Highlights of the Budget 2024
The union budget 2024 was presented by our Finance Minister Nirmala Sitaraman, outlining several key initiatives for the country’s growth in all aspects. This is the first general budget of the 18th Lok Sabha. It mentioned that India’s economic growth continues to shine and will remain the same in the coming years. India’s inflation is stable, low and continuously moving towards its target.
She further reiterated that the focus is on 4 major areas: Gareeb(Poor), Mahilaye(Women), Yuva(Youth) and Annadata(Farmer). These 4 are major areas that require major upliftment in society in order to focus on its commitment to equality, an inclusive society and the government’s pursuit of “Viksit Bharat”. In all four of these areas, various initiatives are taken. Empowerment and growth in these areas need a major push to move towards development in all ways. Apart from these, our budget is focused on 4 major themes, which are Skilling, Employment, MSME’s and Middle Class.
Major higlights for the budget 2024 are:
The priorities for Viksit Bharat are agriculture, employment and skilling, inclusive human resource development & social justice, urban development, energy security, infrastructure, innovation and research & development.
1. Transforming the agricultural sector.
Focus on Natural Farming- One crore farmers will be initiated in natural farming and 10,000 bio-input resource centers will be established.
Digital public infrastructure for coverage of farmers and their land in 3 years.
A digital crop survey in 400 districts will be conducted.
Financing for shrimp farming, processing and export.
2. Employment and training incentives; A, B and C incentives schemes.
Scheme A - One-month wage-for new entrants, up to 15,000, in all formal sectors.
Scheme B - Related to job creation in manufacturing, linked to first-time incentives that incentivize both employee and employer for EPFO contributions for the first 4 years.
Scheme C - Government to reimburse EPFO contributions of employers up to 3000 Rs for 2 years. This scheme is expected to generate 50 lakh jobs.
Overall, a total of 20 lakh young people will be skilled over a 5-year period and 1000 industrial training institutes will open up.
3. Inclusive human resources development and social justice.
Purvodaya: Vikas bhi Viksit bhi, plan for the development of states such as Bihar, Jharkhand, West Bengal, Odisha and Andhra Pradesh. Development of the Amritsar - Kolkata Industrial corridor along with an industrial node at Gaya.
A total of 3 lakh crore will be allocated to schemes that benefit women.
Improving the socio-economic condition of tribal communities covering 63,000 villages benefitting 5 crore tribal people.
More than 100 Indian post-payment banks will be set up in the north-east region.
4. Manufacturing and service center
Credit guarantee scheme for MSME’s, scope for mandatory onboarding in TReDS, MSME units for Food Irradiation, Quality and Safety Testing.
12 industrial parks will be under the “National Industrial Corridor Development Programme”.
Critical Minerals Mission for domestic production, recycling and overseas acquisition.
5. Steps towards “Urban Development”.
Encouraging states to lower stamp duties, a scheme to develop 100 haats for a food hub.
Transit Oriented development plan for 14 large cities for a population above 30 lakhs.
For water management, promotion of water supply, sewage treatment and solid waste management projects.
PM Awas Yojana for Urban 2.0
6. Energy Security Initiatives
Setting up of Bharat Small Reactors, R&D of Bharat Small Modular Reactor and newer technologies.
AUSU Thermal Power Plant to scale an 800 MW commercial plant.
Financial support to shift micro and small industries to clean the forms of energy.
7. Infrastructural development
Development of the Vishnupad temple corridor and Mahabodhi Temple corridor are modeled on Kashi Vishwanath Temple Corridor.
The development of Nalanda as a tourist center, is a comprehensive development initiative for Rajgir which holds important significance for Hindus, Buddhists and Jains.
8. Direct-Tax Proposals
To reduce the compliance burden, promotion of the entrepreneurship spirit and to provide tax relief for citizens.
Abolishing ANGEL tax for the class of investors and more.
9. Innovation, Research and Development
Operationalization of Anusandhan National Research Fund for research and prototype development.
A venture capital fund of Rs 1000 crore is to be set up.
One lakh crore for private sector driven research and innovation projects on a commercial scale.
The above-mentioned points are some major initiatives towards achieving the goal of Viksit Bharat. The prime focus areas are transforming agriculture, generating employment by investing and initiating various schemes. Huge investments are made for job creation. Over the next 5 years, a 2-lakh crore initiative is expected to create 4.1 crore jobs. The unemployment rate in India has increased in the past few years, and it needs attention.
According to CMIE (Centre for Monitoring Indian Economy), the unemployment rate in India stood at 9.2% in June 2024. The unemployment rate in 2008 was 5.41% and has gradually increased every year since then. Related to this, India’s budget also focussed on Irrigation and Flood Mitigation, financial support for projects with an estimation of Rs 11,500 crore in schemes such as Kosi-Mechi and several other schemes.
Here is the list of expenditure being spent on major areas.
Defence - 4,54,773 crore
Rural Development - 2,65,808 crore
Agriculture and Allied Activites - 1,51,851 crore
Home Affairs - 1,50,983 crore
Education - 125,638 crore
IT & Telecom - 1,16,342 crore
Health - 89,287 crore
Energy - 68,769 crore
Social Welfare - 56,501 crore
Commerce & Industry - 47,559 crore
Other highlights of the Budget:
Integrated portals like e-shram portals, Shram Suvidha and Samadhan portals.
To enhance the availability of capital for climate adaptation and mitigation, governments will come up with clear climate taxonomy.
Rules for foreign direct investment overseas will be simplified.
Review committees will be made for the New Pension Scheme to address relevant issues.
Simplification of direct and indirect tax regimes is proposed.