The Union Budget 2024-25 was presented in the Parliament, marking a significant fiscal event as the first general budget of the 18th Lok Sabha. This year’s budget reflects continuity, reforms, and an inclusive vision aimed at empowering the poor, women, youth, and farmers.
Key Highlights of Union Budget 2024-25
- Historic Achievement: Finance Minister Nirmala Sitharaman became the first Union Finance Minister to present seven consecutive Union Budgets, surpassing the previous record shared with Morarji Desai.
- The Union Budget, also known as the Annual Financial Statement, is mandated under Article 112 of the Indian Constitution.
- The budget outlines estimated expenditure and receipts of the Government for the fiscal year (April 1–March 31).
- Since 2017, the railway budget has been merged with the Union Budget.
- The Budget is now presented on 1st February to ensure its implementation from April 1st, the beginning of the financial year.
Historical Context of Union Budget
- First Budget in India: Presented in 1860 by Scottish economist James Wilson.
- Post-Independence First Budget: Delivered by RK Shanmukham Chetty on November 26, 1947.
- Most Budgets Presented: Morarji Desai holds the record with 10 budgets.
- Second Highest: P Chidambaram presented 9 budgets.
- Economic Reforms: Manmohan Singh, as Finance Minister (1991–95), introduced key reforms through five consecutive budgets.
- Longest Speech: Nirmala Sitharaman, in 2020, with a 2 hour 40 minute address.
- Shortest Speech: Hirubhai Patel, 1977, with just 800 words.
- Timing Shift: From colonial 5 PM timings to 11 AM from 1999 onwards.
- Digital Transformation: Budget went paperless in 2021.
- Tradition: The ceremonial Halwa Ceremony marks the start of the budget printing process.
- Cultural Shift: Replacing the briefcase, Sitharaman now uses a ‘bahi khata’ for presenting the budget.
Union Budget 2024 Key Themes: Garib, Mahilayen, Yuva, Annadata
The Union Budget 2024 prioritizes the poor, women, youth, and farmers, while aligning with the vision of Viksit Bharat.
Top Focus Areas and Allocations
- Rs 1.48 lakh crore for education, employment, and skilling.
- Rs 1.52 lakh crore allocated to the agriculture and allied sectors.
- Over Rs 3 lakh crore allocated for women-centric schemes.
- Rs 2.66 lakh crore for rural development and infrastructure.
Priority 1: Productivity & Resilience in Agriculture
- 109 climate-resilient crop varieties to be introduced.
- 1 crore farmers to be trained in natural farming.
- 10,000 bio-input resource centres to be set up.
- Push for oilseed self-sufficiency (mustard, groundnut, etc.).
- Digital Public Infrastructure (DPI) to cover farmer-land data within 3 years.
- Financial backing for shrimp farming and cooperatives.
- A National Cooperation Policy to boost the rural economy.
Priority 2: Employment & Skilling
Key Schemes under PM’s Employment Linked Incentive:
- Scheme A: ₹15,000 wage support for first-time employees.
- Scheme B: Job creation incentives in manufacturing.
- Scheme C: ₹3,000/month EPFO reimbursement for additional hires.
Skilling Initiatives:
- 20 lakh youth to be skilled in 5 years.
- 1,000 ITIs to be upgraded under hub-and-spoke model.
- Skill Loan Scheme revised to allow ₹7.5 lakh loans.
- Support for higher education loans up to ₹10 lakh.
Priority 3: Inclusive Human Resource Development & Social Justice
- A saturation approach for access to welfare, health, and education schemes.
- Strengthening economic opportunities for artisans, SHGs, SC/ST and women entrepreneurs.
- Eastern states like Bihar, Jharkhand, Odisha, etc., to receive focused development plans.
- Industrial corridor node in Gaya, enhanced connectivity and infrastructure in Bihar.
- Pradhan Mantri Janjatiya Unnat Gram Abhiyan launched for 63,000 tribal villages.
- 100+ India Post Payment Bank branches to be opened in the North East.
Priority 4: Manufacturing & Services
MSME Support
- New self-financing guarantee fund: Up to ₹100 crore per applicant for labour-intensive manufacturing.
- Public sector banks to develop in-house credit assessment for MSMEs.
- New credit continuation mechanism: Allows MSMEs under stress (SMA stage) to access funds and avoid turning NPAs.
- Mudra loan limit raised to ₹20 lakh for Tarun category borrowers with a good repayment track record.
- SIDBI expansion: New branches to serve major MSME clusters and offer direct credit.
- 50 food irradiation units to be set up with financial support for MSMEs.
- E-Commerce Export Hubs to be launched in PPP mode to boost MSME exports.
- Internships in top 500 companies: 1 crore youth to benefit over 5 years.
Manufacturing Boost
- 100 industrial plug-and-play parks to be developed with complete infrastructure.
- 12 industrial parks under National Industrial Corridor Development Programme to be sanctioned.
- Rental housing with dormitories for industrial workers in PPP mode.
- Integrated Technology Platform for IBC to improve consistency, transparency, and outcomes.
- Strengthening of Debt Recovery Tribunals, including setting up additional ones.
Priority 5: Urban Development
- Cities as Growth Hubs: Transit and economic planning with town planning schemes.
- Transit Oriented Development (TOD): For 14 cities with population >30 lakh.
- PM Awas Yojana Urban 2.0: ₹10 lakh crore investment for 1 crore houses (₹2.2 lakh crore central support over 5 years).
- Rental housing policy reforms for enhanced availability and transparency.
- Water, sewage, solid waste projects in 100 large cities, leveraging treated water for irrigation.
- 100 street food hubs (haats) to be created annually under PM SVANidhi model.
Priority 6: Energy Security
- Policy on energy transition balancing jobs, growth, and environment.
- PM Surya Ghar Muft Bijli Yojana: Over 1.28 crore registrations; to be expanded.
- Policy on pumped storage projects for electricity storage to balance renewables.
- Nuclear energy to become key component of energy mix.
- Advanced Ultra Super Critical (AUSC) technology: ₹800 MW plant by NTPC-BHEL JV with fiscal support.
- Energy audits of traditional industries in 60 clusters including brass and ceramic.
Priority 7: Infrastructure
- Capital expenditure of ₹11.11 lakh crore, ~3.4% of GDP.
- ₹1.5 lakh crore interest-free loans to states for infra development.
- PMGSY Phase IV: All-weather roads to 25,000 habitations.
- ₹11,500 crore for Bihar: Kosi-Mechi link, irrigation and river-related schemes.
- Disaster management support for NE states: Assam, HP, Uttarakhand, Sikkim.
Tourism Focus
- Pilgrim Corridors: Vishnupad, Mahabodhi, and Rajgir to be developed.
- Nalanda: To be developed as a tourism hub and university revived.
- Odisha: Scenic, heritage and beach destinations to be developed comprehensively.
Priority 8: Innovation, Research & Development
- Anusandhan National Research Fund to be operationalised for basic R&D.
- Private sector R&D incentive: ₹1 lakh crore financing pool to promote commercial-scale innovation.
- ₹1,000 crore VC fund for expanding space economy 5x over the next 10 years.
Priority 9: Next-Gen Reforms
- New Economic Policy Framework, labour reforms and FDI simplification on the agenda.
- Land-related reforms in rural/urban areas to be incentivized over 3 years.
- Unified service access for workers via e-Shram and related portals.
- Shram Suvidha and Samadhan portals to be revamped for compliance ease.
- Climate finance taxonomy to mobilize green capital.
- Simplified FDI rules and promotion of Indian Rupee for overseas investments.
- Digital economy adoption and data governance to be enhanced.
- Jan Vishwas Bill 2.0 and digitalized Business Reforms Action Plans for states.
- NPS Vatsalya: Parent/guardian contributions for minors.
- NPS Review Committee to ensure fiscal prudence and citizen benefit.
Taxation Reforms
Indirect Taxes
- Customs duty review in 6 months to simplify and rationalise.
- Cancer drugs, x-ray parts, mobile components, critical minerals, marine inputs, and solar manufacturing capital goods: Customs duty reductions or exemptions.
- Leather, textiles, and precious metals: Duty reductions to boost exports.
- Chemicals, plastics, telecom: Duty changes to correct inversion or promote domestic production.
Direct Taxes
New Tax Regime Slabs
| Income Slab | Tax Rate |
| 0–3 lakh | Nil |
| 3–7 lakh | 5% |
| 7–10 lakh | 10% |
| 10–12 lakh | 15% |
| 12–15 lakh | 20% |
| Above 15 lakh | 30% |
- Standard deduction raised to ₹75,000 (from ₹50,000).
- Pension deduction increased to ₹25,000 (from ₹15,000).
- Income Tax Act to be rewritten in 6 months for clarity, brevity and ease of understanding.
- Vivad Se Vishwas Scheme 2024 to resolve pending tax disputes.
- Capital Gains:
- Short term: 20%
- Long term: 12.5%
- Exemption limit: ₹1.25 lakh/year
- All remaining IT & Customs services to be digitalized in 2 years.
Investment & Employment Incentives
- Angel tax abolished for all investor classes.
- Corporate tax for foreign companies reduced to 35% (from 40%).
- Favourable tax regime for cruise tourism and diamond trade.
- STT on futures and options increased to 0.02% and 0.1%.
- NPS employer contribution deduction raised to 14%.
- Minor foreign asset reporting up to ₹20 lakh de-penalised.
Budget Estimates 2024–25
- Total receipts (excl. borrowings): ₹32.07 lakh crore
- Total expenditure: ₹48.21 lakh crore
- Net tax receipts: ₹25.83 lakh crore
- Fiscal deficit: 4.9% of GDP; target to go below 4.5% next year
- Gross market borrowings: ₹14.01 lakh crore
- Net market borrowings: ₹11.63 lakh crore
- Inflation: Low and stable, aiming toward 4% with supply-side measures for perishables.
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