Budget 2024: Today, all across India, people are talking about Finance Minister Nirmala Sitharaman’s latest budget presentation. This budget marks the final financial plan of the current government. Let’s break down the key points and see what everyone is talking about.
Table of Contents
What is Budget?
In simple terms, a budget is like a big plan for how the government is going to spend and manage money. The Finance Minister, in this case, Nirmala Sitharaman presents this plan to the public, and it’s a pretty big deal because it affects everyone in the country.
So, what’s got everyone so interested? Well, the budget reveals where the government is planning to spend money and how it might affect people’s lives. It’s like a roadmap for the country’s finances.
Now, let’s dive into the presentation itself. Nirmala Sitharaman, as the Finance Minister, is the person in charge of explaining all the financial details. She talks about things like taxes, government expenses, and plans for the future.
People pay close attention because the budget can impact various aspects of their daily lives, from taxes they might have to pay to potential changes in government programs. It’s essentially a way for the government to share its financial priorities and goals with the public.
Budget 2024
In a few days, there is going to be an election to choose the new Prime Minister. It’s happening in the middle of the year. Meanwhile, Nirmala, who is in charge of the money stuff (she’s called the Finance Minister), just shared a kind of temporary budget. It’s like a placeholder until the new government gets all settled in. People are curious about it because it gives an idea of how things might be handled money-wise until the big election happens.
Budget 2024 Highlights
They just make a record. No other finance minister has ever presented six budgets in consecutive terms for the Indian Parliament. Yep, this is Nirmala Sitharaman’s sixth budget. Morarji Desai holds the record for the biggest budget so far. He’s the champ for submitting budgets for 10 years straight. That’s a pretty long time.
- Finance Minister Nirmala Sitharaman highlighted five key points: Using social justice as a good way to govern; giving attention to the poor, youth, women, and farmers; focusing on building infrastructure; using technology to boost productivity, and forming a powerful committee to handle challenges related to our changing population.
- GDP stands for Government, Development, and Performance. We’ve done well in terms of development and managing the economy effectively. Despite tough times, we’re reducing the fiscal deficit.
- The government doesn’t have a fixed goal for selling its assets in the fiscal year 2025, as mentioned by DIPAM Secretary Tuhin Kanta Pandey.
- The significance of reducing the Centre’s debt-to-GDP ratio to 40%, set before COVID-19, needs to be reevaluated, said Finance Secretary TV Somanathan.
- India has experienced three years in a row with a 7% increase in GDP, making it the fastest-growing economy among the G20 nations.
- The government plans to keep investing money in projects (Capex) for the country. The Finance Minister emphasized its importance.
- Despite some issues in the Red Sea, the India, Middle East, and European Corridor (IMEC) project will continue.
- Removing outstanding small direct tax demands for a certain period will cost less than ₹3,500 crore to the government, according to Revenue Secretary Sanjay Malhotra.
- The Finance Minister clarified that the lower tax rate won’t be extended to new manufacturing units starting after March 2024.
- The Finance Minister assured credit rating agencies that not only are we following the fiscal consolidation plan set earlier, but we’re also improving upon it.
Comparing Budgets: What is Cheaper and Expensive in 2023?
After the Lok Sabha elections, the temporary budget will be managed until the new government is formed. The upcoming ruling government will then present the complete budget. The budget session of Parliament kicked off with President Draupadi Murmu addressing both Lok Sabha and Rajya Sabha.
President Murmu highlighted that 2023 is a significant year for the country. India has maintained its position as the fastest-growing large economy, with a growth rate of around 7.5 percent for two consecutive quarters.
In the 2023 budget speech, Finance Minister Nirmala Sitharaman announced a reduction in customs duties on items like cars, smartphones, and TVs. This move is expected to make these products cheaper as taxes are lowered. Additionally, there will be a decrease in cesses and duties on imported components required for manufacturing these goods.
However, it’s not all good news. The Finance Minister also revealed a 16% tax increase on cigarettes, leading to a rise in their prices. Items made of gold and platinum have also become more expensive. Prices for silver, bars, copper scraps, and compound rubber have seen an increase.
What About Maldives?
India and Maldives had a big problem when three Maldivian ministers insulted Indian Prime Minister Modi and posted it online. As a result, many Indians canceled their trips to the Maldives and started to boycott with the hashtag Boycott Maldives.
This led to a significant drop in Indian visitors to the Maldives, causing India to go from being the top country sending tourists to the Maldives to now being in fifth place. The Ministry of Tourism in the Maldives reported a notable decrease, with the annual number of Indian visitors dropping from at least 2 lakh to a lower figure.
To counteract this, the Indian government is turning its attention to making Lakshadweep a major tourist destination. This initiative is reflected in the Interim Budget presented, taking advantage of the upcoming MP elections as a strategic opportunity. The Finance Minister, Nirmala Sitharaman, announced various measures in her budget speech to boost the tourism sector in Lakshadweep.
Also Read: India vs Maldives, Reason for the Trending Hashtag ‘Boycott Maldives’, What Happened?
Specifically, the Tourism Department is taking steps to enhance tourism and transform Lakshadweep into a significant tourist spot. Nirmala Sitharaman highlighted plans to improve port connectivity and tourism infrastructure, catering to the interest in domestic tourism. She emphasized that these tourism development projects will be implemented in various islands, including Lakshadweep.
Nirmala Sitharaman also stated that the next five years will witness unprecedented development. In line with this vision, she increased the fund for infrastructure facilities to Rs 11.11 lakh crore for the financial year 2024-25. To promote interest in domestic tourism, port connectivity, and tourism infrastructure projects will be carried out in islands, including Lakshadweep.
