Interim Union Budget 2024-25 Highlights | Outlay for Major Schemes

What is Interim Budget?

• An Interim Budget is essentially a provisional budget presented when the current government's term is set to run its course and general elections are scheduled. It is not a full-fledged budget, but rather a temporary measure to guarantee that the government runs smoothly until a new government is formed.
• Provision for the Interim Budget can be found in Article 112 of Indian Constitution. The interim budget covers expenditures for a certain period of time, generally a few months, until the next government takes office, and a full budget is presented.
• The interim budget allows the government to propose modifications to the tax system. The interim budget guarantees continuity of governance during the transition period between two governments following the country's general election.
• During an Interim Budget, the government normally avoids making major policy declarations or launching new programs, as the caretaker government is expected to refrain from making major policy decisions that may impact the future government.

When was India's First Interim Budget Presented and by Whom?

RK Shanmukham Chetty, India's first finance minister, presented the country's first interim budget on November 26, 1947.

Highlights of Interim Union Budget 2024-25:

SMT Nirmala Sitharaman, the Minister of Finance and Corporate Affairs, presents the Interim Union Budget for 2024-2025 in Parliament. Here are the highlights of the Interim Union Budget 2024-25 –

• The projected Real GDP growth for India in FY 2023-24 is 7.3 percent.
• The Capital Expenditure Outlay for the next year is set to increase by 11.1 percent to Rs 11,11,111 Crore, that will be 3.4 percent of the GDP.
• The estimated Fiscal Deficit in 2024-25 is 5.1 percent of the GDP.
• The FDI inflow during 2014-23 amounted to USD 596 billion, which is twice the inflow during 2005-14.
• The upliftment of the 'Garib' (Poor), 'Mahilayen' (Women), 'Yuva' (Youth), and 'Annadata' (Farmer) is the highest priority of the government.
• A corpus of Rupees One Lakh Crore will be established for a Fifty-Year Interest-Free Loan for Youth.
• The scheme of a 50-Year Interest-Free Loan for Capex to States will continue this year with a total outlay of Rs 1.3 Lakh Crore.
• The government is working with an all-round, all-pervasive, and all-inclusive (सर्वांगीण, सर्वस्पर्शी और सर्वसमावेशी) approach to development.
• The budget contains numerous announcements and strategies indicating directions and a development approach to make India Viksit Bharat by 2047.
• The government will pay utmost attention to making the Eastern Region and its people a powerful driver of India’s growth.
• A high-powered committee will be formed by the government for an extensive consideration of the challenges arising from fast population growth and demographic changes.
• No changes are proposed in tax rates in the Interim Budget.
• About one crore taxpayers are expected to benefit from the withdrawal of certain petty and disputed direct tax demands.
• The government will lay a White Paper on the Indian Economy now and then.

What are the Sources of Rupees, and Where do the Allocated Rupees Go?

 
Rupees Comes from the Following Sources for the Indian Union Budget:

In the example below, let us assume that the Indian government receives 1 rupee, which comes from different sources, such as –

 

• Non-debt Capital Receipts (– 1
• Customs - 4 paise
• Union Excise Duties - 5 paise
• Non-Tax Receipts - 7 Paise
• Corporation-Tax - 17 Paise
• Goods & Service Tax Other Taxes – 16 paise
• Income-Tax – 19 Paise
• Borrowings & Other liabilities - 28 Paise

 

 
Rupees Goes to the Following Schemes According to the Indian Union Budget:

In the example below, let us assume that the Indian government allocates 1 rupee, which goes to different sectors and schemes, such as –

 

• Pension – 4 Paise
• Subsidies – 6 Paise
• Centrally Sponsored Scheme – 8 Paise
• Defense – 8 Paise
• Finance Commission & Other Transfers – 8 Paise
• Other Expenditure – 9 Paise
• Central Sector Scheme (Excluding Defense & Subsidy) – 15 Paise
• Interest Payment – 20 Paise
• States Share of Taxes Duties – 20 Paise

Interim Union Budget 2024-25 at Glance:

 
This budget at a glance summarizes the financial landscape for fiscal years 2023-24 and 2024-25. It covers a range of key aspects, including Revenue Receipts, Tax and Non-Tax Revenues, Capital Receipts, Loan Recovery, Other Receipts, Borrowings, Total Receipts, Total Expenditures, Revenue and Capital Accounts, Interest Payments, Grants in Aid, Effective Capital Expenditures, Revenue Deficit, Effective Revenue Deficit, Fiscal Deficit, and Primary Deficit.

These figures illustrate how the government plans to balance revenues and expenditures while addressing important issues such as interest payments, capital creation, and deficit management. For understanding the fiscal policies and priorities in the budgets for the specified years, it is imperative to understand these elements. Let us explore the details of these financial parameters to gain insights into the economic direction and priorities set by the government of India during this period.

Note: Figures in parentheses (small brackets) in column 3, 4, and 5 are as a percentage of GDP.

(¹) - RE 2023-24 is reduced by `7151 crore on account of net amount payable by Centre to the States for prior years.

(²) - Includes drawdown of Cash Balance.

Interim Union Budget at Glance –

*(Estimates are in ₹ crore)

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Expenditure on Subsidies as per Interim Union Budget 2024-25:

 

What is a Subsidy? -  A subsidy is a financial benefit or support provided to institutions or people in general, usually by the central or state government.  It tries to promote the government's social and economic programs in addition to raising public interest.

Food Subsidy: The allocation for food subsidies is projected at Rs 2,05,250 crore in 2024-25, a 3.3% fall from the revised estimate for 2023-24. A higher amount of food subsidy is budgeted for 2021-22 and 2022-23. This was primarily due to PMGKAY, which gives eligible beneficiaries with free supplementary foodgrains to help reduce the effects of COVID. This added benefit stopped in December 2022.

Fertiliser Subsidy: In 2024-25, fertiliser subsidies are projected to cost Rs 1,64,000 crore. This is a drop of Rs 24,894 crore (13.2%) from the revised 2023-24 estimate. Fertilizer subsidies were significantly boosted in 2022-23 due to a dramatic increase in the worldwide costs of raw materials used in fertilizer manufacturing. 

Various Subsidies Estimates as per Interim Union Budget 2024-25 (Rs Crore) –
 

Interim Union Budget 2024-25 – Schemes wise Budget Allocation

 
Government of India runs various schemes and launch new schemes if needed any for the betterment of the people of India. So, whenever Government of India presents the Union Budget or Interim Union Budget it allocates funds to these on going or newly launched schemes or sectors. Thes funds helps in to acheieve the targeted goal for the particular scheme or sector. So, check out the below table to find how much funds or budget alloted to various ongoing schemes and sector in India in this year's Interim Union Budget 2024-25 -  

 
Outlay on Major Schemes as per Interim Budget 2024-25 

*(Estimates are in ₹ crore)

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