Advertisement

Updated February 1st, 2024 at 14:41 IST

Interim Budget proposes Rs 11.11 lakh crore capex: Key highlights

The fiscal deficit target for the next fiscal year has been trimmed to 5.1% of GDP, a notable reduction compared to the revised deficit estimate of 5.8%.

Reported by: Business Desk
Nirmala Sitharaman Unveils Bold Initiatives in Interim Budget 2024-2025
Nirmala Sitharaman Unveils Bold Initiatives in Interim Budget 2024-2025 | Image:PTI
Advertisement

Interim Budget: Finance Minister Nirmala Sitharaman unveiled plan to allocate Rs 11.11 lakh crore towards infrastructure development in a commitment to long-term reforms aimed at fostering growth and managing the fiscal gap, all amid mounting pressure to boost spending in the run-up to elections.

Sitharaman highlighted that the upcoming generation of reforms will be executed in collaboration with state governments. Despite strides in simplifying India's intricate tax structures and investments in new ports and roads, challenges persist in liberalising land acquisition and labour laws.

Advertisement

Crucially, the fiscal deficit target for the next fiscal year has been trimmed to 5.1 per cent of GDP, a notable reduction compared to the revised deficit estimate of 5.8 per cent for the current fiscal year. This move reflects the government's commitment to fiscal prudence and consolidation.

Here are key highlights of Nirmala Sitharaman's interim budget:

  • Nominal GDP growth for 2024-25 seen at 10.5 per cent year-on-year
  • Inflation has moderated and economic growth has picked up
  • Pro-active inflation management has helped contain inflation within the target band (2 per cent-6 per cent)
  • Govt says its policies brought 250 million people out of poverty in 10 years
  • Allocation for infrastructure for 2024-25 raised to Rs 11.1 lakh crore, up 11.1 per cent annually
  • Federal govt to allocate Rs 3.86 lakh crore to states for spending on infrastructure in 2024-25
  • Corpus of Rs 1 lakh crore to be set up with a 50-year interest-free loan for research in sunrise sectors
  • Government to allocate Rs 2.55 lakh crore for spending by railways in 2024-25
  • 2024-25 budget allocations for the road transport ministry seen at Rs 2.78 lakh crore
  • Viability gap funding to be provided for offshore wind power
Advertisement

Published February 1st, 2024 at 14:33 IST

Your Voice. Now Direct.

Send us your views, we’ll publish them. This section is moderated.

Advertisement
Advertisement
Advertisement
Advertisement
Advertisement
Whatsapp logo