Finance minister Nirmala Sitharaman on Thursday increased capital expenditure by 11 per cent for the next fiscal to sustain the world-beating economic growth rate while trimming the deficit in a reform-oriented Interim Budget that also gave relief to the common man from disputed small tax demands of up to ₹25,000.
Presenting a vote on account or an Interim budget for the financial year 2024-25, Nirmala Sitharaman proposed no changes in income tax rates for individuals and corporates, as well as customs duty.
In less than an hour-long budget speech, she presented the Narendra Modi government's achievements in the last 10 years that transformed India from being a "fragile" economy to the world's fastest-growing major economy. Follow Live Updates on Budget 2024
Key announcements for the common man
- Social justice: Prime Minister to focus on the upliftment of four major castes, that is, ‘Garib’ (poor), ‘Mahilayen’ (women), ‘Yuva’ (youth) and ‘Annadata’(farmer).
- Welfare of ‘Annadata’: PM-KISAN SAMMAN Yojana provided financial assistance to 11.8 crore farmers.
- PM Awas Yojana (Grameen): Over 70% houses under the PM Awas Yojana were given to women from rural areas. Despite Covid challenges, the target of three crore houses under the PM Awas Yojana (Grameen) will be achieved soon. Two crore more houses to be taken up in the next five years.
- Rooftop solarisation and free electricity: 1 crore households will obtain 300 units free electricity every month through rooftop solarisation. Each household is expected to save ₹15,000 to ₹18,000 annually.
- Ayushman Bharat: Healthcare coverage under the Ayushman Bharat scheme will be extended to all ASHA workers, Anganwadi workers and helpers.
- Vaccinations for girls: The government will launch a cervical cancer vaccination drive for girls aged 9-14 and consolidate maternal and child healthcare schemes under one programme.
- Agriculture and food processing: The Pradhan Mantri Kisan Sampada Yojana has benefitted 38 lakh farmers and generated 10 lakh employment.
- Direct taxes: Sitharaman proposed to retain the same tax rates for direct taxes.
- Indirect taxes: The FM proposed to retain the same tax rates for indirect taxes and import duties.
- Income tax: No tax liability for income up to ₹7 lakh, up from ₹2.2 lakh in the financial year 2013-14.