Budget 2024: 10 takeaways from Finance Minister Nirmala Sitharaman's Interim Budget 2024 speech

Interim Budget 2024 Key Takeaways: In the election year, it was expected of Finance Minister Nirmala Sitharaman (FM Sitharaman) to make some changes in tax slabs. But with the government in a strong position, the finance minister maintained status quo in terms of existing tax slabs and made no changes.

While the budget speech was the shortest of all of her six speeches as a finance minister so far, she gave importance to the government's priority areas, such as focus on women, poor and youth; expansion of railway corridors and metro rail; construction of 2 crore houses for poor; consideration of housing scheme to the middle class; and extending interest-free loans to states for tourism.

No change in tax rates

The finance minister made no changes in the income tax slabs for the old and new tax regime taxpayers. There was no change in the standard deduction limit of income tax.

Also Read: Budget 2024: No changes in tax rates for direct, indirect taxes: Nirmala Sitharaman

Focus on women, poor, youth and farmers in the budget

Sitharaman said that the government believes in "empowering the poor" and in the last 10 years, at least 25 crore people have been assisted to get freedom from multidimensional poverty.

Sitharaman said that fulfilling aspirations and needs of Garib (poor), Mahilaye (women), Yuva (youth) and Annadata (farmers) are the highest priority of the government.

“When the poor become empowered partners in the development process, the government's power to assist them also increases manifold,” the Finance Minister said while presenting the 2024 Interim Budget.

Also Read: Budget 2024: Welfare of poor, women, youth, farmers government highest priority

To build 2 crore houses for poor in 5 years

In a step that may bring relief to crores of poor Indians, the finance minister announced to build two crore more houses under the Pradhan Mantri Awas Yojana (Gramin) in the next five years.

Also Read: Budget 2024: 2 crore more houses to be constructed under PMAY(G) in next 5 years, says FM Nirmala Sitharaman

Consideration of housing scheme for middle-class

Not just poor, the government seems to keep happy the country's middle class as well as she said that the government would launch a housing scheme for deserving middle class as well.

"The government will launch a housing scheme for deserving middle class to buy or build their own houses," said Sitharaman.

Revised fiscal deficit for FY24

Sitharaman also revised the fiscal deficit of the country, saying the fiscal deficit for the 2024-25 financial year is estimated at 5.1 per cent of GDP against 5.8 per cent in the current financial year. 

She said that the fiscal deficit in the Financial Year 24 is expected to be 5.8 per cent of GDP, down from 5.9 per cent estimated earlier.

Also Read: Budget 2024: Fiscal deficit for FY25 pegged at 5.1% of GDP against 5.8% in current fiscal

Target to bring fiscal deficit to 4.5% by FY26

While she set the target of 5.8 per cent for the Financial Year 2024-25 fiscal, she said that the government's aim is to bring the fiscal deficit down to 4.5 per cent for the Financial Year 2025-26.

"We continue on path of fiscal consolidation to reduce fiscal deficit to 4.5 pc in 2025-26." said Sitharaman in her interim budget speech.

Rs 11.1 lakh crore capex announced in FY25

During her interim budget 2024 speech, Sitharaman also announced a capital expenditure (capex) of Rs 11.1 lakh crore for FY25.

This is said to be the largest capex allocation to date. 

She said that the tripling of capex in the last four years has resulted in a multiplier effect on economic growth and employment generation.

The minister said the Indian air carriers have placed orders for 1,000 new aircrafts.

Also Read: Budget 2024: Government makes modest hike of 11% in capex to Rs 11.11 lakh crore

3 railway corridors for energy, minerals, cement

In an important announcement which is likely to give boost to the economy in the long run, Sitharaman said that the central government would build three railway corridors for energy, minerals and cement. 

Also Read: Govt to implement 3 railway corridors, convert 40,000 normal bogies to Vande Bharat standards: FM Sitharaman

40,000 railway coaches to be converted into Vande Bharat standard

In order to improve the standard of train coaches in India, the finance minister said that as many as 40,000 normal railway bogies will be converted into Vande Bharat standards.

Also Read: Govt to implement 3 railway corridors, convert 40,000 normal bogies to Vande Bharat standards: FM Sitharaman

Metro rail expansion

In what appears to be an attempt to boost mobility in Tier-2 cities, Sitharaman announced the expansion of Metro Rail into other cities.  

Also Read: Budget 2024: FM Nirmala Sitharaman announces Metro Rail and Namo Bharat to additional cities

Target of 100 lk cr tonne coal gasification by 2030

An attempt that can reduce India's dependability on the import of chemicals, the finance minister announced coal gasification and liquefaction facilities of 100 metric tonne to be set up by 2030.

Also Read: Budget 2024: Coal gasification, liquefaction of 100 metric tonnes to be set up by 2030: FM Nirmala Sitharaman

States to be given interest-free loans for tourism

The government wants to promote Indian tourist spots for Indians and foreigners.

In her budget speech, the finance minister said that states will be given interest-free loans for tourism.

Recently, the government heavily promoted Lakshadweep as the tourist destination, showcasing it as an alternative to foreign tourist places.

Also Read: Budget 2024: FM to provide interest-free loans to states to promote tourism; hotel and travel stocks mixed

Also Read: Interim Budget 2024 Highlights: From record capex to Vande Bharat trains, key takeaways from FM Nirmala Sitharaman's speech

(With inputs from agencies)