Highlights of Budget 2024-25
Source: PIB
GS III: Economy
Overview
- News in Brief
- Highlights of Budget 2024-25
- Budget Estimates 2024-25
- How government focus on Viksit Bharat?
- Tax Proposal
Why in the News?
Finance Minister Nirmala Sitharaman has started presenting the Union Budget for 2024–25.
News in Brief
- The Lok Sabha and Rajya Sabha are expected to hold 20-hour discussions on the budget, while the Lower House is anticipated to hold separate debates on the ministries of railways, education, health, MSME, and food processing, according to sources.
- Presented the Economic Survey 2023–24, with a focus on investment, skill development, and employment.
Highlights of Budget 2024-25
Budget Estimates 2024-25
- Budget Estimates in a government budget refer to the projected financial allocations for various government departments, programs, and initiatives for the upcoming fiscal year.
- These estimates are prepared based on anticipated revenues and planned expenditures.
- Revenue Projections: Estimating the total revenue the government expects to collect from taxes, duties, and other sources.
- Expenditure Planning: Determining the amount of money required for various government functions, including healthcare, education, infrastructure, defence, and social welfare programs.
- Deficit Management: Identifying any shortfall between projected revenues and expenditures and planning how to finance this deficit, often through borrowing or other financial instruments.
- Approval and Implementation: The proposed Budget Estimates are presented to the legislature for approval. Once approved, they become the basis for government spending for the fiscal year.
- Estimates of 2024-25
- Total receipts other than borrowings: 32.07 lakh crore
- Total expenditure: 48.21 lakh crore
- Net tax receipt: 25.83 lakh crore
- Fiscal deficit: 4.9 per cent of GDP
Government aims to reach a deficit below 4.5 per cent next year. Inflation continues to be low, stable and moving towards the 4% target; Core inflation (non-food, non-fuel) at 3.1%.
Expenditure of Major Sectors
How government focus on Viksit Bharat?
Nine Budget Priorities in Pursuit of Viksit Bharat
1. Productivity and Resilience in Agriculture
- 1.52 lakh crore for agriculture and allied sectors.
- 1 crore farmers across the country to be initiated into natural farming
- Focus on
- Natural Farming
- Shrimp Production & Export
- Digital Public Infrastructure (DPI): Coverage of farmers and their lands in 3 years.
2. Employment & Skilling
- 3 Schemes
- Scheme A – First Timers
- Scheme B – Job Creation in Manufacturing
- Scheme C – Support to employers
- Centrally Sponsored Scheme: Skilling under Prime Minister’s Package for 20 lakh youth over a 5-year period.
- Women participation: Facilitate higher participation of women in the workforce through setting up of working women hostels in collaboration with industry, and establishing creches.
3. Inclusive Human Resource Development and Social Justice
- The total allocation of more than 3 lakh crore for schemes benefitting women and girls.
- 100 branches of India Post Payment Bank to be set up in the North East region.
- Power projects, including a new 2400 MW power plant at Pirpainti, to be taken up at a cost of 21,400 crore.
- Eastern Part on India Focus
- Plan for endowment-rich states in the Eastern parts covering Bihar, Jharkhand, West Bengal, Odisha and Andhra Pradesh for generation of economic opportunities to attain Viksit Bharat.
- Amritsar Kolkata Industrial Corridor with the development of an industrial node at Gaya.
- Pradhan Mantri Janjatiya Unnat Gram Abhiyan: Improving the socio-economic condition of tribal communities covering 63,000
villages benefitting 5 crore tribal people.
4. Manufacturing & Services
- Credit guarantee scheme without collateral or third-party guarantee in term loans to MSMEs for purchase of machinery and equipment.
- Mudra Loans
- The limit of Mudra loans under the ‘Tarun’ category is to be enhanced to `20 lakh from `10 lakh for those who have successfully repaid previous loans.
- Financial support to set up 50 multi-product food irradiation units in the MSME sector.
- E-Commerce Export Hubs to be set up under public-private partnerships (PPP).
- Internship Opportunities
- Scheme for providing internship opportunities in 500 top companies to 1 crore youth in 5 years.
- Allowance of ₹5,000 per month along with a one-time assistance of ₹6,000 through the CSR funds.
5. Urban Development
- 10 lakh crore, including the central assistance of `2.2 lakh crore in the next 5 years.
- New scheme to support the development of 100 weekly ‘haats’ or street food hubs every year for the next 5 years in select cities.
- Enabling policies and regulations for efficient and transparent rental housing markets with enhanced availability will also be put in place.
6. Energy Security
- Energy Transition Pathways to balance the imperatives of employment, growth and environmental sustainability to be brought out.
- Policy for promoting pumped storage projects for electricity storage to be brought out.
- Setting up Bharat Small Reactors
- R&D of Bharat Small Modular Reactor and newer technologies for nuclear energy
- PM Surya Ghar Muft Bijli Yojana status
- 1 crore Households obtain free electricity
- Up to 300 Units every month
- 1.28 crore Registrations and 14 lakh applications so far
7. Infrastructure
- Provision of ₹11,11,111 crore for infrastructure (3.4% of GDP).
- 1.5 lakh crore to states as long-term interest-free loans to support resource allocation.
- Phase IV of PMGSY will be launched to provide all-weather connectivity to 25,000 rural habitations.
- Irrigation and Flood Mitigation
- Financial support of 11,500 crore to projects such as the Kosi-Mechi intra-state link and other schemes in Bihar.
- Government to provide assistance to Assam, Himachal Pradesh, Uttarakhand and Sikkim for floods, landslides and other related projects.
- Tourism
- Comprehensive development of Vishnupad Temple Corridor, Mahabodhi Temple Corridor and Rajgir.
- Assistance for the development of temples, monuments, craftsmanship, wildlife sanctuaries, natural landscapes and pristine beaches of Odisha.
8. Innovation, Research & Development
- Space Economy
- Venture capital fund of `1,000 crore to be set up.
- Aims to expand the space economy by 5 times in the next 10 years.
- Financing pool of 1 lakh crore for spurring private sector-driven research and innovation at commercial scale.
9. Next Generation Reforms
- Land records in urban areas are to be digitized with GIS mapping.
- Integration of the e-ashram portal with other portals to facilitate such a one-stop solution.
- NPS-Vatsalya is a plan for contribution by parents and guardians for minors.
- Unique Land Parcel Identification Number or Bhu-Aadhaar for all lands.
Tax Proposal
Capital Gains
- Short-term gains of financial assets to attract 20% tax rate
- Long-term gains on all financial an non-financial assets to attract a tax rate of 12.5%
- Increase in limit of exemption of capital gains on financial assets to ₹1.25 lakh per year
Tax on Investments
- Abolish ANGEL tax for all classes of investors.
- Simpler tax regime to operate domestic cruises.
- Provide for safe harbour rates for foreign mining companies (Selling raw diamonds).
- The corporate tax rate on foreign companies was reduced from 40% to 35%.
New Tax Regime
- Deduction on family pension for pensioners increased from ₹15,000 to ₹25,000.
- Standard Deduction for salaried employees increased from ₹50,000 to ₹75,000.
Receipts and Expense
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