Interim Budget 2024

Interim Budget 2024- Key Highlights

Why in the news Interim Budget 2024- Key Highlights?

Union Finance Minister, Nirmala Sitharaman, presented the Interim Budget 2024. The Interim budget 2024 that the finance minister presented will stay valid for the first four months of the new fiscal year that starts in April. The comprehensive budget for the fiscal year 2024-2025 will be presents in July 2024.

The key highlights of the Budget are as follows:



Revised Estimates 2023-24 Budget Estimates 2024-25


Total Receipts (other than borrowings) Rs. 27.56 lakh crore Rs. 30.80 lakh crore
Tax Receipts Rs. 23.24 lakh crore Rs. 26.02 lakh crore
Total Expenditure Rs. 44.90 lakh crore Rs. 47.66 lakh crore
Revenue Receipts Rs. 30.03 lakh crore
Fiscal Deficit (as % of GDP) 5.8% 5.1%
Interest-Free Loan for States Continued with a total outlay of Rs. 1.3 lakh crore
Gross Market Borrowings Rs. 14.13 lakh crore
Net Market Borrowings Rs. 11.75 lakh crore

Interim Budget 2024

Social Justice

  • Prime Minister to focus on upliftment of four major castes, that is, ‘Garib’ (Poor), ‘Mahilayen’ (Women), ‘Yuva’ (Youth) and ‘Annadata’(Farmer).

‘Garib Kalyan, Desh ka Kalyan’ in Interim Budget 2024

  • Government assisted 25 crore people out of multi-dimensional poverty in the last 10 years.
  • DBT of Rs. 34 lakh crore using PM-Jan Dhan accounts led to savings of Rs. 2.7 lakh crore for the Government.
  • PM-SVANidhi provided credit assistance to 78 lakh street vendors. 2.3 lakh have received credit for the third time.
  • PM-JANMAN Yojana to aid the development of particularly vulnerable tribal groups (PVTG).
  • PM-Vishwakarma Yojana provides end-to-end support to artisans and crafts people engaged in 18 trades.

Interim Budget 2024

Welfare of farmers-‘Annadata’

  • PM-KISAN SAMMAN Yojana provided financial assistance to 11.8 crore farmers.
  • Under PM Fasal BimaYojana, crop insurance given to 4 crore farmers
  • Electronic National Agriculture Market (e-NAM) integrated 1361 mandis, providing services to 1.8 crore farmers with trading volume of Rs. 3 lakh crore.

Momentum for Nari Shakti

  • 30 crore Mudra Yojana loans given to women entrepreneurs.
  • Female enrolment in higher education gone up by 28%.
  • In STEM courses, girls and women constitute 43% of enrolment, one of the highest in the world.
  • Over 70% houses under PM Awas Yojana given to women from rural areas.

Interim Budget 2024


  • Fostering entrepreneurial aspirations of Youth-43 crore loans sanctioned under PM Mudra Yojana
  • 4 crore youth trained under Skill India Mission.

Interim Budget 2024

Sustainable Development

  • Commitment to meet ‘Net Zero’ by 2070
    • Viability gap funding for wind energy
    • Setting up of coal gasification and liquefaction capacity
    • Phased mandatory blending of CNG, PNG and compressed biogas
    • Financial assistance for procurement of biomass aggregation machinery
  • Rooftop solarization-1 crore households will be enable to obtain up to 300 units of free electricity per month
  • Adoption of e-buses for public transport network
  • Strengthening e-vehicle ecosystem by supporting manufacturing and charging
  • New scheme of biomanufacturing and bio-foundry to be launched to support environment friendly alternatives
  • Green Energy
    • Coal gasification and liquefaction capacity of 100 MT to be set up by 2030.
    • Phased mandatory blending of compressed biogas (CBG) in compressed natural gas (CNG) for transport and piped natural gas (PNG) for domestic purposes to be mandated.


  • Encourage Cervical Cancer Vaccination for girls (9-14 years)
  • Saksham Anganwadi and Poshan 2.0 to be expedited for improved nutrition delivery, early childhood care and development
  • U-WIN platform for immunisation efforts of Mission Indradhanush to be rolled out
  • Health cover under Ayushman Bharat scheme to be extended to all ASHA, Angawadi workers and helpers

Agriculture and food processing

  • Pradhan Mantri Kisan Sampada Yojana has benefitted 38 lakh farmers and generated 10 lakh employment.
  • Pradhan Mantri Formalisation of Micro Food Processing Enterprises Yojana has assisted 2.4 lakh SHGs and 60000 individuals with credit linkages.
  • Application of Nano-DAP to be expanded in all agro-climatic zones
  • Atmanirbhar Oilseeds Abhiyaan-Strategy to be formulated to achieve atmanirbharta for oilseeds

Research and Innovation for catalyzing growth, employment and development

  • A corpus of Rs.1 lakh crore to be established with fifty-year interest free loan to provide long-term financing or refinancing with long tenors and low or nil interest rates.
  • A new scheme to be launched for strengthening deep-tech technologies for defence purposes and expediting ‘atmanirbharta’.

Infrastructure and Investment

  • Capital expenditure outlay for Infrastructure development and employment generation to be increased by 11.1 per cent to Rs.11,11,111 crore, that will be 3.4 per cent of the GDP.
  • FDI inflow during 2014-23 of USD 596 billion was twice of the inflow during 2005-14.
  • Railways
  • 3 major economic railway corridor programmes identified under the PM Gati Shakti to be implemented to improve logistics efficiency and reduce cost
    • Energy, mineral and cement corridors
    • Port connectivity corridors
    • High traffic density corridors
  • Forty thousand normal rail bogies to be converted to Vande Bharat standards.
  • Aviation Sector
    • Number of airports in the country doubled to 149.
    • Five hundred and seventeen new routes are carrying 1.3 crore passengers.
    • Indian carriers have placed orders for over 1000 new aircrafts.
  • Tourism sector
    • States to be encouraged to take up comprehensive development of iconic tourist centres including their branding and marketing at global scale.
    • Framework for rating of the tourist centres based on quality of facilities and services to be established.
    • Long-term interest free loans to be provided to States for financing such development on matching basis.

Interim Budget 2024

Achievements of Taxation Reforms

Direct Taxes:

  • Same tax rates for direct taxes proposed by FM.
  • Direct tax collection tripled in the last 10 years.
  • Return filers increased to 2.4 times in the last decade.
  • Government aims to improve taxpayer services: Outstanding direct tax demands up to Rs 25,000 (up to FY 2009-10) and Rs 10,000 (for FY 2010-11 to 2014-15) withdrawn, benefiting one crore taxpayers.
  • Tax benefits extended to Start-Ups; investments by Sovereign wealth funds or pension funds extended to 31.03.2025.
  • Tax exemption on certain income of IFSC units extended to 31.03.2025.

Indirect Taxes:

  • Same tax rates for indirect taxes and import duties proposed by FM.
  • GST unified India’s fragmented indirect tax regime.
    • Average monthly gross GST collection doubled to Rs 1.66 lakh crore.
    • GST tax base doubled.
    • State SGST revenue buoyancy increased post-GST period (2017-18 to 2022-23).
    • 94% of industry leaders view the transition to GST as largely positive.
    • GST led to supply chain optimization.
    • Reduced compliance burden on trade and industry.
    • Lower logistics cost and taxes helped reduce prices of goods and services, benefiting consumers.

Tax rationalization efforts over the years

  • No tax liability for income upto Rs 7 lakh, up from Rs 2.2 lakh in FY 2013-14
  • Presumptive taxation threshold for retail businesses increased to Rs 3 crore from Rs 2 crore
  • Presumptive taxation threshold for professionals increased to Rs 75 lakh from Rs 50 lakh
  • Corporate income tax decreased to 22% from 30% for existing domestic companies
  • Corporate income tax rate at 15% for new manufacturing companies.
Achievements in tax-payer services
  • Average processing time of tax returns has reduced to 10 days from 93 days in 2013-14
  • Faceless Assessment and Appeal introduced for greater efficiency
  • Updated income tax returns, new form 26AS and prefilled tax returns for simplified return filing
  • Reforms in customs leading to reduced Import release time
    • Reduction by 47% to 71 hours at Inland Container Depots
    • Reduction by 28% to 44 hours at Air Cargo complexes
    • Reduction by 27% to 85 hours at Sea Ports.

Economy-then and now

  • In 2014 there was a responsibility to mend the economy and put governance systems in order. The need of the hour was to:
    • Attract investments
    • Build support to the much-needed reforms
    • Give hope to the people
  • The government succeeded with a strong belief of ‘nation-first’.

Glimpse about Budget revenues and expenditures


Differences between Annual Budget and Interim Budget:
  1. Purpose:
  • Annual Budget: A comprehensive financial statement outlining the government’s income and expenditure for the coming financial year (April 1st to March 31st). It serves as a road map for the government’s economic and fiscal policies.
  • Interim Budget: An interim budget, also known as a ‘Vote on Account’, which is presented in an election year. It’s a temporary budget presented when a full budget cannot be presented due to upcoming elections or other reasons.It covers only a limited period, typically 3-4 months, until the new government presents a full budget.
  1. Scope:
  • Annual Budget: Includes detailed estimates of both revenue(through taxes, etc.) and expenditure (on various ministries,schemes, etc.) for the entire year. It also announces policy changes and new initiatives.
  • Interim Budget: Primarily focuses on expenditure estimates for the limited period it covers. It usually avoids introducing major policy changes or new schemes.

III. Approval Process:

  • Annual Budget: Presented by the Finance Minister, debated and voted upon in both houses of Parliament before being enacted.
  • Interim Budget: Presented by the Finance Minister, but only requires approval from the Lok Sabha (lower house) as the Rajya Sabha (upper house) may not be in session.
  1. Flexibility:
  • Annual Budget: Can be revised during the year through supplementary demands for grants if necessary.
  • Interim Budget: Offers limited flexibility as it covers a shorter period and aims to maintain continuity, allowing the new government to adjust policies in the full budget.
  1. Impact:
  • Annual Budget: Has a significant impact on the economy as it sets the fiscal direction for the year, influencing investment,consumption, and overall economic activity.
  • Interim Budget: Has a more limited impact, mainly ensuring continuity in government spending until the full budget is presented.

Source: PIB, Budget Document.