Ahead of Union Budget 2024, a look at key highlights of the interim budget

Finance Minister Nirmala Sitharaman presented the Interim Budget on February 1, 2024, ahead of the general elections. The Interim Budget proposed a total expenditure of ₹47,65,768 crore in FY 2024-25, a 6% rise over the revised estimate (RE) for FY 2023-24.

Total receipts were estimated at ₹30,80,274 crore, 12% higher than the RE of FY 2023-24. The fiscal deficit was pegged at 5.1% of GDP in 2024-25, lower than 5.8% in the preceding financial year.

The finance minister projected a GDP growth rate of 7.3% for FY 2024-25. The Interim Budget also proposed a sharp 11% increase in capital expenditure to ₹11.1 lakh crore, around 3.4% of the GDP, to boost growth and strengthen social infrastructure.

As the Sitharaman is going to present her seventh consecutive Budget and the first Full Budget of the Modi 3.0 government, all eyes will be on the government’s approach to the announcements made in the Interim Budget. FM Sitharaman will present the Union Budget 2024 in Parliament on July 23.

Roadmap for Viksit Bharat by 2047

The finance minister presented the Interim Budget as a roadmap for Viksit Bharat 2047 (developed India), focusing on four pillars: the poor, women, youth, and farmers. In her budget speech, she also stressed the development of infrastructure—physical, social, and digital.

The minister also proposed a ₹75,000 crore provision for a 50-year interest-free loan to support milestone-linked reforms by the state governments to achieve the Viksit Bharat vision.

Infrastructure

Several key policy measures were annouced during the interim budget. To give a push to infrastructure and overall growth, the interim budget proposed a substantial hike of 11% in capital expenditure outlay for infrastructure development and employment generation to ₹11.11 lakh crore in 2024-25.

PM Awas Yojana (Grameen)

The finance minister announced that 2 crore more homes will be constructed in rural areas under PM Awas Yojana in five years. She highlighted that the target of 3 crore homes will be achieved soon.

Sitharaman also announced that a new scheme will be launched to provide housing for the middle class.

Railways

The finance minister announced that three major economic railway corridor programmes under the PM Gati Shakti initiative will be implemented to improve logistics networks and cut costs. The three corridors would be for energy, cement and mineral corridors, high traffic density corridors, and port connectivity corridors. The minister also proposed converting 40,000 normal rail bogies to Vande Bharat standards.

Tourism sector

The interim budget proposed the comprehensive development of iconic tourist centres, along with marketing and branding, with the support of states.

A framework for rating tourist centres based on the quality of facilities and services was also proposed. States will be given long-term, interest-free loans to fund such development on a matching basis.

Green Energy

To give a push to green energy initiatives, the government announced to set up a coal gasification and liquefaction capacity of 100 MT by 2030.

The government also proposed rolling out phased mandatory blending of compressed biogas into compressed natural gas for transport and piped natural gas for domestic purposes.

The finance minister stated that viability gap funding will be provided to harness offshore wind energy for a capacity of 1 GW.

She also announced the adoption of e-buses for public transport, bolstering the e-vehicle ecosystem, installing charging infrastructure for EVs, and a new scheme of biomanufacturing and biofoundry for environment-friendly alternatives.

Push for Research and Innovation

To catalyse growth, employment and development, the finance minister announced setting up a fund of ₹1 lakh crore with 50-year interest free loan. The fund will provide long-term financing or refinancing at low or nil interest rates.

The budget also proposed a new scheme for bolstering deep-tech technologies for defence purposes and expediting ‘atma nirbharta’.

Free power and Rooftop solarisation

The government proposed to give 300 units of free power every month through the rooftop solarisation scheme. The scheme, which proposes installing grid-connected rooftop solar facilities, would benefit around 1 crore households.

Ayushman Bharat

The finance minister announced extending healthcare coverage under the Ayushman Bharat scheme to all ASHA workers, Anganwadi Workers, and Helpers.

Allocation for major scheme

The interim budget allocated ₹86,000 crore for rural job scheme MGNREGS in 2024-25, the same as the revised estimate for 2023-24 but 43% higher than FY24 budget estimates.

The Pradhan Mantri Awas Yojana was allocated ₹80,671 crore in 2024-25, up by 49.1% over RE 2023-24. However, the allocation was lower by 32% compared to FY 2023-24 budget estimate as the rural component fell short of the original plans.

The Jal Jeevan Mission was allocated ₹70,163 crore in 2024-25, almost the same as RE 2023-24.

PM KISAN was allocated ₹60,000 crore in 2024-25, the same as RE of 2023-24.