Interim Budget 2024 highlights: No tax liability for taxpayers with income up to ₹7 lakh; a rooftop solarisation programme is being implemented for solar energy solutions

Here are the major sectors and areas that will be focused on in the interim Budget 2024 as announced by the Finance Minister of India, Nirmala Sitharaman.

Honourable Finance Minister Nirmala Nirmala Sitharaman's budget speech highlighted the major achievements of India before announcing the interim budget for 2024 which is a short-term financial plan of the country before the full budget which will be announced by the new government formed in the Lok Sabha elections. Here's what will be the focus point in the coming year, especially the first four months of the new financial year. 

Key figures for the future 

• The Financial Year 2024 fiscal deficit is seen at 5.8% of GDP as compared to the early estimate of 5.9% of GDP.
• For the FY25, the fiscal deficit is seen at 5.1%.
• Aim to reduce fiscal deficit to below 4.5% by FY26
• FY24 total expenditure revised to ₹ 44.90 lakh crore.
• FY24 total receipts other than borrowings is ₹27.56 lakh crore.
• FY24 tax receipts are ₹23.24 lakh crore.
• FY25 gross market borrowing seen at ₹14.13 lakh crore. 
• The total receipts other than borrowings and total expenditure are estimated at ₹30.80 and
  
  ₹47.66 lakh crore for FY24-25
• The tax receipts are estimated at ₹26.02 lakh crore for FY24-25
• The revenue receipts at ₹30.03 lakh crore are expected to be higher than the budget estimate.
• The gross and net market borrowings through dated securities during 2024-25 are estimated at ₹14.13 lakh crore and ₹11.75 lakh crore respectively.

New tax scheme

Under the new tax scheme:

• There is now no tax liability for taxpayers with income up to ₹7 lakh, up from ₹2.2 lakh in FY2013-14.
• The threshold for presumptive taxation for retail businesses was increased from ₹2 crores to ₹3 crores.
• The threshold for professionals eligible for presumptive taxation was increased from ₹50 lakh to ₹75 lakh.
• The corporate tax rate was decreased from 30% to 22% for existing domestic companies and to 15% for certain new manufacturing companies.

"I do not propose to make any changes relating to taxation and propose to retain the same tax rates for direct and indirect taxes, including import units. However, certain tax benefits to start-ups and investments made by sovereign wealth of pension funds," says Finance Minister, Nirmala Sitharaman. Tax benefits for startups, investments made by sovereign wealth, and pension funds are to be extended to March 2025, she adds. 

Withdrawal of outstanding direct tax demands up to ₹25,000 pertaining to the period up to financial year 2009-10 and up to ₹10,000 for financial years 2010-11 to 2014-15.

Transport

Railways 

• Three major economic railway corridor programs will be implemented. The projects have been identified under the PM Gati Shakti for enabling multimodal connectivity:

1. Energy, Mineral and Cement Corridor.
2. Port Connectivity Corridor.
3. High Traffic Density Corridor.

• 40,000 normal rail bogies will be converted to Vandhe Bharat standards. 

Aviation 

The rollout of air connectivity to tier 2 and tier 3 cities under the 'Udaan scheme' has been widespread.

• 517 new routes are carrying 1.3 crore passengers.
• Indian carriers have proactively placed orders for over 1,000 new aircrafts.

"Metro rail and Namo Bharat can be the catalyst for the required urban transformation," says the FM. 

Tourism

Our economic strength has made the country an attractive destination for business and conference tourism. The following points were included in the budget:

• Tourism including spiritual tourism has tremendous opportunities for local entrepreneurship. A framework for rating the centres based on the quality of facilities and services will be established.
• Long-term interest-free loans will be provided to states for financing such developments on a matching basis.
• To address the emerging fervour for domestic tourism, projects for port connectivity, tourism infrastructure and amenities will be taken up on our islands including Lakshadweep.

Tech 

• A corpus of ₹1 lakh crore will be established with a 50-year interest-free loan provided.
• A new scheme will be launched for strengthening deep tech technologies for defence purposes and expediting Atmanir Bharat.
• A new scheme for strengthening deep-tech technologies for defence purposes.

Green Energy 

Towards meeting India's commitment to net zero by 2070, the following measures will be taken:

• Viability gap funding will be provided for harnessing offshore wind energy potential for an initial capacity of 1 gigawatt.
• A coal gasification and liquefaction capacity of 100 metric tons will be set up by 2030.
• The government will expand and strengthen the e-vehicle ecosystem by supporting manufacturing and charging infrastructure.
• Greater adoption of e-buses for public transport networks will be encouraged through payment security mechanisms.
• To promote green growth, a new scheme of bio-manufacturing and bio-foundry will be launched. This will provide environment-friendly alternatives such as biodegradable polymers, bio-plastics, bio-pharmaceuticals and bio-agri inputs.
• For promoting climate-resilient activities for Blue Economy 2.0, a scheme for restoration and adaptation measures and coastal aquaculture and mariculture with an integrated and multisectoral approach will be launched.
• A rooftop solarisation programme is being implemented for Solar energy solutions. 

Agriculture and food 

The FM stated in her speech, "Prime Minister Lal Bahadur Shastri gave the slogan of Jai Jawan, Jai Kisan, Prime Minister Atal Bihari Vajpayeeji made that Jai Jawan, Jai Kisan, Jai Bihari and Prime Minister Modi has furthered that to Jai Jawan, Jai Kisan, Jai Vigyan (science) and Jai Anusandhan (innovation) as innovation is the foundation of development.

• Adoption of nano-urea and application of nano-DAP on various crops will be expanded in all agro-climatic zones. 
• Atmanirbhar Oil Seeds Abhiyan announced in 2022 will continue to focus on oil seeds such as mustard, groundnut, sesame, soya bean and sunflower.
• This will cover research for high-yielding varieties, widespread adoption of modern farming techniques, market linkages, procurement, value addition and consumption.
• A comprehensive program for supporting dairy farmers will be formulated.

Schemes and more

• A scheme would soon be launched for the middle class wherein people living in rented houses, slums or unauthorised colonies could either purchase or build their own houses.
• The government aims for 2 crore more houses in five years under PM Awas Yojana.
• Health care cover is to be extended to all ASHA and Anganwadi workers under the Ayushman Bharat Scheme.

Vikasit Bharat 

Growth and development-enabling reforms are needed in the states to realise the vision of Vikasit Bharat:

• A provision of ₹75,000 crore as a 50-year interest-free loan is proposed this year to support those milestones linked to reforms by the state governments.

Societal Changes

The government will form a high-powered committee for an extensive consideration of the challenges arising from fast population growth and demographic changes. The committee will be mandated to make recommendations for addressing these challenges comprehensively in relation to the goal of Vikasit Bharat.

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