The recently unveiled interim budget for 2024 by the honourable Finance Minister resonates with optimism, setting the stage for a transformative fiscal year. Anchored on the pillars of welfare for the poor, youth, women, and farmers, this budget not only fulfils promises but exceeds expectations. With a surge in revenue collection and a robust economic growth trajectory, the Ministry is doubling down on infrastructure development and attracting foreign investment.
Elevating Local Tourism and Empowering Entrepreneurs
States will receive long-term interest-free loans for developing iconic tourist centres, emphasizing branding and marketing. A rating framework based on the quality of facilities and services will be established, with loans distributed to states on a matching basis. This initiative aims to stimulate employment and support local businesses such as hotels, restaurants, and handicraft industries. The overarching goal is to position India as an attractive destination for business and conference tourism while enhancing spiritual tourism among local tourists.
First Develop India
Under this program, the Ministry aims to negotiate bilateral investment treaties with foreign partners, making India an appealing investment destination. These treaties establish minimum guarantees, including national treatment for foreign investors, fair and equitable treatment in accordance with international law, and protection from expropriation. These agreements will ensure the smooth repatriation of funds and assets, facilitating the flow of foreign direct investment and stabilizing inflation.
Empowering through Free Electricity
The rooftop solarization scheme envisions one crore households obtaining up to 300 units of free electricity every month. This translates to annual savings of fifteen to eighteen thousand rupees for households, along with the opportunity to sell surplus electricity to distribution companies and charge electric vehicles.
Enhanced Connectivity
Allocating 3.4% of the GDP for infrastructure development includes major economic railway corridor programs, expansion of existing airports, and the development of new airports and transit-oriented development. These measures aim to increase efficiency in supply chain management and connectivity, making Indian goods and products accessible to all Indians at more affordable delivery rates. This will also promote tourism and reduce travel time, particularly in metro cities.
Green Energy Initiatives
Mandatory blending of compressed biogas (CBG) in compressed natural gas (CNG) for transport and piped natural gas (PNG) for domestic purposes will be phased in. A new scheme of bio-manufacturing and bio-foundry will be launched to promote green growth, drawing energy from the fermentation of waste products. This innovative approach could reduce gas prices and enhance accessibility, especially in rural areas.
Revolutionizing Taxpayer Services
The government's commitment to 'minimum government, maximum governance' is evident in the transformation of taxpayer services. Over the last decade, direct tax collections have more than tripled, and return filers have increased 2.4 times. Efforts to enhance taxpayer services include the introduction of Faceless Assessment and Appeal, updated income tax returns, a new Form 26AS, and prefilling of tax returns. The average processing time for returns has been significantly reduced, resulting in faster refunds. The withdrawal of petty demands aims to reduce outstanding tax litigation cases, contributing to India's climb in the ease of doing business index.
The vision for a new India is centred on self-reliance, technological innovation, environmental sustainability, and economic resilience. While the short-term goal is to reduce the fiscal deficit to 4.5% by 2025-26, India is on a trajectory of development, innovation, and establishing a brand that embodies the spirit of Bharat.
(Rakesh Nangia is Chairman, Nangia Andersen India, and Neeraj Agarwala is Partner at the same firm.)