Interim budget inclusive and innovative, says India's PM Modi

Some highlights:

• Capex for infrastructure development and employment generation to be increased by 11.1 per cent to Rs 11,11,111 crore

• Financial assistance to 11.8 crore farmers

• A corpus of Rs 1 lakh crore will be established with 50-year interest free loan to provide long-term financing

• Orders placed for 1,000 new aircraft

• 1 crore households will obtain 300 units of free electricity every month through rooftop solarisation

 • 30 crore Mudra Yojana loans given to women entrepreneurs

• Over 70 per cent houses – under PM Awas Yojana – given to women from rural areas

Prime Minister Narendra Modi hailed the budget presented in Parliament on Thursday, saying that it is not merely an interim budget but an inclusive and innovative budget.

"This budget carries the confidence of continuity. It will empower all pillars of developed India -- the youth, the poor, women, and farmers," PM Modi said.

Commending Finance Minister Nirmala Sitharaman for her vision, Prime Minister Modi said that Nirmala's budget is a budget for building the future of the country.

"This budget carries the guarantee of strengthening the foundation of Viksit Bharat by 2047," Modi said.

He said that this budget is a reflection of the aspirations of Young India.

He highlighted two decisions taken in the budget, saying that a fund of Rs 1 lakh crore has been announced for research and innovation.

He also highlighted the extension of tax exemptions for startups in the budget.

While keeping the fiscal deficit under control, the Prime Minister informed that the total expenditure has seen a historic increase to Rs 11,11,111 crore in this budget.

"In economists’ parlance, this is a kind of sweet spot,” Modi said.

He said that the announcement to manufacture 40,000 modern bogies of Vande Bharat Standard and install them in general passenger trains will further heighten the comfort and travel experience of crores of passengers on different rail routes of the country.

"We set a big goal, achieve it, and then set an even bigger goal for ourselves," he said.

Highlighting the government's efforts for the welfare of the poor and middle class, he informed about the construction of over 4 crore houses in villages and cities and increasing the target to build 2 crore more houses.

Emphasising the empowerment of women, PM Modi said, "Our goal was to make 2 crore 'Lakhpatis' among women. Now, this goal has been increased to make 3 crore Lakhpatis."

He also praised the Ayushman Bharat Yojana for its significant assistance to the poor, extending its benefits to Anganwadi and ASHA workers.

He emphasised the government’s emphasis to empower the poor and middle class by creating new opportunities for them in this budget.

He also mentioned the Rooftop Solar Campaign where 1 crore families will avail free electricity, while also earn an income of Rs 15,000 to Rs 18,000 per year by selling excess electricity to the government.

Highlights of the budget

Earlier, Finance Nirmala Sitharaman presented the Interim Union Budget 2024-25 in Parliament.

Some of the key highlights of the budget are social justice, Garib Kalyan, Desh ka Kalyan, Welfare of ‘Annadata’, and Momentum for Nari Shakti.

On Infrastructure, she said that the capital expenditure outlay for infrastructure development and employment generation will be increased by 11.1 per cent to Rs 11,11,111 crore, that will be 3.4 per cent of the GDP.

On reforms in the states for ‘Viksit Bharat’, she said that a provision of Rs 75,000 crore as 50-year interest free loan has been proposed to support milestone-linked reforms by the state governments.

She said that three major economic railway corridor programmes identified under the PM Gati Shakti will also be implemented to improve logistics efficiency and reduce cost energy, mineral and cement corridors, port connectivity corridors, and high traffic density corridors.

"Forty thousand normal rail bogies will also be converted to Vande Bharat standards,” she said.

About the aviation sector, she said that the number of airports in the country have doubled to 149 airports.

"Five hundred and seventeen new routes are carrying at least 1.3 crore passengers. We have also place orders for over 1,000 new aircraft,” she said.

On ‘Garib Kalyan, Desh ka Kalyan’, she said that the government has assisted 25 crore people out of multi-dimensional poverty in the last 10 years.

"DBT of Rs 34 lakh crore using PM-Jan Dhan accounts led to savings of Rs 2.7 lakh crore for the government. PM-SVANidhi provided credit assistance to 78 lakh street vendors. At least 2.3 lakh have received credit for the third time,” she said.

On welfare of ‘Annadata’, she said that the PM-Kisan Samman Yojana has provided financial assistance to 11.8 crore farmers.

"Under PM Fasal BimaYojana, crop insurance has been given to 4 crore farmers,” she said.

She said that Electronic National Agriculture Market (e-NAM) has integrated 1,361 mandis, providing services to 1.8 crore farmers with a trading volume of Rs 3 lakh crore.

On Nari Shakti, she said that 30 crore Mudra Yojana loans have been given to women entrepreneurs.

"Female enrolment in higher education has gone up by 28 per cent,” she said.

She said that in STEM courses, girls and women constitute 43 per cent of enrolment which is one of the highest in the world.

"Over 70 per cent houses -- under PM Awas Yojana -- have been given to women from rural areas,” she said.

On PM Awas Yojana (Grameen) she said that despite COVID challenges, the target of three crore houses under PM Awas Yojana (Grameen) will be achieved soon.

"At least two crore more houses will be taken up in the next five years,” she said.

She also mentioned rooftop solarisation and "muft bijli”, saying that 1 crore households will obtain 300 units free electricity every month through rooftop solarisation.

"Each household is expected to save Rs 15,000 to Rs 18,000 annually due to rooftop solarisation,” she said.

On Ayushman Bharat, she said that healthcare cover under Ayushman Bharat scheme will be extended to all ASHA workers, Anganwadi workers and helpers.

On agriculture and food processing, the Finance Minister said that Pradhan Mantri Kisan Sampada Yojana has benefited 38 lakh farmers and generated at least 10 lakh employment.

"Pradhan Mantri Formalisation of Micro Food Processing Enterprises Yojana has assisted 2.4 lakh SHGs and 60,000 individuals with credit linkages,” she said.

"A corpus of Rs 1 lakh crore will be established with 50-year interest free loan to provide long-term financing or refinancing with long tenures and low or nil interest rates,” she mentioned about research and innovation for catalysing growth, employment and development.

Indo-Asian News Service