News Desk, Kolkata : The interim budget for 2024 was presented by Finance Minister Nirmala Sitharaman. This interim budget, also known as a vote-on-account, is a temporary financial plan presented by the government when it doesn’t have the time or mandate to present a full budget.
BUDGET 2024 KEY UPDATES ON INCOME TAX:
Here are the key highlights for you to know from the ‘vote-on-account’ budget presentation by Finance Minister Nirmala Sitharaman ;
FM Nirmala Sitharaman proposed “no changes” to the taxation system — both direct and indirect — including import duties.
Sitharaman said that the “target is to reduce the fiscal deficit to below 4.5 per cent by Fiscal Year 2026”.
The FY 2025 tax receipts are pegged at Rs 26.02 lakh crore.
Income Tax Budget 2024 : On Track to Meet Glide Path Set in 2021-22, Says FM Sitharaman
Union Finance Minister Nirmala Sitharaman says, “The budget deficit, fiscal deficit 5.8% which is much lower than the 5.9… Similarly, for the 2024-25 budget, we’ve given 5.1 as the fiscal deficit. So clearly indicating that we are on track to meet the glide path which was set in 2021-22 and that we are well on track to meet the 4.5% fiscal deficit on or below 4.5 even by FY 26…”
Income Tax Budget 2024 : FM Sitharaman On Interim Budget 2024
Union Finance Minister Nirmala Sitharaman in a press conference after presenting the budget said, “It is an interim budget presented before just the elections. GDP- Governance, development and performance. On governance, this budget speaks from a position where we’ve delivered on development. We managed the economy with correct intentions, correct policies and correct decisions so it’s governance with care…D stands for people living better, earning better and having high aspirations for the future and if I move to the ‘P’ the performance three consecutive years of 7% growth faster-growing economy in G20 all parts of the country participating in the growth.”
Income Tax Budget 2024 : A Look At Fiscal Deficit
* India’s fiscal deficit for 2023/24 revised to 5.8% of GDP from 5.9%
* India’s fiscal deficit for 2024/25 target reduced to 5.1% of GDP
* Net borrowings for 2024/25 seen at 11.75 trillion rupees
* Federal gross borrowings for 2024/25 seen at 14.13 trillion rupees
* Govt to spend 11.9 trillion rupees ($143.4 billion) on interest servicing in 2024/25, more than one-third of govt revenue receipts
Income Tax Budget 2024 : A Look At Subsidies
* Fertiliser subsidies for 2024/25 seen at 1.64 trillion rupees vs 1.89 trillion rupees in 2023/24
* Food subsidies for 2024/25 seen at 2.05 trillion rupees vs 2.12 trillion rupees in 2023/24
* Govt spending on rural jobs programme seen at 860 bln rupees in 2024/25, at the same level as revised estimates of current fiscal
Highlights of Interim Budget 2024-25: Increase In Spending
* 2024/25 federal budget spending estimated at 47.66 trillion rupees, 6.1% higher compared to revised spending estimate of 44.9 trillion rupees in 2023/24
* Education budget for 2024/25 seen at 1.25 trillion rupees, 14.5% higher than revised estimate of 1.09 trillion rupees for 2023/24
* Health budget for 2024/25 seen at 901.7 bln rupees, 13.8% higher than revised estimate of 792.2 billion rupees for 2023/24
* Govt’s 2024/25 spending on affordable housing programme seen at 806.7 bln rupees, 49% higher compared to revised estimate of 541 bln rupees in 2023/24
Highlights of Interim Budget 2024-25: No New Tax
* No change in tax structure
* Investments by sovereign wealth funds and pension funds will be tax-free for one more year
* Tax reforms have widened the tax base and increased tax collections
* Total revenue receipts in 2024/25 estimated at 30 trillion rupees vs revised estimate of 26.99 trillion rupees in 2023/24
* Tax-GDP ratio in 2024/25 seen at 11.7% of GDP vs revised 11.6% estimate for 2023/24
Highlights of Interim Budget 2024-25: Infrastructure Spending
* Allocation for infrastructure for 2024/25 raised to 11.1 trillion rupees ($134 billion), up 11.1% y/y
* Federal govt to allocate 3.86 trillion rupees to states for spending on infrastructure in 2024/25
* Corpus of 1 trillion rupees to be set up with a 50-year interest-free loan for research in sunrise sectors
* Federal govt to allocate 2.55 trillion rupees ($30.7 billion) for spending by railways in 2024/25
* 2024/25 budget allocations for the road transport ministry seen at 2.78 trillion rupees
* Viability gap funding to be provided for offshore wind power
* 10 million houses to get free electricity via rooftop solar programme
* Govt to subsidise construction of 20 million affordable houses in rural areas
Highlights of Interim Budget 2024-25: Economic Growth
* Nominal GDP growth for 2024/25 seen at 10.5% y/y
* Inflation has moderated and economic growth has picked up
* Pro-active inflation management has helped contain inflation within the target band (2%-6%)
* Govt says its policies brought 250 million people out of poverty in 10 years.
Budget 2024: India Plans to Spend $134 Billion on Infrastructure, Narrow Fiscal Gap
Union Finance Minister Nirmala Sitharaman on Thursday unveiled plans to spend nearly $134 billion on infrastructure and focus on long-term reforms to drive growth and contain the fiscal gap despite pressures to raise spending before elections.
She said the next generation of reforms will be carried out in consultation with state governments. The government has simplified India’s complicated tax structures, invested in new ports and roads but has struggled to liberalise land acquisition and labour laws.
The fiscal deficit target for the next fiscal year has been reduced to 5.1% of GDP compared to the revised deficit estimate of 5.8% for the current fiscal year.
Income Tax Budget 2024 : Govt Refrains from Populist Budget Before Election
Union government resisted the temptation of spending trillions of rupees on schemes for the poor in its last budget before elections and instead stuck to the path of fiscal consolidation to attract investors.
The lack of social spending largesse is indicative of PM Narendra Modi’s confidence in returning to power for a rare third term. Tax policies were left unchanged in Thursday’s budget, major subsidies on food, fertiliser and fuel were 8% lower and an allocation for a rural employment scheme was held steady.
“This is an indication that the ruling BJP (Bharatiya Janata Party) is feeling fairly confident about securing another big victory in the upcoming general election,” said Shilan Shah from Capital Economics. National elections are due by May this year.
Tax Benefits For Startups, Sovereign Wealth & Pension Funds Extended to March 2025
In a respite for the startup ecosystem, the Centre on Thursday announced to extension of tax benefits for startups and investments made by sovereign wealth and pension funds to March 2025.
Certain tax benefits to startups and investments made by sovereign wealth or pension funds as also tax exemption on certain incomes of some International Financial Services Centre (IFSC) units are expiring on March 31 this year.
“To provide continuity, I propose to extend the date to 31.3.2025,” said Finance Minister Nirmala Sitharaman while presenting the Interim Budget on Thursday.
Income Tax Budget 2024 : Nothing In Budget For Common People, Says Congress’s Supriya Shrinate
On Interim Budget 2024-25, Congress leader Supriya Shrinate says, “The government is still in denial mode and is not ready to accept the problems. There is nothing in this budget for common people, employment, agriculture, women… Nirmala Sitharaman said that income has increased by 50% but government data says that real income has decreased by 25%.”
Income Tax Budget 2024 : Establishing Rs 1 Lakh Cr Corpus Demonstrates Govt’s Strong Commitment To Fostering Innovation, Says Vantage Circle CEO
Partha Neog, CEO and Co-founder of Vantage Circle said, “This year’s Union Budget announcement resonates with a visionary outlook, especially for the future of India. Establishing a Rs. 1 lakh crore corpus with a 50-year interest-free loan for tech-savvy youths and the focus on MSME training demonstrates a strong commitment to fostering innovation and global competitiveness. Additionally, the government is also set to provide long-term financial help with extended periods and low interest rates that will benefit the private sector to increase investments in R&D and innovation.”
“We highly applaud these strategic initiatives put forward by the government to leverage the opportunities presented. Our dedication remains unwavering as we contribute to the nation’s progress,” he added.
Union Budget Income Tax 2024: Logistics Cost Down to Single Digits, Says NSE CEO
National Stock Exchange (NSE) CEO Ashish Chauhan said that the “growth, welfarism and fiscal restraint” were the three words that came in his mind during the Budget speech.
“It is very difficult to achieve all three objectives by a government and they have proved over the last 10 years that somewhere they have been able to create brick-by-brick a social security framework which is available to every citizen of India…” Chauhan told ANI.
He further said, “Whatever has happened in last 10 year, in terms of roads, ports, airports – the logistics cost has come down to a single digits. That is a very welcome move. The Atamanirbhar Technology that has been developed in Vande Bharat, many metros is going to reduce the cost of logistics even further…”
Union Budget Income Tax 2024: INDIA Alliance Will Win & Present Budget, Says DMK MP “They are waiting for the next full Budget, which we will come and present. INDIA alliance will win and we will present the best budget after the net elections.”
Union Budget Income Tax 2024: Budget is Special, Says BJP MP
BJP MP Sushil Kumar Singh said this interim budget is “special”. “The budget has made it clear how the country is moving forward… Work has been done for in every sector…”
Union Budget Income Tax 2024: Kept Stability As Expected, Says Chairman of Board of Hindustan Construction Co. Ltd
Chairman of the Board of Hindustan Construction Company Ltd, Ajit Gulabchand, told news agency ANI, “I think this was a short & crisp Budget speech, keeping with the message they want to give. They have not introduced any new taxes or done any changes in a manner that would upset. They have kept stability, as expected, in place. They have said that they will continue to spend on infrastructure as well as welfare programs which are all very necessary and which they have been doing very well over the years. Despite the fact that we had COVID and so many disturbances due to war and supply chain breakups, India has done well with their policies. They continue to push that in the direction of a developed India by 2047…”
Union Budget Income Tax 2024: Non-populace Budget, Says IMF Executive Director
Executive Director of the IMF and former Chief Economic Advisor to the Government of India, KV Subramanian told ANI, “…As I said, it is a non-populace budget. Compared to 5.9%, which was a budget estimate, the actual fiscal deficit has been announced at 5.8%. My sense is that when the revised numbers come, the fiscal deficit will be even lower because the revenue that has been projected will actually be much higher. 5.1% is very good…Unless there is a change in the Budget that comes in July, I would say that the 5.1% will definitely be achieved…”
Budget 2024 LIVE: WHO Applauds Healthcare Coverage Under Ayushman Bharat
World Health Organisation Representative to India, Dr Roderico H Ofrin said that WHO “applauds the extension of healthcare coverage to them under Ayushman Bharat”.
He said, “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. The initiatives announced today – upgrading existing hospital infrastructure to increase medical colleges, harmonization of maternal and child care implementation, introduction of HPV vaccination for cervical cancer prevention, and the expansion of the U-WIN platform across for managing and intensifying immunization – will further strengthen systems and healthcare services across the country. WHO welcomes investments in these areas and will continue to support the Government of India in achieving health for all and meeting its disease elimination goals.”
Income Tax Structure Unchanged In Budget 2024: Know Current Tax Slabs & Rates Under New Regime Vs Old Regime
Even as the Interim Budget 2024-25 has been presented by Finance Minister Nirmala Sitharaman on Thursday, February 1, the government has kept the tax slabs and rates unchanged.
“I do not propose to make any changes relating to taxation and propose to retain the same tax rates for direct taxes and indirect taxes including import duties,” Finance Minister Nirmala Sitharaman said in her Budget Speech on Thursday.
Even as the Interim Budget 2024-25 has been presented by Finance Minister Nirmala Sitharaman on Thursday, February 1, the government has kept the tax slabs and rates unchanged.
“I do not propose to make any changes relating to taxation and propose to retain the same tax rates for direct taxes and indirect taxes including import duties,” Finance Minister Nirmala Sitharaman said in her Budget Speech on Thursday.
Income Tax Slab 2024 : Ravi Shankar Prasad Calls Interim Budget ‘Historic & Effective’ BJP MP Ravi Shankar Prasad called the interim budget to be “very effective and historical”.
“It mentions the achievements of the past and a strong path towards the future. We will present the full budget in July… The number of taxpayers has increased. They have faith in the government that their money will not be misused… India has traversed a path from ‘Fragile 5’ to the world’s ‘Top 5’ economies in just 10 years,” he told news agency ANI.
Income Tax Slab 2024 : ‘This Budget is Omnipresent’, Says BJP MP Prez.
BJP Madhya Pradesh President, VD Sharma, said “This budget is omnipresent, and focuses on universal development. In the ‘Amrit Kaal’, this budget will prove to be a stepping stone towards ‘Atmanirbhar Bharat’… PM Modi’s special focus was on speeding up development through infrastructure…”
Income Tax Slab 2024 : Budget Stuck to Winning Formula, Says NSE CEO
National Stock Exchange of India (NSE) CEO Ashish Chauhan, in a press conference, said, “The Interim Budget has stuck to the winning formula that I think the current government has figured out – fiscal restraint with welfarism and growth…So, overall it is a 10/10 budget. It is just an interim budget, the actual budget will be presented after the election but they want to stick to their winning formula they have figured out over last 10 years.”
Income Tax Slab 2024 : 6 Hours Allotted For Discussion of Budget & Passage of Finance Bill
Income Tax Slab 2024 : Director of Chair in US-India Policy Studies Reacts to Union Budget 2024
Director of the chair in US-India Policy Studies at Centre for Strategic & International Studies, Richard Rossow, said that the budget is in consonance of the goals towards India becoming a developed country by 2047.
“You talk about these groups that really define that level of prosperity…Many Indians have already achieved the kind of lifestyle that we imagine in the West. But a lot haven’t. Focussing on those groups that haven’t is going to be vitally important…It is not always going to be driven by Delhi. State Governments have to make sure that they are getting onboard as well…” he told ANI.
Income Tax Slab 2024 : Union Budget Roadmap to Developed Bharat, Says Amit Shah
Union Home Minister Amit Shah said that the “Union Budget draws the roadmap to achieve PM Shri @narendramodi Ji’s vision of a Developed Bharat by 2047.”
“The budget speech sheds light on the milestones achieved by the Modi govt in the last 10 years on its journey to make Bharat the foremost nation in every sector during the Amrit Kaal. On the very foundation of these feats, the magnificent edifice of a Viksit Bharat is being built. My heartfelt gratitude to Modi Ji for leading the nation through this journey of excellence and to FM @nsitharaman Ji for the insightful budget speech,” Shah said with a hashtag of “Viksit Bharat Budget”.
Income Tax Slab 2024 : ‘Inclusive, Innovative Budget’, Says PM Modi
Addressing the nation after the budget presentation, Prime Minister Narendra Modi hailed and thanked Finance Minister Nirmala Sitharaman for her work.
He said this budget is “inclusive and innovative”, adding that, “it has confidence of continuity”.
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