Finance Minister Nirmala Sitharaman presented the Union Budget for the fiscal year 2024-2025, emphasizing sustainable growth, inclusive development, and strategic investments. This budget marks significant advancements in key sectors like agriculture, employment, urban development, and more.
Inflation and Economic Growth
India continues to maintain low and stable inflation, inching closer to the 4% target. Core inflation, excluding food and fuel, is recorded at 3.1%, showcasing economic stability.
Major Announcements
PM’s Package for Youth Employment and Skilling: A robust allocation of ₹2 lakh crore for five key schemes aims to generate employment, enhance skills, and create opportunities for 4.1 crore youth over the next five years.
Agricultural Boost: With an allocation of ₹1.52 lakh crore, the government plans to introduce 109 new high-yielding crop varieties and encourage 1 crore farmers to adopt natural farming practices.
Rural Development: An investment of ₹2.66 lakh crore is set aside for rural infrastructure and development, focusing on improving living standards in rural areas.
Empowerment of Women and Girls: Over ₹3 lakh crore is dedicated to schemes benefiting women and girls, ensuring gender-inclusive growth and development.
MSMEs Support: The Mudra loan limit is enhanced to ₹20 lakh, providing significant support to MSME manufacturing and food safety labs, thus boosting small and medium enterprises.
Employment and Skilling
The government plans to upgrade 1,000 Industrial Training Institutes and implement a comprehensive internship scheme in 500 top companies, aiming to benefit 1 crore youth over the next five years.
Urban Development
The PM Awas Yojana Urban 2.0 is set to invest ₹10 lakh crore to meet the housing needs of 1 crore urban poor and middle-class families, addressing urban housing challenges.
Tax Reliefs
Income Tax:
- The standard deduction is increased to ₹75,000 in the new tax regime.
- Family pension deduction is raised to ₹25,000.
- The capital gain exemption limit is increased to ₹1.25 lakh per year.
Corporate Tax:
- Corporate tax on foreign companies is reduced from 40% to 35%.
- The abolition of the angel tax for all classes of investors aims to boost startup growth.
Custom Duties:
- Reductions on X-ray panels, mobile phones, and PCBA to 15%.
- Custom duty on precious metals, including gold and silver, reduced to 6%.
Budget Estimates
- Total receipts (excluding borrowings): ₹32.07 lakh crore.
- Total expenditure: ₹48.21 lakh crore.
- Fiscal deficit is estimated at 4.9% of GDP.
Infrastructure Development
The Phase IV of PMGSY for rural connectivity continues to receive strong fiscal support, ensuring improved infrastructure in rural areas.
Energy Security
The PM Surya Ghar Muft Bijli Yojana will focus on installing rooftop solar plants, promoting renewable energy usage.
Innovation, Research & Development
The government will establish the Anusandhan National Research Fund with a financing pool of ₹1 lakh crore and a venture capital fund of ₹1,000 crore to expand the space economy.
Next Generation Reforms
The budget includes an Economic Policy Framework for high growth and employment, alongside simplification of FDI and overseas investment rules, aiming to streamline economic activities and attract more investments.
Conclusion
The Union Budget 2024-2025 reflects the government’s commitment to fostering inclusive growth, empowering various sectors, and ensuring economic stability. With strategic investments and comprehensive reforms, this budget sets the foundation for a resilient and progressive India.
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