Interim Budget 2024: 6 Key Takeaways From Nirmala Sitharaman’s Speech; What Should You Know

India’s interim Budget speech for 2024 was completed by FM Nirmala Sithatraman within an hour. Here are the six key takeaways from the Budget 2024-25 documents based on the revised estimates for the current year and the Budget Estimates for the coming financial year.

1. The government expects the nominal GDP to grow for the coming financial year (2024-25), projecting India’s nominal GDP to be Rs 3,27,71,808 crore, assuming 10.5% growth over the estimated nominal GDP of Rs 2,96,57,745 crore in the current financial year (2023-24).

2. The fiscal deficit has been reduced to a 5.8% level and the FM announced similarly ambitious targets for the FY25 — at 5.1% of GDP— and FY26 — at 4.5% of GDP. While this is welcome news, it leads to questions about how fiscal consolidation is being achieved, and what impact it will have on growth.

3. The capex target of Rs 10 lakh crore was not achieved; it stands at Rs 9.5 lakh crore.

4. The government was supposed to spend Rs 1,16,417 crore on education but ended up spending Rs 1,08,878 crore. Similarly, on health, it budgeted an expenditure of Rs 88,956 crore but actually spent only Rs 79,221 crore.

5. Allocations for the core schemes for marginalised sections such as SCs, STs, and minorities have been cut.

6. Income tax revenues will account for 19% of all government resources in FY25. Corporate tax will account for 17%, GST for 18% and borrowings for 28%.