UNION BUDGET 2024-25

KEY DATA POINTS

 Union Budget 2024-25
What is the Union Budget?
● The Union Budget is a detailed statement of the estimated receipts and
expenditures of the Government of India for a particular financial year.
● It is also known as the Annual Financial Statement and is mandated by
Article 112 of the Indian Constitution.
● The Union Budget is presented by the Finance Minister in the Lok
Sabha, and a summary is also laid before the Rajya Sabha.
● Appropriation Bill: Authorizes the withdrawal of funds from the
Consolidated Fund of India to meet the expenditure.
● Finance Bill: Deals with the imposition, abolition, remission, alteration, or
regulation of taxes

Components of the Union Budget:

● Revenue Budget: Includes government revenue receipts (tax and
non-tax) and expenditure met from these revenues.
● Capital Budget: Includes government capital receipts and payments, such
as loans from the public, borrowings from the Reserve Bank, and capital
expenditure on the acquisition of assets.

Focus Areas of the Union Budget 2024-25:

● Employment, Skilling, MSMEs and the Middle Class

9 Budget Priorities:

● The Union Budget 2024-25, themed "Viksit Bharat," outlines nine key
priorities aimed at driving India's development.
● Priority 1: Innovation, Research & Development
○ Anusandhan National Research Fund: Operationalized for basic
research and prototype development.
○ Financing Pool: ₹1 lakh crore for private sector-driven research and
innovation.
○ Venture Capital Fund: ₹1,000 crore to expand the space economy
by 5 times in the next 10 years.
● Priority 2: Productivity and Resilience in Agriculture:
○ Allocation: ₹1.52 lakh crore for agriculture and allied sectors.
 ○ New Varieties: 109 high-yielding and climate-resilient crop varieties
to be released.
○ Natural Farming: 1 crore farmers to be initiated into natural farming
with certification and branding.
○ Bio-input Resource Centres: 10,000 centres to be established.
○ Digital Public Infrastructure for Agriculture: Implementation
planned within 3 years.

● Priority 3: Employment & Skilling

○ Employment Linked Incentive Schemes: Three schemes to
support job creation. Scheme A - First Timers; Scheme B - Job
Creation in manufacturing; Scheme C - Support to employers.
○ Internship Scheme: Opportunities for 1 crore youth in 500 top
companies over 5 years.
○ Support for Working Women: Hostels and crèches to be established
with industrial collaboration.
○ Skilling Scheme: New centrally sponsored scheme to skill 20 lakh
youth over 5 years.
○ Education Loans: Loans up to ₹10 lakh for higher education in
domestic institutions.
● Priority 4: Inclusive Human Resource Development and Social
Justice
○ Purvodaya: Industrial node at Gaya along the Amritsar-Kolkata
Industrial Corridor.
○ Special Financial Support: ₹15,000 crore under the Andhra Pradesh
Reorganization Act.
○ Pradhan Mantri Janjatiya Unnat Gram Abhiyan: Socio-economic
development of tribal families in 63,000 villages.
● Priority 5: Manufacturing & Services
○ Credit Guarantee Scheme: For MSMEs in the manufacturing sector.
○ Mudra Loans: Limit increased to ₹20 lakh for successful previous
borrowers.
○ Critical Mineral Mission: For domestic production and recycling of
critical minerals.
○ Digital Public Infrastructure Applications: In areas such as credit,
e-commerce, education, and health.
● Priority 6: Urban Development
○ Transit Oriented Development: Financing for 14 large cities with
populations above 30 lakh.
○ Street Markets: Development of 100 weekly 'haats' or street food
hubs annually for 5 years.
● Priority 7: Energy Security
○ Pumped Storage Projects: Policy to promote electricity storage.
○ Small and Modular Nuclear Reactors: Research and development
initiatives.
○ Advanced Ultra Super Critical Thermal Power Plants: To enhance
energy efficiency.
● Priority 8: Infrastructure
○ Capital Expenditure: ₹11,11,111 crore (3.4% of GDP) allocated.
○ Long-term Loans: ₹1.5 lakh crore for states' infrastructure
investments.
○ Phase IV of PMGSY: Comprehensive development of key temple
corridors.
● Priority 9: Next Generation Reforms
○ NPS-Vatsalya: Contribution plan for minors by parents and
guardians.
○ Digitization of Land Records: With GIS mapping and establishment
of land registry.
○ Unique Land Parcel Identification Number (Bhu-Aadhaar): For all
lands, linked to the farmers' registry.
 Budget Estimates 2024-25

● Real Growth Rate: 8.2% for 2023-24.

● Nominal Growth Rate: 9.6% for 2023-24.
● Total Receipts (excluding borrowings): ₹32.07 lakh crore.
● Total Expenditure: ₹48.21 lakh crore.
● Net Tax Receipt: ₹25.83 lakh crore.
● Fiscal Deficit: 4.9% of GDP with a goal to reduce it below 4.5% next year.
● Inflation: Moving towards the 4% target with core inflation at 3.1%.
● Fiscal Management and Deficit Control:
○ The government is focusing on maintaining fiscal discipline by
aiming to reduce the fiscal deficit below 4.5% of GDP by next
year.
○ The reduction in the Gross Non-Performing Assets (GNPA) ratio of
Scheduled Commercial Banks to 2.8% from 11.2% in FY 2017-18
highlights improved financial health and asset quality in the banking
sector.

● Revenue and Taxation

○ Gross Tax Revenue (GTR): Estimated at ₹38.40 lakh crore (11.8% of
GDP) for FY 2024-25.
○ Direct Taxes: 57.5% contribution.
○ Indirect Taxes: 42.5% contribution.
● Changes in Taxation:
○ Corporate Tax: Reduced from 40% to 35% for foreign companies.
○ Personal Income Tax under the New Regime:
○ Standard deduction for salaried employees increased from ₹50,000
to ₹75,000.
○ Tax Slabs:
■ 0-3 lakh rupees: Nil
■ 3-7 lakh rupees: 5%
■ 7-10 lakh rupees: 10%
■ 10-12 lakh rupees: 15%
■ 12-15 lakh rupees: 20%
 ■ Above 15 lakh rupees: 30%

● Capital Gains Tax:

○ Short-term gains on certain financial assets taxed at 20%.
○ Long-term gains on all financial and non-financial assets taxed at
12.5%.
● Investment and Start-Up Ecosystem
○ Angel Tax Abolition: To bolster the start-up ecosystem, the angel
tax for all classes of investors has been abolished.
○ These measures aim to make the Indian economy more attractive
for both domestic and foreign investments, thereby fostering
innovation and entrepreneurship.