Union Finance Minister Nirmala Sitharaman presented her sixth Budget on February 1. This was an interim budget ahead of the general elections later this year. It was focused on youth and women empowerment, while maintaining fiscal consolidation and continuing capex.
Finance Minister Nirmala Sitharaman focussed on 5 'Disha Nirdashak' baatein
- Social justice as an effective governance model;
- Focus on the poor, youth, women, and the Annadata (farmers);
- Focus on infrastructure;
- Use of technology to improve productivity and
- High power committee for challenges arising from demographic challenges.
Key Highlights of the Budget are
- Nominal GDP growth for FY 25 is projected.India has had three consecutive years of 7% GDP growth and is the fastest-growing economy in G20.
- Fiscal deficit for FY 25 projected at 5.1% lower than the revised estimate (5.8%) in FY24.
- Capital expenditure hiked 11% to Rs. 11.11 lakh Crore. Capex from the government will continue, it is important to continue it, FM said.
- India, Middle East, European Corridor (IMEC) project to be taken forward despite disturbances in Red Sea.
- No Changes in direct and indirect tax rates. The Government withdrew income tax demands up to Rs.25000(till 2009-10) and Rs.10000(From 2010-11to 2014-15), which will benefit around one crore tax payers.
- No extension of lower tax rate to new manufacturing units coming into place after March 2024.
- Gross Tax revenue targets for FY25 hiked 11.46% to Rs. 38.31 lakh crore from Rs. 34.37 lakh crore in FY 24.
- The relevance of the target to reduce the Centre's debt-to-GDP ratio to 40% was set before COVID-19 period will be examined.
- Next generation reforms will be unveiled in consultation with states and stakeholders.
- Government to form high powered panel to address population growth challenges and demographic changes.
- The Government will release a white paper on mismanagement of economy prior to 2014.
- A scheme to help middle class living in rented house to buy or build their own houses will be launched.
- Tax benefits to startups and investments made by sovereign wealth or pension funds extended by one year till 31st march, 2025.
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