In her 57-minute speech, Union Finance Minister Nirmala Sitharaman laid out the Modi government’s ‘roadmap to creating Viksit Bharat by 2047’. Among the key takeaways from her speech was the creation of a Rs 1 lakh crore corpus to provide “50-year interest free” loans to encourage research and innovation, especially in “sunrise domains”.
Sitharaman also said in her interim budget speech that the revised fiscal deficit is at 5.8 percent of GDP for FY 2023-24. She added that the fiscal deficit target is expected to be 5.1 percent of GDP in FY25 and the aim is to bring it below 4.5 percent of GDP by FY26.
The finance minister announced that benefits of the Ayushman Bharat scheme will be extended to all ASHA and Anganwadi workers, and that the government will ensure vaccination against cervical cancer, among all girls aged 9-14. She also said that the government has decided to constitute a “high-powered committee” to look at the challenges posed by fast population growth and demographic changes.
In her speech, the finance minister also announced the launch of a new scheme to “strengthen deep tech technologies for defence purposes”.
Sitharaman said that she expects that voters will “bless” the Modi government again with a “resounding mandate” in the general election slated for later this year. She also said that the government will “present a detailed roadmap for our pursuit of Viksit Bharat” in the full Budget to be presented in July, after the conclusion of the Lok Sabha polls.
This was the last Budget to be presented by the Narendra Modi government before the Lok Sabha elections. For Sitharaman, it was her sixth consecutive Budget speech. The only other finance minister to present these many consecutive budgets was Morarji Desai.
Besides being a measure of the state of the Indian economy, the interim budget is a stopgap financial plan that will remain in place till a new government is elected by way of the general election. It includes short-term estimates for the Government of India’s expenditure, revenue, fiscal deficit, overall financial performance and projections.
Also Read: ‘Walked the path of fiscal prudence’ — what economists say about interim budget 2024’s fiscal maths
Interim budget 2024 highlights:
3:30 pm: Updates to this blog have ended.
3:00 pm: Dr Roderico H. Ofrin, who has been serving as the World Health Organisation (WHO) representative to India since July 2020, reportedly welcomed the government’s decision to extend the benefits of Ayushman Bharat to ASHA and Anganwadi workers. “The World Health Organization (WHO) applauds the extension of healthcare coverage to them under Ayushman Bharat,” he was quoted as saying by news agency ANI.
He added that the various initiatives mentioned in Union Finance Minister Nirmala Sitharaman’s interim budget speech will “strengthen systems and healthcare services across the country”. These include “upgrading existing hospital infrastructure to increase medical colleges, harmonisation of maternal and child care implementation, introduction of HPV vaccination for cervical cancer prevention, and the expansion of the U-WIN platform”.
2:30 pm: Union Railways Minister Ashwini Vaishnaw during a press conference said the Modi administration is focussed on modernising the country’s railway network. “For this year, the budget that has been allocated for the Railways is Rs 2.52 lakh crore,” he said.
The Railway Budget was presented separately from the Union Budget until 2017 the two were merged. This merger was based on the recommendations of a committee headed by then NITI Aayog member Bibek Debroy.
2:00 pm: Reacting to the interim budget presented by Union Finance Minister Nirmala Sitharaman, N.K. Singh, chairperson of the 15th Finance Commission, told news agency PTI: “Growth trend is looking upward at 7 percent. This is the only country which after the pandemic, for the fourth year, we are poised to grow at over 7 percent.”
He added that he was of the opinion that the Budget will “enhance the credibility and confidence” of the country.
1:30 pm: In a video message to the nation following Sitharaman’s speech, PM Modi termed the interim budget as “inclusive and innovative”. The budget, he said, has “confidence and continuity” and will help the government fulfil its target of making India a “developed nation by 2047”.
He also said that the Budget reflects the “aspirations of a young India”, adding that “keeping fiscal deficit under control, capital expenditure has been given a historic high of Rs 11,11,111 crore; If we speak the languages of economists, in a manner this is sweet spot.”
The #ViksitBharatBudget benefits every section of the society and lays the foundation for a developed India. https://t.co/RgGTulmTac
— Narendra Modi (@narendramodi) February 1, 2024
The Prime Minister emphasised that the rooftop solar scheme announced in the Budget speech “will help one crore families get free electricity”. He added that the “income tax remission scheme will provide relief to 1 crore people from the middle class”.
1:00 pm: Subhrakant Panda, former president of the Federation of Indian Chambers of Commerce & Industry (FICCI), said at a press conference that what stood out for him in the interim budget was the “clear articulation that the focus groups which the government is working on for upliftment and development are the poor, women, youth and farmers”.
“There is a strong focus on reforms at the state-level for Viksit Bharat with a Rs 75,000-crore outlay linked to milestone-based reforms,” he added.
Ashish Chauhan, CEO of the National Stock Exchange (NSE) said the interim budget “stuck to the winning formula that I think the current government has figured out: fiscal restraint with welfarism and growth…So, overall it is a 10/10 budget.”
12:45 pm: Asked to comment on the interim Budget, Congress MP Manish Tewari told news agency ANI outside Parliament, “What’s worrying is a budget deficit of Rs 18 lakh crore. This means that the government is borrowing for its expenditure. This number is only going to increase next year.”
12:30 pm: Reacting to the finance minister’s interim budget speech, Confederation of Indian Industry (CII) president R. Dinesh told reporters, “Our recommendation (for fiscal deficit) initially was 5.4 percent (of GDP) but 5.1 percent is obviously a very significant step forward.”
“The CapEx spend increased by almost 11.1 percent which is also very good so, the continued focus on infrastructure growth takes place,” he added.
CII Director General Chandrajit Banerjee told reporters: “It’s a very prudent budget, which lays down the foundation for a very strong path for India.”
12:15 pm: Key takeaways from Union Finance Minister Nirmala Sitharaman’s Budget speech:
“The Skill India Mission has trained 1.4 crore youth, upskilled and reskilled 54 lakh youth.”
“Average real income of people has increased by 50 percent, inflation is moderate.”
“I propose to retain the same tax rates for direct and indirect taxes including import duties.”
“A provision of Rs 75,000 crore as a 50-year interest-free loan is proposed this year to support those milestone-linked reforms by the state governments.”
“A new scheme will be launched for strengthening deep-tech technologies for defence purposes and expediting self-reliance.”
“Female enrolment in higher education up by 28 percent in 10 years, in STEM courses, girls and women make 43 percent of enrolment, one of the highest in the world.”
“The government is equally focussed on GDP — Governance, Development and Performance.”
#Budget2024: Union Finance Minister Nirmala Sitharaman laid out the Modi government’s ‘roadmap to creating Viksit Bharat by 2047’.
Here the key takeaways from Interim Budget 2024 pic.twitter.com/l4D2GpgMti
— ThePrintIndia (@ThePrintIndia) February 1, 2024
12:10 pm: Another key highlight of her speech was her statement on the government’s fiscal deficit targets. “The fiscal deficit in 2024-25 is estimated to be 5.1 percent of GDP,” she said, adding that the “revised estimate of the fiscal deficit is 5.8 percent of GDP”.
12:00 pm: Before she concluded her nearly hour-long speech, Union Finance Minister Nirmala Sitharaman said there will be no changes to the tax regime for now. Reiterating the government’s commitment to the taxpayers’ charter, she added that the Ministry of Finance has managed to slash the average time taken to process tax refunds from 93 days in 2013-2014 to 10 days the previous year.
11:55 am: “…The revised estimate of the fiscal deficit is 5.8% of GDP, improving on the budget estimate notwithstanding moderation in the nominal growth estimates,” Sitharaman said.
11:50 am: Sitharaman cited a recent survey to say that “94 percent of industry leaders view the transition to GST (Goods and Services Tax) as largely positive”. She added that the transition to GST has enabled supply chain optimisation.
The government, said Sitharaman, will also help the middle class own homes.
Also Read: Eye on polls, govt unveils housing scheme for middle class & 2 cr more PMAY-Gramin houses in Budget
11:45 am: The period between 2014 and now, said Sitharaman, marked a ‘golden era’ in terms of the inflow of foreign direct investment (FDI) into the country, which she said was twice the FDI inflows during the 2005-2014 period. “FDI is first develop India,” she said, adding that the government is negotiating bilateral investment treaties with foreign partners for sustained FDI.
She added that the government has decided to constitute a high-powered committee to address challenges posed by fast population growth and changing demographics.
She then went on to underline the government’s commitment to infrastructure development, stating that 40,000 railway bogies will be converted into Vande Bharat trains and the government will implement three major economic railway corridor programmes. She added that airports in the country have doubled to 149 over the past decade.
11:40 am: The government has decided to set up a corpus of Rs 1 lakh crore to provide young Indians with long-term financing and re-financing with low or nil interest rates to encourage growth in the private sector, announced Sitharaman.
“Huge incentives to the private sector for innovations by creating a new fund exceeding one lakh crore and further a deep focus on infrastructure development by increasing the overall provisions as well as steps being taken towards rural, women and farmers development are astounding steps which will accelerate India becoming a developed nation,” said Rajesh Narain Gupta, Managing Partner of SNG & Partners, Advocates & Solicitors, reacting to the announcement in the finance minister’s speech.
11:35 am: Talking about the government’s ‘Lakhpati Didi’ scheme, the finance minister said 83 lakh self-help groups with nine crore women are transforming the country’s rural socio-economic landscape. The scheme, she added, has helped “nearly 1 crore women” become ‘Lakhpati Didi’ already. Sitharaman said the government has decided to enhance its target of this scheme from the earlier two crore women to three crore women.
11:30 am: She also said the government will ensure vaccination of girls aged 9-14 against cervical cancer and that it will extend the benefits of the Ayushman Bharat scheme to all ASHA and Anganwadi workers.
Also Read: Cervical cancer vaccination for girls aged 9-14 stands out in lacklustre health budget
11:25 am: “The government will take up next-generation reforms” in consultation with states, said the finance minister. She also spoke about the government’s aspirational districts programme which is aimed at generating employment opportunities in economically depressed districts and blocks. “Our government will work to make the Eastern region and its people the engine for India’s growth,” she added.
11:20 am: The government, said Sitharaman, has undertaken a ‘GDP approach — governance, development and performance’. She added that proactive management has helped the government keep inflation within the acceptable band. Elaborating on how the government is dealing with a changing world order, she said the “world will remember that the foundation of the India-Europe-Middle East Economic Corridor was laid on Indian soil”.
11:15 am: Listing the various schemes of the Modi government, the finance minister also spoke about the government’s thrust on upskilling and credit guarantee schemes. She added that the “high medal tally” of Indian sportspersons shows “high confidence”.
11:05 am: “We are working to make India Viksit Bharat by 2047,” Sitharaman said, highlighting the government’s commitment to social justice. The government, she added, is focussed on the growth of “four castes: women, youth, farmers and poor”.
11:00 am: Finance Minister Nirmala Sitharaman begins Budget speech, her sixth.
10:50 am: Ahead of Sitharaman’s speech, Opposition MPs have attacked the BJP-led central government, saying that the interim budget will likely focus on the upcoming general elections.
Congress MP K. Suresh says, “There will be some gimmick in the budget. There will be eyewash schemes for common people…On one side they talk about common people and on the other side, they are increasing commercial gas cylinder’s price and implementing anti-people policies.”
CPI MP P. Santosh Kumar adds, “We will have to see if the government will bring any pro-people policy. This govt is not doing anything for the general public. I am not expecting anything positive from the government. Since this is an election year, the government might announce some sops.”
10:40 am: With market participants cautious ahead of the interim budget, the rupee appreciated 9 paise to 82.95 against the US dollar in early trade Thursday.
10:30 am: FM Sitharaman reaches reaches Parliament before the Budget presentation.
10:15 am: FM Sitharaman calls on President Droupadi Murmu at Rashtrapati Bhavan along with Ministers of State Bhagwat Karad and Pankaj Chaudhary ahead of the Budget presentation in Parliament.
Union Minister of Finance and Corporate Affairs Smt Nirmala Sitharaman along with Ministers of State Dr Bhagwat Kishanrao Karad and Shri Pankaj Chaudhary and senior officials of the Ministry of Finance called on President Droupadi Murmu at Rashtrapati Bhavan before presenting the… pic.twitter.com/miwSv8r4dE
— President of India (@rashtrapatibhvn) February 1, 2024
10:05 am: Watch ThePrint’s Deputy Editor TCA Sharad Raghavan and Associate Editor Yuthika Bhargava break down what to expect from the interim budget and how it may be different from previous interim budgets.
10:00 am: Watch ThePrint’s monthly #ThePrintCharcha with Aditi Nayar, Chief Economist, Head – Research and Outreach, ICRA Ltd; Abhishek A. Rastogi, Founder of Rastogi Chambers, Tax and Constitutional expert; and Devendra Kumar Pant, Chief Economist and Head (Public Finance), India Ratings and Research, in which they take us through the key predictions and expectations.
09:45 am: Interim budget to include big announcements? The 2019 interim budget by Piyush Goyal included significant announcements like PM KISAN, PM Shram Yogi Maan-dhan Yojana, and notable tweaks to the lowest income tax slab. However, Sitharaman had last month said the country shouldn’t expect “spectacular announcements” from her speech.
09:30 am: In a free-wheeling conversation with ThePrint, Ashwani Mahajan, national co-convenor of the Swadeshi Jagaran Manch, explains his views on the economy, FDI, private investment, the government’s privatisation plans and what he expects from interim budget 2024. Watch:
09:15 am: FM Sitharaman has continued the BJP’s reform of the Budget presentation process by using the pandemic to do away with the physical printing of budget documents. Since 2021, each Budget has been entirely digital.
Previously, in 2017, then Finance Minister Arun Jaitley brought forward the Budget presentation date to 1 February from the earlier date of the last working date of February. That year, he also merged the Railway Budget with the Union Budget.
09:00 am: This will be the first Budget to be presented in the new Parliament building.
08:45 am: Union Finance Minister Nirmala Sitharaman arrives at the Ministry of Finance.
#WATCH | Finance Minister Nirmala Sitharaman arrives at the Ministry of Finance as she is set to present the interim Budget today pic.twitter.com/46Ut7oHdzE
— ANI (@ANI) February 1, 2024
08:40 am: The term ‘interim budget’ isn’t official. Officially, it’s called a ‘vote-on-account’ since its’s supposed to be simple votes on account that provide the government with funds to run the country until the declaration of the outcome of the general election. Read TCA Sharad Raghavan’s latest column, Standard Deviation, on why PM Narendra Modi must ensure that the upcoming Budget speech doesn’t devolve into pre-election propaganda.
Also Read: India’s economic growth projections revised upwards, but consumer sentiment remains sluggish