New Delhi, July 23, 2024 — In a pivotal moment for India’s economic trajectory, Finance Minister Nirmala Sitharaman today presented the Union Budget for the fiscal year 2024-2025 in the Lok Sabha. This marks the first full budget of the Modi 3.0 government, emphasizing a robust vision amidst global economic uncertainties.
Addressing the Parliament, Sitharaman underscored the nation’s resilience amid global volatility, citing the electorate’s confidence in re-electing the NDA government. Highlighting fiscal prudence, she noted India’s low and stable inflation as a pivotal achievement.
Key Budget Highlights:
- Sectoral Allocations: The budget allocates significant resources across key sectors including agriculture, employment, infrastructure, and innovation. Notably, ₹2 lakh crore has been earmarked for five new schemes with a focus on skilling 4.1 crore youth.
- Agriculture and Allied Sectors: ₹1.52 lakh crore has been provisioned for agriculture, with initiatives such as establishing 10,000 bio research centers and promoting natural farming among 1 crore farmers over the next two years. The budget also supports vegetable production clusters and shrimp breeding centers to boost exports.
- Employment and Skill Development: Sitharaman introduced three employment-linked incentive schemes aimed at boosting formal sector employment, particularly for first-time job seekers and in manufacturing.
- MSME Sector: Measures include doubling the Mudra loan limit, supporting multi-product food irradiation units, and setting up E-Commerce Export Hubs to enhance MSME exports.
- Fiscal Management: The fiscal deficit for FY25 is projected at 4.9% of GDP, with a commitment to reduce it below 4.5% in subsequent years. Total expenditure is pegged at ₹48.21 lakh crore, with receipts estimated at ₹32.07 lakh crore.
- Tax Reforms: The budget revises tax structures, offering significant savings in income tax under the new regime. Customs duties have been adjusted, including cuts for gold, silver, and exemptions for critical minerals and solar manufacturing inputs.
- Infrastructure Development: Plans include developing ‘plug and play’ industrial parks in 100 cities, upgrading 1,000 ITIs, and launching the Critical Mineral Mission to bolster domestic production.
- Capital Gains and Other Taxes: Changes include revised rates for short-term and long-term capital gains, and adjustments in TDS rates for e-commerce operators.
Conclusion:
In conclusion, the Union Budget 2024-2025 outlines a comprehensive strategy to fortify India’s economic foundations amid global uncertainties, focusing on inclusive growth, sustainable development, and bolstering the country’s resilience. As Finance Minister Sitharaman concluded her seventh consecutive Budget speech, her proposals are set to shape India’s economic landscape in the coming fiscal year.
The budget session in Parliament will now witness detailed deliberations and is expected to pave the way for legislative approvals in the coming weeks.
