A budget ,official called as an “Annual financial statement” as specified under Art.112 of the constitution of India outlines projected income and expenses usually for a year.
It is used as a tool for managing financial resources and achieving specific goals such as mobilization of resources, fiscal consolidation, etc. The national budget is prepared by the budget division under the DEPARTMENT OF ECONOMIC AFFAIRS (DEA), the Ministry of Finance and is presented to the Parliament for discussion and approval.
UNION BUDGET HIGHLIGHTS 2024🙁First General Budget of 18th Lok Sabha)
Key Focus Areas of the budget:
1. Garib (Poor)
2. Mahilayen(Women)
3.Yuva(Youth)
4. Annadata (Farmers)
KEY PILLARS OF THE BUDGET:
The budget prioritizes on the areas including Agriculture, Employment, Human resource development, Manufacturing, Services, Urban Development, Energy Security, Infrastructure, Innovation, Research & Development, next-generation reforms.
The Budget outlays priorities for the Viksit Bharat:
1.Productivity and resilience in Agriculture
(Provision of Rs 1.52 lakh crore has been announced for agriculture and allied sectors this year.)
Natural Farming
• 1 crore farmers across the country will be initiated into natural farming,supported by certification and branding in next 2 years.
• 10,000 need-based bio-input resource centres to be established.
Shrimp Production & Export
• Financing for Shrimp farming, processing and export will be facilitated through NABARD.
Digital Public Infrastructure (DPI)
• DPI for coverage of farmers and their lands in 3 years.
• Digital crop survey in 400 districts
• Issuance of Jan Samarth based Kisan Credit Cards.
Government along with the states, will facilitate the implementation of the Digital Public Infrastructure (DPI) in agriculture for coverage of farmers and their lands in 3 years.
2.Employment & Skilling
Skilling Programme for The Youth
• 20 lakh youth will be skilled over a 5-year period.
• 1,000 Industrial Training Institutes will be upgraded in hub and spoke arrangements with outcome orientation.
•Course content & design aligned as per skill needs of industry.
• Promoting Female Labour force participation via facilitating higher participation of women in the workforce through setting up of working women hostels in collaboration with industry, and establishing creches.
The Model Skill Loan Scheme will be revised to facilitate loans up to Rs 7.5 lakh with a guarantee from a government promoted fund, which is expected to help 25,000 students every year.
3.Inclusive Human Resource Development and Social Justice:
Development Avenues for the Eastern Region(Purvodaya): Vikas bhi Virasat bhi
• Plan for endowment rich states in the Eastern parts covering Bihar, Jharkhand, West Bengal, Odisha and Andhra Pradesh for generation of economic opportunities to attain Viksit Bharat.
• Amritsar Kolkata Industrial Corridor with development of an industrial node at Gaya.
•The Finance Minister announced the launch of the Pradhan Mantri Janjatiya Unnat Gram Abhiyan to enhance the socio-economic conditions of tribal communities, covering 63,000 villages in tribal-majority areas and aspirational districts, benefiting approximately 5 crore tribal people.
•Over 100 branches of India Post Payment Bank will be established in the North East region to enhance banking services, alongside a provision of Rs 2.66 lakh crore allocated for rural development and infrastructure this year.
4: Manufacturing & Services :
Boosting the MSME sector :
1.Credit Guarantee Scheme for MSMEs in the Manufacturing Sector Enhanced scope for mandatory onboarding inTReDS
2.New assessment model for MSME credit
3.Mudra Loans: The limit enhanced to ₹ 20 lakh from the current ₹ 10 lakh under the ‘Tarun’ category.
5.Public sector banks will enhance their internal assessment capabilities for MSME credit. Additionally, Mudra loan limits will increase to Rs 20 lakh for previous ‘Tarun’ category borrowers.
6.The budget includes initiatives like setting up 50 food irradiation units, establishing 100 food quality labs, and creating E-Commerce Export Hubs.
7.A scheme for internships in 500 top companies aims to benefit 1 crore youth over 5 years.
5: Urban Development:
1. Encouraging states to lower stamp duties for properties purchased by women.
2.Building on the success of PM SVANidhi,Envisioning a scheme to develop 100weekly ‘haats’ or street food hubs in select citiesTransit Oriented Development plans for 14 large cities with a population above 30 lakh.
3.Promote water supply, sewage treatment and solid waste management projects and services for 100 large cities through bankable projects.
4.PM Awas Yojana Urban 2.0, has been allocated Rs 10 lakh crore to address housing needs of 1 crore urban poor and middle-class families, with Rs 2.2 lakh crore in central assistance over 5 years.
5.The government will also collaborate with State Governments and Multilateral Development Banks to promote water supply, sewage treatment, and solid waste management in 100 large cities through bankable projects.
6: Energy Security:
1.PM Surya Ghar Muft Bijli Yojana aims to install rooftop solar plants for free electricity to 1 crore households (up to 300 units every month).
2.Setting up Bharat Small Reactors and R&D of Bharat Small Modular Reactor and newer technologies for nuclear energy
3.Financial support for shifting of micro and small industries to cleaner forms of energy
4.Facilitate investment grade energy audit in 60 clusters, next phase expands to 100 clusters.
7: Infrastructure:
1.Government will try to maintain strong fiscal support for infrastructure over the next 5 years on this line Rs 11,11,111 crore for capital expenditure has been allocated this year, which is 3.4% of our GDP.
2.Phase IV of Pradhan Mantri Gram Sadak Yojana (PMGSY) to connect 25,000 rural habitations with all-weather roads due to population growth has been announced.
3.For Bihar, under the Accelerated Irrigation Benefit Programme and other sources, the government will allocate Rs 11,500 crore for projects like the Kosi-Mechi intra-state link and 20 other schemes including barrages, river pollution abatement, and irrigation.
4.Financial assistance will be provided to Assam, Himachal Pradesh, Uttarakhand, and Sikkim for flood management, landslides, and related projects.
8: Innovation, Research & Development:
1.The government will establish the Anusandhan National Research Fund to support basic research and prototype development, allocating Rs 1 lakh crore to spur privatesector-driven research and innovation at a commercial scale.
2.To expand the space economy fivefold in the next decade, a venture capital fund of Rs 1,000 crore will be established.
9: Next Generation Reforms:
1.Plans for an Economic Policy Framework, labour reforms, and simplification of FDI regulations are outlined to spur economic growth.
2.Jan Vishwas Bill 2.0 to improve Ease of Doing Business will be introduced by the government.
3.Unique Land Parcel Identification Number or Bhu-Aadhaar for all lands.
4.Survey of map sub-divisions as per current ownership
Tax Proposals:
Direct Tax Proposals:
To reduce the compliance burden, promote entrepreneurial spirit and provide tax relief to citizens.
RATIONALISATION OF CAPITAL GAINS :
• Short term gains of financial assets to attract 20% tax rate.
• Long term gains on all financial an non-financial assets to attract a tax rate of 12.5%.
• Increase in limit of exemption of capital gains on financial assets to ₹1.25 lakh per year.
Employment and Investment:
• Abolish ANGEL tax for all classes of investors.
• Simpler tax regime to operate domestic cruise
• Provide for safe harbour rates for foreign mining companies (Selling raw diamonds)
• Corporate tax rate on foreign companies reduced from 40% to 35%.
