Interim Budget 2024: FY25 capex hiked 11%; no change in tax slab, says FM Sitharaman (2024)

• Finance Minister Nirmala Sitharaman on Thursday presented the Interim Budget 2024-25.
• This budget outlines expenditures and revenues till the formation of the next government.
• Here are the top highlights and major announcements of the Interim Budget 2024-25.

Finance Minister Nirmala Sitharaman while presenting the Interim Budget 2024-25 at

on Thursday, February 1 announced that the FY25 capex outlay has been increased by 11.1% to ₹11.11 lakh crore. The FY25 capex outlay is now at 3.4% of the GDP.

Fiscal deficit, the gap between the government’s revenue and expenses, is expected to be 5.8% of gross domestic product, said the FM.

“The gross market borrowing for the financial year ending March 2025 will be ₹14.3 lakh crore (less than the borrowing in the current financial year).”

The FM began her speech by giving a summation of the Narendra Modi government's performance in the past ten years. "The Indian economy has witnessed positive transformation in the last 10 years. Our development steps have covered all elements of inclusivity," she said.

This is the final budget of the second term of the Narendra Modi government before the country heads to elections later this summer.

Sitharaman stressed on the government's aim to make India developed -- Viksit Bharat – by 2047. The government has tried to provide inclusive development and growth, both socially and geographically, she said in the opening minutes of her sixth budget speech as the country’s finance minister.

It is to be noted that this Vote on Account or an Interim Budget is only for the next three months as the next government after the election will come out with a comprehensive budget for the financial year 2024-25 later. In other words, this budget outlines expenditures and revenues till the formation of the next government.

Key announcements by Finance Minister Nirmala Sitharaman:

1. No relief for taxpayers: Same tax slabs to continue, says FM. “I propose to retain the same tax rates for direct and indirect taxes.”
2. FY25 divestment target at ₹50,000 crore. The FY24 target has been curbed to ₹30,000 crore
3. Gross market borrowing for FY ending March 2025 will be ₹14.3 lakh crore.
4. FY25 capex outlay increased by 11.1% to ₹11.11 lakh crore. The FY25 capex outlay is now at 3.4% of GDP.
5. The revised estimate of the fiscal deficit is 5.8% of GDP. The FY25 fiscal deficit target is set at 5.1%.
6. The FY25 revenue deficit is set at 2% versus FY24 revised estimate of 2.8%
7. The FDI during 2014 to 2023 was $596 billion. India is negotiating bilateral treaties with foreign partners. FM adds that FDI is now “First Develop India”.
8. Three major economic railway corridors announced to boost GDP. This includes an energy mineral and cement corridor, port connectivity corridor and high traffic density corridor.
9. 40,000 rail bogies to be converted to Vande Bharat standards. Airports have doubled to 149 in the last decade.
10. Boost for tourism: Projects for enhancing tourism revenue will be taken up, especially for islands, including Lakshawdeep.
11. FM says the government has assisted 25 crore people to escape from multidimensional poverty.
12. Free ration: Worries of food have been alleviated as 80 crore people are provided with ration.
13. Direct benefit of ₹34 lakh crore via Jan Dhan has led to savings of ₹2.7 lakh crore for the government.
14. The PM PM SVANidhi scheme has supported over 78 lakh vendors. Out of this, 2.3 lakh vendors have received loans more than two times.
15. 11.8 crore farmers have been assisted under the PM Kisan Yojna.
16. ₹30 crore Mudra loans have been given to women entrepreneurs in the last ten years.
17. Average real income of people has risen by 50%.
18. India-Middle East-Europe Economic corridor is a game changer for India and others.
19. Artisanal support: PM Vishwakarma Yojana provides end-to-end support to artisans and crafts people engaged in 18 trades.
20. GDP new definition: FM Sitharaman has said that the government is focussed on GDP (governance, development and performance)
21. Real estate boost: Government close to achieving the target of three crore houses under the PM Awas Yojana Grameen. Additional two crore houses to be built in five years.
22. Sustainability & free electricity: Rooftop solarisation scheme announced to help one crore houses, enabling free electricity and selling of surplus energy. First three hundred units for solar homes.
23. Nari Shakti: FM says that female enrolment in higher education is up by 28% in 10 years in STEM courses. Free healthcare under Ayushman Bharat to be extended to Asha workers and Anganwadi workers.
24. Target for Lakhpati Didi scheme enhanced from 2 crore to 3 crore.