Interim Budget 2024: 10 Things You Might Have Missed

The Interim Budget 2024, presented by Finance Minister Nirmala Sitharaman, is a report of intricate fiscal planning and strategic initiatives, many of which might have flown under the radar in mainstream discussions.

This blog post aims to uncover and dissect these less-discussed yet pivotal budget elements.

From sustainable blue economies to innovative energy solutions and impactful agricultural reforms, we delve into the nuanced details that paint a comprehensive picture of the Interim Budget and its implications for the future.

Here we go…

1. Blue Economy 2.0

The Interim Budget introduced the Blue Economy 2.0 scheme, which is focused on climate resilience and coastal aquaculture.

This includes setting up five integrated aquaparks and enhancing the Pradhan Mantri Matsya Sampada Yojana (PMMSY) to increase aquaculture productivity from three to five tonnes per hectare, doubling exports to Rs 1 lakh crore, and generating 55 lakh employment opportunities.

This initiative aligns with the draft policy framework on India’s Blue Economy released in July 2022.

2. Bio-Manufacturing and Bio-Foundry

The budget announces a new scheme for bio-manufacturing and bio-foundry, emphasising the development of biodegradable polymers, bioplastics, biopharmaceuticals, and bio-agri inputs.

This aligns with India's net-zero goals by 2070 and includes phased mandatory blending of compressed biogas (CBG) in CNG for transportation and PNG for domestic purposes.

3. Green Energy Commitments

The budget significantly increases the allocation for solar energy to Rs 10,000 crore and for wind power to Rs 930 crore.

Additionally, Rs 300 crore is allocated for the bioenergy program, and viability gap funding will be provided for 1 gigawatt (GW) of offshore wind power.

4. Agriculture Boost and Schemes

The budget focuses on increasing value addition in agriculture, with a plan to apply Nano DAP, which is Di-ammonium phosphate, to various crops in all agro-climatic zones following the successful adaptation of Nano Urea.

It also aims to step up efforts under the Pradhan Mantri Kisan Sampada Yojana and Pradhan Mantri Formalisation of Micro Food Processing Enterprises Yojana, which have already benefitted millions.

5. Healthcare Focus

The budget extends health coverage under the Ayushman Bharat scheme to all ASHA and Anganwadi workers.

The allocation for this scheme is marginally increased to Rs 7,500 crore for 2024-25.

Additionally, the government plans to encourage cervical cancer vaccination for girls aged 9 to 14 years.

6. Electric Vehicle

The interim budget includes measures to strengthen the EV ecosystem, with an allocation of Rs 2671.33 crore for FY25 under the FAME India scheme.

The Production Linked Incentive (PLI) scheme for automobiles and Advanced Chemistry Cell (ACC) battery storage sees a significant increase in allocation, indicating a strong push towards EV adoption.

7. Housing

The Pradhan Mantri Awas Yojna (PMAY) — Grameen beneficiaries will receive increased support of Rs 2 lakh per unit, up from Rs 1.2 lakh.

The scheme aims to construct 2 crore pucca households over the next five years, with a budget allocation of Rs 54,500.14 crore for 2024-25.

8. Free Energy

The budget’s green initiative includes a target to enable one crore households to install rooftop solar panels, providing up to 300 units of free electricity monthly under the rooftop solarisation and ‘muft bijli’ scheme.

This initiative is part of a larger nationwide effort to boost renewable energy adoption.

9. Key Numbers You Might Have Missed

• A goal is to establish a 100 million tonne (MT) capacity for coal gasification and liquefaction by 2030.
• Rs 14.1 trillion gross market borrowings for 2024-25.
• 10 million taxpayers will benefit from withdrawing historical tax demands until 2014-15.
• Rs 86,000 crore budgeted for Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) in 2024-25.

10. Future Outlook

The budget lays the foundation for a 'Viksit Bharat' by 2047, focusing on inclusive growth, strategic positioning, and environmental sustainability.

It reflects the government's commitment to a developed India with a strong emphasis on diversity, democracy, and demographic strengths.

Conclusion

So, those were some of the key overlooked details from the recently announced Interim Budget.

The Interim Budget FY2024-25 is a comprehensive plan that balances economic growth with sustainability and innovation.

Each point highlights a commitment to diverse and inclusive development, showcasing a strategic approach towards building a resilient and developed India by 2047.

We will keep you posted on how these developments pan out in the coming year.

To get more insights on the Interim Budget 2024, click here: #BeyondTheBudget

Stay tuned to this space for all the latest developments and expert insights.

Happy learning!

Sources: Kotak Securities, Indian Budget, Economic Times, Moneycontrol

Disclaimer: This article is for informational purposes only and does not constitute financial advice. Investors should conduct their own research and consult with financial professionals before making any investment decisions. Read the full disclaimer here.