Union Budget 2024-25: Key Highlights and Major Announcements

Finance Minister Nirmala Sitharaman presented the Union Budget 2024-25 in Parliament today, marking the first budget of Prime Minister Narendra Modi’s third term in office. Emphasizing sustained efforts across nine key priorities, the budget aims to generate ample opportunities for all sectors of society.

Budget Theme:
1. Employment
2. Skill development
3. MSMEs
4. Middle Class

Key Highlights:

Agriculture and Natural Farming

– Transforming Agriculture Research: A comprehensive review of the agriculture research setup will focus on raising productivity and developing climate-resilient varieties.

– National Cooperation Policy: This policy aims at the systematic and all-round development of the cooperative sector.
– Atmanirbharta in Oil Seeds: Efforts to achieve self-reliance in oil seeds like mustard, groundnut, sesame, soybean, and sunflower.
– New Crop Varieties: 109 new high-yielding and climate-resilient varieties of 32 field and horticulture crops will be released.
– Natural Farming: 1 crore farmers will be initiated into natural farming, supported by certification and branding over the next two years. Additionally, 10,000 need-based bio-input resource centers will be established.
– Shrimp Production & Export: Financing for shrimp farming, processing, and export will be facilitated through NABARD.

Digital Public Infrastructure (DPI)

– DPI aims to cover farmers and their lands within three years.
– A digital crop survey will be conducted in 400 districts.
– Issuance of Jan Samarth-based Kisan Credit Cards will be promoted.

Employment and Skilling
– Five schemes will focus on 4.1 crore youth over five years with a central outlay of ₹2 lakh crore.
– A comprehensive internship scheme for 1 crore youth in top companies over five years.
– Employment-linked incentives, including one month’s wage support for first-time employees.
– Women-specific skilling programs and increased workforce participation.

MSME and Manufacturing Support

– Special attention to MSMEs and the manufacturing sector.
– Credit guarantee scheme and term loans for machinery purchase.
– Technology support package for MSMEs.
– SIDBI to open 24 new branches to serve MSME clusters.

Financial Initiatives

– Mudra loan limit increased from ₹10 lakh to ₹20 lakh for previous borrowers.
– Financial support for higher education loans up to ₹10 lakh in domestic institutions.

Infrastructure and Regional Development

– Rental housing in PPP mode for industrial workers.
– Special financial support of ₹15,000 crore for Andhra Pradesh.
– New airports, medical facilities, and sports infrastructure for Bihar.

Economic Outlook

– Inflation is moving towards a 4% target.
– India’s economic growth is described as a “shining exception.”
– Focus on job creation and boosting consumption, potentially benefiting consumer goods, real estate, and the auto sector.

Social Welfare
– Extension of PMGKAY (Pradhan Mantri Garib Kalyan Anna Yojana) for five years.
– Over ₹3 lakh crore allocated for schemes benefiting women and girls.

Budget Estimates 2024-25
– FY25 Total Receipts estimated at ₹32.07 lakh crore.
– FY25 Total Expenditure estimated at ₹48.21 lakh crore.
– Net tax receipts estimated at ₹25.83 lakh crore.
– FY25 Fiscal deficit estimated at 4.9% of GDP.
– Gross market borrowings estimated at ₹14.01 lakh crore.
– Net market borrowings estimated at ₹11.63 lakh crore.

Revised Income Tax Structure

– Tax rates in the new regime:
– ₹0-3 lakh: Nil
– ₹3-7 lakh: 5%
– ₹7-10 lakh: 10%
– ₹10-12 lakh: 15%
– ₹12-15 lakh: 20%
– More than ₹15 lakh: 30%
– Standard Deduction: Raised to ₹75,000.

Capital Gains Tax

– Short-term capital gain tax revised to 20%.
– Long-term capital gain tax raised to 12.5% on financial assets.
– STT (Security Transaction Tax) on derivatives raised to 0.02%.

The Union Budget 2024-25 reflects the government’s commitment to fostering growth, supporting various sectors, and ensuring economic stability.