Indian Finance Minister Nirmala Sitharaman announced the much-awaited Union Budget for 2024-25 in Parliament today. Marking her seventh consecutive budget, the budget focused on key figures showcasing the growth of the economy.
Key Points Budget 2024-25
- The budgeted fiscal deficit for the current fiscal year stood at 5.1%, which is lower than last year’s number 5.8%
- Planned capital expenditure for the fiscal year budgeted at Rs. 11.1 lakh crores. This is more than the last year’s figure of Rs. 9.5 crores.
- The interim budget projects a gross tax revenue of Rs. 38.31 lakh crores stating an 11.46% growth from the previous year. This includes Rs. 21.99 lakh crores from direct taxes.
- Moreover, the efficiency of tax collection has improved over time, with the cost of collecting direct taxes dropping from 0.66 per cent of gross collections in FY20 to 0.51 per cent in FY23.
- The Goods and Services Tax (GST) collection increased by 11.6% since the previous fiscal year.
- The government’s gross borrowing for the current financial year is budgeted at Rs. 14.13 lakh crores.
- In terms of GDP, the nominal GDP growth for the current fiscal year is estimated at 10.5 percent. Real GDP growth for the current fiscal year is projected at 7.2% (projections stated by the RBI).
Prime Minister Narendra Modi’s government is expected to maintain a focus on reducing the fiscal deficit while also cutting taxes and increasing welfare spending to satisfy his allies.
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