Finance Minister Nirmala Sitharaman recently presented the Interim Union Budget 2024, with a strong emphasis on India’s economic growth and fiscal stability. In this summary tailored for finance professionals and CAs, we’ll break down the key highlights:
1. Economic Overview in Union Budget 2024:
The projected fiscal deficit for 2023-24 stands at 5.8% of GDP, with a target to bring it below 4.5% by 2025-26.
Capital expenditure (Capex) has been bolstered, reaching ₹11.11 trillion for the fiscal year starting April 1, 2024, reflecting an 11.1% increase.
2. Social and Sectoral Initiatives:
The budget underscores a commitment to inclusive development, particularly targeting empowerment for the underprivileged, women, youth, and farmers.
Sector-specific initiatives include groundbreaking measures in agriculture, fisheries, dairy, and youth-centric programs focusing on education, skill development, startups, and sports.
3. Research & Development, Infrastructure and Environmental Focus:
1 lakh-crore corpus allocated for research and development in sunrise sectors.
Substantial capital is to be allocated to major infrastructure projects, railway corridors, and aviation expansion.
The budget highlights a green energy push, encompassing offshore wind energy, coal gasification, and bio-manufacturing. Additionally, there’s a strong push for electric vehicles. Rooftop solar scheme to provide 300 units of free power per month.
4. Tourism, Investment, and Tax Reforms in Union Budget 2024:
Strategic plans for boosting domestic tourism through infrastructure development.
Foreign Direct Investment (FDI) inflows have seen a significant uptick, indicating ongoing efforts to attract more international investments.
Tax reforms, including the rationalization of direct and indirect tax rates (including GST), aim to ease the tax burden and enhance compliance.
5. Vision for the Future:
The budget lays the groundwork for a ‘Viksit Bharat’ (Developed India) vision by 2047, focusing on demographic strengths and a commitment to national development.
