On February 1st, India Budget 2024, Finance Minister Nirmala Sitharaman presented the Indian Union Budget for 2024-25. However, unlike previous years, this wasn’t a full-fledged budget charting the nation’s financial course for the entire year. This was an interim budget, a placeholder to keep the government running until the upcoming general elections, expected in May 2024.

Keeping the Essentials Running:

Given its interim nature, the budget focused on essential expenditures for the first four months of the next fiscal year (April-July 2024). This meant allocating funds for crucial areas like government salaries, defense, and interest payments. There were no major policy announcements or significant changes to tax rules.

Key Highlights:

• Economic Forecast: Nominal GDP growth for the year was estimated at 11%, which many experts considered optimistic.
• Infrastructure Push: Capital expenditure received a boost, increasing to Rs 10 lakh crore, aimed at infrastructure development.
• Focus on Women & Development: Several measures were announced to support women’s empowerment and entrepreneurship, including extending loans under the PM Mudra Yojana.
• Social welfare schemes: Existing social welfare programs continued with no major changes.

Potential Impact of India’s Interim Budget 2024 on Different Groups:

Farmers:

• Limited immediate impact: As an interim budget, it offers no major new schemes or policy changes impacting farmers directly.
• Indirect benefits: Increased infrastructure spending could improve rural connectivity and market access. Focus on women-oriented schemes might empower farmwomen and support livelihoods.

Salaried individuals:

• No change in tax regime: No revisions to tax slabs or deductions, offering no immediate relief or burden.
• Indirect impact: Higher capital expenditure may boost job creation in the long run, potentially benefiting salaried individuals.

Small businesses:

• Continued support: Existing schemes like PM Mudra Yojana could continue providing loan access and support.
• Limited new initiatives: Lack of major policy announcements creates uncertainty for new business ventures or significant expansions.

Women:

• Targeted initiatives: Focus on women-oriented schemes like skill development and entrepreneurship support could empower women economically.
• Indirect benefits: Improved infrastructure and social welfare programs might indirectly benefit women in rural areas.

Overall:

• Short-term stability: The budget ensures essential government functions continue, maintaining a degree of economic stability before the elections.
• Limited impact on specific groups: Lack of major policy changes means no significant immediate impact on any group.
• Focus on continuity: Budget primarily continues existing schemes and avoids introducing major disruptions before the new government takes over.

Looking Ahead:

This interim budget was largely anticipated and lacked the usual excitement surrounding a full budget. It served its purpose of securing finances for the essential functioning of the government until the new administration takes over.

The real economic roadmap for India will have to wait until the new government presents its full budget, likely in July 2024. This budget will reflect the priorities and vision of the newly elected government and set the course for the nation’s financial future.