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Interim Budget - A short-term financial plan 2024

Date 01 Feb 2024
Written By
2024 Interim Budget Focuses on Citizens, Extends Tax Benefits, Empowers Women, and Supports Farmers with Key Initiatives
The interim budget for 2024 emphasizes a "Citizen First" approach with priorities on the poor, women, youth, and farmers. Key initiatives include extending Ayushman Bharat benefits to ASHA and Anganwadi workers, a 1 lakh crore corpus for long-term financing, and a rooftop solarization scheme providing free electricity. The budget maintains current tax rates for individuals and extends tax benefits for startups and investments until March 2025. It promotes private investment in post-harvest activities and aims to strengthen the financial sector. Women's empowerment is highlighted through measures like making triple talaq illegal and reserving parliamentary seats for women. - (AI Summary)

 'Citizen First' - Minimum Government and Maximum Governance Approach

  • "FDI now means 'First Develop India'".
  • Four groups - Garib, Mahilaye, Yuva and Annadatta (the poor, women, youth and farmers)  - are a priority for the government. 
  • Finance Minister Nirmala Sitharaman said benefits of Ayushman Bharat will be extended to all ASHA and Anganwadi workers.
  • Finance Minister said the government will help "deserving sections" of middle class to build their own houses.
  • A corpus of ₹ 1 lakh crore will be established with 50-year interest free loan to provide long term financing with long tenure with no or less interest rates.
  • Roof-top solarization scheme - Solar panels rooftops to give 1 crore households 300 units of free electricity per month.
  • 'GDP' -  Focus on more comprehensive 'Governance, Development, Performance'.
  • "Garib Ka Kalyan, Desh Ka Kalyan" - FM said the government has helped 25 crore people to get freedom from poverty in last 10 years.
  • Helping  tribal groups who have remained outside domain of development.
  • Focusing on four major groups - Poor, Women, Youth and the farmers [Annadatta].
  • No change is expected in tax rates for individual taxpayers opting for the regular tax regime. 
  • Goods Service Tax (GST)  has created  'one nation one market one tax'.  
  • Any hesitant in opting for the new regime, to increase its acceptance, the government may allow deductions under 80C in this regime.
  • No proposals to be made on tax rates - direct or indirect taxes including import duties.
  • Tax benefits for startups, investments made by sovereign wealth, pension funds to be extended to March 2025.
  • Government to promote private investment in post harvest activities.
  • Strengthening financial sector in terms of size, capacity, skills, regulatory framework, to meet Investment needs.
  • Empowering Women's participation in workforce - Making triple talaq illegal, reservation of 1/3 seats for women in Parliament and state assemblies, over 70 % houses under PM Awas Yojana to women.
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