What the Union Interim Budget 2024 offers

• India’s real GDP is projected to grow at 7.3 per cent in the financial year 2023-24.
• The Revised Estimate of the total receipts other than borrowings is ₹ 27.56 lakh crore, of which the tax receipts are ₹ 23.24 lakh crore. The Revised Estimate of the total expenditure is ₹ 44.90 lakh crore.
• Fiscal deficit in 2023-24 (re) to be 5.8 per cent of GDP; estimated to be 5.1 per cent of GDP in 2024-25.
• In 2024-25, the total receipts other than borrowings are estimated to be ₹ 30.80 lakh crore and the total expenditure is estimated at ₹ 47.66 lakh crore. The tax receipts are estimated at ₹ 26.02 lakh crore.   
• Capital Expenditure is to be increased by 11.1 per cent to ₹ 11,11,111 crore; amounting to 3.4 per cent of the GDP.
• Total Expenditure in 2024-25 is to be increased by ₹ 2.76 lakh crore compared to 2023-24 (re); estimated at ₹ 47.66 lakh crore.
• Revenue receipts in 2023-24 at ₹ 30.03 lakh crore are expected to be higher than the Budget Estimate indicating growth momentum and formalization in the economy.
• Lower borrowings by the Central Government to facilitate more availability of credit for the private sector.
• The scheme of a fifty-year interest-free loan for capital expenditure to states will be continued this year with a total outlay of ₹1.3 lakh crore.
• A corpus of rupees one lakh crore will be established with a fifty-year interest-free loan for youth during 2024-25, gross and net market borrowings through dated securities are estimated at ₹ 14.13 lakh crore and ₹ 11.75 lakh crore respectively.
• The Foreign Direct Investment (FDI) inflow during 2014-23 was USD 596 billion, which is twice the inflow during 2005-14.
• For Railways, three major economic railway corridor programmes will be implemented-energy, mineral and cement corridors, port connectivity corridors, and high-traffic density corridors. Moreover, forty thousand normal rail bogies will be converted to the Vande Bharat standards to enhance the safety, convenience and comfort of passengers.
• The Finance Minister proposes a new corpus of rupees one lakh crore to boost private investment in sunrise technologies. The corpus will be established with a fifty-year interest-free loan. It will provide long-term financing or refinancing with long tenors and low or nil interest rates to encourage the private sector to scale up research and innovation.

Direct taxes

• FM proposes to retain the same tax rates for direct taxes
• Direct tax collection tripled, and return filers increased to 2.4 times, in the last 10 years
• Government to improve taxpayer services
  • Outstanding direct tax demands up to Rs 25000 pertaining to the period up to FY 2009-10 withdrawn
  • Outstanding direct tax demands up to Rs 10000 for financial years 2010-11 to 2014-15 withdrawn
  • This will benefit one crore taxpayers
• Tax benefits to Start-Ups, investments made by Sovereign wealth funds or pension funds extended to 31.03.2025
• Tax exemption on certain income of IFSC units extended by a year to 31.03.2025 from 31.03.2024

Indirect taxes

• FM proposes to retain the same tax rates for indirect taxes and import duties
• GST unified the highly fragmented indirect tax regime in India
  • Average monthly gross GST collection doubled to Rs 1.66 lakh crore this year
  • The GST tax base has doubled
  • State  SGST revenue buoyancy (including compensation released to states) increased to 1.22  in the post-GST period(2017-18 to 2022-23) from 0.72 in the pre-GST period (2012-13 to 2015-16)
  • 94% of industry leaders view the transition to GST as largely positive
  • GST led to supply chain optimization
  • GST reduced the compliance burden on trade and industry
  • Lower logistics costs and taxes  helped reduce the prices of goods and services, benefiting the consumers

– global bihari bureau