Union Minister of Finance and Corporate Affairs Nirmala Sitharaman chairs the eighth Pre-Budget consultation with representatives of the Employment and Skilling division. File.
| Photo Credit: PTI

Finance Minister Nirmala Sitharaman has concluded consultations with various stakeholders, including representatives of industry and social sectors, as part of the budget preparation exercise.

Ms. Sitharaman will present her seventh Budget on July 23. This would be the first full budget of Modi 3.0 which is going to set the path for Vikshit Bharat (developed India) by 2047.

Also read | Govt said to plan raise in rural housing subsidies by 50% after election setback

Last month, President Droupadi Murmu, while delivering her address to the joint sitting of Parliament, had said that many historic steps and major economic decisions will be taken in the upcoming budget session.

In her first address to the joint sitting of Parliament since the constitution of the 18th Lok Sabha, the President said, “This budget will be an effective document of the government’s far-reaching policies and futuristic vision”.

“Along with major economic and social decisions, many historic steps will also be seen in this budget,” she said.

The Finance Ministry in a statement said the pre-budget consultations for Union Budget 2024-25 that started from June 19 onward concluded on July 5, 2024.

In the course of in-person consultations, more than 120 invitees across 10 stakeholder groups, including experts and representatives from farmer associations and agriculture economists; trade unions; education & health sector; employment & skilling; MSME; trade & services; industry; economists; financial sector & capital markets; as well as, infrastructure, energy and urban sector, participated in the meetings, it said.

These meetings chaired by the Finance Minister witnessed the participation of Minister of State for Finance Pankaj Chaudhary; Finance Secretary and Secretary Expenditure, T V Somanathan; Economic Affairs Secretary, Ajay Seth, DIPAM Secretary, Tuhin K Pandey, Financial Services Secretary Vivek Joshi and Revenue Secretary, Sanjay Malhotra among others.

In the course of the consultations, Sitharaman expressed gratitude to the participants for sharing valuable suggestions and assured experts and representatives that their suggestions would be carefully examined and considered while preparing the Union Budget 2024-25.

A view shows the plenary session of the Summit on Peace in Ukraine, in Stansstad, Switzerland, June 16, 2024.
| Photo Credit: Reuters

Nirmala Sitharaman to hold pre-budget meeting with industry chambers on June 20

Finance Minister Nirmala Sitharaman is likely to hold pre-budget consultations with industry chambers on June 20, sources said. The Union Budget for FY2024-25 is likely to be presented in Parliament in the second half of July. Industry sources said the pre-budget consultation with Ms. Sitharaman would be preceded by a meeting with Revenue Secretary Sanjay Malhotra on June 18.

NTA officials to face action if found involved in NEET irregularities, says Dharmendra Pradhan 

The Central government would take the strictest of actions against functionaries of the National Testing Agency if they were found to be involved in irregularities in the conduct of the NEET, Dharmendra Pradhan, Union Education Minister, said. “Additional wrongdoings have also come to the fore on two accounts. I assure both students and parents that the government had taken the issue very seriously. We will take it to a logical end,” he said.

India refuses to endorse Ukraine meet statement

Only proposals acceptable to both Russia and Ukraine can lead to peace, said India as New Delhi decided to disassociate itself from the final document issued at the conclusion of a Peace Summit in Switzerland. India was among at least seven countries that refused to endorse the “Joint Communique on a Peace Framework” released in Burgenstock, the venue of the two-day summit.

NDA allies to meet before Lok Sabha session to take a call on its Speaker candidate

he announcement of the date for the election of a new Speaker for the Lok Sabha has set off speculation over who could occupy that role come June 26, with National Democratic Alliance (NDA) partners likely to meet around June 22 or June 23 to decide the alliance’s candidate. While the Janata Dal-United (JD (U)) has stated that a BJP claim on the post would be respected by them, the Telugu Desam Party (TDP) is speaking of a consensus “NDA candidate”.

Security officials determined to prevent escalation of ethnic violence in Manipur’s Jiribam district

Jiribam will not be allowed to go the same way as the rest of Manipur, officials in the security establishment asserted as an uneasy calm prevailed in the western district after the violence over the last two weeks. Outsiders from both the Kuki-Zo and Meitei communities — who have been engaged in an ethnic conflict in the State for more than a year — are entering Jiribam district in large numbers, which can potentially lead to a flare-up in the violence, according to officials on the ground. 

Vice President Jagdeep Dhankar inaugurates Prerna Sthal

Vice President Jagdeep Dhankar inaugurated the ‘Prerna Sthal’ on the Parliament House premises, where 15 statues of freedom fighters and icons of Indian history, including statues of Mahatma Gandhi and B.R. Ambedkar, previously established in different parts of the Parliament campus, have been relocated to a single location, amid protests by the Opposition.

Siddaramaiah defends hike in fuel prices; urges Centre to reduce excise duty on petroleum products

A day after the State government hiked petrol and diesel prices by about ₹3 each, Chief Minister Siddaramaiah defended the hike and blamed the Centre for forcing the State to cut sales tax during the earlier years, while it continued to increase the Central excise duty on petroleum products. In a note, he said that while under the “double engine BJP government” Karnataka was forced to reduce the tax, the Union government continued to collect higher Central excise duty from the State, and diverted the resources to other States.

Ukraine Peace Conference: 80 countries agree that respect for territorial integrity will help achieve ‘lasting peace in Ukraine’

Eighty countries have jointly called for the “territorial integrity” of Ukraine to be the basis for any peace agreement to end Russia-Ukraine war, though some key developing nations at a Swiss conference did not join in. The joint communique capped a two-day conference at the Bürgenstock resort in Switzerland marked by the absence of Russia, which was not invited, but that many attendees hoped could join in on a roadmap to peace.

India to host its first multinational air exercise Tarang Shakti in August

The Indian Air Force’s first multinational air exercise, Tarang Shakti-2024, will be held in August, and is likely to see the participation of ten countries, in addition to a few others acting as observers. The exercise is now scheduled to be held in two phases. The first will be held in southern India in the first two weeks of August and the second will be in the western sector from the end of August to mid-September, officials said.

Feasibility study on proposal to establish land connectivity with India in final stages, says Sri Lankan President

Sri Lankan President Ranil Wickremesinghe said that the feasibility study on a proposal to establish land connectivity with India is in its final stages. This proposal and the prospect of a power grid connection between the two nations are likely to be discussed during the visit of External Affairs Minister S. Jaishankar to Lanka this week.

Health Ministry issues inter-departmental referral guidelines for hospitals

Citing significant inconsistencies and lack of accountability in the referral process, the Union Health Ministry has for the first time issued inter-departmental referral guidelines for hospitals to facilitate better communication and cooperation. The ‘Guidelines for Inter-Departmental Referral (within hospitals)’ stress that referrals should be initiated promptly as and when patients require specialised care, diagnostic evaluations or consultations beyond scope of admitting department

Israeli military announces ‘tactical pause’ in attempt to increase flow of aid into hard-hit Gaza

The Israeli military announced a “tactical pause” in its offensive in the southern Gaza Strip to allow the deliveries of increased quantities of humanitarian aid. The army said the pause would begin in the Rafah area at 8 a.m. (0500 GMT, 1 a.m. eastern) and remain in effect until 7 p.m. (1600 GMT, noon eastern). It said the pauses would take place every day until further notice.

A view shows the plenary session of the Summit on Peace in Ukraine, in Stansstad, Switzerland, June 16, 2024.
| Photo Credit: Reuters

Nirmala Sitharaman to hold pre-budget meeting with industry chambers on June 20

Finance Minister Nirmala Sitharaman is likely to hold pre-budget consultations with industry chambers on June 20, sources said. The Union Budget for FY2024-25 is likely to be presented in Parliament in the second half of July. Industry sources said the pre-budget consultation with Ms. Sitharaman would be preceded by a meeting with Revenue Secretary Sanjay Malhotra on June 18.

NTA officials to face action if found involved in NEET irregularities, says Dharmendra Pradhan 

The Central government would take the strictest of actions against functionaries of the National Testing Agency if they were found to be involved in irregularities in the conduct of the NEET, Dharmendra Pradhan, Union Education Minister, said. “Additional wrongdoings have also come to the fore on two accounts. I assure both students and parents that the government had taken the issue very seriously. We will take it to a logical end,” he said.

India refuses to endorse Ukraine meet statement

Only proposals acceptable to both Russia and Ukraine can lead to peace, said India as New Delhi decided to disassociate itself from the final document issued at the conclusion of a Peace Summit in Switzerland. India was among at least seven countries that refused to endorse the “Joint Communique on a Peace Framework” released in Burgenstock, the venue of the two-day summit.

NDA allies to meet before Lok Sabha session to take a call on its Speaker candidate

he announcement of the date for the election of a new Speaker for the Lok Sabha has set off speculation over who could occupy that role come June 26, with National Democratic Alliance (NDA) partners likely to meet around June 22 or June 23 to decide the alliance’s candidate. While the Janata Dal-United (JD (U)) has stated that a BJP claim on the post would be respected by them, the Telugu Desam Party (TDP) is speaking of a consensus “NDA candidate”.

Security officials determined to prevent escalation of ethnic violence in Manipur’s Jiribam district

Jiribam will not be allowed to go the same way as the rest of Manipur, officials in the security establishment asserted as an uneasy calm prevailed in the western district after the violence over the last two weeks. Outsiders from both the Kuki-Zo and Meitei communities — who have been engaged in an ethnic conflict in the State for more than a year — are entering Jiribam district in large numbers, which can potentially lead to a flare-up in the violence, according to officials on the ground. 

Vice President Jagdeep Dhankar inaugurates Prerna Sthal

Vice President Jagdeep Dhankar inaugurated the ‘Prerna Sthal’ on the Parliament House premises, where 15 statues of freedom fighters and icons of Indian history, including statues of Mahatma Gandhi and B.R. Ambedkar, previously established in different parts of the Parliament campus, have been relocated to a single location, amid protests by the Opposition.

Siddaramaiah defends hike in fuel prices; urges Centre to reduce excise duty on petroleum products

A day after the State government hiked petrol and diesel prices by about ₹3 each, Chief Minister Siddaramaiah defended the hike and blamed the Centre for forcing the State to cut sales tax during the earlier years, while it continued to increase the Central excise duty on petroleum products. In a note, he said that while under the “double engine BJP government” Karnataka was forced to reduce the tax, the Union government continued to collect higher Central excise duty from the State, and diverted the resources to other States.

Ukraine Peace Conference: 80 countries agree that respect for territorial integrity will help achieve ‘lasting peace in Ukraine’

Eighty countries have jointly called for the “territorial integrity” of Ukraine to be the basis for any peace agreement to end Russia-Ukraine war, though some key developing nations at a Swiss conference did not join in. The joint communique capped a two-day conference at the Bürgenstock resort in Switzerland marked by the absence of Russia, which was not invited, but that many attendees hoped could join in on a roadmap to peace.

India to host its first multinational air exercise Tarang Shakti in August

The Indian Air Force’s first multinational air exercise, Tarang Shakti-2024, will be held in August, and is likely to see the participation of ten countries, in addition to a few others acting as observers. The exercise is now scheduled to be held in two phases. The first will be held in southern India in the first two weeks of August and the second will be in the western sector from the end of August to mid-September, officials said.

Feasibility study on proposal to establish land connectivity with India in final stages, says Sri Lankan President

Sri Lankan President Ranil Wickremesinghe said that the feasibility study on a proposal to establish land connectivity with India is in its final stages. This proposal and the prospect of a power grid connection between the two nations are likely to be discussed during the visit of External Affairs Minister S. Jaishankar to Lanka this week.

Health Ministry issues inter-departmental referral guidelines for hospitals

Citing significant inconsistencies and lack of accountability in the referral process, the Union Health Ministry has for the first time issued inter-departmental referral guidelines for hospitals to facilitate better communication and cooperation. The ‘Guidelines for Inter-Departmental Referral (within hospitals)’ stress that referrals should be initiated promptly as and when patients require specialised care, diagnostic evaluations or consultations beyond scope of admitting department

Israeli military announces ‘tactical pause’ in attempt to increase flow of aid into hard-hit Gaza

The Israeli military announced a “tactical pause” in its offensive in the southern Gaza Strip to allow the deliveries of increased quantities of humanitarian aid. The army said the pause would begin in the Rafah area at 8 a.m. (0500 GMT, 1 a.m. eastern) and remain in effect until 7 p.m. (1600 GMT, noon eastern). It said the pauses would take place every day until further notice.

Union Finance Minister Nirmala Sitharaman speaks in the Lok Sabha during the Budget session of Parliament, in New Delhi, on February 5, 2024.
| Photo Credit: PTI

Finance Minister Nirmala Sitharaman on February 5 proposed an interim Budget of ₹1.18 lakh crore for fiscal 2024-25 for the Union Territory of Jammu & Kashmir.

The interim Budget envisages a fiscal deficit of ₹20,760 crore and a 7.5% growth in gross State domestic product (GSDP).

Read: Jammu and Kashmir Interim Budget—at a glance

The capital expenditure for the fiscal has been proposed at ₹38,566 crore, which is 14.64% of the GSDP, as per the interim Budget tabled by Ms. Sitharaman in Parliament.

The revenue receipts for the next fiscal stood at ₹97,861 crore.

According to Ms. Sitharaman, the crucial reforms undertaken in 2019 enabled “path-breaking” measures by the Union Territory Government to decentralise governance structure, promote inclusive development, upscale revenue generation and step up infrastructure development.

Also read | Puffed-up and poll-ready: Nirmala Sitharaman’s first Interim Budget

“The Government is maintaining law and order to ensure security while simultaneously implementing initiatives for economic and social development. The Government has adopted a policy of zero tolerance against terrorism,” Ms. Sitharaman said.

Security forces are taking effective and continuous action in countering terrorism.

Due to the effective measures and efforts taken, the security scenario in Jammu and Kashmir has significantly improved, Ms Sitharaman added.

Photo used for representation purpose only.
| Photo Credit: K.K. Mustafah

The allocation for the departments of Higher Education and School Education, under the Union Education Ministry, has been increased in the Interim Budget presented by Union Finance Minister Nirmala Sitharaman in New Delhi on February 1. Schemes such as PM Schools for Rising India (PM SHRI) have received almost 50% more allocation than the previous budget.

The total allocation for the School Education Department is ₹73,008.10 crore. In the previous Budget, it was ₹68,804.85 crore, while in the Revised Estimates, the amount was ₹72,473.80 crore. The actual expenditure in 2022-23 was ₹58,639.56 crore. The Pradhan Mantri Poshan Shakti Nirman (PM POSHAN), previously known as the mid-day meal scheme, received an outlay of ₹12,467.39 crore. For PM SHRI, the allocation is ₹6,050 crore.

Budget 2024 updates 

The total allocation for the Higher Education Department is ₹47,619.77 crore. In the previous Budget, it was
₹44,094.62 crore. In the Revised Estimates, it went up to ₹ 57,244.48 crore. The actual expenditure in 2022-23 was ₹ 38,556.80 crore. For Indian Knowledge Systems, the allocation was halved and for PM girls hostels, the allocation came down to ₹2 crore from ₹10 crore in the previous Budget. The total financial aid to students came down to ₹ 1,908 crore from ₹ 1,954 crore in the previous Budget.

The total allocation for the University Grants Commission (UGC) and the All India Council for Technical Education (AICTE) has dropped to ₹2,900 crore from ₹5,780 crore in the previous Budget. For Pradhan Mantri Uchchatar Shiksha Abhiyan (PMUSHA), the allocation is ₹ 1,814.94 crore.

Also read: Where does the money come from and where is it allocated?

Ms. Sitharaman, in her Budget speech, said women enrolment in higher education had gone up by 28% in 10 years. “The National Education Policy 2020 is ushering in transformational reforms. PM SHRI is delivering quality teaching, and nurturing holistic and well-rounded individuals,” she said.

She added that a large number of new institutions of higher learning – seven IITs, 16 IIITs, seven IIMs, 15 AIIMS and 390 universities, had been set up. Girls and women constitute 43% of the enrolment in Science Technology Engineering, and Mathematics (STEM) courses — one of the highest in the world. “All these measures are getting reflected in the increasing participation of women in workforce,” she added.

Union Education Minister Dharmendra Pradhan said the Budget would prove to be a stepping stone towards developed India. “New IITs and IIMs have been discussed. Skilling and up-skilling of 1.4 crore youth of the country will be done as part of Skill India. This means more employment of skilled manpower and the lifestyle of people will improve,” he said.

UGC Chairman M. Jagadesh Kumar said the Budget reflected a powerful message of inclusion, opportunity, and innovation. “We are pleased to see a rise in allocations for Central Universities, deemed universities promoted by the Central government, research and innovation initiatives, the Pandit Madan Mohan Malviya National Mission on Teachers and Teaching, and PM Usha, demonstrating our commitment to these crucial areas,” he said.

A farmer sprays fertiliser on his field in Vemulapally village near Miryalguda, Nalgonda District. File
| Photo Credit: Nagara Gopal

The Centre has decreased fertiliser subsidies, apparently hoping that the improving situation in Ukraine and increased domestic production will help in managing the situation. The Fertilisers and Chemicals Ministry has been claiming that the increase in domestic production of essential fertilisers such as urea will result in decreasing fertiliser subsidies.

Allocation for the Fertilisers Department in this Budget is ₹1,64,150.81 crore. It was ₹1,75,148.48 crore in the last Budget. In the Revised Estimates of the last financial year, it was ₹1,88,947.29 crore. The amount actually used in 2022-23 was ₹2,51,369.18 crore, with payments for indigenous and imported urea estimated to have accounted for the bulk of the expenditure.

Budget 2024 updates

Union Finance Minister Nirmala Sitharaman announced in the Budget that after the successful adoption of Nano Urea, application of Nano Di Ammonium Phosphate (Nano DAP) on various crops will be expanded to all agro-climatic zones. She said the pandemic had led to a crisis of food, fertiliser, fuel and finances for the world, while India successfully navigated its way. “The country showed the way forward and built consensus on solutions for those global problems,” she said.

Welcoming the budgetary allocation, Union Fertilisers Minister Mansukh Mandaviya said the Narendra Modi government is revolutionising the face of Indian agriculture. “The expansion of the application of Nano DAP on various crops, announced in the Budget will encourage sustainable farming. It will also help in making India Aatmanirbhar [self-reliant] in fertilisers,” he said thanking the Finance Minister for the expansion of the application of Nano DAP on various crops.

Also read: Interim Budget 2024 | Net zero gain for MGNREGS

Food subsidy sees increase

Food subsidy has seen an increase in the allocation compared to the last year. The total food subsidy includes ₹2,05,250 crore for the Pradhan Mantri Garib Kalyan Anna Yojana (PM-GKAY) and ₹1 lakh crore for the Sugar Subsidy payable under Public Distribution System. In the last Budget, the amount was 1,97,350 crore, while in 2022-23, the actual expenditure was ₹2,72,802.38 crore.

Ms. Sitharaman said the worries about food have been eliminated through free ration for 80 crore people. “Minimum support prices for the produce of ‘Annadata’ [food providers or farmers] are periodically increased appropriately. These and the provision of basic necessities have enhanced real income in the rural areas. Their economic needs could be addressed, thus spurring growth and generating jobs,” she said.

Flight take off at Chennai Airport. File
| Photo Credit: B. Velankanni Raj

The budgetary allocation for the regional connectivity scheme UDAN (Ude Desh Ka Aam Nagrik) has been slashed by 60% after a record-high grant last time. The fund is spent on reviving unused and underused airports in tier-2 and tier-3 cities.

The government has set aside ₹502 crore for the scheme compared with the previous Budget Estimate (BE) of ₹1,244 crore, which was also the highest-ever allocation for the scheme since its launch in 2017.

Budget 2024 updates

The allocation in the Interim Budget marks a 40% drop from the Revised Estimate (RE) of ₹850 crore for this fiscal year.

Union Finance Minister Nirmala Sitharaman in her Budget speech on Thursday said that the number of airports in the country had doubled to 149 since 2014, and that “expansion of existing airports and development of new airports will continue expeditiously” at a time Indian airlines have placed an order of more than 1,000 aircraft. However, this was not supported by allocation in the Budget.

As a whole, the Civil Aviation Ministry was allocated ₹2,300 crore, which is a 26% drop from the previous year’s Budget Estimates.

Also read: Three new economic corridors for railways, says Finance Minister in speech

Traditionally, the largest chunk of allocation for the aviation sector has gone to Air India, which continues even after its privatisation though to a much-smaller extent, with ₹1,158 crore set aside for the airline as the government has to service the interest on some of the remaining debt.

A debt of ₹29,464 crore was hived off from the airline at the time of disinvestment and parked in a special purpose vehicle, Air India Assets Holding Ltd, along with real estate assets. A part of this debt has since been cleared.

A sum of ₹57 crore has been set aside for the production-linked incentive scheme for drones and drone components, compared with ₹33 crore in this fiscal’s BE and RE.

India’s Finance Minister Nirmala Sitharaman during the Vibrant Gujarat Global Summit in Gandhinagar, Gujarat, India, on Thursday, Jan. 11, 2024. 
| Photo Credit: Bloomberg

The Finance Minister presented her sixth budget today. Her announcements ranged from railways, tourism, healthcare, technology, aviation, green energy, aquaculture, housing, and more. With regards to taxation, no changes were announced to the tax structure of direct and indirect taxes, and import duties. Meanwhile, startups and investments made by sovereign wealth or pension funds were given an extended tax exemption till March 31, 2025.

Budget 2024 live updates

Besides this, here are the charts that show key numbers from the interim Budget 2024:

Budget at a glance

The Finance Minister said that the Revised Estimate of the total receipts other than borrowings is Rs 27.56 lakh crore. The Revised Estimate of the total expenditure is Rs 44.90 lakh crore. The revenue receipts at Rs 30.03 lakh crore are expected to be higher than the Budget Estimate, reflecting strong growth momentum and formalization in the economy.

Capital Expenditure

Capital expenditure outlay was raised to ₹11.1 lakh crore for FY25 from the ₹9.5 lakh crore in the previous fiscal. The proportion of capital expenditure (excluding grant in aid) to total expenditure stands at 23.31%. This is in line with the trend of increasing capital expenditure in the past few years. Capital expenditure means the government’s spending on durable assets like the construction of infrastructure.

In 2024-25, the total expenditure is estimated at ₹ 47.66 lakh crore, a 6.1% increase over the revised estimates of 2023-24.”

Fiscal Deficit

The budget estimates for the fiscal deficit for FY 25 was pegged at 5.1%, down from the revised estimates of 5.8% last fiscal year. The fiscal deficit is the difference between the government’s revenues and expenditure. It is financed by money from various sources like market borrowings, small savings, dated securities and others. The government has set a target of 4.5% fiscal deficit by 2025-26.

Rupee come from

Borrowings and other liabilities account for the largest avenue from where the Budget money comes, followed by income tax and GST & other taxes.

Rupee goes to

When it comes to expenditure, the highest amount goes towards paying interest and the money given to the states in the form of taxes and duties, accounting for 20 per cent each of the total expenditure.

State-wise allocation of central taxes and duties

Here is the state-wise distribution of net proceeds of Union Taxes and Duties for Budget Estimates 2024-25. 

Allocation to Ministries

The Union Budget allocated a massive ₹6.21 lakh crore for the Defence Ministry, followed by Road Transport & Highways with ₹2.78 lakh crore and Railways with ₹2.55 lakh crore.

Outlay for Major Schemes

The Union Budget 2024-25 listed the allocations for core welfare schemes that drive socio-economic development.

Here is the allocations for major central government sponsored schemes:

Railway Budget in a Glance

Railway projects have been identified under the PM Gati Shakti Yojana for enabling multi-modal connectivity. These will “improve logistics efficiency and reduce costs,” said Ms. Sitharaman.

Touching upon measures that will be taken to expand India’s railway infrastructure, three major railway economic corridors were announced. These include an energy, mineral and cement corridor, a port connectivity corridor and a high traffic density corridor. Ms. Sitharaman emphasised that these corridors, along with dedicated freight corridors, will “accelerate our GDP and reduce logistic costs.”

Health Expenditure

The expenditure for the dept. of health & family welfare for FY25 is Rs. 10,000 crores more than the revised estimates of the current FY. But the allocation to the Union Ministry of Health is estimated to be 1.9% of the total expenditure, continuing the trend of staying below the 2% mark since 2022-23.

Also read |Understanding the formulation of the Budget