Union Budget 2024-25: The prominence of the budget is to balance the revenues and expenditures for the year for a financial year. The prospects of the economy to keep the stability of the region in terms of economy. This provides control over the finances of the government. Most of the economies run on debt due to matching demand and supply issues. Any mismatch can plague any economy.

In this article, we will look in detail about the key highlights, tax slab and plans made by Government of India in the Union Budget 2024.

Agriculture and rural push

The government has taken the initiative and announced a line of schemes that would benefit and restart the rural economy in the Union Budget 2024-25. They announced R&D in the sector to increase productivity and development to withstand climate change. 109 yielding varieties of crops and 32 field and horticulture crops to be introduced. 

Natural farming is in the picture which limits the use of fertilizers and pesticides. With the support of NABARD, there would be further penetration into shrimp farming. The allocation for the sector stood at Rs. 1.52 lakh crore for Agriculture and allied industries and Rs. 2.66 lakh crore for rural development.

Skilling Employees

The unemployment problems in India were mounting under the economic growth. Now the government has come up with initiatives that benefit first-time employees as well as employers through EPFO. The first-timers who join the company at the start can receive a month’s wage at joining and in return, employers receive an incentive for hiring first-time employees.

The promotion of women’s workforce is to dormitory rental housing with the PPP model, Low Interest rate loans for students to support higher education. The allocation was Rs. 2 lakh crore and in that, Rs. 1.48 lakh crore is directly focused on employment, education, and skill development. 

Human Resources and Societal Justice

By focusing on artisans, craftsmen, self-help groups, and others schemes like PM Vishwakarma, Standup India, and National Livelihood Missions are more prominent. To develop the easter region, they announced the Amritsar-Kolkata industrial corridor, developing ancient centers in Gaya. For Andhra, they announced Rs. 15,000 crore and financed the Polavaram Irrigation project. 

Promotion of development through Vishakapatnam-Chennai Corridor and Hyderabad-Bengaluru Corridor which moves through other regions of the neighbouring states. For additional housing PM Awas Yojana is to be announced, and Rs. 3 lakh crore is allotted to benefit women, More than 100 branches are to be set up in North East region.

Boosting the Manufacturing and Services sector

The Indian economy’s backbone is stood because of MSMEs and they announced term loans without collateral for the manufacturing sector to buy machinery. A self-financing guarantee fund to provide cover of Rs. 100 crore. Increasing limit from Rs. 10 lakh to Rs. 20 lakh limit on Mudra Loans for MSMEs. Public sector banks to oversee the quality of loans for MSMEs. Establishing e-commerce export hubs, Developing 12 new industrial parks, and focusing on domestic production of critical minerals. 

Improvement of Cities

To connect cities developing hubs can decongest supply chain constraints. The government is focusing on creating brownfield projects to redevelop existing lands to use. Under PM Awas Yojan Urban 2.0 the investments would range of around Rs .10 lakh crore. 

Promotion of water supply and waste management projects to be done for 100 large cities. Considering lower stamp duty charges especially for women to own properties encourages their participation to be self-sufficient.

Ensuring Energy backing 

Energy self-sufficiency is more prominent in the modern era. The government through PM Surya Ghar Muft Bijili Yojana aims to install rooftop solar plants enabling households to obtain free electricity for 300 units every month. R&D for Nuclear energy for the push for cleaner energy. Development of technology for thermal power plants through AUSC.

Focus on Infrastructure

The capex is targeted at Rs. 11.11 lakh crore which amounts to 3.4% of Indian GDP. A privately driven research at a commercial scale to create a pool of Rs .1 lakh crore. Provisioning of Rs. 1.5 lakh crore worth of interest-free loans to support fiscal sustainability over the next five years. 

Allocation of Rs. 11,500 crore for flood control measures for Bihar, Further assistance is given to the states like Assam, Himachal Pradesh, Uttarakhand, Sikkim, and Odisha. This is all about infrastructure in the Union Budget 2024-25.

Investing into Future

The growth of the country is in the hands of ideas and execution. An Anusandhan fund which aims at supporting Innovation and R&D gets Rs. 1 lakh crore. Rs. 1,000 crore for VC Fund to spend on the country’s space economy. Further for faster implementation of projects central and state would collaborate by financing a 50-year interest-free loan.

Land records in urban areas are to be digitalized with GIS mapping and proper records are to be maintained.

Custom Duty

The government has made some revisions in tax rates for some of the commodities to promote business and to protect domestic interests and the changes are as follows

Direct Tax

In the Union Budget 2024-25, the government to balance the tax receipts and to relieve some taxpayers, has revised the tax slab and undergone some changes in TDS and Capital Gains.

Table consisting of changes in TDS and Capital Gains

Other sectoral spendings

Some of the spendings are Defence at Rs. 4,54,773 crore, Home affairs stood at Rs. 1,50,983 crore, IT and Telecom stood at Rs. 1,16,342 crore, Health was Rs. 89,287 crore and Energy was Rs. 68,769 crore for Budget 2024-25.

Conclusion

As we near the end of the article, we have looked into some of the highlights of Union Budget 2024-25. This overview is more about the highlights of some key points from the budget. The finances of the country are dependent on the policies the government makes and implements which benefit even the economically poorer sections. The spending of money collected by taxes and gains from the government towards people is a representation of democracy where everyone helps to live.

Written by Santhosh

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