KEY HIGHLIIGHTS OF

2024 - 2025
 Interim Budget 2024-2025

Introduction
❖ India’s Finance Minister presented the interim budget for financial year 2024 on February 1.
❖ India is scheduled to undergo general elections in mid-2024, which is why the budget announcement by the
incumbent government is called an interim budget.
❖ The comprehensive financial budget follows after general elections.
What is an Interim budget?
❖ The interim budget functions as a short-term financial plan to fund central government spending until
elections are held and a new central government assumes power.
➢ It outlines its anticipated expenditures and receipts till the formation of the new government.
➢ As per the Election Commission's Code of Conduct, the ruling government cannot include any major
scheme in the interim budget as it could influence the voters.
➢ The government in power cannot also deliver the Economic Survey along with the interim budget.
❖ Purpose:
➢ To ensure the continuity of essential government functions until the new administration assumes office.
❖ Budget Timeline: The interim budget's effectiveness extends only until March 31, 2024, restricting the
spending power of the current government thereafter.
❖ Votes on Account Provision: As there is no constitutional provision for an interim budget, the government
utilises ‘votes on account’ provision to secure funds for the interim period.
Difference between Interim Budget and Full-Fledged Budget:

Aspect Interim Budget Full-Fledged Budget

Presented by outgoing government before Presented by the newly elected
Timing
elections. government.
Covers expenditures and receipts for a Encompasses all aspects of government
Scope
short period. finances for the fiscal year.
Ensures continuity of essential functions Serves as a strategic guide for the entire
Purpose
temporarily. fiscal year.
Policy Allows for comprehensive policy
Limited major policy announcements.
Announcements declarations.
No presentation before the Interim Usually presented a day before the Full
Economic Survey
Budget. Budget.

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Why it is called a ‘Vote on Account’?
❖ An interim Budget conventionally is also called a ‘vote-on-
account’ because it serves as an authorisation to incur specific
expenditures which is necessary till a new government comes to
power.
❖ Effective Period and Extension: Generally, a vote-on-account
remains effective for a period of two months and can get an
extension if required.
❖ Constitutional Basis:
➢ Article 116 of the Constitution: Under Article 116, a vote-
on-account is an upfront allocation of budget from the
‘Consolidated Fund of India’ to the incumbent government.
About Budget:
❖ According to Article 112 of the Indian Constitution, the Union
Budget also referred to as the annual financial statement, is a statement of the estimated receipts and
expenditure of the government for the upcoming financial year.
➢ Budget word is not mentioned in the constitution.
❖ Budget Period: April 1 to March 31
❖ Prepared by: Department of Economic Affairs, Ministry of Finance is the nodal body responsible for
preparing of the Budget.
❖ Budget Classification: Union Budget is classified
into Revenue Budget and Capital Budget.
➢ Revenue Budget: It includes the
government's revenue receipts and
expenditure.
✓ Revenue Receipts: There are two kinds
of revenue receipts - tax and non-tax
revenue.
✓ Revenue expenditure: It is the
expenditure incurred on day to day
functioning of the government and on
various services offered to citizens.
✓ Revenue Deficit: If revenue expenditure
exceeds revenue receipts, the
government incurs a revenue deficit.

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 ➢ Capital Budget: It includes capital receipts and capital expenditure.
✓ Capital Receipts: Loans from public, foreign governments and RBI form a major part of the
government's capital receipts.
✓ Capital expenditure: It is the expenditure on development of machinery, equipment, building,
health facilities, education etc.
❖ Fiscal Deficit: Fiscal deficit is incurred when the government's total expenditure exceeds its total revenue.

Key Highlights of the Interim Budget:

❖Vision of Viksit Bharat by 2047: Prosperous Bharat in harmony with nature, modern infrastructure and
opportunities for all.

Part A
❖ People Centric Inclusive Development:
➢ Viksit Bharat by 2047: The
government is working towards
making India 'Viksit Bharat' by 2047,
with focus on Sabka Sath, Sabka Vikas.
➢ Inclusive Development and Growth:
Government has been working
towards promoting "all aspects" of
inclusivity.
➢ Departure from Earlier Approach of
‘Provisioning Up-to-Village Level’:
Development programmes (last 10
years) have targeted each and every
household and individual, through
housing for all, Har Ghar Jal,
electricity for all, cooking gas for all,
bank accounts and financial services
for all, in record time.

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Social Justice
❖ The government is focusing on four aspects of our society i.e., GYAN.
➢ GYAN: Garib’ (Poor), ‘Yuva’ (Youth), ‘Annadata’(Farmer) and Nari’
(Women).
❖ Garib Kalyan, Desh ka Kalyan (Garib):
➢ Poverty: 25 crore people out of multi-dimensional poverty in last
10 years.
➢ PM-Jan Dhan: DBT of Rs. 34 lakh crore using PM-Jan Dhan
accounts led to savings of Rs. 2.7 lakh crore for the Government.
➢ PM-SVANidhi: It provided credit assistance to 78 lakh street
vendors. 2.3 lakh have received credit for the third time.
➢ PM-JANMAN Yojana: Aid the development of particularly
vulnerable tribal groups (PVTG).
➢ PM-Vishwakarma Yojana: Provides end-to-end support to
artisans and crafts people engaged in 18 trades.
❖ Welfare of Annadata (Farmers):
➢ PM-KISAN SAMMAN Yojana: Provided financial assistance to 11.8
crore farmers.
➢ PM Fasal Bima Yojana: Crop insurance is given to 4 crore farmers
➢ Electronic National Agriculture Market (e-NAM): Integrated 1361 mandis, providing services to 1.8
crore farmers with trading volume of Rs. 3 lakh crore.
❖ Momentum for Nari Shakti (Nari):
➢ Mudra Yojana: 30 crore Mudra Yojana loans given to women
entrepreneurs.
➢ Female Enrolment: Increased female enrolment in higher
education by 28 per cent in 10 years.
✓ 43 per cent of female enrolment in STEM courses, one of
the highest in the world.
➢ PM Awas Yojana: Over 70% houses under PM Awas Yojana
given to women from rural areas.
❖ Lakhpati Didis: 1 crore women assisted by 83 lakh SHGs have
already become Lakhpati Didis. The Target enhanced from 2 crore to 3 crore for Lakhpati Didi.
❖ Yuva’ (Youth)
➢ 1.4 crore youth trained under Skill India Mission.
➢ Fostering entrepreneurial aspirations of Youth: 43 crore loans sanctioned under PM Mudra Yojana.

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Strategy for Amrit Kaal
Sustainable Development
❖ Commitment to meet ‘Net Zero’ by 2070:
➢ Viability gap funding for wind energy potential for an initial capacity of one
giga-watt.
➢ Setting up of coal gasification and liquefaction capacity of 100 MT by 2030.
➢ Phased mandatory blending of CNG, PNG and compressed biogas.
➢ Financial assistance for procurement of biomass aggregation machinery.
❖ Rooftop Solarization:
➢ 1 crore households to obtain 300 units free electricity every month through rooftop solarization.
➢ Each household is expected to save Rs.15000 to Rs.18000 annually.
❖ e-Mobility
➢ Adoption of e-buses for public transport network.
➢ Strengthening e-vehicle ecosystem by supporting
manufacturing and charging.
❖ Environmental Friendly Alternatives:
➢ A new scheme of biomanufacturing and bio-foundry is
to be launched.
➢ It will support environment-friendly alternatives such
as biodegradable polymers, bioplastics,
biopharmaceuticals and bio-agri-inputs based on
regenerative principles.
❖ Other Measures:
➢ Over 10 crore LPG connections were released under PM Ujjwala Yojana.
➢ 36.9 crore LED bulbs, 72.2 lakh LED Tube lights, and 23.6 lakh Energy efficient fans were distributed under
UJALA.
➢ 1.3 crore LED streetlights were installed under the Street Lighting National Programme.
Infrastructure and Investment
❖ Substantive development of all forms of infrastructure: physical,
digital, and social.
❖ Outlay for infrastructure increased to Rs 11.11 lakh crores in FY25.
❖ Digital Public Infrastructure (DPI) promoted formalisation and
financial inclusion.
❖ Promotion of urban transformation via Metro Rail and NaMo Bharat.

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❖ Railways:
➢ 3 major economic railway corridor programmes identified under the PM Gati Shakti to be implemented
to improve logistics efficiency and reduce cost:
✓ Energy, mineral and cement corridors
✓ Port connectivity corridors
✓ High traffic density corridors
➢ Forty thousand normal rail bogies to be
converted to Vande Bharat standards.
❖ Aviation Sector:
➢ The number of airports in the country doubled
to 149.
➢ 517 new routes are carrying 1.3 crore
passengers.
➢ Indian carriers have placed orders for over 1000 new aircraft.
➢ Expansion of existing airports and comprehensive development
of new airports under the UDAN scheme.
❖ Investments:
➢ FDI inflow during 2014-23 of USD 596 billion was twice of the
inflow during 2005-14.
➢ Promotion of foreign investment via bilateral investment
treaties to be negotiated.
Inclusive Development
❖ Aspirational District Programme: To assist states
in faster development, including employment
generation.
❖ Health
➢ Encourage Cervical Cancer Vaccination for
girls (9-14 years).
➢ A comprehensive programme for synergy in
implementing various maternal and
childcare schemes.
➢ Saksham Anganwadi and Poshan 2.0 are to
be expedited for improved nutrition
delivery, early childhood care and development.
➢ The u-WIN platform for immunisation efforts of Mission Indradhanush is to be rolled out.

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 ➢ Health cover under the Ayushman Bharat scheme will be extended to all ASHA, Angawadi workers and
helpers.
➢ Medical Colleges: The government plans to establish more medical colleges using the existing hospital
infrastructure.
❖ Housing
➢ PM Awas Yojana (Grameen):
✓ Pradhan Mantri Awas Yojana (Grameen) is close to
achieving the target of 3 crore houses, an additional 2
crore targeted for the next 5 years.
✓ A Housing for Middle-Class scheme will be launched to
encourage the middle class to buy/build their own
houses.
❖ Tourism
➢ Tourism, including spiritual tourism, has tremendous opportunities for local entrepreneurship.
➢ Economic strength has made the country an attractive business and conference tourism destination.
➢ States are to be encouraged to take up comprehensive development of iconic tourist centres, including
their branding and marketing at a global scale.
➢ Framework for rating the tourist centres based on the quality of facilities and services to be established.
➢ Long-term interest-free loans are to be provided to States for financing such development on a matching
basis.
➢ G20 meetings in 60 places presented India's diversity to a global audience.
➢ Projects for port connectivity, tourism infrastructure, and amenities will be taken up in islands, including
Lakshadweep.
Agriculture and Food Processing
❖ Pradhan Mantri Kisan Sampada Yojana has benefitted
38 lakh farmers and generated 10 lakh employment.
❖ Pradhan Mantri Formalisation of Micro Food
Processing Enterprises Yojana has assisted 2.4 lakh
SHGs and 60000 individuals with credit linkages.
❖ Government will promote private and public
investment in post-harvest activities.
❖ Application of Nano-DAP (Di-ammonium Phosphate)
fertiliser to be expanded in all agro-climatic zones.
❖ Atmanirbhar Oilseeds Abhiyaan-Strategy to be
formulated to achieve atmanirbharta for oilseeds.

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❖ Comprehensive programme for dairy development to be formulated.
❖ Matsya Sampada: Implementation of Pradhan Mantri Matsya Sampada
Yojna to be steeped up to enhance aquaculture productivity (from 3 to 5
tonnes per hectare), double export to 1 lakh crore and generate more 55
lakh employment opportunities.
❖ 5 Integrated Aquaparks to be set up.
❖ Blue Economy 2.0: For promoting climate resilient activities, a scheme for
restoration and adaptation measures, and coastal aquaculture and
mariculture with integrated and multi-sectoral approach will be launched.
Research and Innovation for catalyzing growth, employment and development
❖ As Prime Minister Narendra Modi called for “Jai Jawan Jai Kisan Jai Vigyan and Jai Anusandhan”, innovation
is the foundation of development.
❖ A corpus of rupees one lakh crore will be established with fifty-year interest free loan.
➢ It will provide long-term financing or refinancing with long tenors and low or nil interest rates. This
will encourage the private sector to scale up research and innovation in sunrise domains significantly.
❖ A new scheme will strengthen deep-tech technologies for defence purposes and expedite ‘atmanirbharta’.
Reforms in the States for ‘Viksit Bharat’
❖ Many growth and development-enabling reforms are needed in the states to realize the vision of ‘Viksit
Bharat’.
❖ A provision of seventy-five thousand crore rupees as a fifty-year interest-free loan is proposed this year to
support those milestone-linked reforms by the State Governments.
Societal Changes
❖ A high-powered committee for extensive consideration of the challenges of 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 ‘Viksit Bharat’.
Amrit Kaal as Kartavya Kaal
❖ To strengthen and expand the high growth economy and create conditions for people to realize their
aspirations with new inspirations, consciousness, and resolutions, as the country opens immense
possibilities and opportunities”.

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Financial Overview:
Revised Estimates (RE) 2023-24
❖ Total Receipts (other than borrowings):
Rs.27.56 lakh crore, of which the tax receipts
are Rs.23.24 lakh crore.
❖ Total Expenditure: Rs.44.90 lakh crore.
❖ Fiscal Deficit: 5.8 per cent of GDP for 2023-24.
❖ Budget Estimates 2024-25
❖ Total Receipts (other than borrowings):
Rs.30.80 Lakh Crore
❖ Total Expenditure: Rs.47.66 lakh crore
❖ Fiscal Deficit: 5.1 percent of GDP.
❖ The scheme of fifty-year interest free loan for
capital expenditure to states will be continued
this year with total outlay of Rs. 1.3 lakh crore.

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Snapshot of Budget:

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 Part B
Direct Taxes
❖ Tax Collection and Return Files: Over the last ten years, the direct tax collections have more than trebled and
the return filers has increased to 2.4 times.
❖ Tax rationalization efforts over the years
➢ No tax liability for income upto Rs 7 lakh, up from Rs 2.2 lakh in FY 2013-14.
➢ Presumptive taxation threshold for retail businesses increased to Rs 3 crore from Rs 2 crore.
➢ Presumptive taxation threshold for professionals increased to Rs 75 lakh from Rs 50 lakh.
➢ Corporate income tax decreased to 22% from 30% for existing domestic companies.
➢ Corporate income tax rate at 15% for new manufacturing companies.
❖ Achievements in Tax-Payer Services
➢ Average processing time of tax returns has reduced to 10 days from 93 days in 2013-14.
➢ Faceless Assessment and Appeal introduced for greater efficiency.
➢ Updated income tax returns, new form 26AS and prefilled tax returns for simplified return filing.
➢ Reforms in customs leading to reduced import release time:
✓ Reduction by 47% to 71 hours at Inland Container Depots.
✓ Reduction by 28% to 44 hours at Air Cargo complexes.
✓ Reduction by 27% to 85 hours at Sea Ports.

Indirect Taxes
❖ FM proposes to retain same tax rates for indirect taxes and import duties
❖ GST unified the highly fragmented indirect tax
regime in India
➢ Average monthly gross GST collection
doubled to Rs 1.66 lakh crore this year.
➢ GST tax base has doubled.
➢ State SGST revenue buoyancy (including
compensation released to states) increased to 1.22 in post-GST period (2017-18 to 2022-23) from 0.72
in the pre-GST period (2012-13 to 2015-16).
➢ 94% of industry leaders view transition to GST as largely positive.
➢ GST led to supply chain optimization.
➢ GST reduced the compliance burden on trade and industry
➢ Lower logistics cost and taxes helped reduce prices of goods and services, benefiting the consumers

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Resilient Performance of the Indian Economy:

Rupee Comes From: Rupee Goes To:

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