UNION BUDGET 2024 AT GLANCE
The Union Budget of India, also referred to as the Annual Financial Statement in Article 112 of the Constitution of India, is the annual budget of the Republic of India.
The Government presents it on the first day of February so that it could be materialized before the beginning of the new financial year in April. Until 2016 it was presented on the last working day of February by the Finance Minister in Parliament.
The budget division of the Department of Economic Affairs (DEA) in the Finance Ministry is the nodal body responsible for producing the budget.
It is presented by means of the Finance bill and the Appropriation bill has to be passed by Lok Sabha before it can come into effect on 1 April, the start of India's financial year.
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Presented By |
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Budget Preparation |
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Budget Classification |
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Budget Parts |
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Finance Bill |
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READ KEY FACTS AND CONSTITUTIONAL PROVISIONS- https://www.iasgyan.in/daily-current-affairs/union-budget-for-2023-24
Key Highlights of Union Budget 2024-2025
Capital Expenditure Share |
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Impact of Higher Capital Expenditure |
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Major Source of Receipts for FY 2024-25 |
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Tax Revenue Sources |
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Direct vs. Indirect Tax Collection |
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Trend in Tax Shares |
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Centre’s Net Tax Revenue |
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State Share of Taxes |
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Interest Payments Impact |
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Debt-to-GDP Ratio |
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Capital Expenditure Trend |
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Non-Tax Revenue |
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Comparison with Late 1970s and 1980s |
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Overall Framework
- 5 Schemes for Employment and Skilling for 4.1 Crore Youth over a five-year period with a budgetary outlay of 2 lakh Crore.
- 48 lakh Crore for Education, Employment, and Skilling.
Building a Detailed Roadmap of Viksit Bharat - 9 Priorities
- Productivity and Resilience in Agriculture
- Employment and Skilling
- Inclusive Human Resource Development and Social Justice
- Manufacturing and Services
- Urban Development
- Energy Security
- Infrastructure
- Innovation, Research, and Development
- Next Generation Reforms
Priority 1: Productivity and Resilience in Agriculture
Transforming Agriculture Research |
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Natural Farming |
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Mission for Pulses and Oilseeds |
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National Cooperation Policy |
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Priority 2: Employment and Skilling
3 Schemes for Employment-linked Incentives as part of the Prime Minister’s package.
- Based on the enrollment of EPFO registration.
- Focus on first-time employees.
- Support to employees and employers
Scheme |
Details |
Beneficiaries |
Scheme A: First Timers |
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210 lakh youths |
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Scheme B: Job Creation in Manufacturing |
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30 lakh youths and their employers |
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Scheme C: Support to Employers |
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50 lakh persons |
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Program |
Details |
Skilling Programme |
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Skilling Loans |
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Education Loans |
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Priority 3: Inclusive Human Resource Development and Social Justice
- Purvodaya: The initiative aims at comprehensive development in the Northeastern states, including Bihar, Jharkhand, West Bengal, Odisha, and Andhra Pradesh. It focuses on enhancing human resource development, infrastructure, and generating economic opportunities to transform the region into a key driver for achieving a developed India (Viksit Bharat).
- Amritsar Kolkata Development Corridor: Support for the industrial corridor development with a specific node at Gaya.
Ancient Centres of Economy - Vikas Bhi, Virasat Bhi:
- Road Connectivity Projects in Bihar:
- Patna-Purnia Expressway
- Buxar-Bhagalpur Highway
- Bodhgaya-Rajgir-Vaishali-Darbhanga route
- Additional two-lane bridge over the river Ganga in Buxar
- Total investment for these projects is ₹26,000 crore.
- Power Projects: Power projects, including the 2400 MW power plant at Pir Payanti, are to be taken up at ₹ 21,400 Crore.
- New Airports, Medical Colleges, and Sport Centres in Bihar will be constructed.
- Andhra Pradesh Reorganisation Act: Special financial support of ₹15,000 crore will be provided for Andhra Pradesh through multilateral development agencies in the current financial year, with additional funds in future years. This includes recognition of the Polavaram Project for food and water security, financial support for the Visakhapatnam-Chennai and Hyderabad-Bengaluru Industrial Corridors, and grants for the backward Rayalseema region.
- PM Awas Yojana: Provision of 3 crore additional houses in rural and urban areas under the PM Awas Yojana.
- Women-led Development: Financial support of ₹3 lakh crore to enhance women's role in economic development.
- Pradhan Mantri Janjatiya Unnat Gram Abhiyan: Improve the socio-economic conditions of tribal communities with saturation coverage of 63,000 villages benefiting 5 crore tribal people.
- Augmenting Banking Services: Opening of more than 500 India Post Payment Bank branches in Northeastern states.
- Rural Infrastructure Development: An outlay of ₹2.66 lakh crore.
Priority 4: Manufacturing and Services
Credit Guarantee Schemes for MSMEs |
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New Assessment Model for MSME Credit |
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Credit to Stressed MSMEs |
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Mudra Loans |
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Enhanced TReDS Onboarding |
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SIDBI Branches in MSME Clusters |
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MSME Unit for Food Irradiation & Quality |
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E-Commerce Export Hubs |
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Internship in Top Companies |
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Industrial Parks |
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National Company Law Tribunals |
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Priority 5: Urban Development in Budget 2024
- Cities as Growth Hubs:The budget emphasizes developing cities as growth hubs through economic and transit-oriented planning. Focus will be on sustainable peri-urban development with effective town planning schemes.
- Creative Redevelopment Initiatives: A framework will be established for brownfield redevelopment to transform urban landscapes.
- This includes creating transit-oriented development plans for 14 cities with populations exceeding 30 lakh to align infrastructure development with urban growth.
- Urban Housing under PM Awas Yojana 2.0:Allocates ₹10 lakh crore to address housing needs for 1 crore middle-class and poor families, with central assistance of ₹2.2 lakh crore over five years. Includes provisions for interest subsidies to support affordable housing loans.
- Water Supply and Sanitation: Enhancements in water supply and sanitation services through partnerships with state governments and multilateral banks.
- Focus on water management, treatment, and solid wastemanagement in 100 large cities, including treated water use for irrigation and replenishing water bodies.
- Support for Street Vendors:Aims to develop 100 weekly street food hubs in select cities over five years, enhancing street vendors' livelihoods and promoting local food economies.
- Research & Development of Small and Modular Nuclear Reactors: Partnerships with the private sector to set up Bharat Small Reactors and develop new nuclear technologies.
- Government-appropriated funding will support these initiatives as part of the energy strategy for Viksit Bharat.
Viksit Bharat and the Role of Nuclear Energy
India aims for a ‘Viksit Bharat’ (Developed India) by 2047, with Net Zero emissions being a key com ponent of this vision. The goal of achieving net zero carbon emissions by 2070 directs the country’s ef forts towards strong, inclusive, and environmentally sustainable economic and energy growth. This under scores the significance of nuclear energy for India. |
PM-Surya Ghar Yojana |
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National Offshore Wind Energy Policy |
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Green Hydrogen Mission |
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Priority 7: Infrastructure
- Capital Expenditure:Capital expenditure multipliers are estimated to be 1.5 - 3 times larger than revenue expenditure multipliers.
Central Government Investments |
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State Governments Investments |
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Private Investments |
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PM-Gram Sadak Yojana Phase IV |
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Irrigation and Flood Mitigation |
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Tourism Development |
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The Bilbao Effect, or Guggenheim Effect refers to the substantial urban renewal, revitalization, and economic growth that a city can experience though the development of landmark architectural projects. |
Priority 8: Innovation research and development
- Operationalise the “Anusandhan National Research Fund” for basic research and prototype development.
ANRF Establishment |
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Objectives |
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SERB Integration |
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Collaborations |
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Space Economy Growth |
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Venture Capital Fund |
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Recommendations from NITI Aayog |
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Priority 9: Next Generation Reforms
Andrew Leigh in his book “The Shortest History of Economics” has stressed on the fact that if the growth rate of education is less than that of growth rate of technology social economists take the dif ferent perspective of technology in reducing in equality.
Rural Land related actions will include :
- Assignment of Unique Land Parcel Identification (ULPI) or Bhu- Aadhar for all lands.
- Digitisation of cadastral maps.
- Survey of map sub-divisions as per current ownerships.
- Establishment of land registry and linking to the farmers registry.
Labour related reforms:
- Services to labour: Wide array of services to labor including those for employment and skilling.
- Comprehensive integration of e-Shram portal with other portals to facilitate one stop solution.
Capital and entrepreneurship reforms:
- Financial sector vision and strategy: Financial sector vision and strategy document to be brought to prepare the sector in terms of size, capacity and skills. It will set the agenda for the next 5 years and guide the government, regulators and market participants.
According to the Down To Earth Report advanced economies have not been able to commit 100 billionUSD to developing economies. Out of this only 36.8% of the investment has been made towards climate adaptation. Recently major advanced economies especially the G7 countries came up with the Cornwall Consensus. |
- The Jan Vishwas (Amendment of Provisions) Act, 2023 is a significant legislative measure in India aimed at decriminalising certain minor offenses and enhancing the ease of living and doing business.
NPS Vatsalya:
- NPS-Vatsalya, a plan for contribution by parents and guardians for minors will be started.
- On attaining the age of majority, the plan can be converted seamlessly into a normal NPS account.
New Pension Scheme (NPS):
- The Committee to review the NPS has made considerable progress in its work.
- Solution to be evolved which addresses the relevant issues while maintaining fiscal prudence to protect the common citizens.
The Union Budget-2024 presents a mixed bag of opportunities and challenges for India. While the government's focus on infrastructure development, agriculture, and social welfare is commendable, effective implementation and sustainable fiscal management are crucial for realizing the full potential of the budget
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