The Interim Budget 2024 has brought forth significant policy shifts and financial strategies, shaping India’s economic landscape for the coming years. Let’s delve into the key highlights that define this pivotal financial plan.
1. Tax Stability and Historical Reforms:
The government’s decision to maintain existing tax rates in both direct and indirect taxes sets the tone for stability. An unprecedented move involves withdrawing tax demands from 1965-2009 and 2010-2015, providing relief to the tune of Rs. 25,000 and Rs. 10,000, respectively.
2. Streamlined Income Tax Processing:
A remarkable reduction in income tax return processing time from 93 days in 2013-14 to just 10 days in 2022-23 demonstrates the government’s commitment to efficiency and ease of taxation.
3. Indirect Tax Surge:
Doubling the indirect tax base with an average monthly collection of 1.6L Crores showcases the government’s success in broadening the tax net.
4. State GST Growth:
The State GST buoyancy rate’s increase from 0.72 to 1.22 since 2013-14 underlines the positive momentum in state-level tax collections.
5. Progressive Taxation Schemes:
The introduction of a new tax scheme exempting income up to 7L and the expansion of presumptive tax for businesses and professionals mark strategic moves for economic inclusivity.
6. Fiscal Deficit Targets:
Fiscal discipline takes center stage with a revised fiscal deficit of 5.8% for 2023-24, aiming to reach 5.1% in 2024-25, with a long-term target of 4.5% by 2030.
7. Boosting Tourism through FDI:
The allocation of 546MUSD generated through foreign direct investment in tourism signifies the government’s commitment to promoting the sector.
8. Infrastructure Development:
A substantial 11.1% increase, amounting to 11,11,111 crore rupees, is dedicated to infrastructure development, constituting 3.4% of the GDP.
9. Green Energy and Climate Initiatives:
Continued support for green energy programs, including a 1GW wind energy initiative and goals for 100MT energy through coal and natural gas by 2030, emphasizes the government’s commitment to sustainable practices.
10. Aviation Expansion:
The expansion of airports, promotion of the Udan scheme in Tier 1 and Tier 2 cities, and the order of 1000 domestically built aircrafts promise a robust future for India’s aviation sector.
11. Focus on Technology and Research:
A significant 1L Crore corpus fund for technology development, offering 50-year interest-free loans for R&D activities, signals the government’s commitment to fostering innovation.
12. Social Welfare Initiatives:
Several welfare schemes, including Lakpati for women, Matysa Sampadan for employment, and PM Kissan Vikas Yojana for farmers, underline the government’s commitment to inclusive growth.
13. Healthcare and Education Initiatives:
The extension of Ayushman Bharat, vaccination programs for cervical cancer, and plans for increasing medical colleges demonstrate the government’s emphasis on healthcare and education.
14. Economic Reforms and Inclusive Development:
Structural reforms, inclusive schemes, and a direct benefit transfer system have played a pivotal role in reducing poverty and promoting social justice.
15. Vision for the Future:
As the government lays out its vision for the future, including plans for green technologies, aviation, infrastructure, and social welfare, India’s economic trajectory appears promising.
In conclusion, India’s Interim Budget 2024 reflects a meticulous balance between stability, growth, and inclusivity, providing a roadmap for a resilient and vibrant economy in the years to come. The government’s focus on key sectors and strategic reforms positions India on the path of sustainable development and prosperity.