An interim budget is a short-term financial plan that is presented prior to the general elections that will result in a new government. It is a temporary solution to cover government expenses until a new government takes office and creates a new, complete budget.
Finance Minister Nirmala Sitharaman today presented the Interim Budget for the next fiscal year that starts April 1, 2024. Here’s a decoded version of the Budget for you.
There are no income tax slab benefits awaiting for you in the time being. Direct and indirect tax including import tax rates have been left unchanged.
The tax benefits to start-ups and investments made by sovereign wealth or pension funds have been extended by 1 year till March 31, 2025
The government is to build 2 crore houses under the PM Avas Yojana while 10 million houses are to get free electricity via rooftop solar programme.
Capital Expenditure, or Capex, are the funds used by a company to acquire, upgrade, or maintain its physical assets such as equipment, machinery, plants, etc., the targets of which have been raised by 11.1%. Moreover, the bilateral investment treaties focused on ‘First Develop India’ so as to improve access to foreign capital.
One-year jump in capex target down from 37% spike in the last Budget, as government restricted public spending.
All Asaha and Aanganwadi workers are to get healthcare facilities under the Ayushman Bharat scheme. The government is also planning to build hospitals in all districts. Vaccination for cervical cancer is to be made available for 9-14 years of age of girls.
The government plans to launch 517 new routes under the government Udan scheme.
India aims to set up three major economic railway corridor programs to reduce congestion and logistic costs. There are plans to upgrade 40,000 normal trains to Vande Bharat standards.
The divestment target has been cut to Rs. 30,000 for this fiscal year while the target for FY25 has been set at Rs. 50,000 crores.
The fate of the interim budget lies in the hands of the new government which has the option to either continue with the allocations and proposals outlined in the interim budget or make revisions based on its priorities and policies. The interim budget serves only as a provisional guide until the full budget is presented.
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This post is tagged under: 2024, tax, interim budget, infrastructure, direct tax, indirect tax, infrastructure, FM, Finance Minister, Nirmala Sitharaman, disinvestment, corporate, income tax, PM Avas Yojana, capex, Ayushman Bharat, Udan scheme, Vande Bharat
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