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Budget 2024-25: Finance Minister Nirmala Sitharaman bets on social security schemes, no change in tax slabs

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With the Narendra Modi government’s second term coming to an end, Finance Minister Nirmala Sitharaman presented her sixth budget, albeit an interim one at that. The government has focused on people’s welfare, extension of social security schemes for the poor, women, youth and farmers. She said she hoped the people of the country will vote the party back to power in the Lok Sabha polls.

The Finance Minister said the BJP-led government is working to make India ‘Viksit Bharat’. She said the government was keen on governance, development and performance, GDP. The government has raised 25 crore people from below the poverty line over the 10 years. As expected, there was no change in tax slabs, though the FM spoke of increasing tax exempt income from Rs 2.5 lakh in 2013-14 to Rs 7 lakh last year, though under the new tax regime.

Keeping rural India firmly in mind, she said 2 crore (20 million) houses will be built under the PM Awaas Yojana Grameen over the next five years. Analysts had expected a similar plan for urban areas. Similarly, the Ayushman Bharat scheme has been extended to all ASHA and Anganwadi workers which would enable them to avail free medical treatment at primary health centres and government facilities.

A long-term financing corpus will be set up with 50-year interest free loan for longer tenures for development of tech industries. The government will also launch schemes to strengthen deep tech for defence purposes.

The bigger announcement was on the plan to limit the fiscal deficit below 5% in 2026 despite the push for greater infrastructure thrust. The deficit for 2024-25 is expected to stay at 5.8% of the GDP.

The government has also cancelled direct tax demands for some 1 crore taxpayers. The greater push for increasing solarisation among households via rooftop solarisation targeting 300 free units per month is a hat-tip to the free power schemes introduced by the Aam Aadmi Party.

Finance Minister completes interim budget presentation

Union Finance Minister Nirmala Sitharaman concluded her interim budget presentation.

Tax benefits extended to March 2025

The tax benefits for startups, investments made by sovereign wealth, pension funds are to be extended to March 2025

3 railway economic corridors programmes to be implemented

The railway economic corridor programmes for energy, minerals and cement as well as port connectivity and heavy will be put into effect. The Finance Minister stated that PM Gati Shakti has designated the projects that will enable multi-modal connectivity and will lower costs and increase the effectiveness of logistics

Nirmala Sitharaman push for enhancement in tech sector

During the budged presentation, the Finance Minister said that a corpus of Rs1 lakh crore will be established with 50-year interest free loan to provide long term financing with loang tenure with no or less interest rates. She added that a new technology will be launched to strengthen deeep tech for defence purpose.

FDI inflow during FY 14-25 was USD 596 bn

Finance Minister Nirmala Sitharaman asserted that the Foreign Direct Investment during the financial year 14-20 was USD 596 billion.

Union Finance Minister Sitharaman on PM Modi’s roof-top solarisation scheme

According to Nirmala Sitharaman, rooftop solarisation will provide 300 units of free electricity per month to 1 crore families.

Ayushman Bharat cover to be extended

Union Finance Minister Nirmala Sitharaman has said all Asha and Anganwadi workers will be included in the Ayushmann Bharat initiative.

FM announces 2 crore more houses under PMYA-G

Two crore more houses would be constructed under the Pradhan Mantri Awas Yojana – Gramin, according to the Union Finance Minister.

Nirmala Sitharaman explains government focus for the interim budget

Finance Minister Nirmala Sitharaman stated that the central government is focusing on four major groups namely poor, women, youth and the farmers.

Finance Minister begins interim budget presentation

Union Finance Minister Nirmala Sitharam commences to present the interim budget 2024-25, setting the stage for Lok Sabha Election 2024. In this budget, the Finance Minister is likely to focus on social welfare schemes, farmers, women and job creation.

Growth rate to stay above 6%

Ahead of the budget, the Economic Review had pegged the growth rate at 7%, the IMF has forecast GDP growth rate for India at 6.5%

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Akhilesh Yadav says BJP completely bent on dictatorship after UP govt extends ban on outsiders entry into Sambhal

He said that this government is fearful, unwilling to allow the truth to surface, and apprehensive about public outrage.

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Hours after the Uttar Pradesh Chief Minister Yogi Adityanath-led government extended the ban on the entry of outsiders into Sambhal till December 10, Samajwadi Party president Akhilesh Yadav on Saturday said that the BJP is completely bent on dictatorship and it does not believe in democracy.

“Injustice and atrocities are at their peak in Uttar Pradesh. The BJP does not believe in democracy. There is an emergency-like situation in Uttar Pradesh,” Yadav said in a release shared by the party on X.

The former chief minister said imposing a ban shows the failure of the BJP government, administration and management. Asserting that he said if the government had imposed such a ban earlier on “those who thought of causing riots and made people raise frenzied slogans”, the harmony and peace in Sambhal would not have been disturbed.

“It is noteworthy that the District Magistrate of Sambhal, in his order (IPC Section 163), has prohibited the entry of any outsider, other social organization and public representative within the boundary of Sambhal district without permission till 10.12.2024,” the statement read.

The Samajwadi Party chief slammed the UP government for stopping a 15-member delegation from entering violence-affected Sambhal, claiming that the BJP government seeks to conceal the injustices and atrocities it has perpetrated there.

He said that this government is fearful, unwilling to allow the truth to surface, and apprehensive about public outrage.

Yadav accused the government of instructing the police to confine Opposition leaders, including prominent leaders from the Samajwadi Party, to their homes.

He questioned why prominent leaders such as Mata Prasad Pandey, Lal Bihari Yadav, Shyam Lal Pal, and Ravidas Mehrotra were barred from leaving their residences when the restrictions were reportedly limited to Sambhal district.

“Has the BJP government declared a state of emergency across the entire state? The Leader of the Opposition and the State President of the Samajwadi Party couldn’t even reach the party office,” he stated.

“Such house arrest of public representatives poses a serious threat to democracy. Since the BJP took power, it has been systematically undermining democracy and the Constitution,” Yadav added.

The SP chief expressed his displeasure regarding the obstruction faced by the Samajwadi Party delegation. He suggested that similar to how the BJP frequently reshuffles its cabinet, there should be a complete overhaul of the administrative body in Sambhal in response to allegations of negligence, including accountability for any deaths that occurred.

Announcing that the Samajwadi Party would provide financial aid of Rs 5 lakh to each family of the innocent victims of the Sambhal incident, the party has demanded that the BJP government grant Rs 25 lakh in compensation to the families of those killed in the violence.

Furthermore, Yadav asserted that justice is anticipated solely from the President and the Supreme Court, insisting that those who threaten the unity and peace of the nation be held accountable.

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Rahul Gandhi says PM Modi biased towards Adani, discriminating against Wayanad landslide victims

He said: “This is the atmosphere in which we are operating. It is the feelings that people have toward us that give us confidence and protect us.”

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Leader of Opposition in the Lok Sabha and Congress leader Rahul Gandhi on Saturday accused Prime Minister Narendra Modi of being biased towards industrialist Gautam Adani and of discriminating against Wayanad landslides victims by not providing them the due support.

In a joint public meeting with sister Priyanka in Wayanad after her massive victory in the Lok Sabha byelection, Rahul alleged that PM Modi was treating Adani differently from the people of India, despite his indictment in the US, even though the Constitution says everyone should be treated equally.

Hitting out at PM Modi, Rahul claimed that the “PM says it does not matter if Adani has been indicted in the US and called a criminal there, in India we will not indict him”.

Continuing his allegations against the prime minister, the Leader of the Opposition in the Lok Sabha said Modi discriminates against the people of Wayanad and he was not willing to provide them the support that they were due.

He said: “This is the atmosphere in which we are operating. It is the feelings that people have toward us that give us confidence and protect us.”

After paying tribute to the victims of the landslides, Rahul said his party and the UDF are standing with the people who lost family members, property and suffered in the tragedy.

He said unfortunately his party is not in the government and therefore they cannot do what a government can do. “So, I told my sister and (AICC general secretary) K C Venugopal that every member of the Congress and the UDF should put pressure on the government of Kerala to help the victims of the landslides,” he added.

Rahul said Priyanka’s win from the Wayanad seat indicates that the people have placed their faith and trust in them to represent the hill constituency in the Parliament. He also expressed confidence that the Congress-led opposition will defeat the ideology of the BJP which behaves arrogantly and allegedly spreads hate and divisiveness.

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Congress slams PM Modi over sinking GDP rate, says slowdown will have severe consequences

“This is the ultimate root cause for India’s growth slowdown, and multiple sources of data have now confirmed this wage stagnation,” Ramesh stated.

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The Congress on Saturday slammed the Prime Minister Narendra Modi-led central government over the sinking Gross Domestic Product (GDP) growth rate and said stagnating real wages as the fundamental reason behind it.

Sharing the party statement on the recent data from a research firm on X, Congress general secretary in-charge communication Jairam Ramesh hit out at PM Modi for being willfully blind to the causes of this sharp slowdown.

On India’s economic growth slowing to a near two-year low, Ramesh said the country’s medium and long-term economic potential is eroding rapidly.

The Congress leader asked how long will the grim reality of stagnant wages for crores of workers continue to be ignored.

GDP growth figures released last evening for July-September 2024 are much worse than anticipated, with India recording a measly 5.4% growth and consumption similarly growing by an unimpressive 6%, Ramesh said.

He said the “non-biological” PM and his cheerleaders were wilfully blind to the causes of this sharp slowdown, but, he added a new report on ‘Labour Dynamics of Indian States’ released by a leading Mumbai-based financial information services company, India Ratings and Research, on the 26th of November 2024 reveals its real cause: stagnant wages.

Ramesh noted that the report uses Periodic Labour Force Survey (PLFS) data to show that overall real wage growth at the national level has been flat at 0.01% over the last five years.

In fact, the workers in Haryana, Assam and Uttar Pradesh have seen their real wages decline in the same period, he pointed out.

This is hardly the exception, nearly every piece of evidence points to this same damning conclusion that the average Indian can buy less today than they could 10 years ago, Ramesh said.

“This is the ultimate root cause for India’s growth slowdown, and multiple sources of data have now confirmed this wage stagnation,” Ramesh stated.

Citing the Labour Bureau’s Wage Rate Index, he said real wages for the labourers stagnated between 2014-2023 and in fact declined between 2019-2024.

Ramesh further cited the Ministry of Agriculture’s Agricultural Statistics and said that under former prime minister Manmohan Singh, real wages for agricultural labourers grew at 6.8% each year.

“Under Narendra Modi, real wages for agricultural labourers declined by minus 1.3% each year,” he said.

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