Union Finance Minister Nirmala Sitharaman on Thursday (1st February) presented the 5th and last budget of the Modi government 2.0. The budget was not presented in full as is tradition during every Lok Sabha election year.
“In the full budget in July, our government will present a detailed roadmap for our pursuit of Vikasit Bharat,” the Finance Minister said with a smile as the House echoed with applauds.
FM takes a jibe at the previous Congress-led UPA
Sitharaman began her address by adding context to the new budget mentioning how far the Indian economy has come since 2014 vis a vis where it stood pre-2014.
She said that a white paper will be presented on the pre-2014 mismanagement showing where India was then and where India is now.
Taking a jibe at the Congress-led UPA govt, the Finance Minister said that the Modi government is working with an approach to development that is “all round, all-pervasive and all-inclusive”.
“Previously, social justice was mostly a political slogan. For our government, social justice is an effective and necessary governance model. This is secularism in action, reduces corruption and prevents nepotism and prevents ‘bhai bhatijavaad’,” she said.
Lakhpati Didi
The target to benefit 2 crore lakhpati didis has been increased to 3 crore lakhpati didis.
Housing for middle class
On housing for the middle class, the FM said, “Our government will launch a scheme to help deserving section from the middle class living in rented houses or slums or chawls and unauthorised colonies to buy or build their own houses.”
PM Awas Yojana Gramin
The FM announced that the Centre is close to achieving a target of giving 3 crore houses under the PM Awas Yojana Gramin despite the challenges posed by the pandemic.
“Two crore more houses will be taken up in the next 5 years to meet the requirement arising from an increase in the number of families,” she said.
Railways
The government announced three major railway corridor programmes namely, the Energy, mineral and cement corridor; the Port-connectivity corridor and the High-traffic density corridor.
The FM said that these projects under the PM Gati Shakti will enable multi-modal connectivity and reduce logistics costs by improving efficiency.
40,000 normal rail bogies will be converted to Vande Bharat standards to enhance the safety, convenience and comfort of passengers.
Green energy
Viability gap funding will be provided for harnessing offshore wind energy potential for initial capacity of 1 GW. A capacity of 100 MT will be set up for coal gasification and liquefaction plant to be set up by 2030.
Faced mandatory blending of compressed biogas in compressed natural gas for transport and piped natural gas for domestic purposes will be mandated.
Financial assistance will be provided for procurement of biomas aggregation missionary to support collection. The FM said that the government will expand and strengthen electric vehicle ecosystem by supporting manufacturing and charging infrastructure.
Greater adoption of e-buses for public transport will be encouraged through payment security mechanism. A new scheme of bio-manufacturing and biofoundry will be launched for promoting green growth.
Blue Economy 2.0
The Centre has announced launching a scheme for restoration and adaptation measures and coastal aquaculture and mariculture will be launched with an integrated and mulsectorial approach.
Comprehensive development of tourist centres
Mentioning how 60 cities set up as centres for G20 meetings across India garnered global attention to India’s diversity, the FM said that states will be encouraged to take up comprehensive development of iconic tourist centres, branding and marketing them global scale.
The FM said that a framework will be established for rating of the centres based on quality of facilities and services.
Long-term interest-free loans will be provided to states for financing the development.
Focus on island tourism
For domestic tourism, the FM announced that new projects for port-connectivity, tourism infrastructure and amenities will be taken up on Indian islands including Lakshadweep.
“This will help in generating employment also,” the FM said.
Pradhan Mantri Matsya Sampada Yojana
Implementation of PM Matsya Sampada Yojana to be stepped up to enhance acquaculture productivity from existing 3 tonnes per hectare to 5 tonnes per hectare; to double exports to Rs 1 lakh crore and to generate 55 lakh employment opportunities.
5 integrated acqua parks to be set up.
Technology for a tech-savvy youth & defence sector
The FM said that this era will be a “golden era” for India’s tech-savvy youth.
The FM announced a corpus of Rs 1 lakh crore with 50 year interest-free loan. The corpus will provide long-term financing or refinancing with long-tenures and low or nil interest rates.
“This will encourage the private sector to scale up research and innovation significantly in sunrise domains,” the FM said.
The FM also announced that a new scheme will be introduced to strengthen deep tech technologies for defence purposes and expedite “aatmanirbharta”.
Boost to infrastructure development through capex
The capital expenditure (capex) has been increased by 11.1% to Rs 11,11,111 crore to boost infrastructure development. This would be 3.4% of the GDP.
Assistance to states
The budget proposes a provision of Rs 75,000 crore as a 50-year interest-free loan to support milestone-linked reforms by state governments.
The Centre through Budget 2024 has said that it is ready to assist states in the development of aspirational districts and blocks under the “Aspirational Districts Programme”.
The Budget also mentions giving “utmost attention to make the Eastern region and its people a power driver of India’s growth”.
Savings through rooftop solar electricity
The FM said that through rooftop solarisation, one crore households will be enabled to obtain up to 300 units of free electricity every month.
The budget projects savings of up to Rs 15,000 to 18,000 annually for households from free solar electricity and selling the surplus to distribution companies.
Navigating demographic changes
The government has announced the formation of a high-powered committee for an extensive consideration of the challenges arising from fast population growth and demographic changes.
The committee will make recommendations to address these challenges.
Revised estimates of 2023-24
Revised Estimates of total receipts other than borrowings is Rs. 27.56 lakh crores, of which tax receipts are Rs. 23.24 lakh crores.
Revised Estimates of total expenditure is Rs. 44.90 lakh crores.
Revenue receipts at Rs. 30.3 lakh crores are expected to be higher than Budget Estimates.
Revised Estimates of fiscal deficit is 5.8% of GDP.
Budget estimates for 2024-25 shows low borrowings by Centre
Total receipts other than borrowings at Rs. 30.80 lakh crores. Total expenditure at Rs. 47.66 lakh crores. And Tax receipts: Rs. 26.02 lakh crores.
Fiscal deficit in 2024-25 is estimated to be 5.1% of GDP.
Gross and net market borrowings through dated securities during 2024-25 are estimated to be Rs. 14.13 lakh crores and Rs. 11.75 lakh crores respectively, both less than that in 2023-24.
“Lower borrowings by central government will facilitate larger credit for private sector,” FM said.
Healthcare and health infrastructure
The central government will set up a committee which will examine issues and make relevant recommendations to implement the plan to set up more medical colleges by using existing hospital infrastructure under various departments.
The FM said that Centre will encourage vaccination for girls in the age group of 9-14 years to prevent cervical cancer.
Various schemes for maternal and child care will be brought under one comprehensive programme for synergy in implementation.
Aanganwandi centres will be upgraded under Saksham Aanganwadi and Poshan 2.0 will be expedited. The U-Win platform will be rolled out across the country.
Healthcare cover under Aayushman Bharat scheme will be extended to all Asha and Aanganwadi workers and helpers.
Agriculture
The government has said that it will promote private and public investment in post-harvest activities. The FM announced that application of Nano DAP on various crops will be expanded in all agro-climate zones.
The government will form a strategy to achieve self-reliance for oil seeds like mustard, groundnut, sesame, soya bean and sunflowers to cover research for high-yielding varieties, widespread adoption of modern farming techniques and so on.
Withdrawal of disputed direct tax demands
The FM announced that the government is doing away with the backlog of disputed direct tax demands up to Rs 25,000 up to financial year 2009-10 and up to Rs 10,000 for financial year 2010-11. The move is expected to benefit one crore tax-payers.
