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budget-details.txt
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budget-details.txt
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Annual Financial Statement (AF)
This is a crucial document that highlights the receipts and expenditures of the government during the financial year. It is presented among the Budget documents in Parliament every year.
Consolidated Fund
All of the revenue raised by the government, market borrowings, and receipts from loans are part of the Consolidated Fund of India. All of the government's expenditure comes out of this fund, barring items met from the Contingency Fund or the Public Account. Money can only be withdrawn from this fund with prior Parliamentary approval.
Contingency Fund
This is a corpus set aside for any unforeseen events. The Contingency Fund is at the disposal of the President. Any money withdrawn from this fund, with prior approval of Parliament, is repaid from the Consolidated Fund.
Public Account
This account contains the amount of money used for transactions where the government merely acts as a banker. All the money received by or on behalf of a central or state government is credited to this account. Simply put, this money does not belong to the government and is meant to be paid back at some time to their rightful owners.
Inflation
The rate of increase in prices of goods and services is known as inflation. It can also be understood as the rate at which the power to purchase a defined set of goods and services weakens.
Direct taxes
These are taxes that are levied directly from taxpayers, such as income tax and corporate tax. These form one of the most important components of the Budget.
Indirect taxes
These are taxes that are levied indirectly from taxpayers, such as GST, VAT, customs and excise duties, and service tax.
Fiscal policy
It is an essential instrument meant to monitor the domestic economic position. Simply put, an estimate of taxation and government spending is known as fiscal policy.
Fiscal deficit
A fiscal deficit is a situation wherein the government’s expenditure exceeds its revenue, excluding market borrowings. Calculated as a percentage of the GDP, it is the gap between the government's total spending and the sum of its total receipts.
Finance Bill
It is a bill used by the government to propose the levy of new taxes, alterations in the tax structure, or even the continuance of the existing tax structure.
Budget Estimate
These are a set of estimates of fiscal and revenue deficits for the next financial year. Simply put, Budget Estimates represent the monetary value assigned to the government's ambitions.
Monetary policy
These are the various measures that are at the disposal of the central bank to regulate the level of flow of money in the economy and the banking system.
Divestment
The process of the sale of existing assets is known as disinvestment or divestment. Typically, it is meant to raise revenue or to pare losses from non-performing assets.
Revenue receipt (expenditure)
A crucial portion of the Budget, the revenue receipt contains anything and everything that does not lead to the creation of assets, such as salaries, subsidies, and interest payments.
Revenue Deficit
A revenue deficit is a situation when the government’s total revenue expenditure exceeds its total revenue receipts. In simple terms, a revenue deficit means that the government is overspending from its regular income.
Capital expenditure (capex)
The total amount of money that the government spends towards the development, acquisition, or degradation of machinery or assets.
Direct Tax Collections more than trebled in last 10
years
Number of return filers swelled to 2.4 times
Faster refunds: Reduction in average processing
time of returns from 93 days (2013-14) to 10 days
(2023-24)
Benefit to consumers:
Reduction in logistics
cost and prices of most
goods and services
Average monthly Gross GST
collections doubled to ₹1.66 lakh
crore in FY24
Increase in tax buoyancy of State
revenue from 0.72 (2012-16) to 1.22
in the post-GST period (2017-23)
Decline in import release time since 2019 by: -
• 47 per cent at Inland Container Depots
• 28 per cent at Air Cargo complexes
• 27 per cent at Sea Ports
Positive sentiment about GST
• 94% industry leasers view transition to GST as largely positive
• 80% of respondents feel GST has led to supply-chain optimisation
(As per a survey conducted by a leading consulting firm)
11
Tax Proposals
Continuity in taxation: Certain tax benefits to
Start-ups and investments made by sovereign
wealth funds/pension funds, tax exemption of some
IFSC units earlier expiring on 31.03.2024 extended
up to 31.03.2025
Withdrawal of outstanding direct tax demand: -
• Up to ₹25,000 pertaining up to FY10
• Up to ₹10,000 for FY11-FY15
Expected to benefit approx. 1 crore taxpayers
12
Retention of same tax rates: -
• For direct and indirect taxes, including import
duties
• For Corporate Taxes-22% for existing domestic
companies, 15% for certain new manufacturing
companies
• No tax liability for taxpayers with income up to
₹7 lakh under the new tax regime
Expenditure: The government proposes to spend Rs 45,03,097 crore in 2023-24, which is an increase of
7.5% over the revised estimate of 2022-23. In 2022-23, total expenditure is estimated to be 6.1% higher
than the budget estimate.
▪ Receipts: The receipts (other than borrowings) in 2023-24 are expected to be to Rs 27,16,281 crore, an
increase of 11.7% over revised estimate of 2022-23. In 2022-23, total receipts (other than borrowings) are
estimated to be 6.5% higher than the budget estimates.
▪ GDP: The government has estimated a nominal GDP growth rate of 10.5% in 2023-24 (i.e., real growth
plus inflation).
▪ Deficits: Revenue deficit in 2023-24 is targeted at 2.9% of GDP, which is lower than the revised estimate
of 4.1% in 2022-23. Fiscal deficit in 2023-24 is targeted at 5.9% of GDP, lower than the revised estimate
of 6.4% of GDP in 2022-23. While the revised estimate as a percentage of GDP was the same as the budget
estimate, in nominal terms, fiscal deficit was higher by Rs 94,123 crore (increase of 5.7%) in 2022-23.
Interest expenditure at Rs 10,79,971 crore is estimated to be 41% of revenue receipts.
▪ Ministry allocations: Among the top 13 ministries with the highest allocations, in 2023-24, the highest
percentage increase in allocation is observed in the Ministry of Railways (49%), followed by the Ministry
of Jal Shakti (31%), and the Ministry of Road Transport and Highways (25%).
Changes in the new income tax regime: The
number of tax slabs has been reduced from six to
five. Table 1 compares the current tax income
structure with the proposed income tax structure.
The surcharge on the income when it exceeds Rs
5 crore will be reduced from 37% to 25%.
Currently, those with income up to Rs 5 lakh can
avail a rebate and not pay any taxes; this limit
has been raised to Rs 7 lakh. Further, the
standard deduction will be available under the
new tax regime.
▪ Changes in tax exemptions: The tax exemption for news agencies set up solely for the collection and
distribution of news will be removed.
▪ Charitable trusts are required to apply 85% of their income within the year to avail income tax
exemption. From April 2023, if a charitable trust donates to another charitable trust, only 85% of such a
donation would be considered as application of income.
▪ Presumptive taxation: The upper limit on turnover for MSMEs to be eligible for presumptive taxation has
been raised from Rs 2 crore to Rs 3 crore. The upper limit on gross receipts for professionals eligible for
presumptive taxation has been raised from Rs 50 lakh to Rs 75 lakh.
▪ Co-operative societies: The income tax rate for new co-operative societies engaged in manufacturing
activities has been lowered from 22% to 15% (plus 10% surcharge).
▪ Capital gains: Capital gains from sale of residential property can be deducted to the extent of purchase or
construction of another residential property. The deduction will be capped at Rs 10 crore.
▪ Life insurance: Income from investments in life insurance policies will be taxable if premium of Rs 5 lakh
has been paid in any year. The amount paid upon the death of the policy holder will continue to be exempt
from income tax.
▪ Online Games: Winnings from online games will be subject to 30% tax deductible at source.
Startups: Startups incorporated within a time-period and meeting other conditions can deduct up to 100% of
their profits; the end of this period has been extended from March 31, 2023 to March 31, 2024. In addition,
the period within which losses of startups may be carried forward has been extended from seven to ten years.
▪ Indirect Taxes: Customs duty on several items have been changed. On a few items such as gold, platinum,
and aeroplanes the amount of cess has been increased with a corresponding decrease in customs duties.
▪ CGST: The CGST Act will be amended such that input tax credit will not be available for goods and
services purchased for use in activities related to corporate social responsibility.
Legislative proposals: Amendments will be made to the Banking Regulation Act, 1949, Banking
Companies (Acquisition and Transfer of Undertaking) Act, 1970, and the Reserve Bank of India Act, 1934
to improve bank governance and enhance investors’ confidence. Several measures will be taken to improve
business activities in the Gujarat International Finance Tech-City International Financial Services Centre
(GIFT IFSC). For instance, the IFSC Authority Act, 2019 will be amended to provide for arbitration and
ancillary services in GIFT IFSC, and avoiding dual regulation under the Special Economic Zones Act,
2005.
▪ Infrastructure: The scheme providing 50-year interest free loans to state governments will be made
available in 2023-24 also with an outlay of Rs 1.3 lakh crore. 100 critical transport infrastructure projects
for last and first mile connectivity for various sectors such as ports, coal, steel will be taken up. This will
have an investment of Rs 75,000 crore including Rs 15,000 crore from private sources.
▪ Urban Development: An Urban Infrastructure Development Fund will be established for development of
urban infrastructure by public agencies in tier-2 and tier-3 cities. The Fund will be managed by the
National Housing Bank and is expected to have an annual allocation of Rs 10,000 crore. States and cities
will be encouraged to undertake urban planning reforms such as efficient land use and transit-oriented
development. Cities will be incentivised to improve their credit worthiness for municipal bonds through
property tax reforms and setting aside user charges.
▪ Agriculture: An Agriculture Accelerator Fund will be set up to encourage agri-startups in rural areas. A
sub-scheme of PM Matsya Sampada Yojana will be launched with an investment of Rs 6,000 crore to
support fishermen, fish vendors, and MSMEs. Decentralised storage capacity will be set up for farmers to
store their produce. PM Programme for Restoration, Awareness, Nourishment and Amelioration of Mother
Earth (PM-PRANAM) will be launched to incentivise states/UTs to promote balanced use of chemical
fertilisers and alternative fertilisers.
▪ Energy and Environment: A Green Credit Programme will be notified under the Environment
(Protection) Act, 1986 to incentivise environmentally sustainable actions by companies, individuals, and
local bodies, and help gather additional resources for such actions. Battery Energy Storage Systems with
4,000 MWh capacity will be supported with viability gap funding.
▪ Research and Development (R&D): Three centres of excellence for R&D in Artificial Intelligence will be
established in select educational institutions. 100 labs will be set up in engineering institutions for
developing applications using 5G services. A National Data Governance Policy will be released to enable
access to anonymised data. A programme to promote research and innovation in pharmaceuticals will be
taken up through centres of excellence.
▪ Health: Nursing colleges will be started along with all existing 157 medical colleges. In order to eliminate
sickle cell anaemia by 2047, a Mission will be launched covering seven crore people in the age group 0-40
in affected tribal areas.
▪ Finance: A National Finance Information registry will be set up for accessing all financial and ancillary
information. A small savings scheme, Mahila Samman Savings Certificate will be launched for two years.
Further, the deposit limit for senior citizens savings scheme will be increased from Rs 15 lakh to Rs 30
lakh.
▪ Governance: The KYC process will be simplified and financial sector regulators will be encouraged to
have a KYC system. A Unified Filing Process will be set up for submitting information to different
government agencies. A Voluntary Settlement Scheme will be launched to settle contractual disputes of
government and its undertakings. The financing system of certain schemes will be changed from inputbased to result-based on a pilot basis.
Budget estimates of 2023-24 as compared to revised estimates of 2022-23
▪ Total Expenditure: The government is estimated to spend Rs 45,03,097 crore in 2023-24. This is an
increase of 7.5% over the revised estimate of 2022-23. Out of the total expenditure, revenue expenditure is
estimated to be Rs 35,02,136 crore (1.2% increase) and capital expenditure is estimated to be Rs 10,00,961
crore (37.4% increase). The increase in capital expenditure is due to an increase in capital outlay on
transport (including railways, roads and bridges, and inland water transport) by Rs 1,28,863 crore (36.1%
increase). Expenditure on total capital outlay is estimated to be Rs 8,37,127 crore in 2023-24, an increase of
35% over the revised estimates for 2022-23.
▪ Total Receipts: Government receipts (excluding borrowings) are estimated to be Rs 27,16,281 crore, an
increase of 11.7% over the revised estimates of 2022-23. The gap between these receipts and the
expenditure will be plugged by borrowings, budgeted to be Rs 17,86,816 crore, an increase of 1.8% over the
revised estimate of 2022-23.
▪ Transfer to states: The central government will transfer Rs 18,62,874 crore to states and union territories in
2023-24, an increase of 8.9% over the revised estimates of 2022-23. Transfer to states includes devolution
of Rs 10,21,448 crore out of the divisible pool of central taxes, grants worth Rs 6,86,773 crore, and special
loans worth Rs 1.3 lakh crore for capital expenditure.
▪ Deficits: Revenue deficit is targeted at 2.9% of GDP, and fiscal deficit is targeted at 5.9% of GDP in 2023-
24. The target for primary deficit (which is fiscal deficit excluding interest payments) in 2023-24 is 2.3% of
GDP. The revised estimate for the revenue deficit target has increased from the budgeted estimate in 2022-
23. The revised fiscal deficit target for 2022-23 has remained the same, despite higher receipts. In 2022-23,
the central government’s revenue deficit is expected to be 4.1% of GDP against a budget estimate of 3.8% of
GDP.
▪ GDP growth estimate: The nominal GDP is estimated to grow at a rate of 10.5% in 2023-24.
Defence: The Ministry of Defence has been allocated Rs 5,93,538 crore which is the largest across all ministries
and accounts for over 13% of the total expenditure of the central government. Over the last decade, the
expenditure of the Ministry as a percentage of GDP has reduced. In 2023-24, its allocation is estimated to be
marginally lower than 2% of GDP. Since 2014-15, the spending on defence pension has been consistently
higher than 20% of the total budget and capital outlay has remained below 30% of the budget.
Road Transport and Highways: The Ministry has been allocated Rs 2,70,435 crore, 25% higher than the
revised estimates of 2022-23. Most of the additional allocation (60%) has been earmarked for investment in
NHAI. Budgetary allocation has increased since NHAI will not borrow from the market. Construction of roads
is primarily done through public funds. Private investment constituted 7% of investment in roads in 2020-21.
Food and Public Distribution: Allocation for the Department in 2023-24 was 31% lower as compared to the
revised estimate of 2022-23. This was due to the discontinuation of the Pradhan Mantri Garib Kalyan Anna
Yojana that was announced during the pandemic to provide free foodgrains to eligible beneficiaries. In 2023-
24, expenditure on food subsidy is estimated to be Rs 1.97 lakh crore. Updating the coverage of eligible
families is an issue as the total number of beneficiaries continues to be based on the 2011 Census.
Home Affairs: The Ministry has been allocated Rs 1,96,035 crore, an increase of 1.1% over the revised
estimates for 2022-23. Of the Ministry’s total budget, 65% of the expenditure is on police and 31% is on grants
to UTs. 74% of the expenditure on police has been allocated to the Central Armed Police. Issues in the sector
include shortages of police personnel and inadequate number of cybercrime cells. 24% of the Indo-Bangladesh
border remains unfenced.
Rural Development: The Ministry of Rural Development was allocated around Rs 1.6 lakh crore for 2023-24,
12% less than the revised estimates of 2022-23. This is largely due to the decrease in allocation towards the
Mahatma Gandhi National Rural Employment Guarantee Scheme (Rs 60,000 crore), which is 33% less than
revised estimate for 2022-23. Demand for work under MGNREGS could decrease this year, as the rural
economy returns to normal after the pandemic. Allocation towards rural housing increased by 13% in 2023-24,
while allocation towards rural roads remained unchanged.
Railways: In 2023-24, Railways is projected to have a marginal revenue surplus, which would fund less than
1% of its capital expenditure plan. 92% of capital expenditure will be funded by budgetary support from the
central government, and 7% from extra budgetary resources. The operating ratio (expenditures as proportionate
to traffic works receipts) is 98.5%, indicating limited surplus for capital investment.
Agriculture: The Ministry has been allocated Rs 1,25,036 crore in 2023-24, a 5% increase over the revised
estimates of 2022-23. 77% of the Ministry's estimated expenditure is towards three schemes that provide cash
transfer, interest subsidy, and crop insurance. The amount of institutional credit to farmers has risen (7.8% over
the past ten years), but loans are primarily being used to meet revenue expenditure in farming or recurring
household expenditure.
Education: In 2023-24, the estimated expenditure of the Ministry of Education is Rs 1,12,899 crore, a 13%
increase from revised estimates for 2022-23. Of this, the Department of School Education and Literacy has
been allocated 61% and the Department of Higher Education has been allocated the remaining 39%. 33% of the
Ministry’s budget has been allocated to Samagra Shiksha Abhiyan. Since 2015, overall allocation towards
education has been around 2.8% of the GDP.
Telecommunications: Rs 59,740 crore (56% of the allocation) in 2023-24 is towards the revival package for
BSNL and MTNL. No funds were disbursed under the PLI scheme in 2021-22. In 2022-23 also, no funds will
be spent towards this scheme as per revised estimates. Bharatnet and Network for Defence projects have seen
significant delays.
Jal Shakti: The Ministry of Jal Shakti was allocated Rs 97,278 crore for 2023-24, a 31% increase over the
revised estimates for 2022-23. The Jal Jeevan Mission received the highest allocation (Rs 70,000 crore). River
Interlinking saw an increase in allocation due to the implementation of the Ken-Betwa Link Project. Funds have
remained underutilised in schemes such as the Swachh Bharat Mission- Gramin, Atal Bhujal Yojana, and
Namami Gange.
Health and Family Welfare: In 2023-24, the expenditure of the Ministry of Health and Family Welfare is
estimated to be Rs 89,155 crore, a 13% increase from revised estimates for 2022-23. The National Health
Mission is its largest component, accounting for 33% of the Ministry's budget and medical colleges and
hospitals account for 27% of the budget. High out-of-pocket expenditure and shortage of healthcare personnel
remain major issues.
Housing and Urban Affairs: In 2023-24, the Ministry of Housing and Urban Affairs has been allocated Rs
76,432 crore, an increase of 2.5% over the revised estimates for 2022-23. The major items are urban housing
(PMAY-U) at Rs 25,103 crore and metro projects at Rs 23,175 crore. Several metro systems are not able to
generate required ridership to breakeven.
Petroleum and Natural Gas: The Ministry has been allocated Rs 41,008 crore, which is a 21% increase over
the revised estimates for 2022-23. This includes Rs 30,000 crore towards capital support to Oil Marketing
Companies via equity infusions. There has been a decrease in allocation towards the LPG subsidy and no
allocation has been made towards the kerosene subsidy. There has been an increase in capital outlay towards
the creation of caverns and purchase of oil for the Strategic Petroleum Reserves.
Women and Child Development: The Ministry has been allocated Rs 25,449 crore in 2023-24, a 6% increase
over the revised estimates of 2022-23. This is spent across three centrally sponsored schemes: Saksham
Anganwadi and POSHAN 2.0, Mission Shakti, and Mission Vatsalya. In the past five years between 2016-17
and 2021-22, the Ministry has underutilised its funds.
Environment, Forests, and Climate Change: In 2023-24, the Ministry of Environment, Forests and Climate
Change has been allocated Rs 3,079 crore, a 24% increase over the revised estimates of 2022-23. While India
has set targets to transition to renewable energy to tackle climate change, availability of adequate finance is a
key challenge. According to experts the overall cost required for India to adapt to climate change by 2030 is
expected to be around Rs 86 lakh crore (at 2012 base price).
Indirect taxes: The total indirect tax collections are estimated to be Rs 15,29,200 crore in 2023-24. Of
this, the government has estimated to raise Rs 9,56,600 crore from GST. Out of the total tax collections
under GST, 85% is expected to come from central GST (Rs 8,11,600 crore), and 15% from the GST
compensation cess (Rs 1,45,000 crore).
▪ Corporation tax: The collections from taxes on companies are expected to increase by 10.5% in 2023-24.
In 2022-23, corporate tax collection is expected to be 16% higher than the budget estimate (Rs 7,20,000
crore).
▪ Income tax: The collections from income tax are also expected to increase by 10.5% in 2023-24 to Rs
9,00,575 crore. Income tax collection is expected to be 16.4% higher than the budget estimate in 2022-23.
▪ Non-tax receipts: Non-tax revenue consists mainly of interest receipts on loans given by the centre, dividends,
license fees, tolls, and charges for government services. Dividend receipts were lower in 2022-23 than
originally budgeted mainly on account of lower dividend from Reserve Bank of India. In 2023-24, non-tax
revenue is expected to increase by 15% over the revised estimates of 2022-23.
▪ Disinvestment target: The disinvestment target for 2023-24 is Rs 51,000 crore. This is a marginal increase
of 2% over the revised estimate of 2022-23 (Rs 50,000 crore). In 2022-23, the receipts from disinvestment
are expected to be 23% lower than the budget estimate.
In 2023-24, the total expenditure on subsidies is estimated to be Rs 4,03,084 crore, a decrease of 28.3% from the
revised estimate of 2022-23 (Table 6).
▪ Food subsidy: Allocation to food subsidy is estimated at Rs 1,97,350 crore in 2023-24, a 31.3% decrease
over the revised estimate of 2022-23. A higher level of food subsidy was budgeted in 2021-22 and 2022-23
mainly on account of Pradhan Mantri Garib Kalyan Ann Yojana, which provides for free additional
foodgrains to eligible beneficiaries to mitigate the impact of COVID-19. The provision of additional
foodgrains was discontinued in December 2022.
▪ Fertiliser subsidy: Expenditure on fertiliser subsidy is estimated at Rs 1,75,100 crore in 2023-24. This is a
decrease of Rs 50,120 crore (22.3%) from the revised estimate of 2022-23. Fertiliser subsidy for 2022-23
was increased substantially in response to a sharp increase in international prices of raw materials used in
the manufacturing of fertilisers.
▪ Other subsidies: Expenditure on other subsidies includes interest subsidies for various government
schemes, subsidies for the price support scheme for agricultural produce, and assistance to ship building
research and development, among others. In 2023-24, the expenditure on these other subsidies is estimated
to decrease by 30% over the revised estimate of 2022-23.
Pradhan Mantri Awas Yojana (rural and urban components taken together) has the highest allocation in
2023-24 at Rs 79,590 crore. This is an increase of 3.2% over the revised estimate of 2022-23. As
compared to the revised estimates of 2022-23, the allocation for the rural component of the scheme has
increased by 13% and the urban component has declined by 13% in 2023-24. For 2022-23, the allocation
towards the scheme has been increased by 60.7% as compared to the budget estimates.
▪ The Jal Jeevan Mission has the second highest allocation in 2023-24 at Rs 70,000 crore, an increase of
27.3% over the revised estimate of Rs 55,000 crore in 2022-23.
▪ Allocation for PM-KISAN has been kept constant at Rs 60,000 crore, and for MGNREGS has been reduced
by 33% to Rs 60,000 crore.
▪ Some other schemes with a comparatively higher increase in allocation in 2023-24 include: (i) Reform
Linked Distribution Scheme (101.2%), (ii) Swachh Bharat Mission (74.2%), and (iii) Guarantee Emergency
Credit Line to MSME borrowers (34.3%).
Here are some basic terms that may or may not be related to the new budget -
Income Tax: Tax imposed on individuals or entities based on their income or profits.
Tax Deduction: Amount subtracted from gross income to reduce the amount of income subject to tax.
Tax Exemption: Income or transactions that are not subject to taxation.
Taxable Income: Portion of income that is subject to taxation after deductions and exemptions.
Tax Credit: Reduction in tax liability granted to taxpayers for various reasons such as income tax paid in foreign countries or certain expenses.
Direct Tax: Tax levied directly on individuals or entities, such as income tax or corporate tax.
Indirect Tax: Tax imposed on goods and services rather than on income or profits, such as GST (Goods and Services Tax), excise duty, or customs duty.
Capital Gains Tax: Tax levied on profits from the sale of assets such as stocks, real estate, or investments.
Tax Return: Formal document filed with the tax authorities declaring income, deductions, and tax liability.
Tax Evasion: Illegal practice of avoiding paying taxes by underreporting income or overstating deductions.
Fiscal Deficit: Difference between government's total expenditure and its total revenue excluding borrowing.
Revenue Deficit: Excess of government revenue expenditure over revenue receipts.
Customs Duty: Tax imposed on goods imported or exported from a country.
Excise Duty: Tax levied on the production or sale of goods within the country.
Corporate Tax: Tax levied on the profits earned by companies or corporations.
Minimum Alternate Tax (MAT): Provision in the Income Tax Act requiring certain companies to pay a minimum amount of tax irrespective of their profit.
Securities Transaction Tax (STT): Tax levied on transactions involving securities such as stocks, derivatives, or mutual funds.
Dividend Distribution Tax (DDT): Tax imposed on companies distributing dividends to their shareholders.
Service Tax: Tax levied on specified services provided within the country.
Capital Gains Tax Indexation: Adjustment of the purchase price of an asset for inflation before calculating capital gains tax.
Tax Residency Certificate (TRC): Document issued by the tax authorities of a country confirming the residency status of a taxpayer for the purpose of availing tax benefits under Double Taxation Avoidance Agreements (DTAA).
Advance Tax: Tax paid in advance based on estimated income for the financial year.
Tax Holiday: Period during which certain taxes are not imposed or are reduced to encourage investment in specific sectors or regions.
Base Erosion and Profit Shifting (BEPS): Tax planning strategies used by multinational companies to shift profits from high-tax jurisdictions to low-tax jurisdictions, often through legal but aggressive methods.
These terms are for context regarding the new Indian budget
Key Features
of
Budget
2024-2025
February, 2024
Viksit Bharat by 2047
Vision: Prosperous Bharat in harmony with nature, modern
infrastructure and opportunities for all
Development Mantra
Sabka Saath,
Sabka Vikas
Comprehensive
development of all
Sabka Saath,
Sabka Vikas,
Sabka Vishwas
Trinity of demography,
democracy and diversity,
backed by ‘Sabka Prayas’
Developed India
@ 2047
1
People-Centric Inclusive Development
Substantive development of all forms of
infrastructure-Physical, Digital and Social
Digital Public Infrastructure (DPI)-Promoted
formalisation and financial inclusion
Deepening and widening of tax base via GST
Strengthened financial sector brought savings, credit
and Investment back on track
GIFT IFSC- A robust gateway for global capital and
financial services for the economy
Proactive Inflation management
All parts of country becoming active participants in
economic growth
India and World Dollar GDP growth
20 India Dollar GDP growth World Dollar GDP growth
15
10
Per cent
5
0
-5
-10
FY14
FY15
FY16
FY17
FY18
FY19
FY20
FY21
FY22
FY23
FY24
FY25
FY26
FY27
FY28
FY29
2
Focus Areas (1/2)
Garib Kalyan, Desh ka Kalyan
Decline in
DBT has led to savings of ₹2.7 lakh Headcount Ratio
crore 55.3
Percentage of Population who are
Multidimensionally poor
25 crore people moved out of Multi-
29.2
dimensional poverty 24.9
15
11.3
Credit assistance to 78 lakh street
vendors under PM-SVANidhi 2005-06 2013-14* 2015-16 2019-21 2022-23*
* Projections
Empowering the Youth
Increase in PM-SHRI
1.4 crore youth trained under Skill Budget Allocation
India Mission 6050
4000
Fostering entrepreneurial aspirations
₹ Crore
of Youth-43 crore loans sanctioned
under PM Mudra Yojana
2023-24 (BE) 2024-25 (BE)
IIT AIIMS Universities
22 1113
23 723
16
7
2014 2023 2014 2022 2014 2023
3
Focus Areas (2/2)
Welfare of Farmers-Annadata
Increasing Procurement of
Wheat and Rice
Direct financial assistance to 11.8
crore farmers under PM-KISAN Rice Wheat
38 433
390
Lakh Metric Tonne
Crop Insurance to 4 crore farmers 30 29 28
under PM Fasal Bima Yojana 262
188
Integration 1,361 mandis under e-
2020-21
2021-22
2022-23
2023-24
NAM, supporting trading volume of
2020-21
2021-22
2022-23
2023-24
₹ 3 lakh crore
Nari Shakti
Rise in Female Labour
30 crore Mudra Yojana loans Force Participation Rate
disbursed to women entrepreneurs
37.0
Increased female enrolment in higher
education by 28 per cent in 10 years
23.3
Per cent
43 per cent of female enrolment in
STEM courses
1 crore women assisted by 83 lakh
SHGs to become Lakhpati Didis 2017-18 2022-23
4
Strategy for Amrit Kaal (1/5)
Sustainable Development
Commitment to meet ‘Net Zero’ by 2070
• Viability gap funding for wind energy
• Setting up of coal gasification and liquefaction capacity
• Phased mandatory blending of CNG, PNG and
compressed biogas
• Financial assistance for procurement of biomass
aggregation machinery
Rooftop solarization-1 crore households will be enabled to
obtain up to 300 units of free electricity per month
• Adoption of e-buses for public transport network
• Strengthening e-vehicle ecosystem by supporting
manufacturing and charging
New scheme of biomanufacturing and bio-foundry to be
launched to support environment friendly alternatives
Per cent increase in Non-Fossil Fuel
installed electricity capacity • >10 crore LPG connections
released under PMUY
43.9
• 36.9 crore LED bulbs, 72.2
% of Non-Fossil fuel installed
32.3 lakh LED Tube lights, and
30.4
23.6 lakh Energy efficient
electricity capacity
fans distributed under
UJALA
• 1.3 crore LED Street Lights
installed under SNLP
2004 2014 Nov-23
5
Strategy for Amrit Kaal (2/5)
Infrastructure and Investment
Implementation of 3 major railway corridor programmes
under PM Gati Shakti-to improve logistics efficiency and
reduce cost
Promotion of foreign investment via bilateral investment
treaties to be negotiated
Expansion of existing airports and comprehensive
development of new airports under UDAN scheme
Promotion of urban transformation via Metro rail and NaMo
Bharat
Increase in Capital Expenditure Doubling of FDI Inflow
12 Capital Expenditure Capex as % of GDP 4 596
Capex as % of GDP
9 3
USD Billion
Rs. Lakh Crore
6 2 298
3 1
0 0
FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25
(BE) (BE) 2005-14 2014-23
Improvement in Physical Infrastructure
144634 149
97991
50394 74
720
581.3 25
22224 16
FY15 FY22 FY15 FY22 FY15 FY22 FY15 FY22 FY15 FY22
National highways Cargo traffic at major Electrified rail route Aircraft movement (Mn Number of Airports
(Km) ports (Mn tonnes) (km) tonnes)
6
Strategy for Amrit Kaal (3/5)
Inclusive Development (1/2)
Aspirational District Programme to assist States in faster
development, including employment generation
Inclusive Development in Aspirational Districts (112)
Number of enrolments under
% of Women registered for Pradhan Mantri Jeevan Jyoti
Anti-Natal Care within First Bima Yojana (PMJJBY) per lakh
Trimester population
89 13195
68
Per cent
Number
1737
2018 Oct-23 2018 Oct-23
Health
Encourage Cervical Cancer Vaccination for girls (9-14 years)
Saksham Anganwadi and Poshan 2.0 to be expedited for
improved nutrition delivery, early childhood care and
development
U-WIN platform for immunisation efforts of Mission
Indradhanush to be rolled out
Health cover under Ayushman Bharat scheme to be extended
to all ASHA, Angawadi workers and helpers
7
Strategy for Amrit Kaal (4/5)
Inclusive Development (2/2)
Housing
Increased allocation for
PMAY
Pradhan Mantri Awas Yojana
(Grameen) close to achieving target
of 3 crore houses, additional 2 crore 80671
₹ Crore
79590
targeted for next 5 years
Housing for Middle Class scheme to
be launched to promote middle class 2023-24 2024-25
to buy/built their own houses (BE) (BE)
Tourism
States will be encouraged to
undertake development of iconic
tourist centres to attract business and G20 meetings in 60 places
promote opportunities for local presented diversity of India to
entrepreneurship global audience
Long-term interest free loans to be Projects for port connectivity,
provided to States to encourage tourism infrastructure, and
development amenities will be taken up in
islands, including
Lakshadweep
8
Strategy for Amrit Kaal (5/5)
Agriculture and Food Processing
Government will promote private and public investment in
post-harvest activities
Application of Nano-DAP to be expanded in all agro-climatic
zones
Atmanirbhar Oilseeds Abhiyaan-Strategy to be formulated to
achieve atmanirbharta for oilseeds
Comprehensive programme for dairy development to be
formulated
Implementation of Pradhan Mantri Matsaya Sampada Yojana
to be stepped up to enhance aquaculture productivity, double
exports and generate more employment opportunities
5 Integrated Aquaparks to be set up
Increased allocation for PM-
Increased allocation for Formalisation of Micro Food
Blue Revolution Processing Enterprises scheme
2352 880
639
Rs. Crore
Rs. Crore
2025
2023-24 2024-25 2023-24 2024-25
(BE) (BE) (BE) (BE)
9
Resilient Performance of the Indian Economy
2.5
Declining CAD as % of GDP Declining Unemployment Rate
2.0
6.1
5.8
Per cent of GDP
1.5 4.8
4.2 4.1
1.0
Per cent
3.2
0.5
0.0 H1: FY24
FY14
FY15
FY16
FY17
FY18
FY19
FY20
FY21
FY22
FY23
2017-18 2018-19 2019-20 2020-21 2021-22 2022-23
Declining GNPAs as % of 16000 Rising volume of Digital
Gross Advances Transactions
11.2
Gross NPAs a % of Gross Advances
12000
9.3 9.1
8.2
Crore
7.5 7.3
5.8 8000
4.3
3.8
3.2
4000
Sep-23
FY14
FY15
FY16
FY17
FY18
FY19
FY20
FY21
FY22
0
FY18 FY19 FY20 FY21 FY22 FY23 FY24
Rise in average monthly gross Fall in Headline Inflation
GST collections
9.4
1.8
1.7
1.5
1.5 6.7
6.2
₹ Lakh Crore
5.8
5.5 5.5
1.2
Per cent
4.9 4.8
1.2 4.5
1.0 3.6 3.4
1.0 0.9
0.9
0.9
0.6
FY21
FY18
FY19
FY20
FY22
FY23
FY24
FY24*