India unveils FY25 interim budget, keeping tax rates unchanged
Individual and corporate income tax rates, as well as customs duty, were not altered in India's interim budget for 2024-25.
India's interim budget for the fiscal year 2024–25 was unveiled by Finance Minister Nirmala Sitharaman, proposing no changes in income tax rates for individuals and companies, as well as customs duty. This interim budget is presented due to India heading to general elections in May this year, and the full budget will be presented by the incoming government.
While there were no alterations to tax rates, the budget aimed to boost capital expenditure by 11 percent for the upcoming fiscal year, reaching approximately $148 billion (INR 11.11 trillion). The primary goal is to sustain India's impressive economic growth rate.
In addition to addressing fiscal matters, the interim budget provided relief to the common man by addressing disputed small tax demands of up to INR 25,000. This move is intended to alleviate financial burdens on individuals.
During her hour-long budget speech, Sitharaman emphasized the achievements of the Modi government over the past decade, transforming India from a 'fragile' economy to the world's fastest-growing major economy. She highlighted the government's commitment to the principle of'reform, perform, and transform.'
Looking ahead, Sitharaman announced that the government, in its July budget, will present a detailed roadmap with the objective of making India a developed country. This future-oriented plan is expected to guide the nation through next-generation reforms.
The Finance Minister also outlined the government's approach to building consensus with states and stakeholders for the effective implementation of reforms. This collaborative effort aims to ensure that the reforms are comprehensive, impactful, and aligned with the evolving needs of the country.
While this interim budget sets the financial tone for the immediate future, the detailed roadmap to be presented in July is anticipated to provide a more comprehensive view of the government's strategy to drive economic development and transform India into a developed nation.