Budget 2024-25 Highlights: Key Focus On Farmers, Jobs, and More

Finance Minister Nirmala Sitharaman announced the Union Budget to the Indian Parliament on July 23, 2024. Key budgetary goals, including employment, skill development, and middle-class support, are listed in this budget. To bring the fiscal deficit down to 4.9% of GDP, the budget projects total earnings of ₹32.07 Lakh Crore. It also projects total expenditures of ₹48.21 lakh crore. The budget presents a thorough strategy to support India's economic development and progress.

Budget Overview

The budget highlights a major concern about combining budgetary discipline and development demands. The government will aim to bring its fiscal deficit down to less than 4.5% next year. Macroeconomic stability is the goal of the budget, with core inflation at 3.1% and inflation heading towards a target of 4%. Now, let’s understand the sector-wise key highlights of the budget.

₹1.52 lakh crore Allocation In Agriculture Sector

Improving resilience and production is the main goal of the funding allotted to the agricultural and related industries. 109 new high-yielding, climate-resilient crop varieties will be released to increase agricultural production. Furthermore, 10,000 bio-input resource centres will help 1 crore farmers in implementing natural agricultural techniques. The government also plans to implement Digital Public Infrastructure (DPI) for Agriculture, ensuring comprehensive coverage for farmers and their lands within three years.

Prime Minister’s Package of Schemes for Employment & Skilling

The budget will provide employment and skilling opportunities to 4.1 crore youth over five years. Key schemes include:

• Scheme A - First Timers: A monthly salary of up to ₹15,000 in three installments for first-time employees registered with EPFO.
• Scheme B - Job Creation in Manufacturing: To Provide incentives for both employees and employers regarding EPFO contributions for the first four years.
• Scheme C - Support to Employers: The government will reimburse up to ₹3,000 per month for two years towards EPFO contributions for each additional employee.

Focus On Women and Tribal Development

Over ₹3 lakh crore has been allocated for schemes benefiting women and girls to boost women's participation in the workforce. This will be done by setting up women’s hostels and skilling programmes and promoting market access for women SHG enterprises.
The Pradhan Mantri Janjatiya Unnat Gram Abhiyan aims to uplift 5 crore tribal people across 63,000 villages.

Manufacturing & MSMEs

The government has announced a Credit Guarantee Scheme for MSMEs, enabling access to term loans for machinery and equipment without collateral. The Mudra Loan limit under the ‘Tarun’ category is increased to ₹20 lakh from ₹10 lakh. To support MSMEs, a new mechanism will facilitate bank credit during stress periods.

Infrastructure Development

The budget provides ₹11,11,111 crore for infrastructure investment, representing 3.4% of GDP. State governments will receive ₹1.5 lakh crore in long-term interest-free loans for infrastructure development. Additionally, Phase IV of Pradhan Mantri Gram Sadak Yojana (PMGSY) will ensure all-weather connectivity to 25,000 rural habitations.

Energy Security

A policy document on ‘Energy Transition Pathways’ will be introduced to balance employment, growth, and environmental sustainability. The government will promote pumped storage projects for electricity storage and partner with the private sector for R&D of Bharat Small Modular Reactors.

Innovation, Research & Development

The Anusandhan National Research Fund will support basic research and prototype development. A financing pool of ₹1 lakh crore will encourage private sector-driven research and innovation. A Venture Capital Fund of ₹1,000 crore will expand the space economy fivefold in the next decade.

Tax Reforms

In the realm of indirect taxes, the budget simplifies GST to include more sectors and introduces specific customs duty changes. Notable reductions include duties on gold, silver, and electronics. For direct taxes, the government simplifies tax regimes and enhances taxpayer services. Key changes in personal income tax include an increased standard deduction for salaried employees and a revised tax rate structure, offering savings of up to ₹17,500.

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