The Interim Union Budget for the fiscal year 2024-25 was tabled in the Parliament by Indian Finance Minister (FM) Nirmala Sitharaman on 1 Feb. This was the sixth budget presented by the current FM and the last one of PM Narendra Modi-led government's second term. The full budget will be presented in July 2024 after the new government is formed after the Lok Sabha Elections. The budget focused on fiscal consolidation, infrastructure, green growth, and railways. No changes were made to the tax rates. The Fiscal Deficit target for FY25 was set at 5.1% of the GDP, while the FY24 target was also revised down to 5.8%. Despite a hit to farm incomes due to recurrent climate shocks and export curbs to check domestic food prices, the interim budget slashed funding for some key agriculture schemes. The flagship crop insurance scheme was allocated $1.7B for 2024-25, lower than the $1.8B spent in 2023-24. Funds for another key scheme PM-AASHA—which is used to purchase crops like pulses and oilseeds from farmers at minimum support prices—were slashed to $209M in 2024-25 from $265M in 2023-24. Surprisingly, the cut was despite the government launching a portal for the procurement of pulses last month. Panjab industry expected the union government to bring fuel under Goods and Service Tax, and exemptions on freight charges, but they did not come through. Panjab FM Harpal Cheema said, ‘injustice’ to the state is pretty evident in the interim budget.
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