Budget Highlights from India's Interim Union Budget 2024-25

The Interim Union Budget for the fiscal year 2024-25 presents key highlights regarding government expenditure, receipts, GDP projections, deficits, and allocations for new schemes. 

Here's a breakdown of the budget highlights: 

Expenditure: 

• The government is estimated to spend Rs 47,65,768 crore in 2024-25, reflecting a 6% increase compared to the revised estimate of 2023-24.
• Interest payments constitute 25% of the total expenditure, while 40% of revenue receipts contribute to covering these payments. 

Receipts: 

• Receipts (excluding borrowings) for 2024-25 are projected to be Rs 30,80,274 crore, marking a 12% rise from the revised estimate of 2023-24. 
• Tax revenue, a significant component of receipts, is expected to increase by 12% over the revised estimate for 2023-24. 

GDP: 

• The government forecasts a nominal GDP growth rate of 10.5% in 2024-25, inclusive of real growth plus inflation. 

Deficits: 

• The revenue deficit for 2024-25 is targeted at 2% of GDP, indicating a reduction compared to the revised estimate of 2.8% in 2023-24. 
• The fiscal deficit for 2024-25 is targeted at 5.1% of GDP, lower than the revised estimate of 5.8% in 2023-24. 

New Schemes: 

• An allocation of Rs 70,449 crore has been earmarked for the Department of Economic Affairs for New Schemes, focusing on capital expenditure. This allocation accounts for 7.5% of the total capital outlay, although specific details about these schemes are not yet available. 

These budget highlights provide insights into the government's fiscal projections, expenditure priorities, and allocations for new initiatives in the upcoming fiscal year. As the government aims to navigate economic challenges while fostering growth and development, these budgetary allocations and projections play a crucial role in shaping India's economic trajectory.

Sat Feb 3, 2024