Interim Budget 2024-2025
Interim Budget 2024-2025
Interim Budget 2024-2025
BUDGET
2024-2025
CAPEX
The government has raised the capital expenditure target by 11.1 % to Rs. 11.11 lakh crore
for the next fiscal year starting April 1. This would be 3.4 % of the GDP, the Finance
Minister said in her speech.
The government's planned capex for FY24 was budgeted at Rs 10 lakh crore, higher than
Rs 7.3 lakh crore in the last fiscal. However, the capex Revised Estimate (RE) now stands at
Rs 9.5 lakh crore.
The expansion of the capital expenditure outlay by 11.1% for FY25 will greatly bolster
economic growth and boost job creation by powering the infrastructure sector further.
CII is happy to note the government’s continued thrust on capital expenditure, which will
maintain a high multiplier effect on the economy by strengthening the physical and
social infrastructure of the country. Several projects identified under the PM Gati Shakti
programme will accelerate the country’s GDP growth by bringing down logistics costs
and enabling multi-modal connectivity.
FISCAL DEFICIT
The fiscal deficit, representing the excess of the government's total expenses over its
total earnings, is a crucial indicator of economic health.
For FY24 the fiscal gap has been cut to 5.8 % as against the estimated 5.9%.
The number for 2024-25 has been fixed at 5.1%, below the revised budgeted for 2023-
24, stating that the aim is to achieve a fiscal deficit target of below 4.5% by 2025-26.
In absolute terms, the fiscal deficit would be ₹16,85,494 crore against ₹17,34,773 crore
for the current fiscal.
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ALL ABOUT TAX
Nirmala Sitharaman, unlike last year, has made no significant changes to the tax rates for FY25. The retention of
tax rates includes:
Further, tax receipts for FY24 have been revised at Rs 23.24 lakh crore and the budget estimate for FY25 stands at
Rs 26.02 lakh crore.
The government also announced withdrawal of outstanding direct tax demand, which is expected to benefit up
to one crore people, for the following:
For FY 24-25, the Defence budget is increased by approximately one lakh crore
(18.35 percent) compared to FY 2022-23 and is 4.72 percent more than the
allocation for FY 23-24. Breakdown includes 27.67 percent for capital, 14.82 percent
for operational expenses, 30.68 percent for Pay and allowances, 22.72 percent for
defence pensions, and 4.11 percent for civil organisations under MoD.
RAILWAYS
After receiving the highest ever budgetary allocation in 2023-24, the outlay for Indian Railways for
financial year 2024-25 is Rs 2.5 lakh crore.
Last fiscal’s Rs 2.4 lakh crore allocation was 9 times higher than the allocation made for Indian
Railways in 2013-14.
The allocation of Rs 2.5 lakh crore for FY’25 is nearly 5% higher than last year .
A major chunk of expenditure for the Indian Railways comprises staff cost, is estimated to be Rs 1.17
lakh crore for FY '25.
Fuel cost including diesel and electricity will be Rs 10,735 crore and Rs 23,102 crore in FY '25.
The government has announced the implementation of three major economic railway corridor
programs aimed at enhancing logistics efficiency and reducing costs. These programs, identified
under the PM Gati Shakti initiative, include energy, mineral, and cement corridors, port connectivity
corridors, and high traffic density corridors. By decongesting high-traffic corridors, the operations of
passenger trains are expected to improve, leading to increased safety and higher travel speeds for
passengers.
Additionally, the conversion of forty thousand normal rail bogies to Vande Bharat standards is set to
enhance passenger safety, convenience, and comfort.
BORROWING
The Centre will borrow Rs 14.13 lakh crore from the markets in 2024-25 in gross
terms to finance its fiscal deficit of 5.1 percent of the GDP. This is a whopping Rs
1.3 lakh-crore lower compared to the estimate of Rs 15.43 lakh crore for the
current fiscal, Finance Minister Nirmala Sitharaman announced in a speech
presenting the Interim Budget for 2024-25.
Finance Minister Nirmala Sitharaman has pegged the net market borrowing for
fiscal year 2024–25 at ₹11.75 lakh crores.
This is expected to help banks to be able to lend more next year. This will also
lead to an increase in the value of government bonds, which would lead to added
profits for state-owned banks.
A government borrows money from the market to make up for expenses that
exceed its total revenue. This is called a fiscal deficit.
EXPENDITURE ON MAJOR SCHEMES
MGNREGS has the highest allocation in 2024-25 at Rs 86,000 crore. This amount is the same as
the revised estimate for 2023-24. In 2023-24, allocation on the scheme is estimated to increase by
43% over the budget estimate.
The Pradhan Mantri Awas Yojana has the second highest allocation in 2024-25 at Rs 80,671 crore,
an increase of 49.1% over the revised estimate of 2023-24. In 2023-24, expenditure for the scheme
is expected to be lower by 32% as compared to the budget estimates. This was mainly on account of
the rural component falling short of original plans. The allocation for 2024-25 is similar to the
budget estimate for 2023-24
The Jal Jeevan Mission has the third highest allocation in 2024-25 at Rs 70,163 crore, an increase
of 0.2% over the revised estimate of 2023-24. PM KISAN has been allocated Rs 60,000 crore in
2024-25, which is the same as the revised estimate of 2023-24.
We Thank You
for Your Time