Union Budget 2024-25 Analysis

The Finance Minister, Ms Nirmala Sitharaman presented the Budget for 2024-25 on July 23, 2024. In this note, actuals for
2023-24 are the unaudited provisional actuals.
Budget Highlights
▪ Expenditure: The government is estimated to spend Rs 48,20,512 crore in 2024-25, 8.5% higher than the actual
expenditure in 2023-24. Interest payments account for 24% of the total expenditure, and 37% of revenue receipts.
▪ Receipts: The receipts (other than borrowings) in 2024-25 are estimated to be Rs 32,07,200 crore, 15% higher than the
actual expenditure in 2023-24. Tax revenue, which forms major part of the receipts, is also expected to increase by 11%
over the actual expenditure 2023-24.
▪ GDP: The government has estimated a nominal GDP growth rate of 10.5% in 2024-25 (i.e., real growth plus inflation).
▪ Deficits: Revenue deficit in 2024-25 is targeted at 1.8% of GDP. This is lower than the actual revenue deficit of 2.6% of
GDP in 2023-24. Fiscal deficit in 2024-25 is targeted at 4.9% of GDP, which is lower than the actual fiscal deficit of
5.6% of GDP in 2023-24.
▪ New Schemes: Rs 62,593 crore has been allocated to the Department of Economic Affairs for New Schemes (details not
available). The allocation is for capital expenditure, and accounts for 6.8% of the total capital outlay.
Main tax proposals in the Finance Bill
▪ Changes in new income tax regime: Tax slabs Table 1: Current and proposed tax slabs
under the new tax regime have been modified. Tax Rate Current Income Slab Proposed Income Slab
The proposed tax structure is shown in Table 1. Nil Up to Rs 3 lakh Up to Rs 3 lakh
Standard deduction for salaried individuals and 5% Rs 3 lakh to Rs 6 lakh Rs 3 lakh to Rs 7 lakh
pensioners is proposed to be increased from Rs
10% Rs 6 lakh to Rs 9 lakh Rs 7 lakh to Rs 10 lakh
50,000 to Rs 75,000 under the new tax regime.
Deduction from family pension is also proposed to 15% Rs 9 lakh to Rs 12 lakh Rs 10 lakh to Rs 12 lakh
be increased from Rs 15,000 to Rs 25,000. 20% Rs 12 lakh to Rs 15 lakh Rs 12 lakh to Rs 15 lakh
Pension contribution will be tax deductible for the 30% Above Rs 15 lakh Above Rs 15 lakh
employer and the employee up to 14% of the
salary (from 10% earlier).
▪ Capital gains tax: Short term capital gains tax on listed equity shares, units of equity mutual funds and REITs/INVITs is
proposed to be increased from 15% to 20%. Long term capital gains tax will be levied at 12.5% across all asset
categories. This was earlier levied at 10% on listed equity shares, equity mutual fund units, and REITs/INVITs and at
20% with indexation for other assets. Indexation for calculating long term capital gains for property, gold, and other
unlisted assets will be removed. Listed financial assets held for more than a year will be classified as long term while
unlisted financial assets and all non-financial assets must be held for at least two years to be classified as long term.
Exemption limit for long term capital gains from listed equity shares, equity mutual funds, and business trusts will be
increased from one lakh rupees to Rs 1.25 lakh. Buy back of shares will be treated on par with dividends.
▪ Securities transaction tax: Securities transaction tax levied on sale of options in the securities market will be increased
from 0.0625% to 0.1% of the option premium and on the sale of futures will be increased from 0.0125% to 0.02% of the
trading price.
▪ Tax deducted at source: Rate of tax deducted at source (TDS) is proposed to be reduced from 5% to 2% for several
items such as payment of insurance commission, payment of life insurance policy, rent payment, and payment of
commission or brokerage. TDS on payment of proceeds of sale by an e-commerce operator to an e-commerce participant
will be reduced from 1% to 0.1%.
▪ Direct Tax Vivad Se Vishwas Scheme, 2024: The scheme will be introduced for settlement of tax related disputes. It
provides for leniency in payment of disputed interest or penalty on the tax amount.
▪ Equalisation levy: Equalisation levy of 2% of the proceeds received by a non-resident e-commerce operator for supply
of goods or services will not be applicable from August 1, 2024.
▪ Changes in customs duty: Customs duty rates have been changed for several goods. It has been reduced for goods such
as: (i) gold and silver and (ii) mobile phones and their chargers/adapters. Certain items used in the textile, steel, and
capital goods sectors have been exempted from customs duty. Customs duty has been increased for solar glass (used in
manufacture of solar cells or modules) and certain chemicals.

July 23, 2024

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 Union Budget 2024-25 Analysis PRS Legislative Research

▪ Angel tax: The Income Tax Act provides for the levy of tax on unlisted companies for receiving funds in excess of the
face value of their shares. This provision will cease to apply.
▪ Disclosure of foreign assets: The Black Money Act, 2015 has penalties for not declaring assets held abroad. This will
not apply to movable assets up to Rs 20 lakh.
▪ Immunity from benami transactions: The Prohibition of Benami Property Transactions Act, 1988 makes the
benamidar and the beneficial owner equally culpable. In order to encourage a benamidar to turn approver, provision is
being made to provide immunity.
Policy Highlights
▪ Employment: Three schemes to promote employment and increase workforce participation were announced. These will
provide: (i) wage support up to Rs 15,000 to first time employees registered with EPFO, (ii) incentives to employees and
employers in the manufacturing sector for their EPFO contributions, and (iii) reimbursement of up to Rs 3,000 per month
for employer EPFO contributions, per new employee for two years.
▪ Skilling: A scheme to upskill 20 lakh youth over five years will be launched. Under this, 1,000 industrial training
institutes will be upgraded to meet the skilling needs of the industry. Another scheme to provide internship opportunities
for one crore youth in 500 top companies has been announced. Under this, a monthly allowance of Rs 5,000 and a one-
time assistance of Rs 6,000 will be provided to the beneficiaries. Companies can bear the training cost and 10% of the
internship cost from their CSR funds.
▪ Assistance to states: Plan will be formulated to enhance human resources, infrastructure and economic opportunities in
Bihar, Jharkhand, West Bengal, Odisha, and Andhra Pradesh. Financial support of Rs 15,000 crore will be provided to
Andhra Pradesh for a new capital this year.
▪ MSMEs: Credit guarantee scheme for MSMEs in the manufacturing sector has been announced. It will facilitate term
loans for purchasing machinery and equipment without collateral or guarantee. A self-financing guarantee fund will be
constituted to provide guarantee cover up to Rs 100 crore. The limit of Mudra loans will be increased from Rs 10 lakh to
Rs 20 lakh, for entrepreneurs who have availed and paid loans previously.
▪ Energy: A roadmap will be designed for industries with high carbon dioxide emissions, setting emission targets for them.
Investment towards emerging technologies in nuclear energy will be made in collaboration with the private sector.
▪ Agriculture: Existing agricultural research setup will be reviewed with a focus on raising productivity and developing
climate resilient crops. Vegetable production clusters near major consumption centres will be established. A national policy
will be drafted for development of the cooperative sector.
▪ Urban and Rural Development: A transit-oriented development plan will be formulated for 14 large cities with a
population over 30 lakh. States charging high stamp duties will be encouraged to reduce them, and further lower them for
women buying property. Three crore additional houses will be built under the PM Awas Yojana in rural and urban areas.

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 Union Budget 2024-25 Analysis PRS Legislative Research

Budget estimates of 2024-25 as compared to actuals of 2023-24

▪ Total Expenditure: The government is estimated to spend Rs 48,20,512 crore in 2024-25. This is an increase of 8.5%
over the actuals of 2023-24.
▪ Revenue expenditure is estimated to grow at 6.2% and capital expenditure at 17.1%. The revenue expenditure growth has
been kept in check due to pension, defence expenditure, subsidies, and major schemes (MGNREGS, Jal Jeevan Mission,
and PM-KISAN) together being allotted roughly the same as the actuals for 2023-24.
▪ Total Receipts (excluding borrowings) are estimated to be Rs 32,07,200 crore, 15% higher than the actuals of 2023-24.
The gap between these receipts and the expenditure will be plugged by borrowings, budgeted to be Rs 16,13,312 crore,
2.4% lower than the actuals of 2023-24.
▪ Transfer to states: The central government will transfer Rs 23,48,980 crore to states and union territories in 2024-25, an
increase of 11.9% over the actuals of 2023-24. Transfer to states includes devolution of Rs 12,47,211 crore out of the
divisible pool of central taxes and grants worth Rs 11,01,769 crore.
▪ Deficits: In 2024-25, revenue deficit is targeted at 1.8% of GDP, lower than the deficit of 2.6% of GDP in 2023-24.
Fiscal deficit is targeted at 4.9% of GDP in 2024-25, lower than the actuals for 2023-24 (5.6% of GDP). The lower fiscal
deficit is on account of receipts growing at 15%, which is higher than the expenditure growth of 8.5%.
▪ GDP growth estimate: The nominal GDP is estimated to grow at a rate of 10.5% in 2024-25.

Table 2: Budget at a Glance 2024-25 (Rs crore)

% change (2023-24
Actuals Budgeted Actuals Budgeted
Actuals to 2024-25
2022-23 2023-24 2023-24 2024-25
BE)
Revenue Expenditure 34,53,132 35,02,136 34,94,036 37,09,401 6.2%
Capital Expenditure 7,40,025 10,00,961 9,48,506 11,11,111 17.1%
of which:
Capital Outlay 6,24,757 8,37,127 7,87,411 9,18,695 16.7%
Loans and Advances 1,15,268 1,63,834 1,61,095 1,92,416 19.4%
Total Expenditure 41,93,157 45,03,097 44,42,542 48,20,512 8.5%
Revenue Receipts 23,83,206 26,32,281 27,28,412 31,29,200 14.7%
Capital Receipts 72,196 84,000 60,461 78,000 29.0%
of which:
Recoveries of Loans* 26,161 23,000 27,338 28,000 2.4%
Other receipts (including disinvestments)* 46,035 61,000 33,123 50,000 51.0%
Total Receipts (excluding borrowings) 24,55,402 27,16,281 27,88,872 32,07,200 15.0%
Revenue Deficit 10,69,926 8,69,855 7,65,624 5,80,201 -24.2%
% of GDP 3.9% 2.9% 2.6% 1.8%
Fiscal Deficit 17,37,755 17,86,816 16,53,670 16,13,312 -2.4%
% of GDP 6.4% 5.9% 5.6% 4.9%
Primary Deficit 8,09,238 7,06,845 5,89,799 4,50,372 -23.6%
% of GDP 3.0% 2.3% 2.0% 1.4%
Note: *Recovery of Loans and Disinvestment for 2023-24 Actuals from Controller General of Accounts.
Sources: Budget at a Glance, Union Budget Documents 2024-25; PRS.

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 Union Budget 2024-25 Analysis PRS Legislative Research

Expenditure which brings a change to the government’s assets or 2,50,000

liabilities (such as construction of roads or repayment of loans) is
2,00,000
capital expenditure, and all other expenses are revenue expenditure
(such as payment of salaries or interest payments). In 2024-25, 1,50,000
capital expenditure is expected to increase by about 17% over the
1,00,000
actuals of 2023-24. Revenue expenditure is expected to increase
by 6.2% over the actuals of 2023-24. 50,000

Disinvestment is the government selling its stakes in Public Sector 0

2011-12
2012-13
2013-14
2014-15
2015-16
2016-17
2017-18
2018-19
2019-20
2020-21
2021-22
2022-23
2023-24
2024-25
Undertakings (PSUs). In 2023-24, the government is estimated to
meet 54.3% of its disinvestment target. The disinvestment target for
2024-25, is estimated to be Rs 50,000 crore, more than the actuals for
2023-24 (Rs 33,123 crore). In 2022-23, the government achieved Budget Estimate Actual Disinvestment
71% of its disinvestment target, the highest since 2018-19. Sources: Union Budget Documents (various years); PRS.

Receipts Highlights for 2024-25

▪ Receipts (excluding borrowings) in 2024-25 are estimated to be Rs 32,07,200 crore, an increase of 15% over the actuals of
2023-24. This is primarily due to an 11% growth in centre’s net tax collection.
▪ Gross tax revenue is budgeted to increase by 10.8% in 2024-25, over the actuals of 2023-24. This is slightly greater than
the estimated nominal GDP growth of 10.5% in 2024-25. Corporation tax is estimated to grow at 12%, whereas income tax
is estimated to register a growth of 13.6%. GST revenue is budgeted to increase by 11%.
▪ Devolution to states from centre’s tax revenue is estimated to be Rs 12,47,211 crore in 2024-25, an increase of 10.4% over
the actuals of 2023-24. In 2023-24, according to the actuals, devolution to states is estimated to be Rs 1,08,046 crore more
than the budget estimate of Rs 10,21,448 crore (increase of 10.6%) .
▪ Net tax revenue (excluding states’ share in taxes) is estimated to be Rs 25,83,499 crore in 2024-25, which is 11% higher
than the actuals for 2023-24. Actual net tax revenue in 2023-24 is roughly same as the budget estimate for the year.
▪ Non-tax revenue consists mainly of interest receipts on loans given by the centre, dividends, license fees, tolls, and charges
for government services. It is estimated at Rs 5,45,701 crore in 2024-25, an increase of 36% over the actuals of 2023-24.
▪ Capital receipts (excluding borrowings) are targeted at Rs 78,000 crore, an increase of 29% over the actuals of 2023-24.
Note that the 2023-24 actuals for capital receipts are 28% lower than the budgeted amount. Lower receipts were on account
of disinvestment targets not being met (46% lower).

Table 3: Break up of central government receipts in 2024-25 (Rs crore)

% change (2023-24
Actuals Budgeted Actuals Budgeted
Actuals to 2024-25
2022-23 2023-24 2023-24 2024-25
BE)
A. Gross Tax Revenue 30,54,192 33,60,858 34,64,792 38,40,170 10.8%
of which
Corporation Tax 8,25,834 9,22,675 9,11,055 10,20,000 12.0%
Taxes on Income 8,33,260 9,00,575 10,44,726 11,87,000 13.6%
Goods and Services Tax 8,49,133 9,56,600 9,57,032 10,61,899 11.0%
Customs 2,13,372 2,33,100 2,33,067 2,37,745 2.0%
Union Excise Duties 3,19,000 3,39,000 3,05,330 3,19,000 4.5%
B. Devolution to States 9,48,407 10,21,448 11,29,494 12,47,211 10.4%
C. Centre's Net Tax Revenue 20,97,786 23,30,631 23,26,524 25,83,499 11.0%
D. Non-Tax Revenue 2,85,421 3,01,650 4,01,887 5,45,701 35.8%
of which:
Interest Receipts 27,852 24,820 38,297 38,224 -0.2%
Dividend 99,913 91,000 1,70,444 2,89,134 69.6%
Other Non-Tax Revenue 1,53,577 1,81,382 1,92,134 2,14,389 11.6%
E. Capital Receipts (without borrowings) 72,196 84,000 60,461 78,000 29.0%
of which:
Disinvestment 46,035 61,000 33,123* 50,000 51.0%
Receipts (without borrowings) (C+D+E) 24,55,403 27,16,281 27,88,872 32,07,200 15.0%
Borrowings 17,37,755 17,86,816 16,53,670 16,13,312 -2.4%
Total Receipts (including borrowings) 41,93,158 45,03,097 44,42,542 48,20,512 8.5%

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 Union Budget 2024-25 Analysis PRS Legislative Research

Note: *Disinvestment for 2023-24 actuals from Controller General of Accounts.

Sources: Receipts Budget, Union Budget Documents 2024-25; PRS.

▪ Indirect taxes: The total indirect tax collection is estimated to be Rs 16,18,744 crore in 2024-25. Of this, the government
has estimated to raise Rs 10,61,899 crore from GST, a growth of 11%. Out of the total tax collections under GST, 86% is
expected to come from CGST (Rs 9,10,890 crore) and 14% from GST compensation cess (Rs 1,51,009 crore).
▪ Corporation tax: The collection from taxes on companies is expected to increase by 12% in 2024-25.
▪ Income tax: The collections from income tax are expected to increase to Rs 11,87,000 crore in 2024-25, which is an
increase of 13.6% over the actuals of 2023-24. The actuals of 2023-24 is 25% higher than the actuals of 2022-23
▪ Non-tax receipts: In 2024-25, non-tax revenue is expected to increase by 36% over the actuals of 2023-24. This is
mainly on account of higher dividend/surplus of RBI, nationalised banks and financial institutions.

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 Union Budget 2024-25 Analysis PRS Legislative Research

Expenditure Highlights for 2024-25

Unaudited actuals for 2023-24 are not available for some expenditure items and revised estimates are used for comparison.
▪ Total expenditure in 2024-25 is expected to be Rs 48,20,512 crore, which is an increase of 8.5% over the revised
estimates of 2023-24. Out of this: (i) Rs 15,16,176 crore is proposed to be spent on central sector schemes (4.8%
increase over the revised estimates of 2023-24), and (ii) Rs 5,05,978 crore is proposed to be spent on centrally
sponsored schemes (9.8% increase over the revised estimates of 2023-24).
▪ Interest expenditure is estimated to be 9.3% higher than the actuals of 2023-24. It is estimated to be 24% of the
government’s total expenditure. Grants to states for creating capital assets is Rs 3,90,778 crore, an increase of 28.6%
over the revised estimates for 2023-24. Net of these items, revenue expenditure is set to increase by 1.4%.
▪ Expenditure on pensions is estimated to be Rs 2,43,296 crore, which is 2.2% higher than the revised estimates of 2023-
24. Other grants, loans and transfers (Rs 3,91,776 crore) include Rs 1,50,000 crore as special loans to state for capital
expenditure. This is 42% higher than the revised estimates for 2023-24 (Rs 1,05,551 crore).

Table 4: Break up of central government expenditure in 2024-25 (Rs crore)

Actuals Budgeted Revised Budgeted % change (2023-24
2022-23 2023-24 2023-24 2024-25 RE to 2024-25 BE)
Central Expenditure 32,65,163 35,13,761 35,57,231 37,90,380 6.6%
Establishment Expenditure of Centre 7,14,650 7,44,339 7,81,774 7,83,618 0.2%
Central Sector Schemes 14,45,923 14,67,880 14,46,152 15,16,176 4.8%
Other expenditure 11,04,590 13,01,542 13,29,304 14,90,586 12.1%
of which interest payments 9,28,517 10,79,971 10,55,427 11,62,940 10.2%
Grants for CSS and other transfers 9,27,995 9,89,336 9,33,255 10,30,132 10.4%
Centrally Sponsored Schemes (CSS) 4,37,556 4,76,105 4,60,614 5,05,978 9.8%
Finance Commission Grants 1,72,760 1,65,480 1,40,429 1,32,378 -5.7%
of which:
Rural Local Bodies 45,578 47,018 40,778 49,800 22.1%
Urban Local Bodies 17,779 24,222 19,222 25,653 33.5%
Disaster Management Grants 19,893 24,466 24,466 25,688 5.0%
Post Devolution Revenue Deficit Grants 86,201 51,673 51,673 24,483 -52.6%
Other grants, loans and transfers 3,17,679 3,47,752 3,32,211 3,91,776 17.9%
of which special assistance as loans to
81,195 1.30,000 1,05,551 1,50,000 42.1%
states for capital expenditure
Total Expenditure 41,93,157 45,03,097 44,42,542 48,20,512 8.5%
Sources: Budget at a Glance, Union Budget Documents 2024-25; PRS.

Expenditure by Ministries
In 2024-25, the top 13 ministries in terms of allocations account for 54% of the estimated total expenditure (Table 5). Of
these, the Ministry of Defence has the highest allocation in 2024-25, at Rs 6,21,941 crore. It accounts for 13% of the total
budgeted expenditure of the central government. Other ministries with high allocation include: (i) Road Transport and
Highways (5.8% of total expenditure), (ii) Railways (5.3%), and (iii) Consumer Affairs, Food and Public Distribution (4.6%).
Table 5: Ministry-wise expenditure in 2024-25 (Rs crore)
Actuals Budgeted Actuals Budgeted % change (2023-24 Actuals
2022-23 2023-24 2023-24 2024-25 to 2024-25 BE)
Defence 5,73,098 5,93,538 6,09,799 6,21,941 2.0%
Road Transport and Highways 2,17,089 2,70,435 2,75,715 2,78,000 0.8%
Railways 1,62,410 2,41,268 2,45,794 2,55,393 3.9%
Consumer Affairs, Food and Public Distribution 2,83,954 2,05,765 2,32,498 2,23,323 -3.9%
Home Affairs 1,86,839 1,96,035 1,96,886 2,19,643 11.6%
Rural Development 1,77,840 1,59,964 1,63,643 1,80,233 10.1%
Chemicals and Fertilisers 2,53,563 1,78,482 1,91,165 1,68,500 -11.9%
Communications 1,40,976 1,23,393 1,11,327 1,37,294 23.3%
Agriculture and Farmers' Welfare 1,08,277 1,25,036 1,18,147 1,32,470 12.1%
Education 97,196 1,12,899 1,23,364 1,20,628 -2.2%
Jal Shakti 71,618 97,278 95,365 98,714 3.5%
Health and Family Welfare 75,731 89,155 83,149 90,959 9.4%
Housing and Urban Affairs 77,310 76,432 68,565 82,577 20.4%
Other Ministries 17,67,256 20,33,419 19,27,124 22,10,838 14.7%
Total Expenditure 41,93,157 45,03,097 44,42,542 48,20,512 8.5%
Sources: Expenditure Budget, Union Budget 2024-25, Controller General of Accounts; PRS.
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 Union Budget 2024-25 Analysis PRS Legislative Research

▪ Department of Economic Affairs (Ministry of Finance): Rs 62,593 crore has been allocated to a new item of
expenditure ‘New Schemes’ (details not available). This accounts for 78% of the Department’s total allocation. The
entire allocation is for capital expenditure.
▪ Ministry of Communications: Allocation is estimated to increase by Rs 25,967 crore (23.3%) in 2024-25, over the
actual expenditure in 2023-24. This is mainly on account of capital infusion into BSNL, which is estimated to be Rs
82,916 crore in 2024-25. This capital infusion is estimated to be 28% higher than the revised estimates of 2023-24.
▪ Ministry of Housing and Urban Affairs: The allocation to the Ministry is estimated to increase by 20.4% (Rs 14,012
crore) in 2024-25 as compared to the actual expenditure in 2023-24. This is largely on account of an increase in
allocation for PMAY – Urban. Expenditure on this scheme is estimated to be Rs 30,171 crore in 2024-25, which is
36.5% more than the revised estimates for 2023-24.
Expenditure on Subsidies
In 2024-25, the total expenditure on subsidies is estimated to be Rs 4,38,423 crore, a decrease of 0.5% from the actual
expenditure in 2023-24 (Table 6).
▪ Food subsidy: Allocation for food subsidy is estimated at Rs 2,05,250 crore in 2024-25, a 3.1% decrease over the actual
expenditure in 2023-24. A higher level of food subsidy was budgeted in 2021-22 and 2022-23. This was mainly on
account of PMGKAY, which provides free additional foodgrains to eligible beneficiaries to mitigate the impact of
COVID. This additional benefit ended in December 2022.
▪ Fertiliser subsidy: Expenditure on fertiliser subsidy is estimated at Rs 1,64,000 crore in 2024-25. This is a decrease of
Rs 25,488 crore (13.5%) from the actual expenditure in 2023-24. Fertiliser subsidy was increased substantially in 2022-
23 due to a sharp increase in the international prices of raw materials used in the manufacturing of fertilisers.
▪ The government also provides subsidies for LPG and various schemes. In 2024-25, Rs 10,000 crore has been allocated to
the Price Stabilisation Fund under the Department of Consumer Affairs. This fund is utilised for maintaining buffer
stocks of pulses, onions, and potatoes.
Table 6: Subsidies in 2024-25 (Rs crore)
% change (2023-
Actuals Budgeted Actuals Budgeted
24 Actuals to
2022-23 2023-24 2023-24 2024-25
2024-25 BE)
Food 2,72,802 1,97,350 2,11,814 2,05,250 -3.1%
Fertiliser 2,51,339 1,75,100 1,89,487 1,64,000 -13.5%
Interest* 41,676 27,565 23,980 29,550 23.2%
LPG Subsidy 6,817 2,257 12,240 11,925 -2.6%
Others* 5,281 812 3,090 17,698 472.6%
of which allocation to Price Stabilisation Fund 0 0 0 10,000
Total 5,77,916 4,03,084 4,40,612 4,38,423 -0.5%
Note: *Actual figures are revised estimates for 2023-24
Sources: Expenditure Profile, Union Budget 2024-25; PRS.

Expenditure on Major Schemes

Table 7: Scheme wise allocation in 2024-25 (Rs crore)
Actuals Budgeted Revised Budgeted % change (2023-24
2022-23 2023-24 2023-24 2024-25 RE to 2024-25 BE)
MGNREGS 90,806 60,000 86,000 86,000 0%
Pradhan Mantri Awas Yojana 73,615 79,590 54,103 84,671 56.5%
Jal Jeevan Mission/National Rural Drinking Water Mission 54,700 70,000 70,000 70,163 0.2%
PM-KISAN 58,254 60,000 60,000 60,000 0%
Samagra Shiksha 32,515 37,453 33,000 37,500 13.6%
National Health Mission 31,279 29,085 31,551 36,000 14.1%
Modified Interest Subvention Scheme 17,998 23,000 18,500 22,600 22.2%
Saksham Anganwadi and POSHAN 2.0 19,876 20,554 21,523 21,200 -1.5%
Pradhan Mantri Gram Sadak Yojana 18,783 19,000 17,000 19,000 11.8%
National Livelihood Mission-Ajeevika 11,536 14,129 14,129 15,047 6.5%
Pradhan Mantri Fasal Bima Yojana 10,296 13,625 15,000 14,600 -2.7%
Reform Linked Distribution Scheme 2,738 12,072 10,400 12,585 21.0%
Pradhan Mantri Poshan Shakti Nirman (PM POSHAN) 12,681 11,600 10,000 12,467 24.7%
Swachh Bharat Mission 6,851 12,192 9,550 12,192 27.7%
Pradhan Mantri Krishi Sinchai Yojana 6,380 10,787 8,781 11,840 34.8%
Sources: Expenditure Profile, Union Budget 2024-25; PRS.

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 Union Budget 2024-25 Analysis PRS Legislative Research

▪ MGNREGS has the highest allocation in 2024-25 at Rs 86,000 crore. This amount is the same as the revised estimate for
2023-24. In 2023-24, allocation on the scheme is estimated to increase by 43% over the budget estimate.
▪ The Pradhan Mantri Awas Yojana has the second highest allocation in 2024-25 at Rs 84,671 crore, an increase of 56.5%
over the revised estimate of 2023-24. In 2023-24, expenditure for the scheme is expected to be lower by 32% as
compared to the budget estimates. This was mainly on account of the rural component falling short of original plans. The
allocation for 2024-25 is Rs 5,038 crore (6.4%) more than the budget estimates for 2023-24 on account of a higher
allocation to the urban component of the scheme.
▪ The Jal Jeevan Mission has the third highest allocation in 2024-25 at Rs 70,163 crore, an increase of 0.2% over the
revised estimate of 2023-24. PM KISAN has been allocated Rs 60,000 crore in 2024-25, which is the same as the revised
estimate of 2023-24.
▪ Several schemes have received an increase in allocation in 2024-25 as compared to the revised estimates for 2023-24.
These include: (i) Modified Interest Subvention Scheme (22.2%), (ii) Reform Linked Distribution Scheme (21%), and
(iii) PM-POSHAN (24.7%). Note that the allocation for the Modified Interest Subvention Scheme in 2024-25 (Rs 22,600
crore) is Rs 400 crore lower than the budget estimate for 2023-24 (Rs 23,000 crore).
Loans to states for capital expenditure
▪ The Centre has budgeted Rs 1,50,000 crore for special interest-free loans to states for capital expenditure in 2024-25.
This is 15.4% higher than the budget estimate for 2023-24 (Rs 1,30,000 crore). In 2023-24, as per the revised estimates,
expenditure on this head has been reduced by 18.8% to Rs 1,05,551 crore as compared to budget estimates for the year.
Expenditure on Scheduled Caste and Scheduled Tribe sub-plans and schemes for the welfare of women, children, and
the North Eastern Region (NER)
▪ Programmes for the welfare of women Table 8: Allocations for women, children, SCs, STs and NER (Rs crore)
and children have been allocated Rs % change
Actuals Revised Budgeted
4,37,079 crore in 2024-25, an increase of (2023-24 RE to
2022-23 2023-24 2024-25
2024-25 BE)
18.5% over the revised estimate of 2023-
24. These allocations include Welfare of Women 2,31,333 2,75,095 3,27,158 18.9%
programmes being implemented across Welfare of Children 86,883 93,659 1,09,921 17.4%
all ministries.
Scheduled Castes 1,33,008 1,46,861 1,65,493 12.7%
▪ Allocation towards the welfare of women Scheduled Tribes 92,176 1,09,242 1,24,909 14.3%
is expected to increase due to a higher
allocation towards the Pradhan Mantri North Eastern Region - 91,785 1,00,893 9.9%
Awas Yojana. Under the Awas Yojana, Note: Actual expenditure on the NER is not available for 2022-23.
Sources: Expenditure Profile, Union Budget 2024-25; PRS.
the female head of the family must be the
owner or co-owner of the house.
▪ Allocation towards the welfare of children is expected to increase due to a higher allocation towards school education.

Fiscal Responsibility and Budget Management targets

The Fiscal Responsibility and Budget Management (FRBM) Act, 2003 requires the central government to progressively
reduce its outstanding debt, revenue deficit and fiscal deficit, and to give three year rolling targets for these. Note that the
Medium-Term Fiscal Policy Statement has not provided rolling targets for budget deficits since 2021-22. In the Budget
speech, the Finance Minister reiterated the government’s aim to reduce fiscal deficit to below 4.5% of GDP by 2025-26.
Fiscal deficit is an indicator of borrowings by the Table 9: FRBM targets for deficits (as % of GDP)
government for financing its expenditure. The estimated Actuals Actuals Budgeted
fiscal deficit for 2024-25 is 4.9% of GDP. 2022-23 2023-24 2024-25
Fiscal Deficit 6.4% 5.6% 4.9%
Revenue deficit is the excess of revenue expenditure over
Revenue Deficit 3.9% 2.6% 1.8%
revenue receipts. Such a deficit implies that the
government needs to borrow funds to meet recurring Primary Deficit 3.0% 2.0% 1.4%
expenses which may not provide future returns. Sources: Medium Term Fiscal Policy Statement, Union Budget 2024-25; PRS.
The estimated revenue deficit for 2024-25 is 1.8% of GDP. This is lower than the actuals of 2023-24 (2.6%). In 2024-25,
revenue receipts are estimated to register a growth of 14.7% which is higher than the 6.2% growth in revenue expenditure.
Primary deficit is fiscal deficit less interest payments. It is estimated to be 1.4% of GDP in 2024-25.

July 23, 2024 -8-

 Union Budget 2024-25 Analysis PRS Legislative Research

Fiscal Deficit: Budgeted vs Actual (as % of GDP) Revenue Deficit: Budgeted vs Actual (as % of GDP)
8%
8%
6%
6%
4% 4%

2% 2%
0% 0%
2011-12
2012-13
2013-14
2014-15
2015-16
2016-17
2017-18
2018-19
2019-20
2020-21
2021-22
2022-23
2023-24
2024-25

2011-12
2012-13
2013-14
2014-15
2015-16
2016-17
2017-18
2018-19
2019-20
2020-21
2021-22
2022-23
2023-24
2024-25
Budgeted Actual Budgeted Actual

Sources: Budget at a Glance, Union Budget (various years); PRS.

▪ Outstanding liabilities is the accumulation of borrowings over the years. A higher debt implies that the government has
a higher loan repayment obligation over the years.
▪ The centre’s outstanding liabilities in 2024-25 are estimated to be 56.8% of the GDP. Outstanding liabilities had declined
from 51% in 2012-13 to 48.1% in 2018-19. From 2019-20 onwards, outstanding liabilities have been increasing, and had
reached a high of 61% in 2020-21, and have moderated thereafter. Guarantees given by the centre stand at 1.2% of GDP
at the end of 2022-23.
▪ Interest payments as a percentage of revenue receipts increased from 37% in 2013-14 to 42% in 2020-21. It is estimated
to be 37% of revenue receipts in 2024-25.

Outstanding liabilities as % of GDP Interest payments as a % of Revenue Receipts

70% 61% 50%
57% 56% 58% 57% 42%
60% 52% 51% 51% 50% 50% 36% 36% 37% 37% 37% 35% 37% 38% 36% 37% 39% 39% 37%
48% 48% 48% 51% 40%
50%
40% 30%
30% 20%
20%
10% 10%
0% 0%
2011-12
2012-13
2013-14
2014-15
2015-16
2016-17
2017-18
2018-19
2019-20
2020-21
2021-22
2022-23

2024-25 BE
2023-24 RE

2011-12
2012-13
2013-14
2014-15
2015-16
2016-17
2017-18
2018-19
2019-20
2020-21
2021-22

2024-25 BE
2022-23
2023-24

Note: RE is revised estimate and BE is budget estimate.

Sources: Union Budget Documents 2024-25, RBI Database on Indian Economy; PRS.

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