The Budget for the fiscal year 2024-25 will be presented in the Parliament by Finance Minister Nirmala Sitharaman on February 1. This will be the sixth consecutive year for the finance minister to present the Budget under the Modi-government. Given that the Lok Sabha elections are scheduled for early next year, the finance minister will present the interim Budget instead of a full-year Budget, without making any significant announcements.
Before this, acting Finance Minister Piyush Goyal had delivered the interim Budget ahead of the 2019 General Elections. This was Goyal’s first ever budget, who was presenting it on behalf of Arun Jaitley who was unwell at that time. The interim Budget introduced the Pradhan Mantri Kisan Samman Nidhi, which provided financial support to farmers, and the Pradhan Mantri Shram Yogi Mandhan.
Tax Proposals
The last interim Budget announced a few direct tax proposals that said no income tax for income up to Rs 6.5 lakh (Rs 5 lakh + Rs 1.5 lakh under 80C of the Income Tax Act). It also announced more than Rs 23,000 crore tax relief to 3 crore middle class taxpayers. Further, standard deduction was raised to Rs 50,000 from Rs 40,000 and TDS threshold was raised from Rs 10,000 to Rs 40,000 on interest earned on bank/post office deposits
Economy
While the total expenditure increased by over 13 per cent to Rs 27,84,200 crore in 2019-20 BE, capital expenditure for 2019-20 BE estimated was at Rs 3,36,292 crore. Meanwhile, average tax collection was recorded at Rs 97,100 crore per month thus far in the year.
Farm
Per the interim Budget 2019-20, 12 crore small and marginal farmers were to be provided with assured yearly income of Rs 6000 per annum under PM-KISAN. Farmers struck by natural calamities will now receive 2-5 per cent interest subvention under insurance schemes, it had said. Also, 2 per cent interest subvention to farmers for animal husbandry and fisheries activities and additional 3 per cent in case of timely repayment was announced.
Railways
The railway capital expenditure was raised to Rs 64,586 crore in FY20 from Rs 53,060 crore in FY19 and operating ratio was expected to improve from 98.4 per cent in 2017-18, it had said.
Defence
Defence budget, it had said, was to cross Rs 3,00,000 crore for the first time ever. Piyush Goyal had also announced that the government will provide additional funds if needed. The Budget had also revealed that Rs 35,000 crore was disbursed under OROP in the last few years.
Entertainment Industry
The last interim Budget said that filmmakers will get access to single window clearance as well for ease of shooting films. Regulatory provisions, it had said, to rely more on self-declaration and anti-camcording provision to be introduced to Cinematography Act to combat film privacy.
Workers
Piyush Goyal had announced a monthly pension of Rs 3,000 for workers in the unorganised sector to be paid out after retirement and the pension scheme to benefit 10 crore workers in the unorganised sector. He had announced disbursement of Rs 3000 per month after 60 years of age with an affordable contribution of only Rs 100/55 per month. Employees’ State Insurance eligibility cover limit was also raised to Rs 21,000 per month from Rs 15,000 per month. Gratuity limit too was increased from Rs 10 lakh to Rs 30 lakh.
Poor and Backward Classes
Per the announcements in the interim Budget 2019-20, 25 per cent additional seats were announced in educational institutions to meet the 10 per cent reservation for the poor
Fishermen
The interim Budget had proposed creation of a separate department of fisheries and 2 per cent interest subvention for those in fisheries. It had proposed providing Rs 750 crore in FY19 to support animal husbandry and fishing.
MSME
Piyush Goyal had announced 2 per cent interest subvention on an incremental loan of Rs 1 crore for GST registered SMEs. Atleast 3 per cent of the 25 per cent sourcing for the Government undertakings will be from women owned SMEs, he had said.