What are the Top Ten Highlights of India's Interim Budget 2024? | Vantage with Palki Sharma

Summary

India's interim budget for 2024 outlines policy priorities and sets the stage for the upcoming government's full budget. Key highlights include no tax changes, a vision for a developed India by 2047, targeted policies for the poor, women, youth, and farmers, direct benefit transfers, multi-dimensional poverty alleviation, interest-free loans for youth, affordable housing schemes, solar energy promotion, fiscal prudence with a focus on disinvestment, and special initiatives for women's health and financial empowerment.

Takeaways

• 📊 No Change in Taxation: The interim budget maintains the current income tax slabs, meaning no change in tax rates for individuals.
• 🌟 Vision for 2047: The government aims to make India a developed economy by 2047, termed as 'Amrit Kaal', focusing on policy priorities for the next 23 years.
• 👉 Focus on Four Groups: The government's policies are centered around the upliftment of the poor, women, youth, and farmers, as emphasized by the Prime Minister.
• 💰 Direct Benefit Transfers: Over $110 million has been transferred to farmers, and loans have been provided to 430 million people under the MUDRA scheme, highlighting the government's focus on direct transfers.
• 🔄 Multi-Dimensional Poverty Alleviation: The government is addressing poverty beyond income measures, focusing on empowerment to improve living standards.
• 🏦 Interest-Free Loans for Youth: A corpus of 1 lakh crore rupees will provide long-term, low or nil interest rate financing for youth.
• 🏠 Housing for All: A new scheme aims to make home buying more affordable for the middle class, with plans to build 20 million houses over five years.
• ⚡️ Solar Energy Promotion: The government plans to promote solar energy through rooftop solarization, aiming to identify 1 crore houses for solar panel installation.
• 💼 Fiscal Prudence: With a fiscal deficit target of 5.1%, the government plans to borrow less and focus on disinvestment to balance the budget.
• 👩‍⚕️ Special Focus on Women: The budget includes multiple announcements targeting women's health, financial well-being, and empowerment, such as expanding healthcare schemes and supporting self-help groups.

Q & A

What is the purpose of an interim budget in India?

An interim budget in India is presented in an election year and serves as a short-term financial plan for the next 2 to 3 months. It sets the tone for policy priorities and outlines areas where money will be allocated, as a full budget is not presented because a new government will be formed in a few months that will bring a new budget.

Did the interim budget of 2024 propose any changes in tax slabs?

No, the interim budget of 2024 did not propose any changes in tax slabs. The present income tax slabs remain intact, meaning individuals will continue to pay the same amount of tax if their income has not changed.

What is the significance of the term 'Kavya Kal' mentioned in the budget?

The term 'Kavya Kal' translates to 'the time to fulfill your duty' and represents the government's ambition to make India a developed economy by 2047 within the next 23 years.

Which four groups does the government focus on for policy upliftment?

The government focuses on the poor, women, youth, and farmers, crafting policies around these four groups to bring about their upliftment.

What has been the government's approach to transferring benefits directly to people?

The government has focused on direct transfers by eliminating middlemen, depositing more than $400 billion directly into the bank accounts of beneficiaries, which has minimized leakages and led to savings.

How does the government define and address multi-dimensional poverty?

The government addresses multi-dimensional poverty by focusing on empowerment rather than just entitlements. It aims to uplift people who may not be traditionally defined as poor but experience poverty due to lack of access to basic necessities, education, healthcare, etc.

What initiatives are being taken for the youth in terms of loans and housing?

A corpus of 1 lakh CR rupees will be established to provide long-term financing or refinancing with low or nil interest rates for the youth. Additionally, the government plans to build 20 million houses under a central government scheme within the next 5 years.

What is the government's plan regarding solar energy and how will it benefit the public?

The government plans to promote solar energy through rooftop solarization, identifying 1 CR houses to install solar panels and provide 300 units of free power every month. This will reduce the load on power grids, transition to green energy, and lower electricity bills.

What is the government's stance on fiscal prudence as outlined in the budget?

The government aims to borrow less and spend more, setting a fiscal deficit target at 5.1%. It plans to balance the books through disinvestment, setting a target of around $6 billion.

What special focus does the budget have for women?

The budget has a special focus on women's health and financial well-being. It includes expanding the Universal Healthcare scheme to include grassroots healthcare workers, reducing costs for cervical cancer vaccines, and empowering local self-help women groups to earn a minimum of 100,000 rupees every month.

How did Prime Minister Modi describe the budget after the budget speech?

Prime Minister Modi described the budget as incisive and innovative, indicating his approval and support for the measures outlined in the budget.

Outlines

00:00

🇮🇳 Interim Budget 2024: Setting the Stage for India's Growth

The Indian government presented an interim budget, serving as a financial plan for the next 2-3 months ahead of the general elections. This budget is significant as it hints at policy priorities and outlines areas of financial allocation for India's development. Key highlights include no changes in tax slabs, appreciation for taxpayers, and a vision for India to become a developed economy by 2047. The government also emphasized focusing on four key groups: the poor, women, youth, and farmers, with policies aimed at their upliftment. Direct benefit transfers have been highlighted as a major achievement, with over $400 billion deposited directly into beneficiaries' accounts, minimizing leakages and saving government funds.

05:01

🌟 Empowerment and Development: India's Vision for 2047

The Indian government's interim budget for 2024 outlines a comprehensive approach to multi-dimensional poverty, aiming to empower the poor rather than just providing entitlements. The government's efforts have reportedly uplifted 250 million people over the last decade. Initiatives for the youth include interest-free loans and affordable housing schemes, with a goal to build 20 million houses in five years. Additionally, there is a significant push for solar energy through rooftop solarization, targeting 1 crore houses with free power units to promote green energy and reduce electricity bills. The budget also emphasizes fiscal prudence, aiming to reduce borrowing and increase spending through disinvestment strategies. Special attention is given to women's health and financial empowerment, with expanded healthcare schemes and support for self-help groups.

Keywords

💡Interim Budget

An interim budget is a temporary financial plan presented by a government before a new government is formed, which is expected to bring a full budget. In the video, it is mentioned as the last budget before the upcoming general election in India, indicating its short-term nature and significance in setting the tone for future policies.

💡Taxation

Taxation refers to the compulsory financial charge or some other type of levy imposed upon a taxpayer by a governmental organization. The script highlights that in the 2024 Indian budget, there is no change in tax slabs, meaning people will continue to pay the same amount of tax as before, reflecting fiscal stability and continuity.

💡Direct Tax Collections

Direct tax collections pertain to taxes collected directly from the taxpayer, such as income tax. The script mentions that these collections have more than trebled over the last 10 years, indicating significant growth in the Indian economy and the effectiveness of tax collection mechanisms.

💡Indirect Taxes

Indirect taxes are levied on goods and services and are collected by an intermediary, such as a retailer, before being passed on to the government. The script states that there is no change in indirect tax slabs, suggesting the government's commitment to maintaining a stable economic environment.

💡Policy Priorities

Policy priorities are the areas of focus that a government deems most important for the development and welfare of its people. The video outlines these priorities in the budget, such as uplifting the poor, women, youth, and farmers, which are central to India's growth story.

💡Mudra Scheme

The Mudra Scheme is a financial initiative in India that provides loans to small businesses and enterprises. The script mentions that over 430 million people have been given loans under this scheme, emphasizing the government's efforts to support grassroots entrepreneurship and economic empowerment.

💡Multi-Dimensional Poverty

Multi-dimensional poverty goes beyond income to include other factors that contribute to a person's quality of life, such as access to basic necessities, education, and healthcare. The script discusses the government's approach to addressing this type of poverty through empowerment, aiming to uplift 250 million people over the last decade.

💡Interest-Free Loans

Interest-free loans are financial aids provided without any interest charges, often to support specific groups or initiatives. The script highlights a plan to provide such loans to the youth, indicating the government's commitment to fostering innovation and entrepreneurship among young people.

💡Housing for All

Housing for All is a policy initiative aimed at providing affordable housing to all citizens. The script mentions a government plan to build 20 million houses, reflecting a focus on improving living conditions and promoting economic development.

💡Solar Energy

Solar energy is the power obtained from the sun's radiation and is considered a clean and renewable energy source. The script discusses a plan to promote solar energy through rooftop solarization, which can reduce power grid load, transition to green energy, and lower electricity bills.

💡Fiscal Prudence

Fiscal prudence refers to the careful and responsible management of government finances. The script mentions the government's aim to borrow less and spend more, setting a fiscal deficit target of 5.1%, which demonstrates a commitment to maintaining economic stability and sustainability.

💡Disinvestment

Disinvestment is the process of selling assets, shares, or subsidiaries by the government to reduce its stake in a company. The script highlights a target of around $6 billion for disinvestment, indicating the government's strategy to raise funds for welfare spending and reduce fiscal burden.

💡Women Empowerment

Women empowerment refers to the process of increasing women's autonomy and self-determination. The script discusses various measures aimed at women, such as health insurance for healthcare workers, reducing costs for cervical cancer vaccines, and financial support for self-help groups, showcasing the government's focus on gender equality and women's well-being.

Highlights

Interim budget passed in India, setting the tone for the upcoming general election and the new government's full budget.

No change in tax slabs; current income tax slabs remain intact, reflecting a stable tax policy for the short term.

Direct tax collections have more than trebled over the last 10 years, with a significant increase in return filers.

Government withdraws old income tax demands, providing relief to 10 million taxpayers.

India aims to become a developed economy by 2047, with a focus on the 'Kavya Kal' period for nation-building.

Government specifies focus areas including the poor, women, youth, and farmers for policy upliftment.

Achievements in transferring benefits directly to people, minimizing distribution loss.

Empowerment of the poor as partners in the development process, with results showing upliftment of 250 million people.

Interest-free loans for the youth and a new scheme for affordable housing.

Government's initiative to build 20 million houses under a central scheme over the next 5 years.

Promotion of solar energy through rooftop solarization, aiming to identify 1 CR houses for solar panels.

Fiscal prudence with a target to reduce borrowing and increase spending, setting a fiscal deficit target of 5.1%.

Disinvestment as a strategy to balance the books, with a target of around $6 billion.

Special focus on women with announcements targeting healthcare, vaccination, and financial well-being.

Expansion of the Universal Healthcare scheme to include grassroots healthcare workers.

Empowerment of local self-help women groups, aiming for a minimum monthly income of 100,000 rupees.

Prime Minister Modi's endorsement of the budget as incisive and innovative.

Transcripts

[Music]

it was budget Day in India today an

interim budget was passed the last

budget before the upcoming general

election which is why it's an interim

budget in an election year the full

budget is not presented because a new

government will be formed in a few

months and they will bring a new budget

so for now what we have is a plan for

the next 2 to 3 months it basically

means that the central government is

placing a request to withdraw money to

meet expenses for the short term and yet

it is significant because this budget

also sets the tone for what lies ahead

it outlines policy priorities areas

where money will be allocated and

schemes that will shape India's growth

story so what does today's budget tell

us what are the focus areas in key

takeaways we've put together 10

highlights for you number one is

taxation it's the big talking point in

every budget everyone wants to know this

how are tax Labs changing well this time

they're not no change in taxes your

present income tax Labs remain intact so

if your earning has not changed you'll

continue paying the same amount of tax

over the last 10 years the direct tax

collections have more than trebled and

the return filers swelled 2.4 times I

would like to assure the taxpayers that

their contributions have been used

wisely for the development of the

country and Welfare of its

people I appreciate the taxpayers for

their continued support in other words

thank you for paying your tax keep

paying it same with indirect taxes and

import duties no change in slabs what

about savings we have something to

report on this front the government will

withdraw old income tax demands these

are small and Petty notices they will be

taken back and with this move 10 million

taxpayers will get some relief highlight

Number Two the government wants India to

become a developed economy by 2047

they're calling this period the cavya

Cal meaning the time to fulfill your

duty or cavia and make India a developed

economy in the next 23 years it's an

ambitious Target to have considering the

many challenges along the way Listen to

This

geopolitically Global Affairs are

becoming more complex and challenging

with Wars and conflicts

globalization is being redefined with

reshoring and fren Shoring disruption

and fragmentation of Supply chains and

competition for critical minerals and

Technologies a new world order is

emerging after the covid

pandemic highlight number three the

government has specified its focus areas

it is paying attention to four groups

the poor the women the youth and the

farmers policies are being crafted

around these four groups to bring about

their

upliftment as our prime minister firmly

believes we need to focus on four major

casts they are garib mahil yua and

anad their needs their aspiration

patients and their welfare are our

highest

priority and this was a recurring theme

throughout the speech highlight number

four the big achievements transferring

benefits directly to people the focus is

on cutting distribution loss and here is

what the government says it has

delivered more than $110 million to

Farmers over $260 billion in loans and

these have been given to 430 million

people under the mudra scheme now these

are special loans designed to serve

small Enterprises companies that work at

the Grassroots

levels and like I said the focus is on

Direct transfers by the government

eliminating middlemen this has been

mainstreamed according to the budget

more than $400 billion doar have been

deposited directly into the bank

accounts of

beneficiaries this has put an end or

minimized leakages and led to savings

for the government 7.8 million vendors

have been given credit assistance women

have been allocated houses under a

central government scheme 70% of all

rural houses went to women so those were

the major achievements that the budget

talked about highlight number five

tackling multi-dimensional

poverty now usually we Define poverty on

the basis of money we measured it on the

basis of purchasing power like how much

money you earn or spend in a day but

that is just one dimension of poverty it

doesn't capture the full picture people

may feel poor due to a variety of

reasons like when they cannot afford

basic necessities like electricity food

or water when they are forced to pick an

inferior school for their child when

they cannot afford proper treatment

because of

costs there are many cases where one

medical emergency can financially ruin a

whole family these are all different

versions of poverty these people may not

be poor by the traditional

definition but they all experience

poverty so what the government is trying

to do is this trying to T tack Le

multi-dimensional poverty through

empowerment we believe in empowering the

poor the earlier approach of tackling

poverty through entitlements had

resulted in very modest outcomes when

the poor became empowered Partners in

the development process government's

power to assist them also increases

manifold not just handouts but

empowerment and the government says it

is showing result results in the last 10

years it is set to have uplifted 250

million people the idea is to reduce

poverty in every shape and form number

six interest free loans for the Youth

and housing for all listen to this for

our tech savvy youth this will be a

golden era a corpus of 1 lakh CR rupees

will be

established with 50e interest free

loan provided the Corpus will provide

long-term financing or refinancing with

long teners and low and or

nil I repeat that sentence the Corpus

will provide long-term financing or

refinancing with long teners and low or

nil interest

trates highlight number seven the

government wants to make make home

buying more affordable a new scheme is

being launched soon it will focus on the

middle class in addition to this the

government says it will build 20 million

houses under a central government scheme

and their construction will take 5 years

at least that is the plan highlight

number eight a big push is being made to

promote solar energy through rooftop

solarization meaning installing solar

panels on

rooftops the plan is to identify 1 CR

houses for this they will be given solar

panels and 300 units of free Power every

month how does it help in three ways it

will reduce the load on power grids it

will enable transition to Green energy

and reduce your electricity bill at the

same time if implemented well these

ideas can be game changers highlight

number nine fiscal Prudence the

government wants to borrow less and

spend

more the fiscal deficit target has been

set at 5

.1% how will the government balance the

books how will it get the money that it

needs to spend on

welfare they're placing a big bet on

disinvestment and they've set a steep

Target of around $6 billion for this

this is how they'll make

money highlight number 10 the special

focus on women the Finance Minister made

multiple announcements targeted at women

like on the health care front the

government is expanding its Universal

Health healthare scheme now women

healthcare workers at the Grassroots

will get health

insurance they want to encourage

vaccination Reports say the government

is in talks to reduce cost for cervical

cancer vaccines they're also focusing on

the financial well-being of women there

was an announcement to empower local

self-help women groups their members are

known as lakpa Dees or prosperous

sisters they're encouraged to pull their

resources and harness their skills to

earn earn a minimum of 100,000 rupees

every month that's 1 lakh rupees hence

the term lakpa

dii the government will allocate more

money to such groups from

$240,000 to

$360,000 Prime Minister Modi spoke after

the budget speech today and he called

the budget incisive and

Innovative is

[Music]

budget

confidence

bu M

or

EMP so those were the key highlights of

the interim budget

2024

that