Union Budget 2024-25: A Comprehensive Overview
The Union Budget 2024-25, presented by Finance Minister Mrs. Nirmala Sitharaman on July 23, 2024, brings forth a strategic framework to drive India's economic growth. This budget, meticulously designed, addresses various sectors with an aim to foster employment, skill development, and sustainable growth. In this article, we delve into the significant aspects of the Union Budget 2024-25, exploring its implications for different sectors and the overall economy.
Introduction
The Union Budget is a critical economic document that outlines the government's revenue and expenditure for the upcoming fiscal year. It is a blueprint that reflects the government's priorities and economic strategies. The Union Budget 2024-25 is no exception, providing a detailed roadmap for the country's financial planning and development initiatives.
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| Union Budget 2024-25 presentation by Mrs. Nirmala Sitharaman |
Understanding the Budget
What is a Budget?
The term "budget" originates from the English word "bowgette," derived from the French "bougette," which in turn comes from "Bouge," meaning a leather bag. A budget is essentially a financial statement that enumerates the government's revenue sources and expenditure over a specific period. It is a crucial tool for economic management, providing transparency and accountability in the allocation of resources.
Union Budget of India
Although the Indian Constitution does not explicitly mention the term "budget," Article 112 refers to it as the "Annual Financial Statement." The Union Budget is traditionally presented on the first working day of February by the Finance Minister. This practice aligns the budget with the fiscal year, which runs from April 1 to March 31.
Key Highlights of Union Budget 2024-25
The Union Budget 2024-25 emphasizes employment generation, skill development, MSME support, and middle-class welfare. Here are the key highlights:
Prime Minister’s Package for Employment and Skill Training
A significant allocation of INR 2 lakh crore is dedicated to five schemes and initiatives aimed at providing employment, skill training, and opportunities to 4.1 crore youth over the next five years.
Sustainable Development Goals
The budget outlines nine priority areas aimed at creating ample opportunities for all, in alignment with the vision of a developed India.
Focus on Agriculture and Allied Sectors
To boost agriculture, the government will release 109 new high-yield, climate-resilient varieties of 32 horticultural crops. Additionally, one crore farmers will receive support to transition to natural farming over the next two years, with a budget provision of INR 1.52 lakh crore for the agriculture sector.
Industrial Training Institutes (ITIs) Upgradation
The budget includes plans to upgrade 1,000 ITIs, enhancing skill development infrastructure and training capacity.
Northeast Region Development
A comprehensive scheme named "Purvodaya" will be finalized, targeting the holistic development of the Northeast region, including Bihar, Jharkhand, West Bengal, Odisha, and Andhra Pradesh.
Women-Led Development
The budget proposes over INR 3 lakh crore for various schemes aimed at promoting women-led development, benefiting women and girls across the country.
Rural Development and Infrastructure
An allocation of INR 2.66 lakh crore is made for rural development, including rural infrastructure enhancements. The Pradhan Mantri Gram Sadak Yojana (PMGSY) Phase-IV will be launched to provide all-weather road connectivity to 25,000 rural settlements.
Sector-Specific Allocations
Employment and Skill Development
The government will launch a comprehensive scheme to provide internship opportunities to one crore youth in 500 top companies over the next five years. This initiative aims to bridge the gap between education and employment, equipping young professionals with practical skills and experience.
Affordable Housing
Under the Pradhan Mantri Awas Yojana Urban 2.0, the budget allocates INR 10 lakh crore to address the housing needs of one crore urban poor and middle-class families.
Space Economy Expansion
With a focus on the burgeoning space economy, the budget sets aside INR 1,000 crore for a venture capital fund aimed at expanding the space sector fivefold over the next decade.
Tax Reforms and Reliefs
Income Tax Relief
The budget brings significant relief to salaried employees and pensioners by increasing the standard deduction from INR 50,000 to INR 75,000. Additionally, the exemption on family pensions has been raised from INR 15,000 to INR 25,000.
Corporate Tax Reforms
The new tax regime has seen a high adoption rate, with over 58% of corporate tax receipts collected under it. For individual taxpayers, two-thirds have opted for the new tax regime. To further incentivize investment, the budget abolishes the angel tax for all investor categories and reduces the tax on foreign companies from 40% to 35%.
TDS and Capital Gains
The budget simplifies tax deduction at source (TDS) by merging various categories into a single 2% TDS. For lower and middle-income groups, the exemption limit on capital gains is increased to INR 1.25 lakh annually.
Customs Duty Adjustments
The customs duty on X-ray panels, mobile phones, and PCBs is reduced to 15%, while precious metals like gold and silver will see a reduction in customs duty to 6%.
Conclusion
The Union Budget 2024-25 reflects the government's commitment to fostering economic growth, supporting key sectors, and ensuring inclusive development. By focusing on employment, skill development, agriculture, and infrastructure, the budget aims to create a sustainable and prosperous future for all citizens.
FAQs
What is the significance of the Union Budget?
The Union Budget outlines the government's financial plans, revenue sources, and expenditure for the fiscal year. It reflects the government's priorities and economic strategies, providing a roadmap for development and growth.
How does the Union Budget 2024-25 address employment?
The budget allocates INR 2 lakh crore for employment and skill training initiatives, aiming to provide opportunities to 4.1 crore youth over the next five years.
What are the key focus areas of the Union Budget 2024-25?
The budget focuses on employment generation, skill development, agriculture, rural development, women-led development, and tax reforms.
How does the budget support the agriculture sector?
The budget introduces 109 new high-yield, climate-resilient crop varieties and supports one crore farmers transitioning to natural farming, with a budget provision of INR 1.52 lakh crore for agriculture.
What are the tax reliefs provided in the Union Budget 2024-25?
The budget increases the standard deduction for salaried employees and pensioners, abolishes the angel tax, reduces corporate tax for foreign companies, and simplifies TDS categories.
How does the budget promote affordable housing?
Under the Pradhan Mantri Awas Yojana Urban 2.0, the budget allocates INR 10 lakh crore to address the housing needs of one crore urban poor and middle-class families.
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