Budget 2024: A recap of Interim Budget; here’s a look at sector-wise allocations

Budget 2024: On February 1, 2024, Finance Minister Nirmala Sitharaman presented the Interim Budget, outlining a comprehensive financial plan ahead of the general elections 2024. The budget proposed a total expenditure of ₹47.65 trillion for FY 2024-25, a 6% increase over the revised estimate for FY 2023-24.

The Interim Budget projected total receipts at ₹30.80 trillion, a 12% rise compared to the previous fiscal year. It expected the fiscal deficit to be 5.1% of GDP in 2024-25, down from 5.8% in the previous financial year. Nirmala Sitharaman forecast a GDP growth rate of 7.3% for FY 2024-25. 

Infrastructure and social development

The Interim Budget emphasised a significant boost in capital expenditure, proposing an 11% increase to ₹11.1 trillion, or 3.4% of GDP. This move aimed to accelerate growth and enhance social infrastructure.

As Nirmala Sitharaman prepares to present her seventh consecutive Budget and the first Full Budget of the Modi 3.0 government on July 23, all eyes are on how the government will address the announcements made in the Interim Budget.

Viksit Bharat by 2047

In her speech, Nirmala Sitharaman outlined the Interim Budget as a roadmap for a developed India by 2047, focusing on the poor, women, youth, and farmers. She highlighted infrastructure development—physical, social, and digital—and proposed a ₹75,000 crore provision for a 50-year interest-free loan to support milestone-linked reforms by state governments.

Key sector announcements

Infrastructure: The budget proposed a substantial 11% hike in capital expenditure for infrastructure and employment generation, totalling ₹11.11 trillion for 2024-25.

Housing: Under the PM Awas Yojana (Grameen), the government will construct two crore homes in rural areas over the next five years and introduce a new scheme to provide housing for the middle class.

Railways: The budget outlined three major economic railway corridor programmes under the PM Gati Shakti initiative to improve logistics networks and reduce costs. Additionally, 40,000 rail bogies would be upgraded to Vande Bharat standards.

Tourism: The budget proposed comprehensive development of iconic tourist centres, with support from states for marketing and branding. The finance minister had also proposed a new framework for rating tourist centres based on the quality of facilities.

Green energy: The government planned to establish a coal gasification and liquefaction capacity of 100 MT by 2030 and introduce phased mandatory blending of compressed biogas into compressed natural gas. Funding will also support offshore wind energy and the adoption of e-buses for public transport.

Research and innovation: To drive growth, employment, and development, the finance minister proposed a ₹1 trillion fund with a 50-year interest-free loan alongside a new scheme for deep-tech defence technologies and promoting self-reliance.

Free power and solarisation: The budget proposed 300 units of free power per month through a rooftop solarisation scheme, which would benefit around one crore households.

Healthcare: Nirmala Sitharaman announced the extension of coverage under the Ayushman Bharat scheme to ASHA workers, Anganwadi Workers, and helpers.