12:21
The Union Budget 2024-25
Context:
Recently, Union Budget 2024-25, the first general budget of the 18th Lok Sabha was presented in the Parliament. It focuses on the welfare of four major groups: the poor (‘Garib’), women (‘Mahilayen’), youth (‘Yuva’), and farmers (‘Annadata’).
- The budget emphasizes employment, skilling, support for MSMEs, and the middle class, with a significant allocation of Rs 1.48 lakh crore for education, employment, and skilling.
Relevance:
GS-02 (Polity)
Dimensions of the Article:
- About Budget
- Budget Priorities of 2024-25
- Key Focus Areas in Union Budget 2024-25
- Other Highlights
- Budget Estimates 2024-25
About Budget:
- The Constitution refers to the budget as the ‘annual financial statement’.
- In other words, the term ‘budget’ has nowhere been used in the Constitution.
- It is the popular name for the ‘annual financial statement’ that has been dealt within Article 112 of the Constitution.
- The budget is a statement of the estimated receipts and expenditure of the Government of India in a financial year, which begins on 1 April and ends on 31 March of the following year.
- In addition to the estimates of receipts and expenditure, the budget contains certain other elements. Overall, the budget contains the following
- Estimates of revenue and capital receipts
- Ways and means to raise the revenue
- Estimates of expenditure
- Details of the actual receipts and expenditure of the closing financial year and the reasons for any deficit or surplus in that year
- Economic and financial policy of the coming year, that is, taxation proposals, prospects of revenue, spending programme and introduction of new schemes/projects.
Budget Priorities of 2024-25:
- The budget prioritizes nine key areas: agriculture, employment, human resource development, manufacturing, services, urban development, energy security, infrastructure, innovation, research & development, and next-generation reforms.
Key Focus Areas in Union Budget 2024-25
- Enhancing Agricultural Productivity and Resilience
- Introduction of New Crop Varieties: 109 high-yielding crop varieties to be released.
- Promotion of Natural Farming: Aimed at 1 crore farmers.
- Establishment of Bio-Input Centres: 10,000 need-based bio-input centres.
- Boosting Oilseeds and Pulses: Enhanced production, storage, and marketing.
- Implementation of Digital Public Infrastructure: Coverage of farmers and their lands within three years.
- Budget Allocation: Rs 1.52 lakh crore for agriculture and allied sectors.
- Employment Generation and Skill Development
- Employment Linked Incentive Schemes: Targeting the skilling of 20 lakh youth over five years and upgrading 1,000 Industrial Training Institutes.
- Support for Higher Education and Loans: Revised Model Skill Loan Scheme offering up to Rs 7.5 lakh, expected to assist 25,000 students annually.
- Inclusive Development and Social Justice
- Economic Support for Marginalised Groups: Enhanced assistance for tribal communities and women entrepreneurs.
- Purvodaya Initiative: Comprehensive development of eastern India, focusing on human resource development, infrastructure, and economic growth.
- Pradhan Mantri Janjatiya Unnat Gram Abhiyan: Aiming to improve socio-economic conditions for tribal communities in 63,000 villages, benefiting approximately 5 crore tribal people.
- Expansion of Banking Services in North East: Over 100 branches of India Post Payment Bank to be established.
- Budget Allocation: Rs 2.66 lakh crore for rural development and infrastructure.
- Strengthening Manufacturing and Services
- Support for MSMEs: Introduction of a new self-financing guarantee fund offering up to Rs 100 crore per applicant. Public sector banks to enhance MSME credit assessment.
- Increase in Mudra Loan Limits: Raised to Rs 20 lakh for ‘Tarun’ category borrowers.
- Enhancing Food Quality and Exports: Setting up 50 food irradiation units, 100 food quality labs, and E-Commerce Export Hubs.
- Internship Scheme: Aiming to benefit 1 crore youth over five years through internships in 500 top companies.
- Urban Development Initiatives
- PM Awas Yojana Urban 2.0: Rs 10 lakh crore allocated to address housing needs of 1 crore urban poor and middle-class families.
- Collaborations for Water Supply and Waste Management: In 100 large cities with State Governments and Multilateral Development Banks.
- Establishment of Street Food Hubs: 100 weekly street food hubs annually over five years.
- Ensuring Energy Security
- PM Surya Ghar Muft Bijli Yojana: Rooftop solar plants to provide free electricity to 1 crore households (up to 300 units monthly).
- Emphasis on Nuclear Energy: Highlighting its role in India’s energy mix.
- Infrastructure Development
- Capital Expenditure: Rs 11.11 lakh crore allocated, which is 3.4% of GDP.
- PMGSY Phase IV: Connecting 25,000 rural habitations with all-weather roads.
- Bihar Irrigation Projects: Rs 11,500 crore allocated for schemes like the Kosi-Mechi intra-state link.
- Flood Management Assistance: Financial support for Assam, Himachal Pradesh, Uttarakhand, and Sikkim.
- Fostering Innovation and Research
- Anusandhan National Research Fund: Rs 1 lakh crore allocated for basic research and prototype development.
- Boosting the Space Economy: Rs 1,000 crore venture capital fund to expand the space economy fivefold in the next decade.
- Implementing Next Generation Reforms
- Formulating Economic Policy Framework: To guide economic development and enhance employment.
- Comprehensive Labour Reforms: Through integrated portals like e-shram, Shram Suvidha, and Samadhan.
- Climate Finance Taxonomy: To enhance the availability of capital for climate adaptation and mitigation.
- Simplification of FDI and Overseas Investment Rules: To facilitate investments and promote the use of the Indian Rupee.
Other Highlights
- NPS Vatsalya: Plan for contributions by parents and guardians for minors, convertible into a normal NPS account upon reaching adulthood.
- NPS Review: A committee to review the NPS, ensuring fiscal prudence.
- Direct and Indirect Tax Reforms: Simplification of tax regimes, revised income tax slabs, and reforms in capital gains taxation.
- Custom Duty Reforms: Rationalization of GST and custom duty rates, exemptions for essential medicines and critical minerals.
- Dispute Resolution: Initiatives to reduce litigation and provide tax certainty through schemes like Vivad se Vishwas.
Budget Estimates 2024-25
- Total Receipts (excluding borrowings): Rs 32.07 lakh crore.
- Total Expenditure: Rs 48.21 lakh crore.
- Net Tax Receipts: Rs 25.83 lakh crore.
- Fiscal Deficit: Estimated at 4.9% of GDP, with a goal to reduce it below 4.5% next year.
- Market Borrowings: Gross borrowings at Rs 14.01 lakh crore and net borrowings at Rs 11.63 lakh crore.
- Inflation: Low and stable, moving towards a 4% target, with measures to ensure adequate supply of perishable goods.
Conclusion
The Union Budget 2024-25 lays a strong foundation for inclusive growth and sustainable development. Effective implementation, monitoring, and evaluation of the proposed initiatives will be key to achieving the desired outcomes. A collaborative approach involving all stakeholders, including central and state governments, industry, and civil society, will be crucial for the successful realization of the budget’s objectives.
Related Posts
