Finance Minister Nirmala Sitharaman Presents Interim Budget

‘Trinity of democracy, demography and diversity can fulfil aspirations of every Indian’

New Delhi: Finance Minister Nirmala Sitharaman on Thursday asserted that the BJP-led government at the Centre has worked with an approach to development that is "all-round, all-inclusive, and all-pervasive" ('sarvangin','sarvasparshi', and'sarvasamaveshi') and said that the trinity of "Democracy, Demography, and Diversity" can help fulfil the aspirations of every Indian.

Finance Minister Nirmala Sitharaman presented the interim Budget (sixth for her) for the financial year 2024-25, ahead of the Lok Sabha polls, and said that the Indian economy has witnessed a profound positive transformation in the last 10 years.

"The next five years will be years of unprecedented development. The trinity of democracy, demography, and diversity can help fulfil the aspirations of every Indian. The Indian economy has witnessed a profound positive transformation in the last 10 years, and the people of India are looking ahead to the future with hope and optimism," the Finance Minister said in her budget speech.

"Our young country has high aspirations, pride in its present, and hope and confidence for a bright future. We expect that our government, based on its stupendous work, will be blessed again by the people with a resounding mandate," she said.

The Finance Minister highlighted that the BJP-led Central government believes in focusing on four major castes: Garib (poor), Mahilayen (women), Yuva (youth), and Annadata (farmer). "Their needs, their aspirations, and their welfare are our highest priorities. The country progresses when it progresses. All four require and receive government support in their quest to better their lives. Their empowerment and well-being will drive the country forward," the Finance Minister said.

Nirmala Sitharaman expressed that social justice is an effective and necessary governance model.

She further added that the emphasis on reducing corruption has brought transparency and benefits to all eligible people.

"The focus of the government is on outcomes and not on outlays," she said.

Emphasising the development of railways, Sitharaman said that 40,000 normal rail bogies will be converted to the Vande Bharat Standards to enhance the safety and comfort of passengers.

"The resultant decongestion of the high-traffic corridors will also help in improving the operations of passenger trains, resulting in safety and higher travel speeds for passengers. Together with dedicated freight corridors, these three economic corridor programmes will accelerate our GDP growth and reduce logistic costs," she asserted.

Sitharaman declared that the Indian economy has undergone a profound positive transformation over the last decade.

"The Indian economy witnessed a profound positive transformation in the last 10 years," the Finance Minister said.

The Finance Minister made no changes in the taxation structure, which can be seen as a relief to taxpayers.

"In keeping with convention, I do not propose to make any changes relating to taxation and propose to retain the same tax rates for direct and indirect taxes, including import duties. However, certain tax benefits to startups and investments made by sovereign wealth or pension funds, as well as tax exemptions on certain income of some IFSC units, are expiring on March 31, 2024; to provide continuity, I propose to extend the date to March 31, 2025," the Finance Minister said.

The commitment to maintaining the existing tax framework aligns with the government's strategy to provide stability and predictability to businesses and taxpayers.

However, Sitharaman acknowledged certain impending changes in tax benefits and exemptions. She addressed the expiration of tax benefits for startups and investments made by sovereign wealth or pension funds, along with the tax exemption on specific income of some International Financial Services Centre (IFSC) units.

The Finance Minister concluded her budget presentation with a positive outlook, signalling the government's determination to continue fostering inclusive growth and development.

The Budget 2024 is expected to undergo thorough scrutiny and debate in the coming days in Parliament as stakeholders assess its potential impact on the nation's economic trajectory. (ANI)

Tax rationalization

Ø   No tax liability for income up to Rs 7 lakh

Ø   Presumptive taxation threshold for retail businesses increased to Rs 3 crore from Rs 2 crore

Ø   Presumptive taxation threshold for professionals increased to Rs 75 lakh from Rs 50 lakh

Ø   Corporate income tax decreased to 22% from 30% for existing domestic companies

Ø   Corporate income tax rate at 15% for new manufacturing companies

Ø   Tax benefits to startups, investment made by sovereign wealth or pension fund extended to March 31, 2025

Ø   Tax exemption on certain income of IFSC units extended by a year to March 31, 2025

Ø   Average processing time of tax returns reduced to ten days from 93 days

Ø   Faceless assessment and appeal introduced for greater efficiency

Highlights of Budget

Ø   Government assisted 25 crore people out of multi-dimensional poverty in past ten years

Ø   DBT of Rs 34 lakh crore using PM Jan Dhan Accounts

Ø   PM-SVANidhi provided credit assistance to 78 lakh street vendors

Ø   PM-Kisan Samman Yojana provided financial assistance to 11.8 crore farmers under 'Annadata'

Ø   30 crore mudra ypjona loans given to women entrepreneurs

Ø   Over 70% house under PM Awas Yojona given to rural women

Ø   One crore households to get 300 unit free electricity every month through rooftop solarization

Ø   New scheme soon for strengthening deep tech for defence purposes

Ø   Capital expenditure outlay for infrastructure development and employment generation to be increased by 11.1% to Rs 11,11,111 crore

Ø   A provision of Rs 75,000 crore as fifty-year interest-free loan proposed to support milestone-linked reforms by the state governments under 'Viksit Bharat'.

Ø   Three major economic railway corridor programmes under the PM Gati Shakti to be implemented to improve logistics efficiency and reduce cost energy, mineral and cement corridors

Ø   Forty thousand normal rail bogies will be converted to Vande Bharat standards.

Ø   The number of airports in the country doubled to 149.

Ø   PM-Kisan Samman Yojana provided financial assistance to 11.8 crore farmers under 'Annadata'.

Ø   Under PM Fasal BimaYojana, crop insurance given to 4 crore farmers

Ø   Female enrolment in higher education up by 28%

Ø   Ayushman Bharat scheme to cover ASHA workers, Anganwadi workers and helpers.

Ø   Coal gasification and liquefaction capacity of 100 MT to be set up by 2030

Ø   States to encourage to take up comprehensive development of iconic tourist centres including their branding and marketing at global level.

Also Read: Assam: CM Himanta Biswa Sarma Commends Interim Budget 2024-25

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