Union Budget 2024: Highlights of Interim Budget 2024-25
Here aare the some key Highlights of the Interim Budget 2024-25
Table of Contents
Highlights from the Interim Budget 2024-25:
Finance Minister Nirmala Sitharaman reduced the budget deficit to 5.8% of GDP from the earlier target of 5.9%. The fiscal deficit in 2024-25 is expected to be 5.1%1.
Borrowings: FY25 net borrowings were ₹11.75 lakh crore, while gross borrowings were predicted at ₹14.13 lakh crore.
Defense allocation increased by 4% to ₹6.2 lakh crore, exceeding the planned forecast for FY24.
Tax Structure:
No modifications were made to the tax structure, however tax breaks for new businesses and investments by sovereign wealth funds or pension funds were extended until March 31, 2025.
Revenue revenues for 2024-25 are expected at ₹30 lakh crore, higher from the previous revised forecast.
Social Initiatives:
- Women entrepreneurs received over 30 crore Mudra Yojana loans.
- Girls and women account for 43% of STEM course enrolment.
- More than 70% of PM Awas Yojana residences were distributed to rural women.
- Cervical cancer vaccinations for girls aged 9 to 14 will be urged.
Infrastructure and Housing:
- Capital expenditure for 2024-25 grew by 11% to ₹11.11 lakh crore (3.4% of GDP).
- Normal railway bogies will be converted to Vande Bharat standards.
- The government plans to build 2 crore dwellings under the Pradhan Mantri Awas Yojana (Grameen) during the next five years.
- A new housing development for the middle class will be introduced.
Other Key Observations of Interim Budget 2024-25
Here are some additional observations from the Interim Budget 2024-25:
Healthcare and education :
The government plans to open 75 new medical institutions in underprivileged areas. In order to improve educational quality, a new National Education Policy will be introduced.
Environment and Climate Change:
The budget includes funds for afforestation and conservation. A Clean Air Program will be implemented in 122 cities to tackle air pollution.
Agriculture and Rural Development:
The government wants to boost agricultural loans to ₹20 lakh crore. Rural infrastructure development will receive major funding.
Tech and Innovation:
The funding prioritizes research and development for new technologies. A National Quantum Mission will be established to advance quantum computing.
The government intends to enhance the banking industry and promote financial inclusion. Measures will be taken to improve the digital payment infrastructure.
Remember, these are just highlights, and you can explore more details from the official sources. If you have any specific questions, feel free to ask!
Examples of Markets Reactions to Interim Budget 2024-25 Announcements
Here are some common market reactions to budget announcements:
Stock markets:
Positive Budget: When the budget is seen as beneficial to economic growth, stock markets tend to rise. Infrastructure, healthcare, and technology may experience increasing investment interest.
Negative Budget: If the budget disappoints investors (for example, by raising taxes or failing to implement reforms), stock markets may fall.
Currency markets: A budget that promotes economic growth and stability may strengthen the local currency.
Bond Market Reaction :
In contrast, uncertainty or bad surprises may weaken it. Bond prices and yields fluctuate inversely. Bond prices may climb if the budget shows fiscal responsibility and lower borrowing.
Conversely, concerns about fiscal deficits can lead to higher yields.
Sector-specific reactions:
Real Estate: Housing, infrastructure, and affordable housing policies all have an impact on real estate stocks.
Automobiles:
Tax changes, electric car incentives, and gasoline prices all have an impact on auto stock values.
Budget allocations in healthcare have an impact on pharmaceutical and hospital stocks.
Commodity markets: Budget announcements for agriculture, mining, and infrastructure can all have an impact on commodity prices (for example, gold, silver, and oil).
Remember that market reactions are complex and impacted by many factors other than the budget.
Always seek the advice of financial professionals and examine precise facts for accurate results. Please feel free to ask any other questions you may have!
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