Exploring the Intricacies

of India's Budgets
Welcome to a detailed exploration of India's financial governance through its
budgets. Today, we delve into the nuances of the Interim Budget, take a
comprehensive look at the Union Budget 2023, and study the history Interim
Budgets. Join us as we uncover interesting facts and historical milestones that
have shaped India's budgetary practices over the years.

by Rachit Agrawal
Topics-
Unveiling the Secrets of Interim Budget 2024

A Sneak Peek into Union Budget 2023

Exploring the Interim Budget and Fascinating Facts
 Interim Budget 2024 Analysis
Taxation No changes in tax rates in direct and indirect taxes including import duties.

Certain tax exemptions given to Startups and IFSC to be extended till 31st March,
2025.

Income Tax Withdrawal of outstanding demands:

demands
Upto Rs. 25,000 for FY upto 2009-10

Upto Rs. 10,000 for FYs 2010-11 to 2014-15

This benefits around a crore taxpayers.

Electricity Pradhan Mantri Suryodaya Yojana through Rooftop solar programme to enable 1
crore households to get upto 300 units of free electricity every month and save as
much as Rs. 18,000 annually.

Rural Under the PM Awas Yojna- Gramin Govt aims to build 2 crore pakka houses in the
Development next 5 years by enhancing the outlay by 66% to over Rs. 79,000 crores.

Domestic Key focus on comprehensive development of domestic tourism, infra and other
tourism amenities including their branding and international marketing with focal
attention to Lakshadweep.

Fostering Govt unveiled its plan to promote the EV Ecosystem by strengthening and
Green growth expanding the manufacturing and charging infrastructure for EVs.

Infrastructure FM announced that govt will spend a record Rs 11.11 lakh crore on infrastructure
development creation in FY25, putting the country on track to maintain its position as the
world’s fastest-growing economy.

Railways 40000 normal rail bogies will be converted to Vande Bharat to enhance the safety,
convenience, and comfort of passengers.

Key rail projects including Metro rails and Namo Bharat will be expended to more
cities.

Investments FDI inflow doubled in the last 10 years. For encouraging sustained foreign
investment, govt plans to negotiate bilateral investment treaties with foreign
partners.

Healthcare Ayushman Bharat insurance scheme to be extended to all Anganwadi and Asha
workers. This scheme covers coverage for secondary and tertiary care
hospitalisation of Rs. 5 lakh p.a. per family.

Govt will encourage vaccination for girls in the age group of 9-14 years for
prevention of cervical cancer and consolidate maternal and child healthcare
schemes under one programme.

Revised Fiscal For current FY 2023-24 (FY24)- is at 5.8% of GDP.

Deficit
For FY 2024-25 (FY25)- Expected to be 5.1% of GDP.

For FY 2025-26 (FY26)- Target to reduce to below 4.5% of GDP.

 Allocation for Specific Ministries
Rs. ( In lakh Crores)

2023 2024

Ministry of Defence 5.94 6.20

Ministry of Road Transport and Highways 2.70 2.78

Ministry of Railways 2.41 2.55

Ministry of Consumer affairs, Food & Public Distribution 2.06 2.13

Ministry Of Home Affairs 1.96 2.03

Ministry Of Rural development 1.60 1.77

Ministry of Chemicals & Fertilizers 1.78 1.68

Ministry of Communications 1.23 1.37

Ministry of Agriculture and Farmer’s Welfare 1.25 1.27

No Change In Income Tax – Tax Regime War

Old Regime New Regime

0-2.5 Lakh Nil 0-3 Lakh Nil

2.5-5 Lakh 5% 3-6 Lakh 5%

5-10 Lakh 20% 6-9 Lakh 10%

10 lakh+ 30% 9-12 Lakh 15%

12-15 Lakh 20%

15 Lakh+ 30%

Note- Incomes upto Rs 5 lakh (in old regime) and upto Rs 7 Lakh (in new regime) are entitled to Tax rebate.
Union
Budget
2023
Overview
Union Budget 2023 Overview
Interim budget and Interesting facts
1 Interim Budget 2 Contrast with Union Budget
An Interim Budget is presented by the Whereas a Union Budget, is presented
CG just before general elections to annually which outlines the reigning
ensure smooth governance until a new government's financial plans for the
government presents a full budget. entire fiscal year.

3 Significance
The Interim Budget serves as a temporary financial blueprint, allowing the government
to manage its affairs during election periods until a new government is in place to
present a full budget.
Independent India's First Interim Budget (1947):

Post-Independence Economy
1 The first Interim Budget of independent India was presented by RK
Shanmukham Chetty.

Historical Context
The budget was presented for a period of seven-and-a-half years immediately
2
after India's independence to address the country's economic hardship
including food grain shortage, elevated imports, and skyrocketing inflation.

Legacy of Leadership
3 Chetty's budget speech set a precedent for future finance ministers, balancing
immediate needs with long-term fiscal strategies.
First Budget of India During British Era :

Colonial Foundations
James Wilson's 1860 budget presentation laid the financial groundwork
for the British administration, influencing India's economic policies
during the colonial era.

He was a Scottish economist associated with the East India Company.

Economic Evolution
Since Wilson's time, India's budget presentations have undergone
significant transformation, incorporating insights from influential
economists like PC Mahalanobis.
From briefcase to ₹ Bahi Khata, to Tablet:

Finance Minister Nirmala Sitharaman replaced the traditional 'budget

briefcase' with a 'bahi khata' in 2019 to a paperless format in 2021, using a
‘Made in India’ Tablet.

Last Interim Budget (2019):

Presented by Piyush Goyal, marking the 14th Interim Budget since

independence.

Second-longest interim budget speech after RK Shanmukham Chetty's in

1947.

Longest and Shortest Budget Speech:

FM Nirmala Sitharaman holds the record for the longest budget speech,
lasting two hours and 42 minutes in 2020 (Union).
Whereas she gave her shortest speech of 57 minutes only in today’s
Interim Budget 2024 as Union Finance Minister.
Halwa Ceremony and Lock-in Period:

A 'Halwa ceremony' precedes the Union Budget's printing process, held more than a week before the
budget presentation.
The ceremony signifies the commencement of printing, maintaining confidentiality and occurs in the
Finance Ministry's basement in Central Delhi.

Leaked Union Budget (1950):

In 1950, the Union Budget was leaked when Finance Minister John Mathai was set to present it in
Parliament.

Printing was shifted to Minto Road from Rashtrapati Bhawan, later moving to the North Block basement
after 1980.

Evolution of Interim Budgets:

Two decades ago, interim budgets focused on routine announcements, avoiding major schemes or rate
cuts.
Since 2004-05, interim budgets have included significant announcements related to tax cuts, scheme
extensions, and subsidies.
 Thank You !
- CA Rachit Agrawal

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