Union Budget 2024-25 Date, Time Announced: Key Features for the Upcoming Fiscal Year

Last Updated on: 23rd January 2024, 01:49 pm

Scheduled for presentation on February 1, 2024, in the Lok Sabha, the Union Budget 2024-25 will be unveiled by Union Finance Minister Nirmala Sitharaman. This budget is deemed an “Interim Budget” for the fiscal year starting on April 1, 2024, and concluding on March 31, 2025.

Date of Union Budget 2024-25 Presentation

On Thursday, February 1st, 2024, at 11:00 AM, the Indian Parliament will witness the presentation of the Union Budget for the fiscal year 2024-25. Emphasizing it as an “Interim Budget,” it pertains to the fiscal period commencing on April 1, 2024, and concluding on March 31, 2025.

The forthcoming budget is anticipated to prioritize five key social sectors: the welfare of the poor, women, youth, farmers, and tribals. It is expected that the allocation of funds to the agriculture sector will persist, and there might be an increase in the outlay for capital expenditure.

This budget’s effectiveness will extend only until the Lok Sabha Elections’ results in 2024 are known and a new government is elected. It will delineate spending for the initial months of FY 2024–25 or until the next government assumes office. You can also check PM Kisan’s 16th Installment Release Date.

Rationale for an Interim Budget

Several reasons contribute to the presentation of an interim budget rather than a full budget in the year of Lok Sabha elections:

1. Election Regulations: Indian election regulations prohibit the outgoing government from making significant financial announcements during the election campaign period.
2. Continuity of Essential Services: An interim budget ensures sustained funding for critical government services such as salaries, defense, and existing ongoing programs.
3. Limited Policy Changes: Major policy reforms or substantial alterations in taxation are generally avoided in an interim budget, granting the incoming government flexibility to formulate its roadmap.
4. Fiscal Prudence: The outgoing government prioritizes maintaining fiscal discipline and managing the deficit in an interim budget, ensuring financial stability during the transition period.
5. Short-term Outlook: An interim budget covers only a few months until the new government assumes office, focusing on essential spending and avoiding long-term commitments.
6. Leveling the Playing Field: An interim budget ensures that the outgoing government refrains from making any major policy decisions that could unfairly benefit specific sectors or groups, maintaining a fair and neutral environment for the upcoming elections.

Expectations from the Union Budget 2024-25

While major policy reforms and significant changes in taxation are unlikely, the interim budget might concentrate on the following aspects:

1. Continuation of Existing Schemes: Key government programs related to social welfare, agriculture, infrastructure, and defense are expected to receive continued funding.
2. Populist Measures: The government might announce populist measures in the form of subsidies, tax relief for specific sectors, or increased allocations for social security schemes to attract voters.
3. Fiscal Prudence: Maintaining fiscal discipline and managing the deficit will be a priority, especially considering global economic uncertainties.
4. Laying the Groundwork: The budget may hint at long-term policy initiatives that the new government could pursue after the elections. 

Check also, Rojgar Sangam Yojana Punjab

Exclusions from the Union Budget 2024-25

Here’s a breakdown of what to not anticipate in the upcoming interim budget:

1. New Flagship Schemes: No grand launch of new flagship programs or alterations to existing ones is expected. The focus will be on continuity and running already established schemes.
2. Major Tax Reforms: Substantial changes in direct or indirect taxes like income tax or GST are unlikely.
3. Long-Term Fiscal Plans: The interim budget won’t delve into elaborate, long-term economic or fiscal plans. These will be left for the new government to formulate after the elections.
4. Controversial Policy Initiatives: Big, potentially controversial policy decisions that could spark debate or public opposition are usually avoided in an interim budget.
5. New Commitments beyond Essential Spending: The interim budget prioritizes essential expenditures like salaries, defense, and ongoing programs. New commitments involving significant resource allocation for fresh projects or initiatives are unlikely.
6. Political Promises or Populism: While some measures appealing to specific sectors or groups may be announced, blatant populist policies meant to woo voters are generally eschewed in an interim budget.
7. Comprehensive Vision for the Future: The interim budget will provide a limited snapshot of the financial scenario, not a comprehensive vision for the future of the economy.

Key Sectors in Focus for the Union Budget 2024-25

The crucial sectors expected to receive attention in the Union Budget 2024-25 include:

1. Social Welfare: Schemes like MGNREGA, food security programs, and pensions for marginalized groups are expected to see continued funding to ensure income support and basic needs are met.
2. Agriculture: Continued funding for farmer welfare programs like PM Kisan Samman Nidhi and Pradhan Mantri Fasal Bima Yojana is likely.
3. Infrastructure: Maintaining momentum in infrastructure development, particularly in areas like railways, roads, and renewable energy, will be a priority.
4. Education and Healthcare: Funding for existing education and healthcare programs like Ayushman Bharat Yojana is expected to continue.
5. Defense: Maintaining adequate funding for defense needs will be a priority, given the geopolitical situation.