Full Budget 2024: Finance Minister Sitharaman to present 7th budget in a row, to surpass Morarji Desai's record

Union Budget 2024: Next month, Union Finance Minister Nirmala Sitharaman is likely to table Union Budget 2024 in Parliament, which would be her seventh Budget in a row. Sitharaman, who has been a Union Minister in both the 2014 and 2019 Modi cabinets, was sworn in as a Union Minister on Sunday as Prime Minister Narendra Modi was elected for his third term. She later took charge as the Union Finance Minister. 

Sitharaman, who has served as the Union Minister twice, has already delivered six budgets. This journey commenced with her presentation of the full budget in 2019 following the new NDA government’s mandate. By reaching this significant milestone, Sitharaman will exceed Morarji Desai's record; he presented six consecutive budgets as India's Finance Minister approximately sixty years ago. 

Desai holds the record for the most budgets presented by any Indian finance minister, totaling ten, for over fifty years. He was also the fourth Prime Minister of India from March 24, 1977, to July 28, 1979.

Sitharaman has served as Finance Minister for five years, during which she presented six budgets spanning 2019 to 2023, including the interim budget for 2024. By delivering the interim budget in February 2024, she will be the first finance minister to present six consecutive budgets. Additionally, Sitharaman briefly held the position of Minister of State for Finance for a period of six to seven months.

Presented by a government in transition or its final year before elections, the Interim Budget ensures ongoing government spending and vital services until the new administration can introduce a complete budget post-election.

Interim Budget 2024

This year, in light of the Lok Sabha elections, Budget 2024 was in the form of an Interim Budget.

Here are the highlights:

> The government raised the capital expenditure target by 11.1per cent to Rs 11.11 lakh crore for the next fiscal starting April 1. This would be 3.4 per cent of the GDP.

> For FY24 the fiscal gap has been cut to 5.8 per cent against estimated 5.9 per cent. The number for 2024-25 has been fixed at 5.1%, below the revised budgeted for 2023-24, stating that the aim is to achieve a fiscal deficit target of below 4.5 per

> A  divestment target of Rs 50,000 crore for FY25. The NDA government missed its budgeted disinvestment target in the current fiscal year, like the past five years. It has been revised to Rs 30,000 crore against the previous Rs 51,000 crore.

> No significant changes to the tax rates for FY25. The government also announced withdrawal of outstanding direct tax demand, to benefit up to one crore people, for up to Rs 25,000 pertaining up to FY10 and Up to Rs 10,000 for FY11-FY15

> Healthcare facilities under Ayushman Bharat extended to all Aasha workers, Aanganwadi workers
> Vaccination of 9-14 year old girls for cervical cancer
> MNREGA - Allocation hiked by 43.3% to Rs 86,000 crore
> Ayushman Bharat-PMJAY - Allocation up 4.2% to Rs 7,500 crore
> PLI Schemes - Allocation hiked by 33.5% to Rs 6,200 crore
> Rs 2.55 lakh crore has been allocated for the Railways for the fiscal 2024-25, beating previous year's high of Rs 2.4 lakh crore. Allocation for Defence sector.
> Defence sector also got a boost with raised expenditure to Rs 6.25 lakh crore from budgeted estimate of Rs 5.94 lakh crore in FY24, a hike of 4 per cent.
> Promote investment in post-harvest activity by both private and public sector support
> Empower dairy farmers
> More efforts to control Foot and mouth disease
> Crop insurance has been given to 4 crore farmers under PM Fasal Bima Yojana
> Five integrated Aqua Park to be set up
> Energy, Mineral, and Cement to get dedicated corridor
> 40,000 normal train bogies to be converted into high speed Vande Bharat ones
> Capex outlay of Rs 11.11 lakh crore
> Capex outlay at 3.4 per cent of GDP
> FY24 Fiscal Deficit target revised to 5.8 per cent of GDP from 5.9 per cent. 
> 5.1 % Fiscal Deficit target for FY 25
> Govt plans to reduce fiscal deficit to 4.5 per cent in 2025-26
> FY 25 Gross market borrowing target is Rs 14.13 lakh crore
> Net market borrowing seen at Rs 11.75 lakh crore
> Revised expenditure for FY 24 Rs 44.90 lakh crore
> Nominal GDP growth seen at 10.5%
> Food Subsidy 2.12 lakh crore
> FY 24 Divestment Target Cut to Rs 30,000 crore
> FY 25 Divestment Target set at Rs 50,000 crore

Budget 2024 Highlights: Direct and Indirect Tax

-- No change in direct and indirect tax including import tax
-- Same tax rates for Direct and Indirect tax retained 
-- Tax break for start-up extended to March 31, 2025
-- Focus on improving taxpayers service
-- Tax reforms widened tax base and increased tax collections
-- Govt to withdraw old disputed direct tax demands of up to Rs 25,000 till
FY2009 and Rs 10,000 for 2010-11 to 2014-15. It will benefit 1 crore taxpayers
-- FM also proposes some tax benefits for pension funds
-- Processing time of tax returns reduced from 93 days in FY14 to 10 days
-- Tax base of GST more than doubled
-- Number of tax filers swelled by 2.4 times, direct tax collection trebled since
2014
-- Tax receipts for 2024-25 projected at Rs 26.02 lakh crore
Budget 2024 Highlights: Tourism
-- Interest-free loans to states to promote tourism
-- Funds will be provided for developement of tourism in Lakshwadweep
-- Panel to be formed for tackling the challenges of higher population