Interim Budget 2024 highlights: Capex from govt will continue, says FM

Union Budget 2024 LIVE updates: FM Sitharaman in her Interim Budget speech stated the Centre is working towards making India 'viksit' by 2047. Catch the latest updates here

Interim Budget 2024 LIVE news updates: Union Finance Minister Nirmala Sitharaman, in her Interim Budget, raised the Centre’s capital expenditure (capex) target by 16.9 per cent for financial year 2024-25 (FY25) to Rs 11.1 trillion over the Revised Estimates (RE) for FY24. With this, the government is continuing with the push for public investment-led growth amid worsening global headwinds. "Capex from the government will continue, it is important to continue it," FM said.

The World Health Organization lauded the Budget 2024 announcement extending healthcare coverage to ASHA, Anganwadi workers, and helpers under Ayushman Bharat Scheme. "ASHA workers, Anganwadi workers, and helpers are at the forefront of health and care delivery at the grassroots level. The World Health Organization (WHO) applauds the extension of healthcare coverage to them under Ayushman Bharat," Dr Roderico H. Ofrin, WHO Representative to India, said. While presenting the Interim Budget for the Financial Year (FY) 2024-25, the Union Finance Minister also announced encouraging vaccination for girls in the age group of 9 to 14 years for the prevention of cervical cancer. She also said that the healthcare cover under Ayushman Bharat scheme will be extended to all ASHA workers, Anganwadi Workers and Helpers.

The Union Budget 2024-25 has given a thrust to multi-model connectivity by implementing economic railway corridors and port connectivity corridors, logistics and port players said on Thursday. Rajiv Agarwal, MD & CEO, Essar Ports said that with a substantial increase in infrastructure outlay the budget has rightly given a thrust to multi-modal connectivity by implementing three major economic railway corridor under the PM Gati Shakti programme. "These initiatives will go a long way in improving logistics efficiency and reducing cost. This will surely elevate India's logistics and infrastructure landscape". Rizwan Soomar, CEO & Managing Director, North Africa and India Subcontinent, DP World said that the budget complements the vision of a 'Vikasit Bharat' (developed India) by 2047 with a strong focus on infrastructure development.

The Union Cabinet on Thursday extended the Animal Husbandry Infrastructure Development Fund (AHIDF) till 2025-26. In June 2020, the government had approved setting up of AHIDF worth Rs 15,000 crore. According to an official statement on Thursday, the Cabinet approved the "continuation of Animal Husbandry Infrastructure Development Fund (AHIDF) to be implemented under Infrastructure Development Fund (IDF) with an outlay of Rs 29,610.25 crore for another three years up to 2025-26." The scheme will incentivize investments for dairy processing and product diversification, meat processing and product diversification, animal feed plant, breed multiplication farm, animal waste to wealth management (Agri-waste management) and veterinary vaccine and drug production facilities. "Government of India will provide 3 per cent interest subvention for 8 years including two years of moratorium for loan up to 90 per cent from the scheduled bank and National Cooperative Development Corporation (NCDC), Nabard and NDDB," the statement said.

Gujarat Chief Minister Bhupendra Patel on Thursday said that the union budget caters to the needs of every section of society. The opposition Congress, on the other hand, said the budget was useless as it did not give any relief to the people from high taxes. "The union interim budget presented by Finance Minister Nirmala Sitharaman under the leadership of Prime Minister Narendra Modi will address the aspirations of crores of people in the country. It has all elements for taking care of every section of society," CM said in a post on X. "The budget will give direction and energy to achieve the prime minister's goal of Viksit Bharat by 2047," he said. Welcoming the target of constructing two crore new houses under the rural housing scheme, Patel said states like Gujarat will also benefit from the new scheme aiming to cover one crore homes with solar rooftop power generation sets. "The decision to include Asha and anganwadi workers under Ayushman Bharat scheme will bring happiness to them," he added.

Several Union ministers hailed the interim Budget presented by Finance Minister Nirmala Sitharaman, asserting that it charts a definitive pathway for a fully developed and economically robust India by 2047. Reacting to the interim Budget which was presented in Parliament on Thursday, Union Minister Rajnath Singh said it outlines the vision for a "confident, strong and self-reliant Viksit Bharat". He stressed that he was sure of the size of the Indian economy growing to more than $5 trillion by 2027. In a post on X, he said there is something in this Budget for "every section of the society". The government is working to make India a developed country by 2047, Sitharaman said on Thursday while presenting the interim Budget 2024-25. "This is an interim Budget. But this interim Budget that she has presented is very encouraging and raises hope for the way ahead also. And the size of India's economy at this time... I am assured that whatever indications we have received from this Budget, the size of our economy, which is in top five counties right now, will grow to more than $5 trillion by 2027. By 2030, it will grow to more than $7 trillion," Singh told reporters outside Parliament. Union Home Minister Amit Shah said the interim Budget 2024-25 draws the roadmap to achieve Prime Minister Narendra Modi's vision of a developed Bharat by 2047.

Addressing a press conference, Finance Minister Nirmala Sitharaman said the Centre is on track to meet the glide path set in 2021-22 and that the government was well on track to meet the 4.5 per cent or below fiscal deficit by FY26. The Interim Budget presented by Finance Minister Nirmala Sitharaman in Parliament is 'inclusive and innovative', says PM Modi. In his first post-budget remarks, the prime minister said that the Interim Budget empowers the four pillars of 'Viksit Bharat: Yuva, Garib, Mahila and Kisan'.

Finance Minister Nirmala Sitharaman in her Budget speech proposed to withdraw  direct tax demands up to Rs 25,000 pertaining up to financial year 2009-10 and up to Rs 10,000 for financial years 2010-11 to 2014-15. This is expected to benefit 10 million taxpayers, Sitharaman added. The finance minister's speech was telecast live on Doordarshan (DD) News as well as the YouTube channel and website of the Press Information Bureau (PIB).  FM Sitharaman will deliver the Interim Budget which will be a "vote-on-account". The minister will also table the Budget for Jammu & Kashmir (J&K), which is under President's Rule. The central government has stated it has no legislative agenda for the session. The Budget session is set to have eight sittings in total.

The Budget Session in Parliament started on January 31 with President Droupadi Murmu's address in the new Parliament building. The President applauded the many accomplishments of the Indian government over the last year, including the passage of the Women's Reservation Bill, India becoming the fifth largest economy in the world, Chandrayaan-3, and the G20 Summit.

The President also stated  that the success over the last year needed to be credited to practices exercised over the last 10 years.

READ: Budget 2024: Time, where to watch & what to expect from Sitharaman's speech

On January 31, Prime Minister Narendra Modi stated that the Budget will centre around "Nari Shakti". He added that the Budget will have "disha nirdeshak baatein", a blueprint of intent. Last week, at the 125th anniversary of Delhi's Hindu College, the finance minister stated that  the central government would orient its policies towards improving four groups namely women, the youth, farmers, and the poor. 

11:28 PM

Interim Budget made 'pronounced focus' on women and youths: Rights activists

From grassroots initiatives transforming rural landscapes to strategic investments addressing demographic shifts, the interim Budget has made a "pronounced focus" on women and youths, rights activists have said.

 

The Ministry of Women and Child Development has been allocated Rs 26,000 crore in 2024-25, an increase of 2.52 per cent from the previous Budget.

 

Mission Shakti (the mission for protection and empowerment of women), with an objective to improve the accessibility and integrate all efforts and various government initiatives towards the safety and protection of women, as well as for securing their rights and entitlements, has been given Rs 3145.97 crore.

 

Poonam Muttreja, executive director of the Population Foundation of India, praised the Budget's focus on the key demographic groups of youths and women.

10:54 PM

UK-India Business Council welcomes Interim Budget 2024-25

The UK-India Business Council has welcomed India's interim budget 2024-25 and its focus on stability for the coming months.

 

Following the budget session today, Richard McCallum, Group CEO, UKIBC said, "UK industry keen to be reliable partner for India now and into the future," according to an official press release.

 

"The UK India Business Council welcomes Finance Minister Nirmala Sitharaman's presentation of India's Interim Budget 2024-25 and its focus on stability for the coming months," the release read.

 

India has shown transformational change over the last decade - as the Minister's speech highlighted - whether it is poverty alleviation, gender equity, leveraging digital technology for inclusivity, building world-class infrastructure, and many other areas.

 

India's story on women's participation in the STEM industry is a success at a global level.

10:47 PM

Positive and welcome: Bihar CM Nitish Kumar hails Union Budget 2024

Bihar Chief Minister Nitish Kumar on Thursday hailed the Bharatiya Janata Party (BJP)-led Central government and said the Union Budget 2024-25 is 'positive and welcoming'.

 

Nitish Kumar, the Chief of the Janata Dal (United) that broke its ties with the Opposition bloc INDIA recently also lauded the Centre for increasing the amount of loans for higher education.

 

"The interim budget presented by the Central Government is positive and welcome. The amount of loans for higher education has been increased in the budget, which will facilitate the youth to get higher education. With the opening of three new Railway Economic Corridors, the country's economic development will be possible at a faster pace," he said.

 

Nitish further said that the central government's decision to launch a special housing scheme for the middle class is a welcome step.

 

"Under this, people living in rented houses and slums will be able to get benefits," he added.

10:36 PM

Budget 2024: WHO praises extension of healthcare coverage to ASHA, Anganwadi workers

The World Health Organization lauded the Budget 2024 announcement extending healthcare coverage to ASHA, Anganwadi workers, and helpers under Ayushman Bharat Scheme.

 

"ASHA workers, Anganwadi workers, and helpers are at the forefront of health and care delivery at the grassroots level. The World Health Organization (WHO) applauds the extension of healthcare coverage to them under Ayushman Bharat," Dr Roderico H. Ofrin, WHO Representative to India, said.

 

While presenting the Interim Budget for the Financial Year (FY) 2024-25, the Union Finance Minister also announced encouraging vaccination for girls in the age group of 9 to 14 years for the prevention of cervical cancer. She also said that the healthcare cover under Ayushman Bharat scheme will be extended to all ASHA workers, Anganwadi Workers and Helpers.

10:33 PM

FM pushes equity support to oil firms to next fiscal year

Finance Minister Nirmala Sitharaman has deferred to next financial year the Rs 15,000 crore equity infusion in state-owned fuel retailers to support their investments in energy transition projects.

 

Sitharaman while presenting the annual Budget for 2023-24 on February 1 last year announced equity infusion of Rs 30,000 crore in Indian Oil Corporation (IOC), Bharat Petroleum Corporation Ltd (BPCL) and Hindustan Petroleum Corporation Ltd (HPCL) to support their energy transition plans.

 

Alongside, she had also proposed Rs 5,000 crore for buying crude oil to fill strategic underground storages at Mangalore in Karnataka and Visakhapatnam in Andhra Pradesh that India has built to guard against any supply disruptions.

 

In November last year, the finance ministry halved the equity support and the documents of the interim budget for 2024-25 Sitharaman presented in Lok Sabha on Thursday showed no allocation for equity infusion in current fiscal. The Rs 15,000 crore has now been earmarked for 2024-25 fiscal (April 2024 to March 2025).

10:31 PM

It's a budget that focuses on the continuation of policy: Sahil Kapoor of DSP Mutual Fund

"It is noteworthy is that this is a budget entirely focused on fiscal consolidation and not populism, which was expected to be in focus because of the upcoming general elections. The most pleasing words from the budget: "No changes in taxation. It's a budget that focuses on the continuation of policy and doesn't introduce any surprises. It's a budget prepared keeping in mind that global fiscal expenditure may decrease this year, and the global monetary policy may tighten. The government has assumed an increase in total expenditure of 6.1% YoY in FY25. This is the lowest growth in 8 years, and less than half of the 8-year average of 12.4%. The budget has a negative fiscal impulse, with the gross fiscal deficit contracting by Rs. 49,000 crores and the primary deficit reducing by Rs. 1.8 lakh crores. The bond market has rejoiced with a drop in yields, and rightfully so. Gross and net borrowing for FY25 are lower than FY24. The fiscal deficit is expected at 5.1% for FY25, a reduction of 0.7%. With India getting included in global bond indices and the supply of Govt. Securities estimated to be lower, it will lift a major hurdle for the RBI to exercise a more neutral to easy monetary policy - advantage duration funds," Sahil Kapoor, Head - Products and Market Strategist at DSP Mutual Fund on Budget.

10:30 PM

Union budget: Rs 8.5k cr allocated for WR's Gujarat works, Rs 25k given to NHSRCL

The Mumbai-headquartered Western Railway said Rs 8,587 crore has been allocated for railway works on its network in Gujarat in the interim budget presented on Thursday, which is 14 times the Rs 580 crore average annual outlay between 2009 and 2014.

 

The WR release quoted Railway Minister Ashwini Vaishnaw.

 

The release further said the outlay for Madhya Pradesh is Rs 15,143 crore, which is 24 times the average outlay of Rs. 632 crore from 2009 to 2014.

 

Total investment of Rs 30,789 crore is being made in Gujarat, where 97 per cent of the route has been electrified and 856 road overbridges and road underbridges have been constructed in the last 10 years, the WR release quoted Vaishnaw as saying.

 

"Twenty-eight 'one station one product' stalls are functional in Gujarat, while 87 stations in the state are being re-developed under Amrit Bharat Station Scheme. The work of redevelopment of Surat and Somnath stations is progressing at a very fast pace," Vishnaw was quoted as saying in the release.

10:29 PM

Devendra Shah, Chairman, Parag Milk Foods applauds govt's commitment to dairy sector

“Parag Milk Foods applauds the government's commitment to the dairy sector, recognizing its significance as the largest agricommodity that sustains the livelihoods of 80 million dairy farmers. With the focus on the agriculture sector, the announcement of a comprehensive program for dairy farmers, coupled with efforts to control foot and mouth disease, is a positive step. The commitment to promote indigenous breeds and fostering research and development in the dairy sector through government schemes lays the foundation for increased productivity and sustainable growth. At Parag, we're ready to actively contribute to this vision, ensuring a prosperous future for our dairy farmers and reinforcing India's global leadership in milk production," said Devendra Shah, Chairman, Parag Milk Foods.

10:27 PM

Nearly Rs 2,000 crore hike in space department budget, dip in allocation for atomic energy

Tasked with setting up India's space station, the Department of Space has received a hike of nearly Rs 2,000 crore in the interim Budget 2024-25 as against 2023-24.

 

The Department of Space has been allocated Rs 13,042.75 crore in the interim Budget presented by Union Finance Minister Nirmala Sitharaman on Thursday. According to the revised estimates for 2023-24, the allocation for the department was Rs 11,070.07 crore.

 

There has been a significant increase in allocation for space technology from Rs 8,180 crore in 2023-24 to Rs 10,087 crore in 2024-25.

 

On the other hand, the Budget estimates for the Department of Atomic Energy for 2024-25 stand at Rs 24,968.98 crore net of recoveries - down from Rs 25,078.49 crore in 2023-24.

 

Prime Minister Narendra Modi has set a target for the Department of Space to build a 'Bharat Antariksh Station' by 2035 and land an Indian astronaut on the moon by 2040.

10:26 PM

Interim budget just election gimmick: Farmer leader Rakesh Tikait

Bharatiya Kisan Union (BKU) leader Rakesh Tikait on Thursday described the interim Union budget as merely an "election gimmick" and called it a betrayal with the farmers, youths and women of the country.

 

While presenting the interim budget in Parliament, Finance Minister Nirmala Sitharaman said the government will formulate a strategy to make India self-reliant in edible oils by boosting domestic output of oilseeds and launch a comprehensive programme to support dairy farmers.

 

She said the government will further promote private and public investment in post-harvest activities to boost food processing levels and farmers' income. Application of nano-liquid DAP (di-ammonium phosphate), a key fertiliser, will be expanded to all agro-climatic zones.

 

Sitharaman also said the government will step up efforts for value addition in the agricultural sector and boosting farmers' income.

 

However, Tikait, the national spokesperson of BKU, reacted sharply to the budget announcement.

10:25 PM

I&B Ministry gets Rs 4,342 crore in interim budget

Finance Minister Nirmala Sitharaman on Thursday allocated Rs 4,342.55 crore to the Ministry of Information and Broadcasting in the interim Budget for 2024-25, a slight decrease from the revised estimates of Rs 4,449.79 in the previous fiscal.

 

According to the Budget document presented by Sitharaman, a large portion of the allocation -- Rs 2,959.94 crore -- has been made to broadcasting, while Rs 1,088.16 crore has been earmarked under the head of Information and Publicity, which is marginally higher than the revised estimates of the previous fiscal.

 

Sitharaman has allocated Rs 36.93 crore under the head of Art and Culture, which is less than the Rs 45.54 crore earmarked in the revised estimates for 2023-24.

 

The finance minister made it clear that she was presenting the interim Budget for 2024-25 and the government will present the "full budget in July".

10:20 PM

Extension of tax benefits to startups for 1 more year till March 2025 a progressive move: Industry

The interim Budget announcement related to the extension of tax benefits to startups by one more year till March 2025 underlines the government's commitment towards creating a conducive environment for startup development and sustainable investments, the industry said on Thursday, terming it a progressive and encouraging move.

 

"...the extension of tax benefits until March 2025 for startups, sovereign wealth, and pension funds signify a government committed to supporting growth and resilience. The prolonged tax benefits indicate a steady commitment to creating a conducive environment for startup development and sustainable investments," MobiKwik Founder and CEO Bipin Preet Singh said.

 

CEO and Co-Founder of magicpin Anshoo Sharma lauded the move saying it would provide much-needed continuity and inflows to the Indian startup ecosystem.

10:19 PM

Tourism sector welcomes govt's focus on domestic tourism, infra to boost connectivity

The tourism and hospitality sector lauded the government's focus on domestic tourism in the Interim Budget 2024-25, which was presented by Finance Minister Nirmala Sitharaman on Thursday.

 

"The government's continued focus on domestic tourism in the interim Budget 2024-25 is encouraging. Empowering iconic destinations and local entrepreneurs through interest-free loans and quality ratings will elevate India's tourism landscape. The projects to enhance connectivity through the development of airports, railways, metros, ports and the tourism infrastructure will enhance demand and generate employment," Radisson Hotel Group, South Asia, Chairman Emeritus and Principal Advisor K B Kachru said.

 

Crisil Market Intelligence and Analytics Director, Research, Pushan Sharma stated that a 45 per cent increase in allocation to the tourism sector to Rs 2,450 crore is expected to boost employment generation as well as the sector's share in overall GDP.

10:16 PM

Union Budget gives thrust to multi-model connectivity, say logistics players

The Union Budget 2024-25 has given a thrust to multi-model connectivity by implementing economic railway corridors and port connectivity corridors, logistics and port players said on Thursday.

 

Rajiv Agarwal, MD & CEO, Essar Ports said that with a substantial increase in infrastructure outlay the budget has rightly given a thrust to multi-modal connectivity by implementing three major economic railway corridor under the PM Gati Shakti programme.

 

"These initiatives will go a long way in improving logistics efficiency and reducing cost. This will surely elevate India's logistics and infrastructure landscape".

 

Rizwan Soomar, CEO & Managing Director, North Africa and India Subcontinent, DP World said that the budget complements the vision of a 'Vikasit Bharat' (developed India) by 2047 with a strong focus on infrastructure development.

10:15 PM

Budget shows govt's dedication to fostering robust transport infra: Himanshu Chaturvedi of Tata Projects

“In the fiscal year 2024-25, the interim budget not only envisions unprecedented development but also strategically focuses on key sectors driving progress. Tata Projects welcomes the commitment to railway corridor-port connectivity under DFC, encompassing plans for more than 2 corridors. This signifies a notable step towards enhancing transportation infrastructure, aligning seamlessly with our commitment to building smart and sustainable projects. Furthermore, the budget introduces three new rail corridors for energy, cement, and minerals, while also expanding metro trains and NaMo Bharat trains to more cities. These initiatives underscore the government's dedication to fostering robust and inclusive transportation infrastructure, reflecting Tata Projects' own commitment to contributing to the development of sustainable infrastructural projects. Additionally, the implementation of three major railway corridor programs under PM Gati Shakti not only enhances logistics efficiency but also demonstrates a keen understanding of how strategic infrastructure investment can significantly reduce costs," Himanshu Chaturvedi, Chief Strategy & Growth Officer, Tata Projects Ltd.