Union Budget 2024-25 Highlights

insightsonindia.com/2024/07/24/union-budget-2024-25-highlights/

Insights Editor July 24, 2024

Syllabus:

Source: PIB

What is Budget?

The Union Budget is the annual financial statement of the Indian government, presented
by the Finance Minister on February 1st. It consists of the Revenue Budget and Capital
Budget, covering expected income and expenditures. The budget includes macroeconomic
details in Part A and taxation proposals in Part B, presented as a Money Bill defined
in Article 110 of the Constitution. After independence, India’s first Budget was presented in
1947 by Finance Minister RK Shanmukham Chetty.

Article 112 of the Indian Constitution mandates the Union Budget as the government’s
estimated receipts and expenditures.

Key Budget documents include:

1. Annual Financial Statement (Article 112)

2. Demands for Grants (Article 113)
3. Finance Bill (Article 110)
4. Fiscal Policy Statements mandated under the FRBM Act, 2003, including
5. The Macro-Economic Framework Statement and
6. The Medium-Term Fiscal Policy cum Fiscal Policy Strategy Statement.

Objectives of budget:

The Union Budget focuses on objectives such as stimulating economic growth, promoting
social justice and equality, ensuring effective resource allocation, and maintaining fiscal
stability.

Stages of Budget presentation:

Stage Description

President’s Joint address by the President of India to both Houses of Parliament,

Address outlining government policy priorities, achievements, and legislative
agenda.

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Economic Prepared by the Economics Division of the Department of Economic
Survey Affairs under the Chief Economic Advisor’s guidance. Tabled in Lok
Presentation Sabha a day before the Union Budget presentation.

Railway Presented separately until 2016, merged with the General Budget in
Budget (Till 2017.
2016)

Union Presented by the Finance Minister on February 1st.

Budget
Presentation

General After the Budget presentation, discussed in both Houses of Parliament.

Budget Allows critique and debate on the Budget.
Discussion

Voting on Parliament approves Demand for Grants for ministries and

Demands departments, authorizing proposed expenditures.
for Grants

The passing Finance Bill, containing taxation proposals, passed by both Houses of
of Finance Parliament and enacted. The budget comes into effect after Presidential
Bill assent.

Union Budget 2024-25 Highlights

Aspect Details

Economic India’s economic growth remains strong despite global uncertainties.

Growth

Focus Focus is on 4 major castes, namely ‘Garib’ (Poor), ‘Mahilayen’

(Women), ‘Yuva’ (Youth) and ‘Annadata’ (Farmer) (similar to
Interim Budget)

Budget Theme The budget focuses on employment, skilling, MSMEs, and the
middle class.

Budget Total receipts other than borrowings: 32.07 lakh crore

Estimates 2024-
25 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 is low and stable, moving towards the 4% target; core

inflation is at 3.1%.

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Union Budget 2024-25

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Nine Budget Priorities in pursuit of ‘Viksit Bharat’

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 Union Budget 2024-25

Priority 1: An allocation of ₹1.52 lakh crore has been made for agriculture and
Productivity allied sectors. This includes the release of 109 new high-yielding and
and resilience climate-resilient varieties of 32 field and horticulture crops for
in Agriculture cultivation by farmers.

Natural Farming: In the next two years, 1 crore farmers across the
country will be initiated into natural farming with certification and
branding.

Bio-input Centres: 10,000 need-based bio-input resource centres

will be established to support natural farming.

Digital Public Infrastructure: To further enhance agricultural

efficiency, Digital Public Infrastructure (DPI) for Agriculture will be
implemented, covering farmers and their lands within three years..

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Priority 2: Package of PM’s five schemes for Employment and Skilling
Employment &
Skilling Prime Minister’s Package of 5 Schemes and Initiatives for
employment, skilling and other opportunities for 4.1 crore youth
over a 5-year period. This year, ₹1.48 lakh crore is allocated for
education, employment, and skilling.

Scheme A – First Timers: One-month salary of up to `15,000 to be

provided in 3 installments to first-time employees, as registered in the
EPFO

Scheme B – Job Creation in manufacturing: Incentive to be

provided at specified scale directly, both employee and employer, with
respect to their EPFO contribution in the first 4 years of employment

Scheme C – Support to employers: Government to reimburse up to

`3,000 per month for 2 years towards EPFO contribution of employers,
for each additional employee

New centrally sponsored scheme for Skilling: 20 lakh youth to be

skilled over a 5-year period.; 1,000 Industrial Training Institutes to
be upgraded in hub and spoke arrangements.

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 New Scheme for Internship in 500 Top Companies to 1 crore
youth in 5 years

To facilitate higher participation of women in the workforce,

working women hostels and crèches will be established in
collaboration with industry.

Women-specific skilling programmes will be organized, and market

access for women Self-Help Group (SHG) enterprises will be
promoted

Priority 3: Purvodaya Initiative: Develop a plan for the eastern region,

Inclusive including Bihar, Jharkhand, West Bengal, Odisha, and Andhra
Human Pradesh, focusing on human resource development, infrastructure,
Resource and economic opportunities to drive Viksit Bharat.
Development
and Social Develop industrial node at Gaya along the Amritsar-Kolkata
Justice Industrial Corridor. Launch power projects, including a 2400 MW
power plant at Pirpainti (Bhagalpur, Bihar), with a total investment
of ₹21,400 crore

Andhra Pradesh Reorganization Act: Special financial support of

₹15,000 crore through multilateral development agencies

Develop industrial nodes at Kopparthy along the Vishakhapatnam-

Chennai Industrial Corridor and at Orvakal along the Hyderabad-
Bengaluru Industrial Corridor

Pradhan Mantri Janjatiya Unnat Gram Abhiyan: Improve socio-

economic conditions of tribal families in 63,000 villages, benefiting 5
crore people

Bank Branches in North-Eastern Region: Establish 100 branches of

India Post Payment Bank

Priority 4: Credit Guarantee Scheme for MSMEs in the Manufacturing

Manufacturing Sector: A scheme providing collateral-free credit guarantees for term
& Services loans to MSMEs for machinery and equipment purchases.

Credit Support to MSMEs during Stress Period: A new mechanism

to ensure continued bank credit support to MSMEs during periods of
financial stress.

Mudra Loans: Increase the limit of Mudra loans under the ‘Tarun’
category to ₹20 lakh from ₹10 lakh for those with successful
repayment histories.

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 Enhanced Scope for Mandatory Onboarding in TReDS: Reduce the
turnover threshold for mandatory onboarding on the TReDS platform
from ₹500 crore to ₹250 crore.

MSME Units for Food Irradiation, Quality & Safety Testing: Provide
financial support to establish 50 multi-product food irradiation units in
the MSME sector.

E-Commerce Export Hubs: Set up E-Commerce Export Hubs

through public-private partnerships to help MSMEs and traditional
artisans sell products internationally.

Digital Public Infrastructure (DPI) Applications: Develop DPI

applications for credit, e-commerce, education, health, law and justice,
logistics, MSME, service delivery, and urban governance.

Priority 5: Transit Oriented Development: Develop and finance Transit Oriented

Urban Development plans for 14 large cities with populations over 30 lakh.
Development
Urban Housing: Invest ₹10 lakh crore, including central assistance
of ₹2.2 lakh crore over the next 5 years, under PM Awas Yojana
Urban 2.0 to address housing needs of 1 crore urban poor and
middle-class families.

Street Markets: Launch a new scheme to support the development

of 100 weekly ‘haats’ or street food hubs annually for the next 5
years in select cities. (building on the success of PM SVANidhi
Scheme in transforming the lives of street vendors)

Priority 6: Energy Transition: Introduce a policy document on ‘Energy

Energy Security Transition Pathways’ to balance employment, growth, and
environmental sustainability.

Pumped Storage Policy: Develop a policy to promote pumped

storage projects for electricity storage.

Research and Development of Small and Modular Nuclear

Reactors: Partner with the private sector to research and develop
Bharat Small Modular Reactors and newer nuclear technologies

Advanced Ultra Super Critical Thermal Power Plants: Propose a

joint venture between NTPC and BHEL to establish an 800 MW
commercial plant using Advanced Ultra Super Critical (AUSC)
technology

Roadmap for ‘Hard to Abate’ Industries: Implement regulations to

transition ‘hard to abate’ industries from the ‘Perform, Achieve and
Trade’ mode to the ‘Indian Carbon Market’ mode

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 PM Surya Ghar Muft Bijli Yojana has been launched to install rooftop
solar plants to enable 1 crore households obtain free electricity up to
300 units every month. The scheme has generated remarkable
response with more than 1.28 crore registrations and 14 lakh
applications

Priority 7: Central Government Infrastructure Investment: Allocate ₹11,11,111

Infrastructure crore (3.4% of GDP) for capital expenditure.

State Governments Infrastructure Investment: Provide ₹1.5 lakh

crore in long-term interest-free loans for state infrastructure projects.

Pradhan Mantri Gram Sadak Yojana (PMGSY): Launch Phase IV to

ensure all-weather connectivity for 25,000 rural habitations.

Irrigation and Flood Mitigation: Offer ₹11,500 crore for projects like
the Kosi-Mechi intra-state link and assist states like Assam,
Himachal Pradesh, Uttarakhand, and Sikkim with flood and landslide
management.

Tourism: Develop Vishnupad Temple Corridor, Mahabodhi Temple

Corridor, Rajgir, and assist in enhancing temples, monuments,
wildlife sanctuaries, natural landscapes, and beaches in Odisha.

Priority 8: Anusandhan National Research Fund: Operationalize fund for basic

Innovation, research and prototype development.
Research &
Development Financing Pool: Establish a ₹1 lakh crore pool to support private
sector-driven research and innovation at a commercial scale.

Space Economy: Create a ₹1,000 crore venture capital fund to

expand the space economy fivefold over the next 10 years.

Priority 9: Next Rural Land Related Actions: Implement Unique Land Parcel
Generation Identification Number (ULPIN) or Bhu-Aadhaar for all lands; Digitize
Reforms cadastral maps and survey map sub-divisions based on current
ownership; Establish a land registry and link it to the farmers registry.

Urban Land Related Actions: Digitize land records in urban areas

using GIS mapping.

Services to Labour: Integrate the e-shram portal with other

platforms for a one-stop solution; Develop open architecture
databases to keep up with labour market changes and skill
requirements.

NPS Vatsalya: Introduce NPS-Vatsalya for contributions by parents

and guardians for minors.

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Railway Budget at a Glance:

Union Budget 2024-25

Other Important Infographics about Trends in this budget:

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Indirect taxes:

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New Tax Slabs:

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