The corridors of fiscal planning echoed with anticipation as the government unveiled the interim budget for 2024-25. Stepping into the post-pandemic era, the budget brought forth a slew of measures, promising stability, and charting a course for inclusive growth. Here are the key highlights that encapsulate the essence of the interim budget:
In a move aimed at providing relief to taxpayers, the government announced that there would be no changes in direct and indirect tax rates. This decision serves to maintain continuity and foster a stable economic environment, offering a sense of predictability to businesses and individuals alike.
Addressing a longstanding concern, the government took a significant step by withdrawing income tax demands up to ₹25,000, applicable until the fiscal year 2009-10. Additionally, tax demands up to ₹10,000 for the period between 2010-11 and 2014-15 were also withdrawn. This move is set to benefit approximately one crore taxpayers, providing them with much-needed relief.
A novel scheme was announced to assist the middle class residing in rented houses to fulfil the dream of homeownership. This initiative is poised to create pathways for individuals to either buy or build their own houses, addressing a fundamental aspiration of many middle-class families.
Recognising the pivotal role of start-ups in driving economic growth, the government extended tax benefits to these innovative ventures. Additionally, investments made by sovereign wealth or pension funds were granted an extension by one year, providing a conducive environment for capital infusion in critical sectors until March 31, 2025.
In a bid to propel infrastructure development, the budget saw an 11% increase in capital expenditure, reaching ₹11.11-lakh crore. This boost signifies a commitment to fostering growth through strategic investments in crucial sectors such as roads, railways, and renewable energy.
The fiscal deficit for the fiscal year 2024-25 was projected at 5.1%, showcasing a commitment to fiscal prudence. This figure is notably lower than the revised estimate of 5.8% in the previous fiscal year, indicating a focus on responsible financial management.
The government outlined a borrowing plan of ₹14.13-lakh crore for the next fiscal year, a prudent move compared to ₹15.43 lakh crore in the fiscal year 2023-24. This cautious approach aims to strike a balance between meeting financial requirements and ensuring sustainable debt levels.
Setting ambitious targets, the gross tax revenue for the fiscal year 2024-25 was increased by 11.46% to ₹38.31-lakh crore, up from ₹34.37 lakh crore in the previous fiscal year. The direct tax collection target was set at ₹21.99-lakh crore, while the indirect tax target stood at ₹16.22-lakh crore.
In a transparency-oriented move, the government announced its intention to release a white paper on the mismanagement of the economy before 2014. This reflective document aims to provide insights into the challenges faced and the corrective measures undertaken.
The budget hinted at the unveiling of next-generation reforms in consultation with states and stakeholders, showcasing a forward-looking approach to governance. Additionally, a high-powered panel is set to be formed to address challenges posed by population growth and demographic changes, indicating a strategic focus on long-term sustainable development.
In essence, the interim budget for 2024-25 sets the stage for a judicious blend of stability, growth, and reform. As the nation navigates through these economic blueprints, the impact on businesses, individuals, and the overall economic landscape is eagerly anticipated. The coming fiscal year promises to be a transformative chapter in India's economic journey, guided by the principles of resilience, prudence, and inclusivity.
