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Budget 2024 Highlights: Interim Budget Key Takeaways

Updated on: 02 Feb, 2024 07:12 PM

The Indian Finance Minister announces the annual budget every year on February 1st. Following the yearly tradition, the current Finance Minister, Smt. Nirmala Sitharaman announced the budget for the year 2024-2025 yesterday, i.e. 1st Feb 2024. However, in light of the upcoming Central elections, Budget 2024 was substituted with an interim budget. In other words, this is not the final budget for 2024-2025. The newly elected government will present the final budget after the Central elections.

Nevertheless, the interim budget introduced various schemes and benefits to satisfy the general public. The theme of Budget 2024 will be “Viksit Bharat Budget 2024”. The interim budget of 2024 was focused on the aspirations and welfare of poor, farmers, women, and youth.

Notable Numbers - Interim Budget 2024

  • Nominal GDP growth of 10.5% assumed for FY25
  • FY25 divestment target Rs 50,000 crore; lowered to Rs 30,000 crore for FY24
  • Fiscal Deficit at 5.1% of GDP fot FY25
  • Fiscal Deficit for FY24 Seen At 5.8% of GDP
  • Aim to reduce fiscal deficit to below 4.5% by FY26
  • FY25 Capex Outlay at 3.4% of GDP
  • FY24 Gross Market Borrowing seen at Rs 14.1 lakh crore
  • Pre-FY10 disputed tax demands of up to Rs 25,000 withdrawn
  • 2 crore houses to be build in the next five years.

Roadmap for “Viksit Bharat” by 2047

Roadmap for Viksit Bharat by 2047

The major theme for this year’s budget was the goal to achieve a ‘Viksit Bharat’ or developed India by the year 2047. Women, youth, farmers, and the poor are the four pillars of Viksit Bharat's Budget 2024. Under this budget -

  • There will be substantial development of physical, social, and digital infrastructure.
  • Digital public infrastructure will help promote financial inclusion and formalization.
  • GIFT IFSC and the unified regulatory authority, IFSCA, will create a robust gateway for global capital and financial services in the economy.
  • Inflation management will be prioritized.
  • The tax base will be widened via GST.

Interim Budget 2024 - Key Highlights

Given below are the important points that you need to know about when it comes to the interim budget 2024.

Direct Tax Announcements

  • As announced by the FM, there is no change in the direct tax rates. In other words, the tax rates prevalent in FY23-24 will be retained for FY24-25. Taxpayers with a total income of up to Rs.7 lakh will not have to pay income tax under the new tax regime.
  • Tax benefits for startups, investments made by sovereign wealth, and pension funds are to be extended to March 2025.
  • Proposal to withdraw outstanding direct tax demands:
    • For amounts up to Rs.25,000 incurred between FY1962-63 and FY2009-2010.
    • For amounts up to Rs.10,000 incurred between FY2010-11 and FY2014-2015.
  • A corporate tax rate of 22% will be applicable to existing domestic companies and 15% for certain new manufacturing companies.
  • The tax benefits available to startups and the investments made by the pension fund and sovereign wealth funds have been extended to March 2025.
  • The tax exemption for specific IFSC units that were supposed to expire on 31st March 2024 has been extended upto 31st March 2025.

Garib Kalyan Announcements

  • The Direct Benefit Transfer facility has resulted in savings of Rs.2.7 lakh crores.
  • More than 25 crore people have moved out of multidimensional poverty.
  • 78 lakh street vendors have received credit assistance under PM-SVANidhi.

Empowering the Youth

  • 1.4 crore youth were trained under the Skill India mission.
  • 43 crore loans were disbursed to youth under the PM Mudra Yojana to help youth fulfill their entrepreneurial aspirations.
  • FM announced setting up a corpus of Rs.1 lakh crore to fund the tech-savvy youth for 50 years with an interest-free loan to provide re-financing or financing.

Nari Shakti

  • 30 crore + Mudra loans have been given to women entrepreneurs.
  • Female enrollment in higher education has increased by 28% in the past 10 years.
  • STEM courses have witnessed more than 43% female enrollment
  • The target for Lakhpati Didi has been increased from Rs.2 crore to 3 crore. In light of this target, 1 crore women are being assisted by 83 lakh SHGs.

Farmer Welfare

  • Direct financial assistance has been provided to 11.8 crore farmers under PM-KISAN Yojana.
  • 1361 mandis have been integrated under eNAM that support a trading volume of Rs.3 lakh crore.
  • The government targets to increase productivity under PM Matsya Sampada Yojana from 3 tonnes per hectare to 5 tonnes per hectare.

Green Energy/Sustainable Development

The Finance Minister committed to achieving 'Net Zero' by 2070 through the Amrit Kaal initiative. The following measures were announced in light of the same -

  • Increasing coal gasification and liquefaction capacity to 100 MT by 2030.
  • Implementing phased mandatory blending of CNG and other gases for domestic use.
  • Offering financial aid for the procurement of biomass aggregation machinery.
  • Facilitating rooftop solarization, enabling one crore households to receive up to 300 units of free electricity per month.
  • Promoting the adoption of e-buses for public transportation and bolstering the e-vehicle ecosystem by supporting manufacturing and charging infrastructure for electric vehicles.
  • Introducing a new scheme for biomanufacturing and bio-foundry to promote environmentally friendly alternatives.
  • Installing 1.3 crore LED street lights under the SNLP scheme.
  • Launching the Blue Economy 2.0 scheme to enhance and adapt coastal aquaculture and mariculture practices.


  • Implementation of three key railway corridor programs:
    • Energy, minerals, and cement corridor
    • Port connectivity corridor
    • High-traffic density corridor
  • Enhancing logistics efficiency and reducing costs under the PM Gati Shakti initiative.
  • Promotion of foreign investment via negotiation of bilateral investment treaties.
  • Expansion of existing airports and comprehensive development of new airports as part of the UDAN scheme.
  • Urban transformation initiatives, including Metro Rail and NaMo Bharat projects.

Inclusive Development

The Finance Minister emphasized inclusive development through the Amrit Kaal initiative, introducing a District Programme for faster state-level progress and job creation. Following are the initiatives taken by the government to promote inclusive development.


  • Promoting cervical cancer vaccination for girls aged 9-14.
  • Upgrading Anganwadi centers for better nutrition and child care.
  • Introducing the U-WIN platform for immunization.
  • Extending health coverage under Ayushman Bharat.
  • Establishing a committee for more medical colleges.


  • Pradhan Mantri Awas Yojana is about to achieve the target of three crore houses.
  • Launching a scheme for middle-class home ownership.


  • Encouraging states to develop iconic tourist spots.
  • Offering interest-free loans for state development.
  • Initiatives for island infrastructure, including Lakshadweep.

While the Budget 2024 is just an interim budget, the full Budget for the mentioned fiscal will be introduced in July, after a new government is formed following the upcoming general elections in the first half of 2024. You can stay updated about the Budget 2024 here.

CA Abhishek Soni
CA Abhishek Soni

Abhishek Soni is a Chartered Accountant by profession & entrepreneur by passion. He is the co-founder & CEO of Tax2win is amongst the top 25 emerging startups of Asia and authorized ERI by the Income Tax Department. In the past, he worked in EY and comes with wide industry experience from telecom, retail to manufacturing to entertainment where he has handled various national and international assignments.