Union Budget 2024 | No change in direct, indirect taxes: FM Sitharaman
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New Delhi: Finance Minister Nirmala Sitharaman on Thursday presented the Narendra Modi-led NDA government's last Budget before the general elections.
The Indian economy has witnessed a profound positive transformation in the last 10 years, Sitharaman said. She said people of India are looking ahead to the future with hope and options. After contracting by 5.8 per cent in 2020-21, the economy recorded a growth of 9.1 per cent in 2021-22.
The Indian government will borrow a gross of Rs 14.13 trillion ($170.36 billion) in the fiscal year starting April 1, compared with Rs 15.43 trillion for the current fiscal, the FM said. Net borrowings are pegged at Rs 11.75 trillion for the next financial year.
No tax reforms
The Finance Minister did not announce any tax reforms in direct or indirect taxes as the government was presenting an interim budget.
Certain tax benefits to start-ups and investments made by sovereign wealth funds/pension funds, tax exemption of some IFSC ( International Financial Services Centre) units earlier expiring on 31.03.2024 extended up to 31.03.2025.
The budget is a vote on account and popularly termed an interim Budget as it seeks Parliament's nod for a grant in advance to meet the central government's essential expenditure for the first four months of the new fiscal year that starts in April. A new government elected after the April/May general elections will present the full Budget, likely in July.
Capex
The country's capital spending for 2024-25 has been raised 11 per cent to Rs 11.11 lakh crore, or 3.4 per cent of GDP, Sitharaman said on Thursday. She said the tripling of capex in the last four years has resulted in a multiplier effect on economic growth and employment generation.
The government will launch a housing scheme for deserving middle class to buy or build their own houses. She also mentioned about rooftop solarisation to ensure one crore household free electricity of up to 300 units per month, leading to household savings of Rs 15,000-18,000 annually. The finance minister said the government will set up more medical colleges, utilising existing hospital infrastructure.
Railway corridors
The finance minister said that three major railway corridors, including for cement, will be constructed, and 40,000 normal railway bogies will be converted to Vande Bharat standard. The minister also said the Indian air carriers have placed orders for 1,000 new aircrafts.
Electric vehicles
The government will expand the electric vehicle ecosystem to support charging infra, and e-buses for public transport networks will be encouraged. Biomanufacturing and bio foundry scheme will be launched to provide environment-friendly alternatives for bio-degradable production.
Sustainable development
The government will provide viability gap funding for 1 GW offshore wind energy. The country has a target of 500 GW of renewable energy capacity by 2030. She said the viability gap funding will also be provided for harnessing offshore wind energy capacity of 1 GW for achieving net-zero emissions by 2070.
Peppered with political innuendos, her sixth straight Budget presented a political document with a snapshot of the Modi government's triumphs over the last 10 years and pointers to how it wants to take the country forward.