Interim Budget Crack Grade B 2024-25

INTERIM
BUDGET
2024-25
(Includes static concepts)
Budget at a Glance
In ₹ crore
Receipts Expenditure
Revenue Capital Revenue Capital
18,70,816
18,09,951
17,64,494
17,90,773
10,00,961
11,11,111
30,01,275
9,50,246
36,54,657
35,40,239
26,99,713
35,02,136
26,32,281
34,53,132
23,83,206
7,40,025
2022-23 2023-24 2023-24 2022-23

(Actuals) (BE) (RE) (BE)
+91 9310558455 www.crackgradeb.com info@crackgradeb.com

History
of Budget
India’s first budget was presented on April 7, 1860, when India was still
under the British colonial rule. It was introduced by the then Finance
Minister of India, James Wilson.
Independent India's first budget was presented on November 26, 1947

by the then Finance Minister RK Shanmukham Chetty.
Former Prime Minister Moraraji Desai holds the record of presenting

the most number of budgets in the history of the country. He had
presented 10 budgets during his stint as finance minister during 1962-
69, followed by P Chidambaram (9), Pranab Mukherjee (8).
The Budget 1999-2000, Finance Minister Yashwant Sinha presented

the Budget at 11 am for the first time in India before that it was being
presented at 5pm.
From Budget 2017-18, the budget was started to be presented on 1st

February and Railway Budget was merged.
By presenting 6th budget 2024-25, Finance Minister Nirmala

Sitharaman, equalled the record of former Prime Minister Morarji Desai
by presenting six budgets in a row since 2019.
Released by: BUDGET DIVISION, Department of Economic Affairs,
MINISTRY OF FINANCE
01
Budget
Budget is an estimate of income and expenditure for a future period of
time. The estimated receipts and expenditure of the government of India in
respect of each financial year is called the budget of GoI. Article 265 of the
Constitution provides that no tax shall be levied or collected except by
authority of law. And as per Article 266 no expenditure can be incurred
except with the authorization of the legislature. Government takes the
approval of the parliament for the taxes/receipts through the Finance Bill
and the approval for the expenditures through the Appropriation Bill.
Budget is prepared by the Budget Division, Department of Economic

Affairs, Ministry of Finance. The Article 112 specifies that the President
shall, in respect of every financial year, cause to be laid before both the
houses of the parliament, the Annual Financial Statement (Budget) of
estimated receipts and expenditures of the government in respect of every
financial year from 1st April to 31st March. Every budget gives three sets of
figures. For example, the budget (Annual Financial Statement) presented in
Feb 2024 for the year 2024-25 will contain the following figures:
Budget Estimate (BE) for the next FY 2024-25
Budget and Revised Estimate (RE) for the current FY 2023-24
Actual figures for the preceding FY 2022-23
02
There can be three kinds of Budget presented by the government:
(i) Full Budget: It contains the government's estimate for expenditure and
receipts for the entire financial year
(ii) Interim Budget: During an election year, the ruling government may present
an interim budget which is a complete set of accounts, including both
expenditure and receipts but only for a part of the year. An Interim Budget gives
the complete financial statement, very similar to a full Budget. When the new
government will be formed, it shall prepare the full budget. There is no such
constitutional obligation to prepare an interim budget, it is just an unwritten
convention that political parties have developed.
(iii) Vote-on-Account: If the budget has not been passed and the
government needs money to carry on its normal activities, then to
overcome such difficulty, the Constitution has authorized the Lok Sabha to
make any grant in advance in respect to the estimated expenditure for a
part of the financial year, pending the completion of the voting of the
demand for grants and the enactment of the Appropriation bill. This
provision is known as the ‘vote on account’. 'Vote on Account' deals only
with the expenditure side of the government's budget. Through ‘Vote on
Account', the government obtains the vote of the Parliament for a sum
sufficient to incur expenditure on various items for a part of the year.
Normally, the 'Vote on Account' is taken for two months for a sum
equivalent to one sixth of the estimated expenditure for the entire year
under various demands for grants.
03
Budget
Procedure
The budget is presented in the parliament on the first working day of
February at 11.00 am. The General Budget is presented in Lok Sabha by
the Finance Minister and he makes a speech introducing the budget and
after the speech it is presented in the Rajya Sabha. No discussion on
Budget takes place on the day it is presented to the house.
The main budget documents presented to parliament comprise, besides
the Finance Minister Budget Speech, of the following:
A. Annual Financial Statement (AFS) (Article 112)
B. Demands for Grants (DG) (Article 113)
C. Finance Bill (Article 110a)
D. Fiscal Policy Statements mandated under Fiscal Responsibility and

Budget Management (FRBM) Act, 2003:
i. Macro-Economic Framework Statement
ii. Medium-Term Fiscal Policy cum Fiscal Policy Strategy Statement
E. Expenditure Budget
F. Receipt Budget
G. Expenditure Profile
H. Budget at a Glance
I. Key Features of Budget
J. Implementation of Budget Announcements
04
Budget is discussed in two stages - the general discussion followed by
detailed discussion The main budget documents presented to parliament
comprise, besides the Finance Minister Budget Speech, of the following:
Budget General Houses Voting on Demand Appropriation Finance

Presentation Discussion Adjourned for grants Bill Bill
1st Feb Detailed Discussion 31st March
General Discussion
The general discussion on the Budget is held on a day subsequent to the
presentation of the Budget by the Finance Minister. Discussion at this
stage is confined to the general examination of the Budget and policies of
taxation expressed during the budget speech. General discussion on the
budget happens in both the houses of the parliament. After the general
discussion is over, the houses are adjourned for a fixed number of days.
Detailed Discussion
(Discussion on Demand for Grants)
During this period the demand for grants of various ministries/ departments
including Railways are considered by the "Departmentally Related
Standing Committees" (DRSC). These committees are required to make
their reports to the house within the specified period without asking for
more time. After the reports of the standing committees are presented to
the house (Lok Sabha), the house proceeds to the discussion and voting
on Demands for Grants, ministry wise.
The time for discussion and voting of Demands for Grants is allocated by
the speaker in consultation with the leader of the house. On the last day of
the allocated days, the speaker puts all the outstanding demands to the
vote of the house. This is popularly known as "Guillotine". It concludes the
discussion on demand for grants. In Rajya Sabha, there is only a General
Discussion on the budget. It does not vote on the Demand for Grants.
05
The main budget documents presented to parliament comprise,
besides the Finance Minister Budget Speech, of the following:
A. Annual Financial Statement (AFS): The Annual Financial Statement

(AFS), provided under Article 112, shows the estimated receipts and
expenditure of the Government of India for 2024-25 along with estimates
for 2023-24 as also actuals for the year 2022-23. The receipts and
disbursements are shown under three parts in which Government
Accounts are kept viz (i) The Consolidated Fund of India, (ii) The
Contingency Fund of India and (iii) The Public Account of India.
1. Consolidated Fund of India (CFI) (Article 266):
All revenues received by the government by way of taxes whether
direct or indirect and other receipts flowing to the government in
connection with the conduct of government business like receipts
from Railways, Post, transport, government PSU's etc. are credited
into the CFI. Similarly all loans raised by the government by issue
of public notifications, treasury bills and loans obtained from foreign
governments and international institutions are credited into this
fund.
All expenditures incurred by the government for the conduct of its

business including repayment of internal and external debt and
release of loans to States/ Union Territory governments for various
purposes are debited against this fund and no amount can be
withdrawn from the Fund without the authorization from the
Parliament.
2. Contingency Fund of India:
This fund is in the nature of an imprest (a fixed fund for a specific
purpose) account and is kept at the disposal of the President of
India (by the Secretary to the Government of India, Ministry of
Finance, Department of Economic Affairs) to enable the
government to meet unforeseen expenses pending authorization by
the Parliament.
06
The money is used to provide immediate relief to victims of natural
calamities and also to implement any new policy decision taken by
the Government pending its approval by the Parliament.
In all such cases after the Parliament meets, a Bill is
presented indicating the total expenditure to be incurred on
the scheme/ project during the current financial year.
After the Parliament votes the Bill, the money already spent
out of the Contingency Fund is recouped/ withdrawn from the
Consolidated Fund of India to ensure that the corpus of the
Contingency Fund remains intact.
The corpus of the fund has been increased to Rs. 30,000 crores (as
proposed in budget 2021-22, earlier it was Rs. 500 crore) and is
enhanced from time to time by the Parliament.
3. Public Account of India:

All the public money received by the government other than those
which are credited to the Consolidated Fund of India are accounted
for Public Account.
The receipts into the Public Account and disbursements out of it are
not subject to vote by the Parliament. Receipts under this account
mainly flow from the sale of Savings Certificates, contributions into
General Provident Fund, Public Provident Fund, Security Deposits
and Earnest Money Deposits (a kind of security deposits) received
by the government.
In respect of such deposits, the government is acting as a
Banker or Trustee and refunds the money after the
completion of the contract/ event.
Every State Government has its own Consolidated Fund, Public Account
and Contingency Fund (as mandated by the Constitution). Every Union
Territory has their own Consolidated Fund, Contingency
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Fund and Public Account as per "The Government of Union
Territories Act, 1963". The Contingency Fund of Union Territories
lie with their "Administrators" or "Lieutenant Governors".
The Union Budget can be demarcated into the part pertaining to

revenue which is for ease of reference termed as Revenue Budget
and the part pertaining to Capital which is for ease of reference
termed as Capital Budget given below
The Revenue Budget consists of the revenue receipts of the
Government (Tax revenues and non-tax revenues) and
the revenue expenditure. (Details are given further)
Capital receipts and capital payments together constitute the

Capital Budget. (Details are given further)
B. Demands for Grants

Article 113 of the Constitution mandates that the estimates of
expenditure from the Consolidated Fund of India included in the
Annual Financial Statement and required to be voted by the Lok
Sabha, be submitted in the form of Demands for Grants.
The Demands for Grants are presented to the Lok Sabha along
with the Annual Financial Statement.
Generally, one Demand for Grant is presented in respect of

each Ministry or Department. However, more than one Demand
may be presented for a Ministry or Department depending on the
nature of expenditure.
With regard to Union Territories, a separate Demand is presented

for each of such Union Territories.
08
In Budget 2024-25 there are 102 Demands for Grants. Each
Demand initially gives separately the totals of
voted’ and ‘charged’ expenditure;
the ‘revenue’ and the ‘capital’ expenditure and
the grand total on gross basis of the amount of expenditure
for which the Demand is presented.
C. Finance Bill
At the time of presentation of the Annual Financial Statement
before the Parliament, a Finance Bill is also presented in fulfillment
of the requirement of Article 110 (1)(a) of the Constitution, detailing
the imposition, abolition, remission, alteration or regulation of taxes
proposed in the Budget. It also contains other provisions relating to
Budget that could be classified as Money Bill. A Finance Bill is a
Money Bill as defined in Article 110 of the Constitution.
The bill has to be passed by the Parliament within 75 days of

its introduction
Appropriation and Finance Bills are Money Bills. These bills are
sent to the Rajya Sabha for passing but it is on the Lok Sabha
whether to accept any recommendations of the Rajya Sabha or not.
Whether Lok Sabha accepts the recommendations of the Rajya
Sabha or not, the Bills are deemed to be passed by both the
houses.
09
D. Fiscal Policy Statements mandated under FRBM Act
Macro-Economic Framework Statement:
The Macro-economic Framework Statement is presented to
Parliament under Section 3 of the Fiscal Responsibility and
Budget Management Act, 2003 and the rules made thereunder.
It contains an assessment of the growth prospects of the
economy along with the statement of specific underlying
assumptions.
It also contains an assessment regarding the GDP growth rate,
the domestic economy and the stability of the external
sector of the economy, fiscal balance of the Central
Government and the external sector balance of the
economy.
Medium-Term Fiscal Policy cum Fiscal Policy Strategy Statement

The Medium-Term Fiscal Policy cum Fiscal Policy Strategy
Statement is presented to Parliament under Section 3 of the
Fiscal Responsibility and Budget Management Act, 2003.
It sets out the three-year rolling targets for specific fiscal
indicators in relation to GDP at market prices, namely
(i) Fiscal Deficit,
(ii) Revenue Deficit,
(iii) Primary Deficit
(iv) Tax Revenue
(v) Non-tax Revenue and
(vi) Central Government Debt
The Statement includes the underlying assumptions, an assessment
of the balance between revenue receipts and revenue expenditure
and the use of capital receipts including market borrowings for the
creation of productive assets.
It also outlines for the existing financial year, the strategic priorities
of the Government relating to taxation, expenditure, borrowings,
guarantees etc.
10
Explanatory Documents: To facilitate a more comprehensive
understanding of the major features of the Budget, certain other
explanatory documents are presented. These are briefly summarized
below:
E. Expenditure Budget The provisions made for a scheme or a

programme may be spread over a number of Major Heads in the Revenue
and Capital sections in a Demand for Grants. In the Expenditure Budget,
the estimates made for a scheme/programme are brought together and
shown on a net basis on Revenue and Capital basis at one place.
Expenditure of individual Ministries/ Departments are classified under 2

broad Umbrellas (i)Centres’ Expenditures and (ii) Transfers to States/
Union Territories( UTs).
Under the Umbrella of Centres’ Expenditure there are 3 sub-classification

(a) Establishment expenditure of the Centre
(b) Central Sector Schemes and
(c) Other Central Expenditure including those on Central Public Sector
Enterprises(CPSEs) and Autonomous Bodies.
The Umbrella of Transfers to States/UTs includes the following 3 sub-

classification:
(a) Centrally Sponsored Scheme
(b) Finance Commission Transfers
(c) Other Transfer to States
F. Receipt Budget
Estimates of receipts included in the Annual Financial Statement
are further analysed in the document “Receipt Budget”.
The document provides details of tax and non-tax revenue
receipts and capital receipts and explains the estimates.
11
The document also provides a statement on the arrears of tax
revenues and non-tax revenues, as mandated under the Fiscal
Responsibility and Budget Management Rules, 2004.
Trend of receipts and expenditure along with deficit indicators,
statement pertaining to National Small Savings Fund (NSSF),
Statement of Liabilities, Statement of Guarantees given by the
government, statements of Assets and details of External
Assistance are also included in Receipts Budget.
This also includes the Statement of Revenue Impact of Tax
Incentives under the Central Tax System which seeks to list the
revenue impact of tax incentives that are proposed by the Central
Government.
This document also shows liabilities of the Government on account
of securities (bonds) issued in lieu of oil and fertilizer subsidies in
the past
G. Expenditure Profile
It gives an aggregation of various types of expenditure and certain
other items across demands.
The document contains statements indicating major variations
between BE 2023-24 and RE 2023-24 as well as between RE
2023-24 and BE 2024-25 with brief reasons.
A statement each, showing (i) Gender Budgeting (ii) Schemes for
Development of Scheduled Castes and Scheduled Tribes including
Scheduled Caste Sub Scheme (SCSS) and Tribal Sub Scheme
(TSS) allocations and (iii) Schemes for the Welfare of Children are
also included in this document.
H. Budget at a Glance
This document shows in brief, receipts and disbursements along
with broad details of tax revenues and other receipts.
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This document provides details of resources transferred by the
Central Government to State and Union Territory Governments.
This document also shows the revenue deficit, the gross primary
deficit and the gross fiscal deficit of the Central Government.
I. Key Features of Budget

The Document is a snapshot summary of the economic vision of
the Government and the major policy initiatives in the thrust areas
of the economy for growth and welfare.
J. Implementation of Budget Announcements of last year

The Document summarizes the status of implementation of the
announcements made by Hon’ble Finance Minister in the Budget
Speech of last financial Year.
13
Budget
Classification
The article 112 specifies that the budget must distinguish the
expenditures on revenue account from other expenditures (capital
account). Therefore, the budget comprises of the Revenue Budget and
Capital Budget.
BUDGET
REVENUE CAPITAL
BUDGET BUDGET
REVENUE REVENUE CAPITAL CAPITAL

RECEIPTS EXP. RECEIPTS EXP.
TAX NON-TAX
REVENUE REVENUE
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Revenue
Receipts
The article 112 specifies that the budget must distinguish the expenditures
on revenue account from other expenditures (capital account). Therefore, the
budget comprises of the Revenue Budget and Capital Budget.
Tax Revenues consists of direct and indirect taxes of the central

government.
Non-Tax Revenue consists of interest receipts on account of loans

given by central government, dividend and profits on investments made
by the central government (i.e. PSUs), fees and fines and other receipts
for services rendered by the government like passport fees etc.
Cash grants-in-aid from foreign countries and international
organisations are also part of the non-tax revenue.
Revenue Receipts
Tax Revenue Non-Tax Revenue
Gross Tax Revenue Interest receipts
-Corporation Tax Dividends and Profits (Dividends
-Taxes on Income from Public Sector Enterprises and
-Wealth Tax other investments, Dividend/Surplus
-Customs of Reserve Bank of India,
-Union Excise Duties (ALCOHOL , Nationalized Banks & Financial
PETROLEUM products, Cess, Institutions)
Surcharge etc)
15
-Service Tax External Grants
- GST Other Non-Tax Revenue
CGST Receipts of Union Territories
IGST
-GST Compensation Cess
-Taxes of Union Territories
Examples of Other Non-Tax Revenue: Fiscal Services (Currency,

Coinage and Mint), Social Services, Economic Services, Grants-in-aid
and Contributions
Social Services
Education, Sports, Art and Culture
Medical and Public Health
Family Welfare
Housing
Information and Publicity
Labour and Employment
Social Security and Welfare
Economic Services
Agriculture and allied activities
Industry and Minerals
Energy (Power, petroleum, coal, royalties from energy sector etc)
Transport
Communications
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Revenue
Expenditure
Those expenses of the government which neither creates any asset
(physical or financial) nor reduces any liabilities are called revenue
expenditure. It relates to those expenses incurred for the normal
functioning of the government departments and various services, interest
payments on debt incurred by the government (on market loans, external
loans and from various reserve funds), and grants given to state
governments and other parties/institutions (even though some of the
grants may be meant for creation of assets) and subsidies. (Apart from
providing implicit subsidies through under-pricing of public goods and
services like education and health, the government also extends subsidies
explicitly on items such as exports, interest on loans, food and fertilisers)
Examples:
interest payments
subsidies
salaries and pensions
17
Capital
Receipts
Those receipts of the government which either creates liability or reduces
the assets (physical or financial) are called capital receipts.
The main items of capital receipts are loans raised by the government
from the public (market borrowings), borrowing by the government from
the RBI, commercial banks and other financial institutions through the sale
of government securities (treasury bills and dated securities), loans
received from foreign governments and international organizations, and
recovery of loans previously granted by the central government. It also
includes small savings schemes (Post office savings accounts, National
Savings Certificates etc.), Provident Funds and net receipts obtained from
the sale of shares in PSUs (disinvestment).
Debt Receipts (Net)
Market Borrowings (G-sec)
Short term Borrowing (T- Bill etc.)
Securities against Small Savings
State Provident Funds
External Debt
Gold Bonds, Gold Monetisation etc
Non-Debt Receipts (Net)

Recoveries of loans and advances
Disinvestment Receipts of Government stake in Public Sector
Banks/PSUs and Financial Institutions
Non-debt creating capital receipts are those receipts which are not
borrowings and, therefore, do not give rise to debt. Examples are
recovery of loans and the proceeds from the sale of PSU
18
Capital Expenditure
Those expenses of the government which either creates assets
(physical or financial) or reduces liabilities are called capital
expenditures. Capital expenditures include acquisition of land, building,
machinery, equipment, Capital Outlay of the Defence Services,
purchase of shares, by the government and loans and advances by the
central government to state and union territory governments, PSUs and
other parties.
BALANCED, SURPLUS AND

DEFICIT BUDGET
Surplus budget: If the receipts of the government are more than its
expenditure, it is called surplus budget. A surplus budget implies that
the government is pumping out more money from the economic
system. It has a contractionary effect and level of economic activity
falls.
Deficit budget: If the receipts of the government are less than its
expenditure, then the budget is called deficit budget. It implies that the
government is pumping in more money in the economy. It has an
expansionary effect and the level of economic activities rise.
Government of developing countries always plan for a deficit budget.
Balanced budget: If the receipts of the government are equal to its

expenditure, it is called balanced budget. It will have a neutral effect on
the level of economic activity. It will neither have an expansionary effect
nor contractionary effect on the economy.
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Government
Deficits
When a government spends more than it collects by way of revenue, it
incurs a deficit. There are mainly three ways through which government
captures this deficit.
1. Revenue Deficit: Revenue Deficit is the difference between the

government's revenue expenditure and revenue receipts.
Revenue Deficit = Revenue Expenditure - Revenue Receipts
Revenue Deficit implies that government's current expenses are more

than its current revenues and will have to use up the savings of other
sectors of the economy to finance its consumption expenditure. Since a
major part of the revenue expenditure (salary, pension, interest
payments, subsidies etc.) is committed expenditure, it cannot be
reduced. When the government is faced with revenue deficit, it
generally reduces the productive capital expenditure and welfare
expenditure to cover up the excess revenue expenses. This would
mean lower future growth and adverse welfare implications. Revenue
Deficit is bad because it implies that government is spending more on
its current and day to day needs (which may not give return in future)
than its current revenues.
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2. Fiscal Deficit: Fiscal deficit is the difference between the government's
total expenditure (Revenue and Capital) and its total receipts (Revenue
and Capital) except the borrowings.
Fiscal Deficit = Total Expenditure - Total Receipts except borrowing

= (Rev Exp. + Cap Exp.) - (Rev Rec. + Cap Rec. except borrowing)
= (Rev Exp. - Rev Rec.) + (Cap Exp. - Cap Rec. except borrowing)
= Revenue Deficit + Cap Exp. - Cap Rec. except borrowing
= Total borrowing
= Net borrowing at home + borrowing from RBI + Borrowing from
abroad
Let us understand with an example.

Suppose, government's total expenditure = 17 lakh crore
and total receipts = 13 lakh crore
Then government will have to borrow (17 lakh crore -13 lakh crore) 4
lakh crore to meet its expenditure. And this 4 lakh crore is called the
fiscal deficit. That is why fiscal deficit is also equal to the total borrowing
i.e. 4 lakh crore.
But this 4 lakh crore which government borrows is also part of capital
receipt for the government and it must be included in capital receipts.
So in actual sense government's total receipts will become 17 lakh
crore (i.e. 13 lakh crore + 4 lakh crore borrowing).
Hence, in the above example:
Fiscal Deficit = Total expenditure - total receipts except borrowing
Otherwise the difference of total expenditure and total receipts will
always be zero.
Fiscal deficit indicates the total borrowing of the government from all
sources i.e. domestic borrowing plus borrowing from external sources.
Domestic borrowing includes governments debt securities like Treasury
Bills and Dated Securities. Commercial banks purchase these
21
securities on a major scale to meet their SLR requirements. Other
financial institutions and RBI also purchases these securities.
The fiscal deficit is a key variable in judging the financial health of the
government sector and the stability of economy. It can be seen from
above that revenue deficit is a part of fiscal deficit. A large share of
revenue deficit in the fiscal deficit indicates that a large part of
borrowing is being used to meet its consumption expenditure needs
rather than investment.
3. Primary Deficit: A large part of the government's fiscal deficit is

because it needs to pay interest on its previous accumulated debt. If we
want to measure the government's deficit excluding the interest
payment on the previous debt then it is called the primary deficit. The
goal of measuring the primary deficit is to focus on present fiscal
imbalances.
Primary Deficit = Fiscal Deficit - Net interest liabilities

So, primary deficit tells about the deficit in the government's budget
excluding the interest liabilities on the government's accumulated debt.
In the Union Budget 2011-12, government introduced a new term called

the "effective revenue deficit".
The definition of the revenue expenditure is that it shall not create any
physical or financial assets. But this creates a problem in accounts.
There are several grants given by the Central Government to the States
/ UTs which comes under revenue expenditure for the central
government but some of these grants create assets, which are owned
by the State government and not by the Central government. Hence, for
Central Government it is basically a revenue expenditure but ultimately
it is creating asset for the State government.
22
For example, under the MGNREGA programme, some capital assets
such as roads, ponds etc. are created, thus the grants for such
expenditure shall not strictly fall in the revenue expenditure. Hence the
central government also calculates "effective revenue deficit" which
excludes such grants which are used for creation of assets.
Effective Revenue Deficit = Revenue Deficit - Grants for creation of

capital assets
Deficit financing is the budgetary situation where government

expenditure is higher than its revenue. It is a practice adopted for
financing the excess expenditure with outside resources by either
printing of additional currency or through borrowing.
Sources of Financing for Fiscal Deficit :

Market Borrowings (G-sec) (Highest share)
Securities against Small Savings (2nd highest share)
External Debt
Budget at a Glance
Budget at a Glance presents broad aggregates of the Budget for easy
understanding. This document shows receipts and expenditure as well
as the Fiscal Deficit (FD), Revenue Deficit (RD, Effective Revenue
Deficit (ERD) and the Primary Deficit (PD) of the Government of India.
23
Budget
Profile
The total expenditure in BE 2024-25 is estimated at ₹47,65,768 crore
(INCREASED BY ₹ 2.76 LAKH CRORE COMPARED TO 2023-24 (RE))
The Revised Estimate 2023-24 of the total expenditure is Rs 44.90 lakh
crore
Receipt
2024-25 ( lakh crs)
Capital Receipt 17.64
Revenue receipt 30.02

● Tax receipt ● 26.02
● Non tax receipt ● 4.00
Total budget 47.66
Gross Tax receipt in BE 2024-25 = 38.31 lakh crores
State Share of Taxes in BE 2024-25 =12.20 lakh crores (3.7 percent of

GDP.)
The total receipts other than borrowings are estimated at Rs 30.80 lakh crore
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Expenditures
2024-25 ( lakh crs)
Capital Expenditure 11.11 (16.9 per cent over RE 2023-24)
Revenue Expenditure 36.55
Total budget 47.66
Effective Capital Expenditure: 15 lakh crores
Effective capital expenditure is defined as the sum of capital expenditure

and grants for creation of capital assets
REVENUE RECEIPTS
Tax Revenue sources: Taxes on Income > GST > Corporation Tax >
Customs
Non-Tax Revenue sources: Other non-tax revenue > Dividends and Profits
> Interest receipts > others
Fiscal Deficit in 2024-25: 1685494 Crores (5.1% of GDP)
Revenue Deficit in 2024-25: 653383 Crores (2.0% of GDP)
Fiscal Indicators - Rolling Targets as a Percentage of GDP
Revised Estimates Budget Estimates
2023-24 2024-25
Fiscal Deficit 5.8 5.1
Revenue Deficit 2.8 2.0
Primary Deficit 2.3 1.5
Tax Revenue (Gross) 11.6 11.7
Non-Tax Revenue 1.3 1.2
Central Government Debt 57.8 56.8
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Trends in Tax receipt
TAX RECEIPTS (%GDP):
Tax receipts 2023-24 (RE) 2024-25 (BE)
Direct 6.6% 6.75%
Indirect 5.0% 4.95%
Total 11.6% 11.7%
Sources of Financing Fiscal Deficit in 2024-25: 16.81 lakh crores =Debt

Receipts
Market Borrowings (G-sec) (Highest share)
Securities against Small Savings (2nd highest share)
External Debt
Total Schemes expenditures in 2023-24: 19.96 lacs crore

Total Central Sector Schemes expenditures in 2023-24: 14.94 lacs crore
Highest rupees come from: Borrowing and other liabilities (28%) > income tax
(19%) > GST(18%) > Corporation tax (17%)
Highest rupees goes to: state share of taxes > duties > Interest Payment >
Central sector scheme
27
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Budget Speech
Highlights
The Government strengthened its ‘mantra’ to ‘Sabka Saath, Sabka
Vikas, and Sabka Vishwas’. Our development philosophy covered
all elements of inclusivity, namely:
social inclusivity through coverage of all strata of the society,
and
geographical inclusivity through development of all regions of the

country.
With the ‘whole of nation’ approach of ‘Sabka Prayas’, the country

overcame the challenge of a once-in-a-century pandemic, took long
strides towards ‘Atmanirbhar Bharat’, committed to ‘Panch Pran’,
and laid solid foundations for the ‘Amrit Kaal’.
29
Inclusive
Development
& Growth
Development programmes, in the last ten years, have targeted each
and every household and individual in record time, through:
‘housing for all’,
‘har ghar jal’,
electricity for all,
cooking gas for all,
bank accounts and financial services for all,
The worries about food have been eliminated through free ration for
80 crore people.
Minimum support prices for the produce of ‘Annadata’ are

periodically increased appropriately.
These and the provision of basic necessities have enhanced real

income in the rural areas.
Their economic needs could be addressed, thus spurring growth

and generating jobs.
30
Social
Justice
Government is working with an approach to development that is all-
round, all- pervasive and all-inclusive (सर्वांगीण, सर्वस्पर्शी और
सर्वसमावेशी).
It covers all castes and people at all levels.
We are working to make India a ‘Viksit Bharat’ by 2047.
For achieving that goal, we need to improve people’s capability

and empower them.
Previously, social justice was mostly a political slogan. For current

Government, social justice is an effective and necessary governance
model.
The saturation approach of covering all eligible people is the
true and comprehensive achievement of social justice.
There is transparency and assurance that benefits are delivered

to all eligible people.
The resources are distributed fairly.
All, regardless of their social standing, get access to

opportunities.
Government is addressing systemic inequalities that had

plagued our society.
31
Government has focus on outcomes and not on outlays so that
the socio-economic transformation is achieved.
Prime Minister firmly believes, Government needs to focus on four

major castes; ‘Garib’ (Poor), ‘Mahilayen’ (Women), ‘Yuva’ (Youth)
and ‘Annadata’ (Farmer).
Enrolments under PMJJBY in Aspirational Districts increased from

1737 per lakh population in 2018 to 13195 per lakh population in
October 2023.
32
Garib Kalyan
Desh ka Kalyan
Government believes in empowering the poor.
The earlier approach of tackling poverty through entitlements had

resulted in very modest outcomes.
When the poor become empowered partners in the development

process, government’s power to assist them also increases manifold.
With the pursuit of ‘Sabka ka Saath’ in these 10 years, the

Government has assisted 25 crore people to get freedom from multi-
dimensional poverty. (In 2022-23, 11.3% of population are
multidimensional poor).
Government’s efforts are now getting synergized with energy and

passion of such empowered people. This is truly elevating them
from poverty.
‘Direct Benefit Transfer’ of ₹ 34 lakh crore from the Government

using PM-Jan Dhan accounts has led to savings of ₹ 2.7 lakh crore
for the Government.
This has been realized through avoidance of leakages prevalent
earlier. The savings have helped in providing more funds for
‘Garib Kalyan.
33
PM-SVANidhi has provided credit assistance to 78 lakh street
vendors. From that total, 2.3 lakh have received credit for the third
time.
PM-JANMAN Yojana reaches out to the particularly vulnerable tribal

groups (PVTGs), who have remained outside the realm of
development so far.
PM-Vishwakarma Yojana provides end-to-end support to artisans and

craftspeople engaged in 18 trades.
The schemes for empowerment of Divyangs and Transgender

persons reflect firm resolve of Government to leave no one behind.
34
Welfare of
Annadata
Every year, under PM-KISAN SAMMAN Yojana, direct financial
assistance is provided to 11.8 crore farmers, including marginal and
small farmers.
Crop insurance is given to 4 crore farmers under PM Fasal Bima

Yojana.
These, besides several other programmes, are assisting ‘Annadata’ in

producing food for the country and the world.
Electronic National Agriculture Market (e-NAM) integrated 1361

mandis, providing services to 1.8 crore farmers with trading
volume of Rs. 3 lakh crore.
Increasing Procurement of Wheat (262 Lakh MT) and Rice (38 Lakh
MT) in 2023-24.
The agriculture sector is poised for inclusive, balanced, higher

growth and productivity. These are facilitated from farmer-centric
policies, income support, coverage of risks through price and insurance
support, promotion of technologies and innovations through start-ups.
35
EmpoweringAmrit
Peedhi, the Yuva
Our prosperity depends on adequately equipping and empowering the
youth.
The National Education Policy 2020 is ushering in transformational

reforms.
PM Schools for Rising India (PM SHRI) are delivering quality teaching,
and nurturing holistic and well-rounded individuals.
The Skill India Mission has trained 1.4 crore youth, upskilled and
reskilled 54 lakh youth, and established 3000 new it is.
A large number of new institutions of higher learning, namely 7 IITs, 16

IIITs, 7 IIMs, 15 AIIMS and 390 universities have been set up.
Number of AllMS increased from 7 in 2014 to 22 in 2022.
IITs increased from 16 in 2014 to 23 in 2023.
PM Mudra Yojana has sanctioned 43 crore loans aggregating to ₹ 22.5

lakh crore for entrepreneurial aspirations of our youth. Besides that,
Fund of Funds, Start Up India, and Start Up Credit Guarantee
schemes are assisting our youth. They are also becoming ‘rozgardata
36
Youth in
Sports
The highest ever medal tally in Asian Games and Asian Para Games in
2023 reflects a high confidence level.
Chess prodigy and our Number-One ranked player Praggnanandhaa put

up a stiff fight against the reigning World Champion Magnus Carlsson in
2023. Today, India has over 80 chess grandmasters compared to little
over 20 in 2010.
Momentum in
Nari Shakti
The empowerment of women through entrepreneurship, ease of living,
and dignity for them has gained momentum in these ten years.
30 crore Mudra Yojana loans have been given to women entrepreneurs
Female enrolment in higher education has gone up by 28% per cent in

ten years.
37
In Science, technology, engineering, and mathematics (STEM) courses,
girls and women constitute 43% of enrolment - one of the highest in the
world.
All these measures are getting reflected in the increasing participation of

women in workforce. (Female Labour Force Participation Rate: 37.3% in
2022-23 from 23.3% in 2017-18)
Making ‘Triple Talaq’ illegal, reservation of one-third seats for women in

the Lok Sabha and State legislative assemblies, and giving over 70% houses
under PM Awas Yojana in rural areas to women as sole or joint owners have
enhanced their dignity.
38
Exemplary Track Record of
Governance, Development and
Performance (GDP)
Besides delivering on high growth in terms of Gross Domestic
Product, the Government is equally focused on a more comprehensive
‘GDP’, i.e., ’Governance, Development and Performance’
Government has provided transparent, accountable, people-centric

and prompt trust-based administration with ‘citizen-first’ and
‘minimum government, maximum governance’ approach.
The impact of all-round development is discernible (visible) in all

sectors. There is macro-economic stability, including in the external
sector.
Investments are robust. The
economy is doing well.
People are living better and
earning better, with even
greater aspirations for the
future.
Average real income of the
people has increased by 50%
Inflation is moderate.
People are getting empowered, equipped and
enabled to pursue their aspirations.
There is effective and timely delivery of
programmes and of large projects.
39
Economic
Management
The multipronged economic management over the past 10 years
has complemented people-centric inclusive development. Following
are some of the major elements:
1. All forms of infrastructure, physical, digital or social, are being built
in record time.
2. All parts of the country are becoming active participants in

economic growth.
3. Digital Public Infrastructure (DPI), a new ‘factor of production’ in the

21st century, is instrumental in formalisation of the economy.
4. Goods and Services Tax has enabled ‘One Nation, One Market, One
Tax’. Tax reforms have led to deepening and widening of tax base.
5. Strengthening of the financial sector has helped in making

savings, credit and investments more efficient.
6. GIFT-IFSC and the unified regulatory authority, IFSCA

(International Financial Services Centres Authority) are creating a
robust gateway for global capital and financial services for the
economy.
7. Proactive inflation management has helped keep inflation within

the policy band.
40
Global
Context
Geopolitically, global affairs are becoming more complex and
challenging with wars and conflicts.
Globalization is being redefined with reshoring and friend-shoring,

disruption and fragmentation of supply chains, and competition
for critical minerals and technologies.
A new world order is emerging after the Covid pandemic.
India assumed G20 Presidency during very difficult times for the
world. The global economy was going through high inflation, high
interest rates, low growth, very high public debt, low trade growth,
and climate challenges.
The pandemic had led to a crisis of food, fertilizer, fuel and finances
for the world, while India successfully navigated its way. The country
showed the way forward and built consensus on solutions for those
global problems.
The recently announced India-Middle East-Europe Economic

Corridor is a strategic and economic game changer for India and
others.
41
Vision for
‘Viksit Bharat’
Government has vision for ‘Viksit Bharat’ is that of “Prosperous
Bharat in harmony with nature, with modern infrastructure, and
providing opportunities for all citizens and all regions to reach
their potential.
With confidence arising from strong and exemplary track-record of

performance and progress earning ‘Sabka Vishwas’, the next five
years will be years of unprecedented development, and golden
moments to realize the dream of developed India @ 2047.
The trinity of demography, democracy and diversity backed by

‘Sabka Prayas’ has the potential to fulfill aspirations of every Indian.
42
Strategy for
‘Amrit Kaal’
Government will adopt economic policies that foster and sustain
growth, facilitate inclusive and sustainable development, improve
productivity, create opportunities for all, help them enhance their
capabilities, and contribute to generation of resources to power
investments and fulfil aspirations.
Guided by the principle ‘Reform, Perform, and Transform’, the

Government will take up next generation reforms, and build
consensus with the states and stakeholders for effective
implementation.
Government’s policy has priority to ensure timely and adequate

finances, relevant technologies and appropriate training for the
Micro, Small and Medium Enterprises (MSME) to grow and also
compete globally.
Orienting the regulatory environment to facilitate their growth will
be an important element of this policy mix.
Aligning with the ‘Panchamrit’ goals, Government will facilitate

sustaining high and more resource-efficient economic growth. This will
work towards energy security in terms of availability, accessibility
and affordability.
For meeting the investment needs, Government will prepare the

financial sector in terms of size, capacity, skills and regulatory
framework
43
Development of
Aspirational Districts & Blocks
Government stands ready to assist the states in faster development of
aspirational districts and blocks, including generation of ample
economic opportunities.
Development of East
Government will pay utmost attention to make the eastern region and
its people a powerful driver of India’s growth.
44
PM Awas Yojana
(Grameen)
Despite COVID challenges, the target of three crore houses under
PM Awas Yojana (Grameen) will be achieved soon.
Two crores more houses to be taken up in the next five years to

meet the requirement arising from increase in the number of families
The Pradhan Mantri Awaas Yojana Gramin (PMAYG) aims to achieve

the objective of Housing for All by providing 2.95 crore pucca homes
to all genuine poor households with basic amenities, through
convergence.
Against the overall mandate of 2.95 cr. houses have been allocated
various States/UTs till the FY 2023-24, 2.94 crore houses have been
sanctioned to the beneficiaries and 2.54 crore houses have been
completed.
The programme is the first of its kind wherein the genuine beneficiaries
are identified based on housing deprivation parameters as per
SECC-2011, followed by verification process at the Gram Sabha
level and geo-tagging of the beneficiaries to confirm the genuineness.
At present, the beneficiary households are being provided unit

assistance of Rs 1.2 lakh in plain areas and 1.3 lakh in IAP districts/Hill/
North Eastern States. However the unit assistance is being enhanced
45
to ₹ 2 lakhs in plain areas and Rs 2.20 lakhs in IAP districts/Hilly/
North Eastern States and difficult areas from FY 2024-25 onward with
target to construct 2.00 crore houses.
The budget estimate of PMAY-G for F.Y 2024-25 is 54500 crores.
The estimated Financial Requirements: For construction of 2.0 crore

houses each of 2.05 lakh average unit assistance (estimated),
tentative financial provision of approximately 4,18,200 crores (including
2% Admin. Funds) with following breakup: (a) Central share 2,63,466
crore (63% of total cost) and (b) States share 1,54,734 cr (37% of total
cost).
46
Rooftop Solarization &
Muft Bijli
Pradhan Mantri Suryodaya Yojana: 1 crore households to obtain 300 units
free electricity every month through rooftop solarization under the scheme.
Following benefits are expected from this scheme:
1. Savings up to fifteen to eighteen thousand rupees annually for

households from free solar electricity and selling the surplus to the
distribution companies
2. Charging of electric vehicles;
3. Entrepreneurship opportunities for a large number of vendors for

supply and installation;
4. Employment opportunities for the youth with technical skills in

manufacturing, installation and maintenance;
47
Housing
for Middle Class
Government will launch a scheme to help deserving sections of the
middle class “living in rented houses, or slums, or chawls and
unauthorized colonies” to buy or build their own houses.
Medical Colleges
Government plans to set up more medical colleges by utilizing the
existing hospital infrastructure under various departments.
A committee for this purpose will be set-up to examine the issues

and make relevant recommendations.
This initiative will not only create opportunity for youth to become
qualified doctors but also improve healthcare services to the
people.
Cervical Cancer
Vaccination
Government will encourage vaccination for girls in age group of 9
to 14 years for prevention of cervical cancer.
48
Maternal &
Child Healthcare
Various schemes for maternal and child care will be brought under
one comprehensive programme for synergy in implementation.
Upgradation of anganwadi centres under “Saksham Anganwadi

and Poshan 2.0” will be expedited for improved nutrition delivery, early
childhood care and development
The newly designed U-WIN platform for managing immunization and

intensified efforts of Mission Indradhanush will be rolled out
expeditiously throughout the country.
U-WIN platform will be used to register and vaccinate every
pregnant woman, record her delivery outcome, register every
newborn delivery, administer birth doses and all vaccination events
thereafter.
49
Ayushman
Bharat
Healthcare cover under Ayushman Bharat scheme will be extended
to all ASHA workers, Anganwadi Workers and Helpers.
ASHA must primarily be a woman resident of the village married/
widowed/divorced, preferably in the age group of 25 to 45 years.
She should be a literate woman with due preference in selection
to those who are qualified up to 10th standard wherever they
are interested and available in good numbers. This may be relaxed
only if no suitable person with this qualification is available.
ASHA will be chosen through a rigorous process of selection

involving various community groups, self-help groups, Anganwadi
Institutions, the Block Nodal officer, District Nodal officer, the village
Health Committee and the Gram Sabha.
A fixed incentives of Rs 2000 per month is paid to ASHA worker.
Under the National Health Mission (NHM) there is a target of One

ASHA (Accredited Social Health Activist) for every village with
a population of 1000.
The minimum prescribed qualification is Matriculation and age

limit is 18-35 years for engagement of Anganwadi Workers
(AWWs) and Anganwadi Helpers (AWHs).
50
AWWs at main Anganwadi Centres (AWCs) are paid an honorarium of ₹
4,500/- per month; AWWs at mini- AWCs ₹3,500/- per month and AWHs are
paid ₹2,250/- per month. Also, performance linked incentive of ₹ 250/- per
month is paid to AWHs and @ ₹ 500/- per month to AWWs.
The Anganwadi workers should be a lady from the local village and
acceptable in the local community.
The AWWs may be selected by a committee consisting of the District Social

Welfare Officer, the block development officer (BDO), the Chitd Development
Project Officer (CDPO), the Medical Officer of the Primary health centre, the
President of the Taluka Panchayat / Block Advisory Committee, the district
representative of the State Social Welfare Advisory Board and any other non-
officials which the State Government may consider appropriate”
51
Agriculture &
Food Processing
The efforts for value addition in agricultural sector and boosting
farmers’ income will be stepped up.
Pradhan Mantri Kisan Sampada Yojana has benefitted 38 lakh

farmers and generated 10 lakh employment.
Pradhan Mantri Formalisation of Micro Food Processing

Enterprises Yojana has assisted 2.4 lakh SHGs and sixty thousand
individuals with credit linkages.
Other schemes are complementing the efforts for reducing post-harvest

losses, and improving productivity and incomes.
For ensuring faster growth of the sector, Government will further

promotez private and public investment in post-harvest activities
including aggregation, modern storage, efficient supply chains,
primary and secondary processing and marketing and branding.
Allocation for PM-Formalisation of Micro Food Processing Enterprises

scheme increased from ₹639 crore in 2023-24 to ₹880 crore in 2024-25
Increased allocation for Blue Revolution increased from ₹2025 crore in

2023-24 to ₹2352 crore in 2024-25.
52
Nano DAP
After the successful adoption of Nano Urea, application of Nano DAP
on various crops will be expanded in all agro-climatic zones.
Nano-DAP (Di-ammonium Phosphate) is a nanotechnology-
based agri-input developed by the Indian Farmers Fertilizer
Cooperative Limited (IFFCO).
Nano DAP formulation contains Nitrogen (8.0% N w/v) and

Phosphorus (16.0 % P2O5 w/v).
Nano DAP (Liquid) has advantage in terms of surface area to

volume as its particle size is less than 100 Nanometre (nm)
IFFCO Nano Urea is a nanotechnology based revolutionary Agri-

input which provides nitrogen to plants.
Atmanirbhar Oil Seeds Abhiyan

Building on the initiative announced in 2022, a strategy will be
formulated to achieve ‘atmanirbharta’ for oil seeds such as
mustard, groundnut, sesame, soybean, and sunflower.
This will cover research for high-yielding varieties,

widespread adoption of modern farming techniques,
market linkages, procurement, value addition, and
crop insurance.
53
Dairy
Development
A comprehensive programme for supporting dairy farmers will be
formulated. Efforts are already on to control foot and mouth disease.
The Livestock Health and Disease Control Programme (LH&DCP)

aims to control Foot & Mouth Disease (FMD) through vaccination
leading to its eventual eradication by 2030.
India is the world’s largest milk producer but with low productivity of
milch-animals.
The programme will be built on the success of existing schemes such

Rashtriya Gokul Mission, National Livestock Mission, and
Infrastructure Development Funds for dairy processing and animal
husbandry.
54
Matsya
Sampada
It was our government which set up a separate Department for
Fisheries realizing the importance of assisting fishermen.
This has resulted in doubling of both inland and aquaculture

production.
Seafood export since 2013-14 has also doubled.
Implementation of Pradhan Mantri Matsya Sampada Yojana (PMMSY)

will be stepped up to:
enhance aquaculture productivity from existing 3 to 5 tons per
hectare,
double exports to ₹ 1 lakh crore and
generate 55 lakh employment opportunities in near future.
Five integrated aquaparks will be setup.
55
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Lakhpati Didi
Eighty-three lakh SHGs with nine crore women are transforming rural
socio-economic landscape with empowerment and self-reliance.
Their success has assisted nearly one crore women to become

Lakhpati Didi already. They are an inspiration to others. Their
achievements will be recognized through honouring them.
Buoyed by the success, it has been decided to enhance the target for
Lakhpati Didi from 2 crore to 3 crore.
Technological Changes
Despite COVID challenges, the target of three crore houses under
PM Awas Yojana (Grameen) will be achieved soon.
Also enabling new economic opportunities and facilitating provision

of high-quality services at affordable prices for all, including those at
‘bottom of the pyramid’.
Opportunities for India at the global level are expanding.
India is showing solutions through innovation and entrepreneurship of

its people.
56
Research &
Innovation for
catalyzing growth,
employment and development
Prime Minister Shastri gave the slogan of “Jai Jawan Jai Kisan”.
Prime Minister Vajpayee made that “Jai Jawan Jai Kisan Jai Vigyan”.
Prime Minister Modi has furthered that to “Jai Jawan Jai Kisan Jai
Vigyan and Jai Anusandhan”, as innovation is the foundation of
development.
For our tech savvy youth, this will be a golden era. A corpus of rupees
one lakh crore will be established with fifty-year interest free loan.
The corpus will provide long-term financing or refinancing with
long tenors and low or nil interest rates.
This will encourage the private sector to scale up research and

innovation significantly in sunrise domains.
A new scheme will be launched for strengthening deep-tech technologies

for defence purposes and expediting ‘atmanirbharta’.
57
Infrastructure
Development
Building on the massive tripling of the capital expenditure outlay in the
past 4 years resulting in huge multiplier impact on economic growth
and employment creation, the outlay for the next year is being increased
by 11.1 per cent to eleven lakh, eleven thousand, one hundred and
eleven crore rupees (₹ 11,11,111 crore).
This would be 3.4 per cent of the GDP.
Length of National highways increased from 97,991 kms in FY15 to

1,44,634 kms in FY22
58
Railways
Rs. 2,52,000 Crore for Capital Expenditure for Railways in FY 2024-
25.
Electrified rail route more than doubled, from 22,224 kms in FY15
to 50,394 kms in FY22
Three major economic railway corridor programmes will be

implemented. These are:
energy, mineral and cement corridors,
port connectivity corridors, and
high traffic density corridors.
The projects have been identified under the PM Gati Shakti for enabling
multi-modal connectivity. They will improve logistics efficiency and
reduce cost.
The resultant decongestion of the high-traffic corridors will also help

in improving operations of passenger trains, resulting in safety and
higher travel speed for passengers.
59
Together with dedicated freight corridors, these three economic
corridor programmes will accelerate our GDP growth and reduce
logistic costs.
Forty thousand normal rail bogies will be converted to the Vande

Bharat standards to enhance safety, convenience and comfort of
passengers.
In last ten years 26000 Km track has been added.
Last year we added 5,200 km of new tracks which is equivalent to entire

rail network of Switzerland. This year we are adding 5,500 km. From 4 km
per day in 2014, we are now adding about 15 km per day in new
tracks.
60
Aviation
Sector
The aviation sector has been galvanized in the past ten years. Number of
airports have doubled to 149.
Roll out of air connectivity to tier-two and tier-three cities under UDAN
scheme has been widespread.
Five hundred and seventeen (517) new routes are carrying 1.3 crore
passengers.
Indian carriers have pro-actively placed orders for over 1000 new
aircrafts.
Expansion of existing airports and development of new airports will

continue expeditiously.
Metro and NaMo Bharat

We have a fast-expanding middle class and rapid
urbanization is taking place.
Metro Rail and NaMo Bharat can be the catalyst for the
required urban transformation.
Expansion of these systems will be supported in large cities focusing on

transit-oriented development.
61
Green Energy
Towards meeting our commitment for ‘net-zero’ by 2070, the following
measures will be taken.
Viability gap funding will be provided for harnessing offshore
wind energy potential for initial capacity of one giga-watt.
Coal gasification and liquefaction capacity of 100 MT will be

set up by 2030. This will also help in reducing imports of natural
gas, methanol, and ammonia.
Phased mandatory blending of compressed biogas (CBG) in

compressed natural gas (CNG) for transport and piped natural
gas (PNG) for domestic purposes will be mandated.
Financial assistance will be provided for procurement of

biomass aggregation machinery to support collection.
Electric Vehicle Ecosystem

Government will expand and strengthen the e-vehicle
ecosystem by supporting manufacturing
and charging infrastructure.
Greater adoption of e-buses for public transport

networks will be encouraged through payment security
mechanism.
62
Bio-
manufacturing
& Bio-foundry
For promoting green growth, a new scheme of bio-manufacturing and
bio-foundry will be launched.
This will provide environment friendly alternatives such as biodegradable

polymers, bio-plastics, bio-pharmaceuticals and bio-agri-inputs.
Blue Economy 2.0

For promoting climate resilient activities for blue economy 2.0, a scheme
for restoration and adaptation measures, and coastal aquaculture and
mariculture with integrated and multi-sectoral approach will be launched.
63
Comprehensive
development of
Tourist Centres
The success of organizing G20 meetings in sixty places presented
diversity of India to global audience.
Our economic strength has made the country an attractive

destination for business and conference tourism.
Tourism, including spiritual tourism, has tremendous opportunities

for local entrepreneurship.
States will be encouraged to take up comprehensive development

of iconic tourist centres, branding and marketing them at global
scale.
A framework for rating of the centres based on quality of facilities

and services will be established.
Long-term interest free loans will be provided to States for financing

such development on matching basis.
To address the emerging fervour for domestic tourism, projects for

port connectivity, tourism infrastructure, and amenities will be
taken up on our islands, including Lakshadweep. This will help in
generating employment also.
64
Promoting Investments
FDI Inflow doubled from 298 USD Billion during 2005-14 to 596 USD
Billion during 2014-23
For encouraging sustained foreign investment, Government is

negotiating bilateral investment treaties with our foreign partners, in the
spirit of ‘first develop India’.
Reforms in the States for

‘Viksit Bharat’
Many growth and development enabling reforms are needed in the
states for realizing the vision of ‘Viksit Bharat’.
A provision of seventy-five thousand crore rupees as fifty-year interest

free loan is proposed this year to support those milestone-linked
reforms by the State Governments.
Societal Changes
The Government will form a high-powered committee for an extensive
consideration of the challenges arising from fast population growth and
demographic changes.
The committee will be mandated to make recommendations for

addressing these challenges comprehensively in relation to the goal of
‘Viksit Bharat’.
65
Amrit Kaal as
Kartavya Kaal
Government stands committed to strengthening and expanding the economy
with high growth and to create conditions for people to realize their
aspirations.
Hon’ble Prime Minister in his Independence Day address to the nation, in the
75th year of our Republic said; we “commit ourselves to national development,
with new inspirations, new consciousness, new resolutions, as the country
opens up immense possibilities and opportunities”. It is our ‘Kartavya Kaal’.
Every challenge of the pre-2014 era was overcome through our economic
management and our governance. These have placed the country on a
resolute path of sustained high growth. This has been possible through right
policies, true intentions, and appropriate decisions.
66
Revised Estimates
2023-24
The Revised Estimate of the total receipts other than borrowings is
₹27.56 lakh crore, of which the tax receipts are ₹23.24 lakh crore. The
Revised Estimate of the total expenditure is ₹44.90 lakh crore.
The revenue receipts at ₹ 30.03 lakh crore are expected to be higher

than the Budget Estimate, reflecting strong growth momentum and
formalization in the economy.
The Revised Estimate of the fiscal deficit is 5.8 per cent of GDP,
improving on the Budget Estimate, notwithstanding moderation in the
nominal growth estimates.
67
Budget
Estimates
2024-25
Total receipts other than borrowings: Rs.30.80 lakh crore
Total expenditure: Rs.47.66 lakh crore
Tax receipts are estimated: Rs.26.02 lakh crore.
Scheme of fifty-year interest free loan for capital expenditure to states to

be continued this year with total outlay of Rs.1.3 lakh crore (0.4 per
cent of GDP).
Fiscal deficit in 2024-25 is estimated to be 5.1 per cent of GDP.

Government announced in Budget Speech for 2021-22, to reduce fiscal
deficit below 4.5 per cent by 2025-26.
Gross and net market borrowings through dated securities during

2024-25 are estimated at Rs.14.13 and Rs.11.75 lakh crore respectively.
Both will be less than that in 2023-24.
Now that the private investments are happening at scale, the lower
borrowings by the Central Government will facilitate larger availability
of credit for the private sector.
68
Direct Taxes
FM proposes to retain same tax rates for direct taxes
Direct tax collection tripled, return filers increased to 2.4 times, in

the last 10 years
Government to improve tax payer services:

Outstanding direct tax demands upto Rs 25000 pertaining to
the period upto FY 2009-10 withdrawn
Outstanding direct tax demands upto Rs 10000 for financial

years 2010-11 to 2014-15 withdrawn
This will benefit one crore tax payers
Tax benefits to Start-Ups, investments made by Sovereign wealth

funds or pension funds extended to 31.03.2025
Tax exemption on certain income of IFSC units extended by a year

to 31.03.2025 from 31.03.2024
69
Tax
Rationalization
efforts
over the years
The Government has reduced and rationalized tax rates. Under the
new tax scheme, there is now no tax liability for tax payers with income
up to ₹ 7 lakh, up from ₹ 2.2 lakh in the financial year 2013-14.
The threshold for presumptive taxation for retail businesses was

increased from ₹ 2 crore to ₹ 3 crore.
Similarly, the threshold for professionals eligible for presumptive

taxation was increased from ₹ 50 lakh to ₹ 75 Lakh.
Also, corporate tax rate was decreased from 30 per cent to 22 per cent
for existing domestic companies and to 15 per cent for certain
new manufacturing companies.
70
Indirect
Taxes
FM proposes to retain same tax rates for indirect taxes and import
duties
GST unified the highly fragmented indirect tax regime in India

Average monthly gross GST collection doubled to Rs 1.66 lakh
crore in 2023-24 GST tax base has doubled
GST tax base has doubled
State SGST revenue buoyancy (including compensation released

to states) increased to 1.22 in post-GST period (2017-18 to 2022-
23) from 0.72 in the pre-GST period (2012-13 to 2015-16)
94% of industry leaders view transition to GST as largely

positive
GST led to supply chain optimization
GST reduced the compliance burden on trade and industry
Lower logistics cost and taxes helped reduce prices of goods

and services, benefiting the consumers
71
Achievements in
Tax-payer
Services
In the last five years, our focus has been to improve tax-payer services.
The age-old jurisdiction-based assessment system was
transformed with the introduction of Faceless Assessment and
Appeal, thereby imparting greater efficiency, transparency and
accountability.
Updated income tax returns, new form 26AS and prefilled tax returns for
simplified return filing
Average processing time of tax returns has reduced to 10 days from

93 days in 2013-14
Reforms in customs leading to reduced Import release time over the

last four years since 2019:
Reduction by 47% to 71 hours at Inland Container Depots
Reduction by 28% to 44 hours at Air Cargo complexes
Reduction by 27% to 85 hours at Sea Ports
72
Economy
Then and Now
In 2014, there was a responsibility to mend the economy and put
governance systems in order. The need of the hour was to:
Attract investments
Build support to the much-needed reforms
Give hope to the people
The government succeeded with a strong belief of ‘nation-first’
The Government will lay a White Paper on table of the House on ‘where
we were then till 2014 and where we are now, only for the purpose of
drawing lessons from the mismanagement of those years’
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.
Government will come out with a white paper, on ‘where we were then
till 2014 and where we are now, only for the purpose of drawing lessons
from the mismanagement of those years’
73
Statements of Fiscal Policy as
required under the Fiscal
Responsibility and Budget
Management Act, 2003
The Fiscal Responsibility and Budget Management Act, 2003 was
enacted with a view to provide a legislative framework for reduction of
deficit and thereby debt, of the Central Government to a sustainable
level over a medium term so as to ensure inter-generational equity in
fiscal management and long term macro-economic stability.
The Fiscal Responsibility and Budget Management Act, 2003 and
the Fiscal Responsibility and Budget Management Rules, 2004
made under Section 8 of the Act have come into force with effect
from 5th July 2004.
The FRBM framework mandates Central Government to limit the

Fiscal Deficit upto three per cent of Gross Domestic Product by the
31st March, 2021.
It further provides that, the Central Government shall endeavour to

limit the General Government Debt to 60 per cent of GDP and
the Central Government Debt to 40 per cent of GDP, by 31st
March, 2025.
Further, in line with the commitment made in the Budget Speech for
FY 2021-22, the Government would pursue a broad path of fiscal
consolidation to attain a level of Fiscal Deficit lower than 4.5 per
cent of GDP by FY 2025-26.
As per the First Advance Estimates of National Income of FY 2023-

24, presented along with the Finance Minister’s speech, India’s Real
74
GDP is projected to grow at 7.3 per cent. This is also in line with the
upward revision in growth projections for FY2023-24 by the RBI (in its
December 2023 Monetary Policy Committee meeting) from 6.5 per cent
to 7 per cent, prompted by strong growth in Q2 of FY2023-24.
Indian economy has demonstrated resilience and maintained healthy
macro-economic fundamentals, despite global economic challenges.
Nominal GDP in FY 2024-25 is projected to grow by 10.5 per cent
over the Advance Estimates of FY 2023-24
The International Monetary Fund (IMF), in its World Economic

Outlook (WEO), October 2023, has revised its growth projection for
India for FY2023-24 upwards to 6.3 per cent from 6.1 per cent
projected in July 2023. At this rate, India remains one of the fastest
growing major economies in the world. However, the ongoing geo-
political conflicts can disrupt global supply chains, especially for food
and energy This reflects increasing global confidence in India’s
economic prowess at a time when global growth projection for 2023
remains unchanged at 3 per cent.
As per the IMF, India is likely to become the third-largest economy

in 2027 (in USD at market exchange rate) and it also estimated that
India’s contribution to global growth will rise by 200 basis points
in 5 years. Moreover, various international agencies such as the World
Bank, the IMF, OECD and ADB project India to grow between 6.4 per
cent, 6.3 per cent, 6.1 per cent and 6.7 per cent, respectively in 2024-
25.
Government Borrowings, Lending and Investments

India’s Debt Management Strategy is based on three broad pillars
viz. low-cost borrowing, risk mitigation and market development.
The Government’s Medium Term Debt Management Strategy

seeks to reduce the cost of borrowing for the Government in
75
the medium to long term through the issuance of appropriate
instruments, and by controlling rollover risk by lengthening
maturities and switching/buying back securities.
It also reduces interest rate risk by keeping floating rate debt

low, and manages foreign currency risk by issuing debt in the
domestic currency.
External Debt (at current exchange rate) to GDP ratio was at 2.7
per cent at the end of FY 2022-23.
The external debt at `15,592 crore as a source of financing

Fiscal Deficit (FD) has a share of 0.9 per cent in BE of FY 2024-
25.
The Weighted Average Maturity (WAM) of primary issuances of

dated securities in FY 2023-24 (as on January 8, 2024) has
increased to 17.93 years vis-àvis 16.05 years in previous FY
2022-23.
During 2024-25, gross and net market borrowings through dated

securities are estimated at ₹ 14.13 lakh crore and ₹ 11.75 lakh
crore respectively.
76
Strategic Priorities
for FY 2024 - 25
The FY 2024-25 fiscal strategy of the government is based on the
following broad goals:
Focus on more inclusive, sustainable and more resilient domestic
economy to absorb the unanticipated shocks, if any;
Channelising and allocating resources towards capital spending to

sustain infrastructure development momentum;
Strengthening the fiscal federalism by enhancing the public

infrastructure by supporting efforts of the States for capital
spending;
Focus on integrated and coordinated planning and implementation

of infrastructure projects, embracing the principles of PM
GatiShakti;
Prioritisation of expenditure towards the key developmental sectors

viz., drinking water, housing, sanitation, green energy, health,
education, agriculture, rural development etc. for welfare of the
citizens;
Enhancing the effectiveness of cash management through just-in-

time release of resources by using Single Nodal Agency (SNA)/
Treasury Single Account (TSA) system etc.
77
Conclusion and Policy
Evaluation
Though some global uncertainties that prevailed during FY 2023 may
spill-over in FY 2024, the Central Government remains committed
towards ensuring that India remains protected from unforeseen
external shocks.
The fiscal policy stance in BE 2024-25 is twofold: first, to provide

positive impulses to the growth environment, and second, to make
the domestic economy more resilient to global headwinds.
The augmented capex plan has a multiplier effect. It is expected to

strengthen domestic growth momentum, which in turn will complement
private investments. Cumulatively, these would foster rapid, sustainable
and inclusive growth over the medium term.
78
Defence
Budget
The Ministry of Defence (MoD) continues to receive the highest
allocation among the Ministries.
Rs 6,21,540.85 crore: This comes out to be 13.04% of total Union Budget.
The budgetary allocation to Defence for FY 24-25 is higher by approx.

one lakh crore (18.35%) over the allocation for the FY 2022-23 and
4.72% more than allocation of FY 23-24.
Of this, a major share of 27.67% goes to capital, 14.82% for revenue

expenditure on sustenance and operational preparedness, 30.68% for Pay
and allowances, 22.72% for defence pensions and 4.11% for civil
organisations under MoD.
Budgetary allocation for capital expenditure in Defence for FY 24-25 is

Rs 1.72 lakh crore which is 20.33% higher than the actual expenditure of
FY 22-23 and 9.40 % more than the Revised Allocation of FY 23-24.
79
Major Schemes Outlay
( 2024 - 25 )
MGNREGA: 86000 crs
Ayushman Bharat (PMJAY): 7500 crs
Jal Jeevan Mission (JJM): 70163 crs
Samagra Shiksha: 37500 crs
National Health Mission: 38183 crs
Pradhan Mantri Awas Yojna (PMAY): 80671 crs
Saksham Anganwadi and POSHAN 2.0: 21200 crs
Pradhan Mantri Gram Sadak Yojna: 19000 crs
Pradhan Mantri Krishi Sinchai Yojna: 11391 crs
Swachh Bharat Mission: 5000 crs
Swachh Bharat Mission (Gramin): 7192 crs
AMRUT and Smart Cities Mission: 10400 crs
PM Schools for Rising India (PM SHRI): 6050 crs
PM Ayushman Bharat Health Infrastructure Mission (PMABHIM): 4108 crs
PM Poshan Shakti Nirman (PM POSHAN): 12467 crs
Pradhan Mantri Kisan Samman Nidhi (PMKisan): 60000 crs
80
Modified Interest Subvention Scheme (MISS): 22600 crs
Urea Subsidy: 119000 crs
Nutrient Based Subsidy: 45000 crs
Pradhan Mantri Garib Kalyan Anna Yojana (PMGKAY)(food subsidy): 205250 crs
FAME: 2671 crs
Prime Minister’s Development Initiative for North East Region (PM-DevINE): 2055
crs
GST Compensation Fund: 150000 crs
National Green Hydrogen Mission: 600 crs
Solar Power (Grid): 10000 crs
81
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INTERIM

2022-23 2023-24 2023-24 2022-23

+91 9310558455 www.crackgradeb.com info@crackgradeb.com

Independent India's first budget was presented on November 26, 1947

Former Prime Minister Moraraji Desai holds the record of presenting

The Budget 1999-2000, Finance Minister Yashwant Sinha presented

From Budget 2017-18, the budget was started to be presented on 1st

By presenting 6th budget 2024-25, Finance Minister Nirmala

Budget is prepared by the Budget Division, Department of Economic

Budget Estimate (BE) for the next FY 2024-25

Budget and Revised Estimate (RE) for the current FY 2023-24

Actual figures for the preceding FY 2022-23

B. Demands for Grants (DG) (Article 113)

C. Finance Bill (Article 110a)

D. Fiscal Policy Statements mandated under Fiscal Responsibility and

I. Key Features of Budget

J. Implementation of Budget Announcements

Budget General Houses Voting on Demand Appropriation Finance

1st Feb Detailed Discussion 31st March

A. Annual Financial Statement (AFS): The Annual Financial Statement

All expenditures incurred by the government for the conduct of its

3. Public Account of India:

The Union Budget can be demarcated into the part pertaining to

Capital receipts and capital payments together constitute the

B. Demands for Grants

Generally, one Demand for Grant is presented in respect of

With regard to Union Territories, a separate Demand is presented

The bill has to be passed by the Parliament within 75 days of

Medium-Term Fiscal Policy cum Fiscal Policy Strategy Statement

E. Expenditure Budget The provisions made for a scheme or a

Expenditure of individual Ministries/ Departments are classified under 2

Under the Umbrella of Centres’ Expenditure there are 3 sub-classification

The Umbrella of Transfers to States/UTs includes the following 3 sub-

I. Key Features of Budget

J. Implementation of Budget Announcements of last year

REVENUE REVENUE CAPITAL CAPITAL

Tax Revenues consists of direct and indirect taxes of the central

Non-Tax Revenue consists of interest receipts on account of loans

Examples of Other Non-Tax Revenue: Fiscal Services (Currency,

salaries and pensions

Non-Debt Receipts (Net)

BALANCED, SURPLUS AND

Balanced budget: If the receipts of the government are equal to its

1. Revenue Deficit: Revenue Deficit is the difference between the

Revenue Deficit = Revenue Expenditure - Revenue Receipts

Revenue Deficit implies that government's current expenses are more

Fiscal Deficit = Total Expenditure - Total Receipts except borrowing

Let us understand with an example.

3. Primary Deficit: A large part of the government's fiscal deficit is

Primary Deficit = Fiscal Deficit - Net interest liabilities

In the Union Budget 2011-12, government introduced a new term called

Effective Revenue Deficit = Revenue Deficit - Grants for creation of

Deficit financing is the budgetary situation where government

Sources of Financing for Fiscal Deficit :

Securities against Small Savings (2nd highest share)

Short term Borrowing (T- Bill etc.)

State Provident Funds

2024-25 ( lakh crs)

Capital Receipt 17.64

Revenue receipt 30.02

Total budget 47.66

Gross Tax receipt in BE 2024-25 = 38.31 lakh crores

State Share of Taxes in BE 2024-25 =12.20 lakh crores (3.7 percent of