Budget breakdown: Union Finance Minister Nirmala Sithaman addresses the press conference after presenting the Union Interim Budget 2024 at Parliament, at the National Media Centre, in New Delhi on Thursday.
| Photo Credit: ANI

A sector-wise split of the budgeted expenditure in FY25 shows that of the 26 sectors for which data was analysed, allocation as a share of the total Budget declined in 15 of them while it increased in the rest of the 11 sectors, when compared with FY24’s revised estimates. 

Also read: Where does the money come from and where is it allocated?

The graphic shows the sector-wise budgeted expenditure (₹ crore) in FY25. The bigger the rectangle, the higher the proposed spending in FY25. It also shows the change in a sector’s share in total expenditure from FY24 (revised estimates). The deeper the blue, the higher the increase in share from FY24. The deeper the red, the higher the decrease in share from FY24.

Also Read: Puffed-up and poll-ready: Nirmala Sitharaman’s first Interim Budget

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• As usual, interest payments cornered a lion’s share of the total Budget this year too. In absolute figures, ₹11,90,440 crore were allocated for interest payments. If expressed as a share of FY25’s total Budget it comes to 24.98%, which is 1.48 percentage points more than its share in FY24 (23.5%). 
• Transport and Defence sectors featured second and third on the list in terms of absolute allocations. But contributions to those sectors declined when expressed as a share of the total Budget. Defence sector’s allocation formed 9.54% of FY25’s total Budget, a 0.61 percentage point decrease from its share in FY24 (10.15%). The Transport sector’s allocation formed 11.42% of FY25’s total Budget, a 0.27 percentage point decrease from its share in FY24 (11.69%). 
• Rural development, IT and Telecom, Health, Energy, Education, Social Welfare, Scientific departments, Health, Urban Development and Planning and Statistics are sectors which recorded marginal increases as a share of the total Budget.
• The Budget allocated to the fertiliser subsidy recorded the biggest drop. It formed 3.44% of the total Budget in FY25, a 0.77 percentage points drop from the 4.21% of the total Budget in FY24. 
• The Budget allocated to food also recorded a considerable decrease. It formed 4.31% of the total Budget in FY25, a 0.42 percentage point drop from the 4.31% of the total Budget in FY24. 

Also read: Budget 2024 updates | Have brought down fiscal deficit despite challenges: Sitharaman

Education scheme budget: Students in a classroom in Radhakrishnapur High School which uses innovative means for the upliftment of their students.
| Photo Credit: DEBASISH BHADURI

In FY25, the government is expected to spend ₹73,008 crore on school education. The allocation marginally increased by ₹534 crore, when compared with the revised estimates for the year FY24. While it has increased in terms of absolute numbers, if the allocation is expressed as a share of the total Budget, school education’s share comes to 1.53% in FY25, the lowest, if the pandemic years and the recovery period are ignored. 

Chart 1 shows the allocation to school education as a share of the total Budget, across years.

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The 1.53% share in FY25 is the lowest in the recent past if FY21, FY22 (pandemic years) and FY23 (recovery year) are ignored. The allocations for major schemes under the school education umbrella also mimicked a similar trend.

Budget 2024 updates

The government is expected to spend ₹37,500 crore on the Samagra Shiksha scheme, an increase of ₹4,500 crore when compared with FY24 revised estimates. The scheme subsumes the three erstwhile Schemes of Sarva Shiksha Abhiyan (SSA), Rashtriya Madhyamik Shiksha Abhiyan (RMSA) and Teacher Education (TE). 

While it has increased in terms of absolute numbers, if the allocation is expressed as a share of the total Budget, the Samagra Shiksha scheme’s share comes to 0.79% in FY25, much lower than the pre-pandemic years. From FY17 to FY20, the scheme’s share in the total Budget was over 1.2%, as shown in Chart 2. 

Chart 2 shows the allocation for the Samagra Shiksha scheme as a share of the total Budget, across years.

The government is expected to spend ₹12,467 crore on the Pradhan Mantri Poshan Shakti Nirman (PM – POSHAN) scheme, an increase of ₹2,467 crore when compared with FY24 revised estimates. The primary objective of the scheme is to improve the nutritional status of children studying in classes I-VIII in eligible schools. It was earlier known as the National Programme of Mid-Day Meals in Schools.

While it has increased in terms of absolute numbers, if the allocation is expressed as a share of the total Budget, the PM – POSHAN scheme’s share comes to 0.26% in FY25, the lowest in the last nine years, except FY24 revised estimates, as shown in Chart 3.

Chart 3 shows the allocation for the Pradhan Mantri Poshan Shakti Nirman (PM – POSHAN) scheme as a share of the total Budget, across years

Also read:Interim Budget 2024: Spending on IITs and IIMs declines as a share of total Budget | Data 

Rural development schemes: Workers engaged in the MNREGS works at Siddharampuram in Anantapur district.
| Photo Credit: Prasad RVS

In FY25, the government is expected to spend ₹2,65,808 crore on rural development. The allocation marginally increased by ₹26,824 crore, when compared with the revised estimates for the year FY24. However, the increase in the overall spending on rural development, when compared with the revised estimates, is not equally distributed among the major schemes that feature under this umbrella. 

For instance, in absolute terms, the government is expected to spend ₹86,000 crore in FY25 on the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), the same amount when compared with FY24 revised estimates. This is one of the major schemes of the Rural Development Ministry which aims to enhance the livelihood security of rural households by providing at least one hundred days of guaranteed wage employment. 

The government is expected to spend ₹2,027 crore on the Indira Gandhi National Widow Pension Scheme (IGNWPS), the same amount when compared with FY24 revised estimates. Under the scheme central assistance is provided to widows in the age group of 40-79 years and belonging to families living below the poverty line

The government is expected to spend ₹12,000 crore on the Pradhan Mantri Gram Sadak Yojana (PMGSY) in FY25, a decrease of ₹5,000 crore compared with FY24 revised estimates. The scheme provides all-weather road connectivity to all eligible habitations of the designated population size. 

On the other hand, in absolute terms, the government is expected to spend ₹54,500 crore on Pradhan Mantri Awaas Yojana Gramin (PMAYG), an increase of ₹22,500 crore when compared with FY24 (revised estimates). The scheme aims to provide housing, with basic amenities, to poorer sections of society in rural areas.

The government is expected to spend ₹15,047 crore on Deendayal Antyodaya Yojana- National Rural Livelihoods Mission (DAY-NRLM), an increase of ₹918 crore compared with FY24 (revised estimates). The scheme aims to organise rural poor women into Self Help Groups and support them till they attain an appreciable increase in incomes over a period of time. 

The government is expected to spend ₹6,646 crore on the Indira Gandhi National Old Age Pension Scheme (IGNOAPS), a marginal increase of ₹11.5 crore when compared with FY24 revised estimates. Under the scheme, assistance is provided to persons of 60 years and above and belonging to families living below the poverty line.

While the above data compares the allocations in absolute terms, it is more prudent to compare the spending as a share of the total Budget allocated in each year. 

Chart 1 shows the allocation to rural development as a share of the total Budget, across years.

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In FY25, the government is expected to spend 5.58% of its total Budget on rural development. The share increased from 5.32% in FY24 (revised estimates). Despite the increase from last fiscal year, the allocation share did not cross the 6% mark as it did in FY22, FY21, and FY18.

Chart 2 shows the allocations for MGNREGA, IGNWPS, PMGSY and IGNOAPS as a share of the total Budget, across years.

 In FY25, the government is expected to spend 1.8% of its total Budget on MGNREGA — the lowest in at least the last nine years. In FY25, the government is expected to spend 0.04% of its total Budget on IGNWPS — the lowest in at least the last nine years. In FY25, the government is expected to spend 0.25% of its total Budget on PMGSY — the lowest in at least the last nine years. In FY25, the government is expected to spend 0.14% of its total Budget on IGNOAPS — the lowest in at least the last nine years. 

Chart 3 shows the allocations for PMAYG and DAY-NRLM as a share of the total Budget, across years.

In FY25, the government is expected to spend 1.14% of its total Budget on PMAYG — the highest in at least the last nine years. In FY25, the government is expected to spend 0.32% of its total Budget on DAY-NRLM — the second highest in at least the last nine years. 

So, in terms of allocations as a percentage of the total Budget, the share has decreased in four schemes and increased in two schemes, even while rural development’s overall allocation as a share of the Budget has increased. 

Also read:Interim Budget 2024 | Net zero gain for MGNREGS

Higher education Budget allocation: Indian Institute of Technology (IIT) Delhi main gate, in New Delhi.
| Photo Credit: Sandeep Saxena

In FY25, the government is expected to spend ₹47,619 crores on higher education. The allocation declined by ₹9,624 crore, when compared with the revised estimates for the year FY24. The reduction in overall spending on higher education, when compared with the revised estimates, is reflected in the money spent on the Indian Institute of Technology (IITs) and the Indian Institute of Management (IIMs). The allocations to these institutes also declined.

In absolute terms, the government is expected to spend ₹10,324 crore on IITs and ₹212 crore on IIMs, a reduction of ₹60 crore and ₹119 crore respectively, compared with FY24’s revised estimates. While absolute change in allocation gives an idea of what the government is focussing on, analysing the allocations as a share of the total Budget is more prudent. 

Chart 1 shows the allocation to higher education as a share of the total Budget, across years.

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In FY25, the government is expected to spend 1% of its total Budget on higher education. The share decreased from 1.27% in FY24 (revised estimates). 

Chart 2 shows the allocation to IITs as a share of the total Budget, across years.

In FY25, the government is expected to spend 0.22% of its total Budget on IITs. The share marginally decreased from 0.23% in FY24 (revised estimate). 

Chart 3 shows the allocation to IIMs as a share of the total Budget, across years. In FY25, the government is expected to spend 0.004% of its total Budget on higher education.

The share marginally decreased from 0.007% in FY24 (revised estimate).

If the pandemic years and the recovery period are not considered, the proposed spending in FY25 on higher education (including IIMs and IITs) is the lowest in the recent past, as a share of the total Budget. 

Also read: Interim Budget 2024-2025 documents presented by FM Nirmala Sitharaman

Prime Minister Narendra Modi during the presentation of the Interim Budget 2024 in the Lok Sabha, at Parliament House in New Delhi, Thursday, Feb. 1, 2024.
| Photo Credit: PTI

Prime Minister Narendra Modi characterised the Interim Budget tabled on Thursday as “inclusive and innovative”, one that “carries the confidence of continuity”, a reference to Finance Minister Nirmala Sitharaman’s assertion in Parliament that it will be yet another Modi-led government that will present the full Budget in July after the Lok Sabha election.

Budget 2024 live updates | Interim budget leaves tax structure untouched; PM calls it ‘transformative’ for India’s future

“This Budget will empower all pillars of developed India — the youth, the poor, women, and farmers. It carries the guarantee of strengthening the foundations of Viksit Bharat by 2047,” he said in remarks made directly after the tabling of the Union Budget.

On Wednesday, the start of the Budget Session, Mr. Modi had, in his customary remarks, said that the Interim Budget will not have any major announcements but broad guidelines for the future, and the Budget speech on Thursday reflected that.

Stating that the Budget reflected the aspirations of “young India”, he highlighted two significant announcements in the Budget — that of a fund of ₹1 lakh crore for research and innovations, and the extension of tax exemptions for start-ups.

“We set a big goal, achieve it, and then set an even better goal for ourselves,” he said, referring to the target to build two crore more houses for the poor under the Pradhan Mantri Awas Yojana, and create three crore ‘Lakhapati Didis’ as part of women’s empowerment.

He added that keeping the fiscal deficit under control at a time when the total expenditure had seen a historic rise to ₹11,11,111 crore in this Budget was “in the parlance of economists, hitting a sweet spot”.

“It will create millions of new employment opportunities for the youth along with the creation of modern infrastructure of the 21st century,” Mr. Modi said. He singled out measures taken by his government for the poor and the middle class, including the Pradhan Mantri Suryodaya Yojana, the roof-top solar campaign where one crore families are to avail free electricity while also have the potential to earn ₹15,000-18,000 annually by selling excess electricity to the government.

He made a special mention of the tax remission scheme announced in Thursday’s Budget speech that is expected to provide relief for one crore tax payers caught up in disputes with tax authorities over petty amounts from as far back as the 1960s, stating that this too would give relief to the middle class.

Image for representation only
| Photo Credit: AP

While presenting the interim budget for 2024, Finance Minister Nirmala Sitharaman announced a set of measures to boost the green economy and the blue economy

Among other measures pertaining to finance and infrastructure, Finance Minister Nirmala Sitharaman also announced some green initiatives and steps which will be taken for India to meet its net-zero commitments by 2070 in the interim budget presented in the Lok Sabha today. She also highlighted some efforts which will go towards creating a ‘Blue economy.’

Ms. Sitharaman announced that viability gap funding would be provided for harnessing offshore wind energy potential for initial capacity of one giga-watt.

Also Read | Budget 2024 live updates | Interim budget leaves tax structure untouched; PM calls it ‘historic’, ‘transformative’ for the future of India

Further, coal gasification and liquefaction capacity of 100 MT shall be set up by 2030, she said, highlighting that this will also help in reducing imports of natural gas, methanol, and ammonia. The Centre also proposes phased blending of compressed biogas in compressed natural gas (CNG) for transport, as well as piped natural gas (PNG) for households. Financial assistance will be given for those seeking to procure biomass aggregation machinery, she shared.

As far as green transport goes, Ms. Sitharaman announced that the e-vehicle ecosystem will be expanded through support to manufacturing and charging infrastructure. Greater adoption of e-buses for public transport networks will be encouraged through payment security mechanism, she said.

Green growth is expected to receive an impetus through a new scheme for bio-manufacturing and bio-foundry, which will provide eco-friendly alternatives such as biodegradable polymers, bio-plastics, bio-pharmaceuticals and bio-agri-inputs. This is expected to push adoption of regenerative principles.

Ms. Sitharaman’s speech also announced certain measures to promote climate resilient activities for blue economy 2.0. These include a scheme for restoration and adaptation measures as well as a multi-sectoral approach towards coastal aquaculture and mariculture.

According to the World Bank, a blue economy refers to a “sustainable use of economic resources for economic growth, improved livelihoods and jobs, and ocean ecosystem health.”

The speech also mentioned enhancing public transport, saying that Metro Rail and NaMo Bharat or Regional Rapid Transit services could be the catalyst for urban transformation and that these systems will be expanded in cities.

Touching upon green power while discussing measures to develop electricity infrastructure, the Finance Minister highlighted that one crore households will be enabled to obtain up to 300 units free electricity every month through rooftop solarization.

Union Finance Minister Nirmala Sitharaman poses for photographs before presenting the Interim Budget 2024 in New Delhi on February 1, 2024.
| Photo Credit: Shiv Kumar Pushpakar

FM Nirmala Sitharaman presented the Interim Budget in the Lok Sabha today. Earlier in the morning, the Union Cabinet met and approved the Budget.

Also Read |Budget 2024 live updates

In her Budget speech, Ms. Sitharaman highlighted the Centre’s various programmes for women, youth and poor. She noted that the Indian economy has seen a “profound” transformation, and that the Government carried out structural reforms. She said the government’s focus was on four major ‘castes’ — women, youth, poor and farmers. “The country progresses, when they progress,” she said.

Here are highlights:

• FM Sitharaman said that the Government pulled 25 crore people out of poverty in ten years. She noted that government provided free food for 80 crore people through various schemes.
• Direct Benefit Transfers of Rs. 34 lakh crore through PM Jan Dhan Yojana accounts has led to savings of ₹2.7 lakh crore.
• The PM Vishwakarma Yojana scheme provides end-to-end support to artisans. The government provided credit assistance to 78 lakh street vendors under the PM-SVANidhi scheme. 30 crore Mudra Yojana loans disbursed to women entrepreneurs.
• Upskilling and reskilling was a focus for the government, and over 1.4 crore youth were trained under the Skill India Mission. 43 crore loans sanctioned under PM Mudra Yojana. The Government will also expand the ‘Lakhpati Didi’ scheme to empower rural women and boost the rural economy.
• The Government highlighted the role of the India-Middle East-Europe Economic Corridor can play in world trade.
• The Government will pay more attention to developing the East to fuel India’s growth.
• Inflation has moderated an is within the target band (2%-6%).
• Economic growth has picked up and the average real income of people increased by 50%.
• The Government will subsidise the construction of 30 million affordable houses in rural areas.
• The Centre will encourage cervical cancer vaccination and combine maternal and child health care schemes into one comprehensive programme.
• The Ayushman Bharat scheme will be expanded to all ASHA workers, Anganwadi workers and helpers.
• Government to encourage ‘Nano DAP’ for various crops and to expand its use for all agro-climactic zones.
• It will also formulate policies to support dairy farmers and defeat the Foot and Mouth Disease.
• The government will formulate a strategy achieve AtmaNirbharta (self-reliance) for oilseeds. This will cover research for high-yielding varieties, procurement, value addition and crop insurance.
• A new department — Matsya Sampada — to be set up to address the needs of fishermen. 
• 40,000 normal rail bogeys will be converted to Vande Bharat standards. Government to enhance safety, convenience and safety of passengers. Government to focus on metros in a bid to provide transit-oriented development
• The Government has announced several schemes to turn Net Zero by 2070. This includes providing funding to harness offshore wind energy generation for an initial capacity of 1 Giga Watt, procuring biomass aggregation machinery and expanding the e-vehicle sector by encouraging more manufacturing and charging infrastructure.
• Spends on capital expenditure have been increased to ₹11.11 lakh crore for 2024-25. The Government will continue on path of fiscal consolidation to reduce fiscal deficit to 4.5% in 2025-26.
• The Government proposed to maintain the same tax rates for direct and indirect taxes, including import duties.
• The Government borrowings on a gross and net basis for 2024-25, at Rs. 14.13 lakh crore and Rs. 11.75 lakh crore, respectively, lower than 2023-24.

Terming the Interim Budget presented by Union Finance Minister Nirmala Sitharaman as “progressive”, veteran BJP leader B. S. Yediyurappa complimented her for presenting a realistic Budget that will improve the standard of living of people.

The former Karnataka Chief Minister said the Budget reaffirms the commitment of the BJP government towards building a strong, empowered, developed and a “Vishwaguru” India in the coming days, which will complement the progress of the country. 

“Hearty congratulations to the Finance Minister Nirmala Sitharaman, who has presented the country’s ‘progressive Budget’ to further strengthen the country’s economy, and towards realisation of Prime Minister Narendra Modi’s concept of Navabharat,” Yediyurappa posted on social media platform X.

“Without presenting the Budget of pre-election popular slogans, through this Interim Budget, the Union Finance Minister has presented a realistic Budget that will improve the standard of living of our youth, farmers, women and especially the backward and vulnerable sections of the people, creating new hope and opportunities,” he added. – PTI

Agriculture and allied sector players termed the Interim Budget 2024-25 as a promising roadmap for strengthening agriculture, agrochemical, dairy sectors by encouraging investment in research and development, technology and warehousing that will empower farmers and their livelihood.

“The Interim Budget 2024-25 reiterates the government’s commitment to strengthening the ‘Annadata’ and backbone of our nation – our farmers. From direct financial assistance through PM-KISAN SAMMAN Yojana to expanding farmer-centric policies and promoting innovations, the budget paves the way for inclusive, sustainable growth in the agricultural sector,” Godrej Agrovet Managing Director Balram Singh Yadav said.

Parag Milk Foods Chairman Devendra Shah said with the focus on the agriculture sector, the announcement of a comprehensive program for dairy farmers, coupled with efforts to control foot and mouth disease, is a positive step.

“The commitment to promote indigenous breeds and fostering research and development in the dairy sector through government schemes lays the foundation for increased productivity and sustainable growth,” he added.

Warehousing services provider Sohan Lal Commodity Management (SLCM) Group founder and CEO Sandeep Sabharwal said that the impetus given to post-harvest activities in the Interim Budget is a welcome step.

“It is a positive move to encourage private-public partnerships and address the diverse ambit of post-harvest agricultural logistics, including storage, supply chain as well as primary and secondary storage. In addition to the one crore women already coming under the purview of Lakhpati Didis, the government now intends to incorporate 3 crore new Lakhpati Didis under the scheme, and we hope it transforms several lives in the Indian agri space across the rural parts of the country,” he added.

Deloitte India Partner and Consumer, Products and Retail sector Leader, Anand Ramanathan commented that the Interim Budget 2024-25, continues to support growth and productivity in agriculture through interventions in crop insurance, encouraging use of nano fertilisers, promoting self-sufficiency in oilseed production, and increasing investments in micro food processing.

“Also, from a protein standpoint – boosting dairy productivity and supporting sea food exports are some of the big areas of focus. These announcements will provide employment opportunities for the rural economy,” he stated.

Dhanuka Agritech Managing Director MK Dhanuka said, “The announcement to further encourage private and public investment in areas of post-harvest activities including aggregation, modern storage, efficient supply chains, primary and secondary processing and marketing and branding is a laudable step.” “The decision to promote the application of nano DAP on various crops in different agro-climatic zones is in line with the government’s vision of promoting technological advancement in the rural sector.” KC Ravi, Chief Sustainability Officer, Syngenta India and Chairman Crop Life India, said that the robust physical-digital-social infrastructure developed in the last decade has given the economy a good foundation for a Viksit Bharat by 2047.

Digital infrastructure and infusion of technology is imperative to not only sustain the momentum but also to take the agriculture growth story to its logical conclusion. he said.

Agritech start-up Otipy’s founder and CEO Varun Khurana said the encouragement for private and public investment in post-harvest activities is commendable, promising a more resilient and sustainable agricultural ecosystem.

“The commitment to modernise the farm sector, focusing on improved storage, efficient supply chains, and branding, reflects a strategic vision to enhance the overall efficiency and competitiveness of Indian agriculture.

These measures align with the contemporary needs of the sector and are crucial steps towards ensuring long-term prosperity for farmers and fostering growth in the agritech landscape,” he noted.

Insecticides India Managing Director Rajesh Aggarwal said the continuation of flagship schemes such as the PM Kisan Samman Yojana and PM Fasal Bima Yojana, providing direct financial assistance and crop insurance respectively, exemplifies the government’s dedication to safeguarding the livelihoods of our farmers.

“We are particularly encouraged by the emphasis on technology adoption and innovation in agriculture. The integration of 1,361 mandis into the Electronic National Agricultural Market, serving 1.8 crore farmers, is commendable. Furthermore, the budget’s focus on modern storage, supply chains, and branding, will encourage private and public investment in post-harvest activities,” he said.

Arya.ag co-founder and CEO Prasanna Rao commented that the Budget’s commitment to boost both private and public investment in post-harvest infrastructure will go a long way in enhancing the outcomes.

“It will not only lead to a reduction of losses but also elevate productivity. Additionally, the expansion of Nano DAP and the commitment to oilseed self-reliance are pivotal and significant steps in achieving sustainable agricultural advancement,” he added. — PTI

Energy, mineral and cement corridor, a port connectivity corridor and a high traffic density corridor will be set up, Finance Minister Nirmala Sitharaman said in her Budget speech
| Photo Credit: SPECIAL ARRANGEMENT

Touching upon measures that will be taken to expand India’s railway infrastructure, Finance Minister Nirmala Sitharaman announced three major railway economic corridors. These include an energy, mineral and cement corridor, a port connectivity corridor and a high traffic density corridor.

Ms. Sitharaman said that railway projects have been identified under the PM Gati Shakti Yojana for enabling multi-modal connectivity. These will “improve logistics efficiency and reduce costs,” she said.

She also highlighted that decongestion of high traffic corridors will result in improving operations, which in turn would “result in safety and higher travel speeds for passengers.”

Ms. Sitharaman emphasised that these corridors, along with dedicated freight corridors, will “accelerate our GDP and reduce logistic costs.”

Interim Budget 2024 LIVE Coverage : Nirmala Sitharaman presents Budget

She announced that 40,000 normal rail bogeys will be converted to Vande Bharat standards, “to enhance safety, convenience and safety of passengers.”

Ms. Sitharaman also touched upon the aviation sector, saying that it has been “galvanized” in the past 10 years, and that the number of airports has increased to 149. In her speech, she indicated that expansion of existing and development of new airports would continue.

The roll-out of air connectivity to tier-2 and tier-3 schemes under Udaan scheme has been successful and Indian carriers have pro-actively placed orders for over 1,000 new aircraft, she shared.