Budget 2024: Allocations for PM Awas Yojana, PM-Kisan scheme likely to be increased, says report

In the backdrop of the record ₹2.11-lakh crore dividend transferred by the Reserve Bank of India (RBI) to the Centre, Finance Minister Nirmala Sitharaman is reportedly planning to boost the Centre’s capital expenditure and increase allocations for some of the flagship schemes.

The interim budget that was presented back in February laid an outlay of ₹60,000 crore and ₹ 80,671 crore on the PM-Kisan and PM Awas Yojana schemes, respectively, for the current financial year, the report said.

Despite the increase in allocations, the fiscal deficit target of 5.1% set in the interim budget is likely to remain the same. Fiscal deficit is the difference between a government’s expenditure and revenue, and is one of the key benchmarks for keeping a check on the financial health of the country.

The Centre’s capital expenditure target stood at ₹11.11 lakh crore in the interim budget and is expected to increase with extended breathing space for the finance ministry.

Cash handout to small farmers under the PM-Kisan Nidhi Samman scheme is anticipated to be raised to ₹8,000 from the previous amount of ₹6,000, news agency Bloomberg reported last week.

In addition to this, PM Modi’s government has put the construction of three crore houses under PMAY in motion as its first decision after the formation of the new government. The government is also planning to introduce a housing scheme for the “deserving sections” of the middle class as promised in the interim budget.

Tax relief for salaried class on cards?

As far as one of the most-awaited updates from the Union Budget 2024 is concerned, the government is considering raising the tax exemption limit under the new tax regime to ₹5 lakh from ₹3 lakh, providing tax relief to salaried individuals, MoneyControl reported on June 21, citing persons privy to the development.

The government is also considering to reduce the income tax rates for those falling under the highest slab, news agency Reuters reported on June 17, citing sources. The highest tax rate of 30% is levied on those earning above ₹15 lakh under the new regime, and on those earning above ₹10 lakh under the old regime.