New Delhi: Interim budget estimate food and fertilizer subsidies 8%, 11% increase says Union Budget 2024

New Delhi: The real estate sector serves as both a major catalyst for economic growth and a vital provider of employment in India. As we look towards the Union Budget 2024-25, there is an urgent need for the sector to be granted industry status, which would facilitate access to lower-cost financing and tax benefits. High taxes on essential materials such as cement and steel, particularly the 28% GST on cement, are inflating project costs and must be addressed to sustain growth says Nirmala Sitharaman

The finance minister said that implementing a single-window clearance system would significantly streamline approval processes, accelerating project timelines and reducing costs. Additionally, enhancing tax benefits for homebuyers by raising the deduction limit for home loan interest payments and providing income tax relief on second homes would spur demand and make homeownership more attainable. The sector's growth is vital not just for economic metrics but for improving the livelihoods of millions, particularly casual laborers.

The government is likely to spend approximately Rs 2.25 lakh crore on food subsidies for the current financial year, marking an 11% increase from the interim budget estimate announced in February, Reuters report.

An announcement about this is likely to be made by Finance Minister Nirmala Sitharaman in the upcoming full budget in July 23.

The rise is primarily attributed to higher spending on the support price for farmers, according to four government sources quoted in the news agency’s report.

Government may spend Rs 2.25 lakh crore on food subsidies. This will represents an 11% increase from the interim budget estimate and the new budget is to be presented on July 23 .The interim budget estimates will be revised with the new budget set to be presented by Finance Minister Nirmala Sitharaman on July 23.

In the interim budget, food and fertiliser subsidies accounted for about 8% of India's total expenditure of Rs 47.66 lakh crore for the fiscal year ending on March 31, 2025.

Despite the rise in food subsidies, the government is likely to maintain its previous estimate of Rs 1.64 lakh crore for the fertiliser subsidy.

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