The Hindu Editorial Analysis- 22nd February 2024 | Current Affairs & Hindu Analysis: Daily, Weekly & Monthly - UPSC PDF Download

Beyond shelter, dweller needs within the four walls

Why in News?

In the interim Budget 2024, Finance Minister Nirmala Sitharaman announced the construction of two crore additional houses over the next five years under the Pradhan Mantri Awas Yojana Gramin (PMAY-G) and the introduction of a new housing scheme for the middle class. This is a commendable step towards realising the goals of the ambitious ‘Housing for All’ initiative and builds on the success of the PMAY scheme, which has facilitated the construction of nearly three crore rural and 80 lakh urban affordable houses since 2015.

What is an Interim Budget?

• An Interim Budget is presented by a government that is going through a transition period or is in its last year in office ahead of general elections.
• The purpose of the interim budget is to ensure the continuity of government expenditure and essential services until the new government can present a full-fledged budget after taking office.

What are the Major Highlights of the Interim Budget 2024-25?

• Capital Expenditure Increase: Announced an 11.1% increase in capital expenditure outlay for 2024-2025, set at Rs 11,11,111 crore, constituting 3.4% of GDP.
• Economic Growth Projections: Projected real GDP growth for FY 2023-24 at 7.3%, with IMF upgrading India's growth projection to 6.3% for the same period.
• Revenue and Expenditure Estimates (2024-25):
  • Total Receipts: Estimated at Rs 30.80 lakh crore, excluding borrowings.
  • Total Expenditure: Projected at Rs 47.66 lakh crore.
  • Tax Receipts: Estimated at Rs 26.02 lakh crore.
  • GST Collections: Crossed ₹1.6 lakh crore benchmark for the seventh time, reaching ₹1.65 lakh crore in December 2023.
• Fiscal Deficit and Market Borrowing: Fiscal deficit estimated at 5.1% of GDP in 2024-25, with gross and net market borrowings through dated securities estimated at Rs 14.13 and 11.75 lakh crore, respectively.
• Taxation: Corporate tax rates maintained, with certain benefits extended for startups and investments.
• Priorities:
  • Emphasizing focus on the Poor, Women, Youth, and Farmers.
  • Various schemes and initiatives outlined for each group, including financial assistance, skill training, and educational support.
• Major Development Plans:
  • Infrastructure: Expansion plans for railways, aviation, and urban transport.
  • Clean Energy Sector: Initiatives to promote renewable energy sources and strengthen the e-vehicle ecosystem.
  • Housing Sector: Subsidies planned for the construction of affordable housing.
  • Healthcare Sector: Efforts to expand vaccination programs and healthcare coverage.
  • Agricultural Sector: Policies to support farmers, promote innovative agri-inputs, and address diseases.
  • Fishery Sector: Establishment of a new department to support fishermen.
• State Capex: Continuation of interest-free loan scheme for capital expenditure to states, with a focus on supporting state-led reforms and development in the eastern region.
• Others:
  • Establishment of a research and innovation corpus to encourage private sector participation.
  • Formation of a high-powered committee to address population growth and demographic shifts in alignment with 'Viksit Bharat' goal.

What are the Funds Related to the Budget in India?

• Consolidated Fund of India:
  • Under Article 266 (1) of the Constitution, consolidates all revenues, loans, and loan repayments received by the Union Government.
  • Withdrawal from this fund requires Parliament permission, except for Charged Expenditure such as Judges’ salaries.
• Public Account of India:
  • Governed by Article 266 (2), includes incoming money from provident fund, small savings, postal deposit, etc.
  • Government functions akin to a banker in transferring funds, hence Parliament permission is not necessary.
• Contingency Fund of India:
  • Established under the Contingency Fund of India Act, 1950, and operates as an imprest according to Article 267(1).
  • It provides advances to the government for unforeseen expenditures during the fiscal year, pending Parliament authorization.
  • Withdrawals from this fund are replenished upon parliamentary approval through Supplementary Demands for Grants.