Finance Minister Nirmala Sitharaman presented the Interim Budget 2024 and announced No change in Income tax Slab. This is Sitharaman’s sixth Union Budget. The full-fledged budget will be presented by the new government that comes to power after the elections.
No changes were announced in the tax slabs in both old and new regimes. Prime Minister Narendra Modi praised Nirmala Sitharaman for presenting a balanced budget.
The Financial Minister’s announcement of zero changes in direct and indirect taxes, including import duties, for the FY 2024-25 has surprised the industry.
Citizens can read the Interim budget through the union budget mobile app available on Android and iOS. You can also visit www.indiabudget.gov.in. Web portal to read the highlights of budget 2024.
Nirmala Sitharaman announced, No change in Income tax Slab
In the speech Finance Minister said in the beginning “The Indian economy has witnessed profound positive transformation in the last ten years. The people of India are looking ahead to the future with hope and optimism.”
The Budget Session of Parliament began yesterday with President Droupadi Murmu addressing the joint meeting of both Rajyya Sabha and Lok Sabha. The session will conclude on February 9.
“As for tax proposals, in keeping with the convention, I do not propose to make any changes relating to taxation and propose to retain the same tax rates for direct taxes and indirect taxes including import duties. However, certain tax benefits to start-ups and investments made by sovereign wealth or pension funds as also tax exemption on certain income of some IFSC units are expiring on 31.03.2024. To provide continuity in taxation, I propose to extend the date to 31.03.2025,” said FM Sitharaman
The focus has been kept for the welfare of farmers by providing them crop insurance under PM Fasal Bima Yojana.
Also, 30 Crore Mudra loans will be disbursed to women entrepreneurs as Nari Shakti scheme has been focussed.
Nirmala Sitharaman concluded her Interim speech with “The exemplary track record of governance, development and performance, effective delivery, and ‘Jan Kalyan’ has given the Government trust, confidence and blessings of the people to realize, whatever it takes, the goal of ‘Viksit Bharat’ with good intentions, true dedication and hard work in the coming years and decades.”
What is Interim Budget?
An interim budget, also known as a vote-on-account, is a financial statement presented by the government of a country for a short period, usually a few months, to meet the necessary expenditures until a full budget is presented. In many parliamentary systems, an interim budget is presented when the government’s term is ending, and elections are scheduled.
Finance Minister @nsitharaman Ji is presenting the Interim Budget in Parliament. https://t.co/j9A9ridX66
— Narendra Modi (@narendramodi) February 1, 2024
The primary purpose of an interim budget is to ensure that essential government functions and expenditures can continue without interruption during the transition period between governments. It does not typically introduce new policies or major changes in taxation since it is meant to be a temporary measure.
The interim budget focuses on meeting the essential financial needs of the government, ensuring the continuation of key services and programs.
Generally, an interim budget refrains from introducing new policy initiatives or making significant changes in taxation. It is meant to be a caretaker budget until the new government can present a comprehensive budget.
The interim budget seeks parliamentary approval for the government to withdraw funds from the treasury to meet its expenditure during the interim period.
Funding for ongoing projects and commitments is included in the interim budget to prevent disruptions in government activities.
In countries where elections are scheduled, the interim budget is often seen as a reflection of the government’s policies and can influence voters. However, it is essential to note that its primary purpose is financial continuity rather than the introduction of new policies.