India Budget 2024

Indian Prime Minister Narendra Modi's government has presented its last budget before the country heads for general elections in the coming months. The interim budget focuses on the government’s objective of making India a $5 trillion economy and a developed nation by 2047.The interim budget or a stop-gap financial plan will come into effect from 1 April until a new government presents a full-fledged budget after coming to power.

1. There are no changes in direct or indirect tax rates.

2. The government withdrew income tax demands up to Rs. 25,000 (till 2009-10) and Rs. 10,000 from 2010-11 to 2014-15. This will benefit about one crore taxpayers .There are a large number of petty, non-verified, non-reconciled, or disputed direct tax demands, many of them dating as far back as the year 1962, which continue to remain on the books, causing anxiety to honest taxpayers and hindering refunds of subsequent years.

3. A scheme to help middle class living in rented houses to buy or build their own houses will be launched

4. Tax benefits to start-ups and investments made by sovereign wealth or pension funds extended by 1 year till March 31, 2025

5. Fiscal deficit for FY25 projected at 5.1%, lower than the revised estimate (5.8%) in FY24

6. Govt. to borrow Rs. 14.13-lakh crore in next fiscal, lower than Rs. 15.43 lakh crore in FY24.

7. Nominal GDP growth for FY25 is projected at 10.5%

8. Mop-up from central public sector enterprises disinvestment pegged at Rs. 50,000 crore for FY25, up from Rs. 30,000 crore in FY24

9. Gross tax revenue target for FY25 hiked 11.46% to Rs. 38.31-lakh crore, from Rs. 34.37 lakh crore in FY24

10. Direct tax collection target set at Rs. 21.99-lakh crore, while that of indirect tax is at Rs. 16.22-lakh crore

11. Capital expenditure hiked 11% to Rs. 11.11-lakh crore

12. Govt. to form high-powered panel to address population growth challenges and demographic changes.

13. The government is likely to present a White Paper on the mismanagement of the economy before 2014 with an aim to draw lessons. According to senior government officials, the white paper may be presented next week.

14. In the highest-ever allocation, the government has allotted more than Rs.73,000 crore for school education.

15. In line with India’s Neighbourhood policy, the largest share of aid portfolio has been granted to Bhutan with the allocation of Rs. 2,068 crore.

16. The government has allocated Rs. 15,500 crore for various electronics manufacturing programmes, including semiconductor missions.

17. The government has earmarked Rs. 2,671.33 crore, over 44 per cent lower than the previous year towards the Faster Adoption and Manufacturing of Hybrid and Electric Vehicle in India.

18. The University Grants Commission has faced a budget cut this year with the Centre reducing its grant by over 60 percent. The funding has been brought down to Rs. 2,500 crore from the previous year’s Rs. 6,409.

19. The budget for school education has been increased by over Rs. 500 crore.

20. In the interim budget for 2024-25 announced by Finance Minister Nirmala Sitharaman on Thursday, crore, a 60.99 per cent drop.

21. President’s office allocated Rs. 144.18 crore for the staff, household and allowances, a massive increase of Rs. 46.49 crore (about 47.5 %) from Rs. 97.69 crore earmarked last year.

22. The budget allocated Rs. 1,248.91 for the expenses incurred by the council of ministers, cabinet secretariat, prime minister’s office, and on hospitality and entertainment of State guests. The allocated amount is substantially lower than Rs. 1803.01 crore earmarked last year.

23. FDI inflow into the country in the 2014-23 period doubled to $596 billion, compared to the inflows in 2005-13.

24. Finance Minister announced a lower-than-expected bond sales program for the next fiscal year, as the nation prepares for big foreign inflows on global index inclusion. Bonds rallied. RBI aims to borrow Rs. 14.13 trillion ($170 billion) in the fiscal year starting April 1.The net borrowings, adjusted for maturities, are planned at Rs. 11.75 trillion for the next fiscal year. The yield on the benchmark 10-year bond fell as much as nine basis points to 7.05 per cent after the announcement.

25. The government would build 20 million affordable houses in the next five years in addition to the nearly 30 million houses built already. This will provide obvious impetus to the rural economy both in terms of job creation and construction, while also fulfilling the government's socio-economic agenda.

Not surprisingly, Finance Minister Nirmala Sitharaman has continued to fund infrastructure building which has been a major driver of India's economic growth. Over 8.5 lakh crore ( $130b ) has been allocated to build physical assets like roads and ports this year , a 11% jump from last year. High public spending is expected to help keep India's GDP growth at about 7%. The rapid expansion has allowed the government to collect higher taxes, and curb its fiscal deficit the gap between what it earns and spends by half a percent to 5.1% this year.

This would mean lower market borrowings, which has led to a rally in India's bond markets. The finance minister has laid the path for a 4.5% fiscal deficit target by 2026.

There were no new tax relief measures announced for the salaried middle class and Mr. Modi's pre-election spending plan also refrained from announcing big increases in social schemes barring a programme to provide free electricity through rooftop solar projects to 10 million households to lure voters. India has already extended a free food programme, which was implemented during Covid-19, for the next five years to 800 million people.

Economists have also expressed concern about private investment not picking up pace, and India's consumption story painting a picture of uneven growth with the urban rich getting richer and buying more premium products, while those at the bottom of the pyramid in the rural hinterland continuing to cut back on spending.
Alongside an emphasis on building physical capital, there has not been enough attention paid to some other pressing issues. Issues that are also a significant point of concern for the Indian economy, relate toincreasingnational and foreign debt financing, trade deficit, and rupee devaluation. It is expected when the final budget is presented post-election, the Finance Minister will come out with appropriate statements with regards to this.






$450.00 Billion

58.00 Lakh Cr.



156.00 Lakh Cr.

*20% Revenue goes towards interest payments.






$145.00 Billion

$267.00 Billion








Proposed 10% GDP growth is an ambitious target and to achieve this, tourism, private construction, artificial intelligence, defence exports and manufacturing, ease of doing business and service sector which significantly contribute to GDP also missed serious attention.

Indian Economy Through Graphical Presentation

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