Introduction: The Interim Budget 2024-25 unfolds a strategic economic roadmap, elevating capital expenditure to ₹11.1 lakh crore. With a focus on Defence, Roads, Railways, and Consumer Affairs, the budget aims at balancing fiscal responsibility while fueling growth. The government’s emphasis on public capital expenditure and innovative financing models underscores its commitment to economic development.
The Interim budget 2024-25 serves to bring major economic reforms to drive growth just before the Lok Sabha elections are due in May.
This budget has increased the capital expenditure outlay to ₹11.1 lakh crore for FY25 from ₹9.5 lakh crore in the previous fiscal. More of the government spending is going towards pushing on public capex while balancing fiscal responsibility.
Expenditures planned in the Interim Budget 2024-2025 are:
1. Defence Ministry: ₹6.21 lakh crore
This year’s defence budget accounts for 1.89% of the country’s projected GDP for 2024-25. Estimates showed that the armed forces were unable to spend ₹5,372 crore of last year’s capital outlay of ₹1.62 lakh crore.
So, a large portion of this year’s allocation will be utilised for procurement through domestic sources to provide locally manufactured next-generation weapon systems to the country which leads to the multiplier effect on GDP, creating employment, and ensuring capital formation.
2. Ministry of Road Transport and Highways: ₹2.78 lakh crore
The government plans to attract private investment through build-operate-transfer (BOT) and public-private-partnership (PPP) models, as well as asset monetisation. The government aims to bid out 54 road projects worth over ₹2.2 lakh crore.
Separately, a sum of ₹78,349 crore has been set aside for road works, which includes six landing of crowded sections of the Golden Quadrilateral, road development in Naxal-hit areas and provisioning of last-mile connectivity through the State government’s Public Works Department.
3. Ministry of Railways: ₹2.55 lakh crore
Railway projects have been identified under the PM Gati Shakti scheme to enable multi-modal connectivity. These corridors will reduce costs and improve efficiency, says the Finance Minister.
To expand the Railway Infrastructure, three major railway corridors, including an energy, mineral and cement corridor, a port connectivity corridor and a high traffic density corridor. Around 40,000 normal railway bogies will be converted to Vande Bharat standard to improve safety and convenience for passengers.
The minister further said that out of the ₹2.4 lakh crore capex plan, 77% has been completed till date.
4. Ministry of Consumer Affairs, Food & Public Distribution: ₹2.13 lakh crore
The Department of Food and Public Distribution has been earmarked Rs 2,13,019.75 crore as against Rs 2,21,924.64 crore in the current 2023-24 fiscal. This department has been tasked to provide free foodgrains to over 80 crore people through ration shops.
The bifurcation proposed under this Ministry in the budget:
1. The Department of Fertilisers has been reduced to Rs 1,64,150.81 crore for the upcoming financial year from Rs 1,88,947.29 crore in the current fiscal.
2. The Department of Chemicals and Petrochemicals has earmarked Rs 139.05 crore next fiscal as against Rs 572.63 crore in the current financial year.
3. The Department of Pharmaceuticals has been enhanced to Rs 4,089.95 crore from Rs 2,697.95 crore in the current fiscal.
4. The Ministry of Cooperation, headed by Home Minister Amit Shah, has been allocated Rs 1,183.39 crore for 2024-25 from Rs 747.84 crore in FY24.
5. The Ministry of Fisheries, Animal Husbandry and Dairying has been earmarked Rs 7,105.74 crore for the next fiscal. Out of this, the Department of Fisheries’ allocation has been increased to Rs 2,584.50 crore in the next fiscal from Rs 1,701 crore in the current 2023-24 fiscal. The Department of Animal Husbandry and Dairying has been allocated Rs 4,521.24 crore in 2024-25 from Rs 3,913.93 crore in the current fiscal.
6. The Ministry of Food Processing Industries has been slightly raised to Rs 3,290 crore.
Conclusion: As the Lok Sabha elections approach, the Interim Budget 2024-25 showcases major economic reforms. With augmented allocations to Defence, Roads, Railways, and Consumer Affairs, the government aims to stimulate GDP growth, create employment, and ensure capital formation. This budget sets a dynamic stage for economic resilience and sustainable development.
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