for transport and piped natural gas (PNG) for domestic purposes.
Tourism Sector: States will be encouraged to undertake comprehensive development of iconic tourist centers, with long-term interest-free loans provided for financing such development.
Investments: The budget highlights significant Foreign Direct Investment (FDI) inflows, totaling USD 596 billion during 2014-23, reflecting a positive outlook for investments in the country.
Reforms in the States: To support milestone-linked reforms by state governments, a provision of Rs 75,000 crore as a fifty-year interest-free loan is proposed.
The budget also focuses on tax rationalisation efforts, achievements in taxpayer services, and the economic journey since 2014. It sets the stage for a dynamic and inclusive growth trajectory, aiming to propel India towards greater prosperity and well-being for all its citizens.
