The Union Budget 2024-25, presented by Finance Minister Nirmala Sitharaman, has introduced several key measures aimed at boosting economic growth, supporting the underprivileged, and enhancing the overall quality of life for citizens. Here are the major highlights from the recent budget:
Economic Growth and Fiscal Deficit
The budget projects a total expenditure of ₹48.21 lakh crore, with total receipts other than borrowings amounting to ₹32.07 lakh crore. The net tax receipt is estimated at ₹25.83 lakh crore, and the fiscal deficit is targeted at 4.9% of GDP1. The government aims to reduce the fiscal deficit to below 4.5% next year.
Employment and Skilling Initiatives
A significant focus of the budget is on employment and skilling. The Prime Minister’s Package of 5 Schemes and Initiatives aims to provide employment, skilling, and other opportunities for 4.1 crore youth over a 5-year period1. This includes schemes for first-time employees, job creation in manufacturing, and support for employers.
Agriculture and Allied Sectors
The budget allocates ₹1.52 lakh crore for agriculture and allied sectors. This includes the release of 109 high-yielding and climate-resilient varieties of 32 field and horticulture crops1. Additionally, 1 crore farmers will be initiated into natural farming over the next 2 years, with certification and branding.
Women Empowerment
To promote women-led development, the budget includes an allocation of over ₹3 lakh crore for schemes benefiting women and girls. This includes the establishment of working women hostels and crèches with industrial collaboration, as well as women-specific skilling programs1.
Rural Development
The budget emphasizes rural development with a provision of ₹2.66 lakh crore for rural infrastructure. The Pradhan Mantri Gram Sadak Yojana (PMGSY) Phase IV will provide all-weather connectivity to 25,000 rural habitations2.
Urban Development
Under the PM Awas Yojana (Urban) 2.0, the budget addresses the housing needs of 1 crore urban poor and middle-class families with an investment of ₹10 lakh crore.
Tax Reforms
The budget introduces several tax reforms aimed at benefiting the middle class and promoting investments. The standard deduction under the new tax regime is increased from ₹50,000 to ₹75,000 for individuals3. The deduction on the family pension is increased from ₹15,000 to ₹25,000. Additionally, the angel tax is abolished for all classes of investors to boost startups and investments3.
Corporate Tax and Customs Duty
The budget reduces the corporate tax on foreign companies from 40% to 35% to attract more investments. The capital gains exemption limit is increased to ₹1.25 lakh per year to benefit lower and middle-income classes3. Customs duty on X-ray panels, mobile phones, and PCBA is reduced to 15%, and precious metals like gold and silver will become cheaper with a customs duty reduction of 6%.
Innovation and Research
The budget emphasizes expanding the space economy by five times in the next 10 years with a venture capital fund of ₹1,000 crore. This initiative aims to foster innovation, research, and development in the space sector.
Social Justice and Inclusive Development
The budget includes measures to promote social justice and inclusive development. This includes the formulation of a plan called Purvodaya for the all-round development of the eastern region, covering Bihar, Jharkhand, West Bengal, Odisha, and Andhra Pradesh2.
Conclusion
The Union Budget 2024-25 presents a comprehensive plan to drive economic growth, support employment and skilling, and enhance the quality of life for citizens. With a focus on agriculture, rural and urban development, tax reforms, and social justice, the budget aims to create a more inclusive and prosperous India. The initiatives and measures introduced in the budget reflect the government’s commitment to fostering innovation, supporting the underprivileged, and promoting sustainable development. As India continues on its path of progress, the budget sets the stage for a brighter and more equitable future.
