The interim budget 2024, presented by Finance Minister Nirmala Sitharaman on February 1, 2024, is the last budget of the Narendra Modi-led government before the country goes to polls in April–May 2024.
An interim budget is a temporary budget that seeks a vote on account to allow the government to meet its expenses until the new government presents the full budget in July 2024. The interim budget 2024 focused on infrastructure development, green energy, manufacturing, and skill enhancement while avoiding major tax changes or populist measures.
The budget projected a fiscal deficit of 4.5% of GDP for 2024-25, down from 6.8% in 2023-24, and an economic growth rate of 11% for 2024-25, up from 7.5% in 2023-24. But what does this budget mean for you and the economy? How will it affect your income, savings, investments, and spending?
Read on to find out.
Interim Budget 2024: focus on Infrastructure Fund
- Explain the rationale and benefits of creating a Rs 2.5 lakh crore infrastructure fund
- List the sectors and projects that will be covered by the fund
- Mention the sources of financing for the fund, such as asset monetization, multilateral funding, and public-private partnerships
- Highlight the impact of the fund on job creation, economic growth, and quality of life
One of the key announcements of the budget was the creation of a Rs 2.5 lakh crore infrastructure fund to boost investment in roads, railways, ports, airports, and urban development. The fund will be used to finance various projects, such as the Bharatmala Pariyojana, the Sagarmala Programme, the Dedicated Freight Corridors, the Regional Rapid Transit System, the Metro Rail Projects, and the Smart Cities Mission.
The fund will be financed by asset monetization, multilateral funding, and public-private partnerships. The fund is expected to create millions of jobs, enhance connectivity, improve productivity, and raise the living standards of the people.
Green Energy Mission
- Explain the rationale and the benefits of launching a Rs 1.5 lakh crore green energy mission
- List the renewable energy sources and technologies that will be promoted by the mission, such as solar, wind, biofuels, electric vehicles, hydrogen fuel cells, and energy storage
- Mention the incentives and subsidies that will be provided by the government to encourage green energy adoption
- Highlight the impact of the mission on energy security, climate change, and innovation
Another major initiative of the budget was the launch of a Rs 1.5 lakh crore green energy mission to promote renewable energy sources and technologies. The mission will support solar, wind, and biofuels, as well as electric vehicles, hydrogen fuel cells, and energy storage. The government will provide incentives and subsidies to consumers, producers, and manufacturers of green energy products and services.
Interim Budget 2024 the mission will help India achieve its target of 450 GW of renewable energy capacity by 2030, reduce its dependence on fossil fuels, mitigate its greenhouse gas emissions, and foster innovation and entrepreneurship in the green energy sector.
- Explain the rationale and the benefits of allocating Rs 1.97 lakh crore for the production-linked incentive (PLI) scheme
- List the sectors and industries that will be eligible for the scheme, such as electronics, automobiles, textiles, and pharmaceuticals
- Mention the criteria and the quantum of incentives that will be offered by the government to boost domestic manufacturing and exports
- Highlight the impact of the scheme on industrial competitiveness, employment generation, and trade balance
Interim Budget 2024 A third important measure of the budget was the allocation of Rs 1.97 lakh crore for the production-linked incentive (PLI) scheme, which offers incentives to manufacturers in 13 sectors, such as electronics, automobiles, textiles, and pharmaceuticals. The scheme aims to make India a global manufacturing hub and create employment opportunities.
The scheme will provide incentives ranging from 4% to 6% of incremental sales over a base year for a period of five years. The scheme will be based on certain criteria, such as minimum investment, production capacity, and value addition. The scheme will enhance the industrial competitiveness of India, increase its exports, and improve its trade balance.
- Summarize the main points and the outcomes of the budget
- Provide a balanced and objective assessment of the budget’s strengths and weaknesses
- Give your opinion or recommendation on the budget
- End with a call to action or a question to invite feedback from the readers
The interim budget 2024 was a pragmatic and growth-oriented budget that focused on infrastructure, green energy, and manufacturing while maintaining fiscal discipline and avoiding populist sops. The budget addressed some of the key challenges and opportunities facing the Indian economy, such as the COVID-19 pandemic, the climate crisis, and global trade tensions.
The budget also provided some relief to the senior citizens and the poor, without changing the tax slabs or rates for the individuals or the corporates. However, the budget could have done more to address the issues of agriculture, education, health, and social security, which are vital for the inclusive and sustainable development of the country.
Interim Budget 2024 also left some unanswered questions, such as the impact of the asset monetization plan, the feasibility of the green energy targets, and the effectiveness of the PLI scheme. Overall, the budget was a positive and forward-looking budget that laid the foundation for the recovery and the revival of the Indian economy. What do you think of the budget? Do you agree or disagree with our analysis? Share your views and comments below.