Union Budget 2024-25, Complete Summary of the FM Speech

Union Budget of India

The Finance Minister, Smt. Nirmala Sitharaman delivered the Union Budget for the fiscal year 2024-25 in the new Parliament Building on February 1, 2024. Notably, this marked the first time the budget was presented in the new Parliament Building. Sitharaman embraced a paperless approach, utilizing a ‘Made in India’ tablet computer for her address. This budget presentation represents her sixth consecutive budget, following those of 2019, 2020, 2021, 2022, and 2023.

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Union Budget of India 2024

For detailed insights and key highlights of the Union Budget 2024, you can refer to official documents or news sources for a comprehensive summary of the financial proposals and allocations presented by the Finance Minister.

The upcoming Union Budget in 2024 will mark Nirmala Sitharaman’s sixth consecutive budget presentation as the Finance Minister. Following Morarji Desai, she will become the second finance minister in India to present the Union Budget for six consecutive years.

The upcoming budget is the final one in the second term of the Narendra Modi government, as the Lok Sabha elections are scheduled to take place later in the year. This budget holds significance as it will outline the government’s financial priorities and initiatives before the country heads into the election season.

Read about all the budget terms and definitions

What is Interim Budget

An interim budget is a provisional financial plan designed to address the government’s expenditures until a new government assumes office after elections. This budget requests approval from Parliament for an advance grant to cover the essential expenses of the government for the initial four months of the upcoming financial year. The interim budget serves as a stopgap measure to ensure the continuity of essential financial operations during the transitional period.

Union Budget of India Live Updates

The stock markets opened on a positive note today in anticipation of the interim Union budget presentation by Finance Minister Nirmala Sitharaman. The budget, which is set to be presented at 11 am, has generated interest and is likely to influence market sentiments as investors assess the government’s fiscal policies and priorities for the upcoming financial year.
Finance Minister Nirmala Sitharaman highlighted that in the government’s second term, there has been a renewed commitment to the responsibility of building a prosperous nation. She mentioned the goal of making India ‘Viksit Bharat’ by 2047 and emphasized the focus on inclusive development with the motto “Sabka Sath, Sabka Vikas”. The government’s efforts are aimed at creating a developed and prosperous India in the years to come.
Finance Minister Nirmala Sitharaman outlined the government’s focus on four major groups: the poor, women, youth, and farmers.
She highlighted the impact of the PM Janman Yojana, specifically aiding tribal groups that have historically been outside the realm of development. Sitharaman stated that the government has assisted 25 crore people in breaking free from poverty over the last decade, emphasizing the commitment to uplifting various sections of the population.
She expressed her hope that the people of the country will once again choose the Bharatiya Janata Party (BJP) with a resounding mandate in the upcoming Lok Sabha elections.
Finance Minister Nirmala Sitharaman highlighted the impact of Goods and Services Tax (GST), stating that it has enabled ‘one nation, one market, one tax.’ She emphasized that tax reforms have led to the deepening and widening of the tax base. Sitharaman also mentioned the government’s focus on comprehensive governance, development, and performance, represented by ‘GDP’ (Governance, Development, Performance). This underscores the government’s commitment to holistic and impactful policies for the nation’s growth.
Finance Minister Nirmala Sitharaman announced significant measures during the budget speech:
- The government aims to provide 1 crore households with 300 units of free electricity per month through rooftop solarization. This move emphasizes the promotion of clean and sustainable energy.
- The benefits of Ayushman Bharat, a health insurance scheme, will be extended to all Accredited Social Health Activists (ASHA) and Anganwadi workers. This step is aimed at providing health coverage to those involved in grassroots healthcare.
- The government will assist “deserving” sections of the middle class in building their own houses. This initiative aims to address housing needs and promote homeownership among the middle class.
- The establishment of a corpus of ₹1 lakh crore through a 50-year interest-free loan. This corpus is intended to provide long-term financing with extended tenure and minimal or no interest rates. The measure aims to support specific sectors or initiatives that require sustained financial assistance for their development.
Finance Minister Nirmala Sitharaman emphasized a shift in the meaning of FDI to “First Develop India.” She highlighted the focus on encouraging bilateral trade treaties to boost Foreign Direct Investments (FDIs) in the country. This signals an intention to attract more investments that contribute to the development and growth of India’s economy.
FY24 fiscal deficit seen at 5.8% of GDP
FY24 total expenditure revised to ₹ 44.90 lakh crore
FY 24 total receipts other than borrowings is ₹ 27.56 lakh crore
FY24 tax receipts are ₹ 23.24 lakh crore
FY25 fiscal deficit seen at 5.1%
Aim to reduce fiscal deficit to below 4.5% by FY26
FY25 gross market borrowing seen at ₹ 14.13 lakh crore
Finance Minister Nirmala Sitharaman announced that there will be no proposals to change tax rates, whether direct or indirect.
She also mentioned the extension of tax benefits for startups and investments made by sovereign wealth and pension funds until March 2025.
Furthermore, the withdrawal of outstanding direct tax demands up to ₹25,000 for the period up to the financial year 2009-10, and up to ₹10,000 for financial years 2010-11 to 2014-15, was announced. This move is expected to benefit around one crore taxpayers, providing them with relief from outstanding tax liabilities.

Finance Minister Nirmala Sitharaman concluded her interim budget speech, which lasted just a few minutes short of an hour. In her closing remarks, she reflected on the significant responsibility the government assumed in 2014, highlighting the need to mend the economy, attract investments, and initiate crucial reforms. She emphasized the government’s commitment to putting the nation first, which has guided its actions and policies.

Key Points of the Interim Union Budget of India 2024

In her interim budget speech, Finance Minister Nirmala Sitharaman announced several key initiatives and allocations:

New Scheme for Strengthening Deep-Tech Technologies for Defence Purposes: A new scheme focusing on enhancing deep-tech technologies for defense purposes.
Capital Expenditure Increase: Capital expenditure has been increased by 11.1% to over ₹11.18 lakh crore, which represents 3.4% of the GDP.
Conversion of Rail Bogies to Vande Bharat Standards: 40,000 normal rail bogies will be converted to Vande Bharat standards, aiming to improve and modernize the railway infrastructure.
2 Crore More Houses Under PM Awas Yojana: The government aims to build 2 crore more houses in the next five years under the Pradhan Mantri Awas Yojana, focusing on affordable housing.

Finance Minister Nirmala Sitharaman highlighted that the Rooftop Solarisation program is being implemented in alignment with Prime Minister Narendra Modi’s resolution announced after the opening ceremony of Ayodhya’s Ram Mandir on January 22. The program aims to provide 1 crore households with 300 units of free electricity per month through rooftop solar installations.

Prime Minister Narendra Modi has expressed optimism about the interim budget presented by Finance Minister Nirmala Sitharaman, describing it as a “sweet spot” with numerous employment opportunities. The budget focuses on various sectors, and the Prime Minister believes it will contribute to the country’s economic growth and job creation.

Frequently Asked Questions – Union Budget 2024-25

Q1. When was the Union Budget 2024-25 announced?

Ans. The Union Budget for 2023-24 was announced on 1st February 2024.

Q2. What does the Union Budget cover?

Ans. The union budget mainly covers the major capital expenses and investments for one fiscal year.

Q3. How long is the fiscal year?

Ans. The fiscal year in India spans from the 1st of April to the 31st of March of the next year.

Q4. When is the Union Budget announced?

Ans. The Union Budget is presented by the Finance Minister on the first day of February.

Q5. Who will be presenting the Union Budget 2023-24?

Ans. Smt. Nirmala Sitharaman, India’s Finance Minister will be presenting the Union Budget for 2024-25.

Shubham Mittal

Shubham Mittal is a renowned current affairs writer and expert in government exam preparation, inspiring readers with insightful articles and guiding aspirants with his expertise.

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