Union Budget 2024: Highlights of Interim Budget 2024-25

Union Finance Minister Nirmala Sitharaman is expected to present the Union Budget 2024-25 in Parliament in the third week of July.

This will be the first Budget after the National Democratic Alliance (NDA), led by the Bharatiya Janata Party (BJP), secured a third consecutive win in the recently concluded 2024 Lok Sabha elections.

Sitharaman will table the full Budget for the fiscal year 2024-25. Earlier this year, she presented an Interim Budget on February 1 due to the 2024 Lok Sabha polls.

Here’s taking a look at some of the major highlights of the Interim Budget 2024-25:

1. Sitharaman revised the fiscal deficit down to 5.8% of the GDP from the previous target of 5.9% of GDP. The fiscal deficit in 2024-25 was estimated to be 5.1%. The gross borrowing was estimated at ₹14.13 lakh crore, while the Centre’s net borrowings for FY25 were seen at ₹11.75 lakh crore. The Centre also increased allocation to defence by 4% to ₹6.2 lakh crore. This was up from the budgeted estimate of ₹5.94 lakh crore in FY24.
2. The Finance Minister noted that there shall not be any changes to the tax structure, be it direct or indirect tax. However, tax benefits to start-ups and investments made by sovereign wealth funds or pension funds were extended till March 31, 2025. The total revenue receipts in the fiscal year 2024-25 are now being estimated at ₹30 lakh crore, up from the revised estimate of ₹26.99 lakh crore last time.
3. The central government has given 30 crore Mudra Yojana loans to women entrepreneurs, Sitharaman noted, adding that girls and women now constitute 43% of enrolment in STEM courses, which is one of the highest across the world. She added that more than 70% of houses under the PM Awas Yojana have been given to women from rural areas. Further, it was stated that the government will encourage Cervical Cancer Vaccination for girls (between 9-14 age group).
4. The Budget for the capital expenditure outlay for the financial year 2024-25 was hiked by 11% to ₹11.11 lakh crore — 3.4% of the GDP. Sitharaman stated that around 40,000 normal rail bogies will next be converted to the Vande Bharat Standards to enhance the safety and comfort of passengers.
5. The finance minister said that the central government is targeting to build an additional two crore houses under the Pradhan Mantri Awas Yojana (Grameen) during the next five years. Also, she noted that a new housing scheme for the middle class shall be launched to help the citizens buy or build houses.