In the much-anticipated Interim Budget announced on February 1, Finance Minister Nirmala Sitharaman said that the fiscal deficit in 2023-24 is expected to be 5.8 per cent, lower than the earlier estimates of 5.9 per cent. For 2024-25, it has been estimated at 5.1 per cent."We continue on the path of fiscal consolidation to reduce the fiscal deficit to 4.5 per cent in 2025-26," Sitharaman stated. In her Budget speech, Sitharaman said that the central government will borrow Rs 14.13 trillion in the year starting April 1 as compared to Rs 15.43 trillion in the current year. The net borrowings have been pegged at Rs 11.75 trillion for the next financial year.
Sitharaman mentioned a target of Rs 11.1 trillion in capex, which is more than triple the Rs 3.1 trillion seen in 2018-19. This has been funded by an increase in direct and indirect tax collections. Agriculture and rural spends have declined relative to the size of the economy, and there has been limited growth in health and educational expenditure. FM Sitharaman has signaled that fiscal discipline will be maintained.
“It is a Budget that will help empower women. I applaud the proposals to create more lakhpati didis, extend the Ayushman Bharat health insurance to ASHA and Aanganwadi workers and construct houses under the PM Awas Yojana. It is a development-oriented Budget,” , Uttar Pradesh Chief Minister Yogi Adityanath said.
Reacting on the Interim Budget, Tamil Nadu CM MK Stalin said that, “Union Finance Minister Nirmala Sitharaman has presented an empty Budget that has nothing to weigh upon. Also, it lacks mention of the Centre’s past achievements nor does it offer a solution to the present problems or guarantee future benefits”
Interim Budget 2024: Not interim, but 'antim' Budget of BJP govt, says West Bengal CM Mamata Banerjee
West Bengal CM Mamata Banerjee commented on the interim Budget 2024 by saying that it is not interim Budget, but 'antim' (last) budget of BJP govt at Centre. The TMC chief added that the West Bengal govt has submitted utilisation certificates regarding usage of central funds. She further alleged that the state is yet to receive its dues from the Centre
4:13 PM
State Budget: Gujarat govt presents Rs 3.32 trillion Budget; no new taxes proposed
The BJP-ruled Gujarat government on Friday presented a Rs 3.32 lakh crore budget that imposed no new taxes. Finance Minister Kanubhai Desai presented the budget for 2024-25 in the Assembly here on the second day of the Budget Session. Desai informed the House that the budget outlay of Rs 3,32,465 crore for 2024-25 indicates an increase of Rs 31,444 crore, or 10.44 per cent, over the previous fiscal. The state government presented the budget with an estimated surplus of 146.72 crore and proposed no new taxes.
3:42 PM
Budget announcements on deep-tech, startups to boost India's innovation-led economy, says DPIIT Secretary
Announcements in the interim Budget 2024-25 with regard to deep-tech and startups will significantly help boost India's innovation-led economy, Department for Promotion of Industry and Internal Trade (DPIIT) Secretary Rajesh Kumar Singh said on Friday. Singh said the 11 per cent increase in capital expenditure (capex) to Rs 11.11 lakh crore for the next financial year, and the provision to provide Rs 75,000 crore as interest-free loan for 50 years to support reforms by states, will help further improve the country's logistics efficiency, connectivity and cut down the logistics cost. Provisions related to research and development "hopefully trigger some greater private sector investments in R&D. Announcement of a new scheme for strengthening deep-tech technologies is good for startups also... It will give a boost to India's increasingly becoming an innovation led economy," Singh told PTI.
12:15 PM
Streamlining access to debt crucial for unlocking growth: Sonica Malhotra Kandhari, joint MD, MBD Group
"We welcome the steps taken to promote the Tourism industry, inter-alia, development of iconic tourist centers, long-term interest-free loans to states, enhancement of tourism infrastructure, enhancing port connectivity and amenities in islands etc. However, these initiatives can flourish with a further reduction in GST rates. Lowering taxes on hotel restaurants and rooms exceeding Rs. 7,500 and easing input norms for hotel development would incentivize new and existing players, ultimately expanding the GST base. Additionally, streamlining access to concessional debt for private tourism stakeholders is crucial for unlocking further growth. Let's make tourism truly soar with a combined focus on infrastructure and rationalized taxes," Sonica Malhotra Kandhari, joint managing director of MBD Group, said.
12:04 PM
Budget reactions: Central govt has displayed very good fiscal discipline, says DP Singh, Deputy MD, SBI MF
"The government has shown very-very good fiscal discipline. This looks like the budget of a very-very good corporate rather than that of the government. We are in the habit of looking at the deficit number being outpassed by whatever has been the inflation going up above the expected numbers given in the budget. So this time, every parameter has been efficient and everywhere we have done well." He added, "All this put together and giving too much impetus on the energy and other priority sectors, that gives a lot of this thing. And another main statement which the government has given, we will not give fish to the people but we will make them fish," DP Singh, Deputy MD, SBI MF, said.
"Socioeconomic justice has underpinned India's growth story over the last ten years, and with the Interim Budget 2024-25, the government continues to progress in this direction. The thrust on infrastructure is vital to sustain India's growth momentum. We welcome the 11% hike to infrastructure outlay and the lifeline of interest-free loans for 50 years to states. The three new major railway corridors will also fuel economic progress. The rural housing push and support for urban middle-class housing empower communities, making them bhagidari in the $7 trillion economy that India will be in by 2030. This budget sets the policy direction that will enable India to step into an era where it steers global discourse and decision-making as a Vikasit Bharat by 2047," Neeraj Akhoury, MD, Shree Cement Ltd said after FM Sitharaman's Interim Budget speech.
11:01 AM
News update: Govt spending on gender Budget going to be highest ever on record in 2024-25
Union Minister Nirmala Sitharaman, in her Interim Budget speech, announced Rs 3.1 trillion for schemes and programmes that address issues involving women. Around Rs 2.2 trillion was allocated in the previous financial year. Read this story for a more detailed account on this year's Interim Budget.
10:27 AM
Interim Budget's Rs 1 trillion corpus for tech research a game-changer: Rajan Bajaj, founder-CEO, slice
"The government's allocation of a Rs 1 trillion corpus for technological research in this year's budget is a game-changer. It positions India's R&D to capitalize on our young and dynamic demographic. The provision of interest-free support will undoubtedly catalyze scaling up research and innovation, fostering significant strides in filling economic gaps. Made in India tech is the future, and we’re here for it,” Rajan Bajaj, founder-CEO, slice, said.
9:53 AM
Union Ministers praise 'inclusive Budget', Opposition terms it 'poll Budget'
Calling the Interim Budget 2024 an encouraging one, Defence Minister Rajnath Singh said that the country will achieve the target of becoming a developed nation by 2047. Congress leader Shashi Tharoor said that the Interim Budget 2024-25 was presented in rhetorical language with very little concrete implementation. "It was one of the shortest speeches on record in the Budget. Not very much came out of it. As usual a lot of rhetorical language, and very little concrete implementation."
9:07 AM
Interim Budget 2024 update: FM Sitharaman's Budget puts the focus on capex growth
FM Sitharaman mentioned a target of Rs 11.1 trillion in capex and indicated that fiscal discipline will be maintained. Read here for more details.
8:53 AM
Interim Budget 2024 update: Over 3 mn ASHA, anganwadi workers now in Ayushman Bharat
More than three million Accredited Social Health Activists (ASHA), anganwadi workers and helpers are set come under the Ayushman Bharat Pradhan Mantri Jan Arogya Yojana (AB-PMJAY). Union Finance Minister Nirmala Sitharaman stated in the Interim Budget 2024-25 that the healthcare cover provided by the scheme will now be extended to include everybody in this segment.
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