Union Minister of Finance and Corporate Affairs, Smt. Nirmala Sitharaman, presented the Union Budget for the fiscal year 2024-25 in Parliament today.
The budget lays out an ambitious agenda to address key areas including employment, skilling, MSMEs, and the middle class.
Budget Estimates for 2024-25
The budget outlines financial projections of Total Receipts(excluding borrowings) as Rs. 32.07 lakh crore, total expenditure as Rs. 48.21 lakh crore, net tax receipts as Rs. 25.83 lakh crore and fiscal deficit as 4.9% of GDP.
Focus Areas of the Budget
1.Employment and Skill Development
Under the Prime Minister’s Package, a suite of five schemes is introduced to boost employment and skill development for 4.1 crore youth over five years:
- Scheme A - First Timers: Provides a one-month salary of up to Rs.15,000 in three installments to first-time employees registered with EPFO.
- Scheme B - Job Creation in Manufacturing: Offers incentives to both employees and employers related to EPFO contributions during the first four years of employment.
- Scheme C - Support to Employers: Government will reimburse up to Rs.3,000 per month for two years for each additional employee’s EPFO contribution.
- New Skilling Scheme: 20 lakh youths will be skilled over five years with 1,000 Industrial Training Institutes upgraded.
- Internship Scheme: 1 crore youth will gain internship opportunities in 500 top companies over the next five years.
2. Agriculture and Rural Development
- Agricultural Allocation: Rs. 52 lakh crore dedicated to agriculture and allied sectors.
- New Varieties: Release of 109 high-yielding, climate-resilient crop varieties.
- Natural Farming: 1 crore farmers to be introduced to natural farming with certification and branding in the next two years.
3. Social Justice and Inclusive Development
- Purvodaya: Development of an industrial node at Gaya and power projects including a 2400 MW plant at Pirpainti with an investment of ₹21,400 crore.
- Women-Led Development: Over Rs. 3 lakh crore allocated for women and girls' schemes.
- Pradhan Mantri Janjatiya Unnat Gram Abhiyan: Socio-economic upliftment of tribal families in 63,000 villages.
4. Manufacturing and Services
- Credit Guarantee Scheme for MSMEs: Collateral-free term loans for MSMEs for machinery and equipment.
- Enhanced Mudra Loans: Limit increased to Rs. 20 lakh for successful repayers.
- E-Commerce Export Hubs: Establishment under PPP mode to help MSMEs and artisans reach international markets.
5. Urban Development
- Transit-Oriented Development: Plans for 14 large cities with populations over 30 lakh.
- Urban Housing: Rs. 10 lakh crore investment under PM Awas Yojana Urban 2.0 for one crore families.
- Street Markets: Development of 100 street food hubs annually for five years.
6. Energy Security
- Energy Transition Policy: Document on pathways balancing growth and environmental sustainability.
- Pumped Storage Policy: Promoting pumped storage projects for electricity storage.
- Advanced Thermal Plants: NTPC and BHEL to set up an 800 MW commercial plant using Advanced Ultra Super Critical technology.
7. Infrastructure
- Capital Expenditure: Rs. 1.11 lakh crore (3.4% of GDP) allocated for infrastructure.
- PMGSY Phase IV: Connectivity for 25,000 rural habitations.
- Flood and Irrigation Support: Rs. 11,500 crore allocated to flood mitigation projects in Bihar and support for other flood-prone states.
8. Innovation and Research
- Anusandhan National Research Fund: Operationalizing funds for basic research and prototype development.
- Space Economy: Venture capital fund of Rs. 1,000 crore to expand the space economy fivefold in the next decade.
9. Reforms
- Rural Land Actions: Introduction of Unique Land Parcel Identification Number (ULPIN) and digitization of land records.
- Urban Land Actions: Digitization of urban land records with GIS mapping.
- NPS Vatsalya: Plan to allow contributions by parents for minors under NPS.
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