Finance Minister Nirmala Sitharaman, in her announcement on February 22, 2024, revealed that the government’s robust tax revenue has paved the way for a significant increase in capital expenditure and continued investments in infrastructure development.
During the inauguration of a new Income Tax office building in Gorakhpur, she highlighted a remarkable 16.77% surge in gross direct tax collections from April to January compared to the previous year, expressing optimism that the final numbers for the fiscal year will surpass the current figures.
Sitharaman attributed this fiscal buoyancy to the government’s confidence in boosting development spending, unveiling a substantial 433% hike in capital expenditure to ₹11.11 lakh crore for the fiscal year 2024-25.
Furthermore, she disclosed that tax refunds totaling ₹2.48 lakh crore were disbursed between April 2023 and January 2024, and she acknowledged the expedited tax assessment process.
Setting a new record, over 1.66 crore income tax returns were processed in a single day for the 2023-24 fiscal year. Sitharaman commended the faceless assessment system for its contribution to transparency, reducing complaints by 60%. She emphasized the role of technological advancements in enhancing tax collections and improving services for taxpayers.
In the interim budget, Sitharaman announced the withdrawal of outstanding tax demands for amounts up to ₹10,000 (for the years 2010-15) and up to ₹25,000 (for the period up to the financial year 2009-10), benefiting one crore small taxpayers.
The minister underscored the effective utilization of taxpayer money for broader public benefits through infrastructure development. She cited examples such as the revival of a fertilizer factory and the completion of the Saryu River project in Uttar Pradesh, benefitting 19 lakh farmers in 6,200 villages across seven districts.
Concluding her address, Sitharaman emphasized the current phase of the country, termed ‘kartavya kaal’, urging everyone to contribute towards the goal of building a ‘Viksit Bharat’ by 2047.
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