What is Interim Budget?
An interim budget is a temporary financial plan presented by the government during the transition period between two full budgets. It typically covers government expenses and revenues for a short span, often in an election year, until a new government is elected. This budget ensures the continuity of essential expenditures and revenue estimates, with the government typically constrained from making significant policy changes or introducing new programs during this interim period.
The Union Minister for Finance and Corporate Affairs Smt. Nirmala Sitharaman presented the Interim Budget 2024-25 in the Parliament on 01 Feb 2024.
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Key Highlights of the Budget-
Sustainable Development-
- The government has introduced various initiatives to achieve ‘net zero’ by 2070, including financial support for harnessing offshore wind energy with an initial capacity of 1 gigawatt.
- Coal gasification and liquefaction capacity of 100 MT to be set up by 2030.
- A gradational obligatory blending of compressed biogas (CBG) in compressed natural gas (CNG) for transport and piped natural gas (PNG) for domestic purposes to be commanded.
- Procuring biomass aggregation machinery.
- Through rooftop solarisation, 1 Cr. households will be enabled to obtain up to 300 units of free electricity every month.
- Adoption of e-buses will be encouraged.
- Make a strong ecosystem for e-vehicle manufacturing and charging.
Railways-
- 3 major economic railway corridor programmes identified under PM Gati Shakti to improve logistics efficiency and reduce cost-
- Energy, mineral and cement corridors
- Port connectivity corridors
- High-traffic density corridors
- 40 thousand normal rail bogies to be converted to Vande Bharat standards.
Investments-
- FDI inflow during 2014-23 of $96 billion was twice the inflow during 2005-14.
Infrastructure-
- The expansion of airline fleets and the establishment of new airports through the ongoing UDAN scheme have enhanced regional air connectivity, benefiting travellers from Tier 2 & 3 cities. This has led to a notable increase in demand for air travel and has introduced many first-time flyers to the aviation experience.
- The government will spend ₹24,931 Cr. to fund various metro projects in the country.
Health-
- The government will encourage cervical cancer vaccination and combine maternal and child health care schemes into a comprehensive programme.
- Health cover under the Ayushman Bharat scheme will be expended to all ASHA workers, Anganwadi workers and helpers.
PM Awas Yojna (Grameen)-
- The target of 3 Cr. houses under PM Awas Yojna (Grameen) will be achieved soon so 2 Cr. more houses to be taken up in the next five years.
Tousrism-
- Long-term interest-free loans will be provided to states for financing the development of tourism.
- Connectivity with offbeat tourism destinations like Lakshadweep will be improved.
Others-
- The fiscal deficit estimate is revised from 5.8% in 2023-24 to 5.1% in 2024-25.
- The average processing time of tax returns has reduced to 10 days from 93 days in 2013-14.
- DBT of ₹34 lakh crore using PM-Jan Dhan accounts led to the saving of ₹2.7 lakh crore through the avoidance of leakages.
- No changes in tax rates.