Interim Budget 2024: n a significant parliamentary session today, Finance Minister Nirmala Sitharaman revealed crucial details of the Interim Budget 2024-25, outlining a strategic fiscal roadmap for the upcoming financial year.
Capital Expenditure Boost: Catalyst for Economic Growth
Sitharaman announced a remarkable 11.1% increase in the Capital Expenditure outlay for 2024-25, reaching ₹11,11,111 crore, equivalent to 3.4% of the GDP. Emphasizing the substantial tripling of CapEx over the past four years, she highlighted its significant multiplier effect on economic growth and employment creation.
Revised Estimates 2023-24: Strong Growth Momentum
The Finance Minister provided a detailed breakdown of the Revised Estimates for 2023-24, with total receipts (other than borrowings) at ₹27.56 lakh crore and tax receipts at ₹23.24 lakh cr. The Revised Estimate for total expenditure stands at ₹44.90 lakh crore. Sitharaman noted that revenue receipts are expected to surpass the Budget Estimate, reflecting robust growth momentum and formalization in the economy. Despite a moderation in nominal growth estimates, the fiscal deficit improved to 5.8% of GDP, surpassing the Budget Estimate.
Budget Estimates 2024-25: Fiscal Consolidation
Looking ahead to 2024-25, Sitharaman outlined the Budget Estimates, with total receipts (other than borrowings) at ₹30.80 lakh crore & total expenditure at ₹47.66 lakh cr. Tax receipts are estimated at ₹26.02 lakh crore. The Finance Minister emphasized the continuation of the fifty-year interest-free loan scheme for capital expenditure to states, with a total outlay of ₹1.3 lakh crore. The fiscal deficit for 2024-25 is projected at 5.1% of GDP, adhering to the path of fiscal consolidation mentioned in the 2021-22 Union Budget speech, with a target to reduce it below 4.5% by 2025-26.
Market Borrowings and Private Investments
In terms of market borrowings for 2024-25, gross and net borrowings through dated securities are estimated at ₹14.13 lakh crore and ₹11.75 lakh crore, respectively. Sitharaman highlighted that lower borrowings by the Central Government would facilitate a more extensive availability of credit for the private sector, aiming to boost private investments.
The Interim Budget 2024-25, as presented by Finance Minister Nirmala Sitharaman, sets a clear path for economic growth, fiscal consolidation, and strategic investments, reinforcing the government’s commitment to sustainable development.
