By
Finance Minister Nirmala Sitharaman presented the Union Budget for the fiscal year 2024-25 on July 23, 2024. The budget outlined several key economic projections and initiatives. The real GDP growth for FY25 is projected between 6.5% and 7%. Despite global geopolitical challenges, the Indian economy has shown resilience, consolidating its post-Covid recovery with a robust fiscal and monetary policy framework. The fiscal deficit target for FY25 has been set at 5.1% of GDP, with total receipts projected at ₹30.80 lakh crore and expenditures at ₹47.66 lakh crore .
Major Initiatives and Tax Proposals.
A significant focus of the budget is on infrastructure development, with an increased allocation of ₹11.1 lakh crore. Key social sector initiatives include the construction of 2 crore houses under the PM Awas Yojana and the extension of crop insurance to 4 crore farmers under the PM Fasal Bima Yojana. Additionally, 1 crore households are set to receive 300 units of free electricity per month through rooftop solarization.
In terms of taxation, there have been no changes to the income tax rates. However, several measures have been introduced to ease compliance and provide continuity. For instance, tax benefits for startups and investments by sovereign wealth or pension funds have been extended until March 31, 2025. Moreover, the budget proposes the withdrawal of outstanding direct tax demands up to ₹25,000 for the period up to FY 2009-10 and up to ₹10,000 for FY 2010-11 to FY 2014-15 (Press Information Bureau).
The budget lays out a vision for ‘Viksit Bharat’ by 2047, emphasizing fiscal prudence, job creation, and enhanced infrastructure. A high-powered committee will be established to address challenges arising from demographic changes and fast population growth. This roadmap aims to place India on a sustained high-growth trajectory by focusing on economic management, strategic planning, and appropriate policy decisions .
