In a significant budget presentation today, Finance Minister Nirmala Sitharaman outlined the key focus areas of the Narendra Modi government’s final budget before the upcoming Lok Sabha polls.
The Finance Minister emphasized the government’s commitment to transformative governance, development, and performance, encapsulated in a more comprehensive approach to Gross Domestic Product (GDP).
Here’s a breakdown of the major highlights and takeaways from Nirmala Sitharaman’s Budget 2024 speech:
- Sitharaman stressed the government’s commitment to a more comprehensive GDP, focusing on governance, development, and performance as key pillars.
- A remarkable achievement was highlighted, with the government successfully lifting 250 million people out of poverty over the past decade.
- The Finance Minister announced that the benefits of the crop insurance scheme would extend to 40 million farmers, emphasizing the government’s commitment to supporting the agricultural community.
- Sitharaman reported that inflation has moderated, and economic growth has seen an upswing, reflecting positive trends in the nation’s economic landscape.
- Tax reforms were acknowledged for their role in broadening the tax base and increasing overall tax collections, contributing to fiscal stability.
- The Finance Minister expressed confidence in India’s economic trajectory, predicting unprecedented growth over the next five years, making it the fastest-growing major economy globally.
- Sitharaman outlined the ambitious goal of making India ‘Viksit’ (developed) by 2047, setting the stage for long-term planning and sustainable development.
- A new scheme to strengthen deep tech for defense purposes was announced, reflecting the government’s commitment to enhancing technological capabilities in the defense sector.
- The government aims to support deserving sections of the middle class in building their own houses. Additionally, a target of constructing 20 million affordable houses in the next five years was set, complementing the existing 30 million houses.
- The success of self-help groups was highlighted, with one crore women empowered to become “Lakhpati didis,” showcasing the impact of inclusive economic policies.
- The Finance Minister projected a lower fiscal deficit for FY24 at 5.8% of GDP, with a target of reducing it to 5.1% in FY25 and further to 4.5% by FY26.
- No changes were proposed in both direct and indirect taxation, providing stability and predictability to businesses and individuals.
- Tax benefits for startups and extensions for investments made by sovereign wealth and pension funds were announced, fostering a conducive environment for entrepreneurial growth.
- Significant investments in the tourism sector were promised, with a specific focus on enhancing tourist infrastructure in the island Union Territory of Lakshadweep.
