Budget 2024 highlights: New employment-linked incentives for employees; ₹1.48 lakh crore allocation for education, employment, skill

Union Finance Minister Nirmala Sitharaman allocated about ₹ 1.50 lakh crore to the agriculture sector. Almost all major schemes for farmers see an increase in allocation compared to previous budgets.

However, the fertilisers subsidy is down by about ₹1 lakh crore when compared to the actual expenditure in 2022-23. To address the price rise, the Finance Ministry has also provided ₹10,000 crore to the price stabilisation fund. In the last budget, the allocation was just ₹10 lakh.

Finance Minister Nirmala Sitharaman’s Budget speech has for the first time signalled that polluting industries, such as iron, steel, and aluminium will have to conform to emission targets.

“A roadmap for moving the ‘hard to abate’ industries from ‘energy efficiency’ targets to ‘emission targets’ will be formulated. Appropriate regulations for transition of these industries from the current ‘Perform, Achieve, and Trade’ mode to ‘Indian Carbon Market’ mode will be put in place,” Ms. Sitharaman said in her address.

For deepening tax base the Finance Minister has proposed to increase Securities Transaction Tax on Futures and Options contracts to 0.2% and 0.1%, respectively. This was expected to curb volatility in the market for which everyone including SEBI was concerned. 

Also now income received on buyback of shares will be taxed in the hands of the recipient. As per the budget proposals now unlisted bonds and debentures, debt mutual funds and market-linked debentures will attract tax on capital gains irrespective of holding period.

To address the housing needs of urban poor and middle class families, the Union Finance Minister Nirmala Sitharaman has announced an investment of ₹10 lakh crore under the PM Awas Yojana-Urban 2.0, including the Central assistance of ₹2.2 lakh crore in the next five years.

While tabling the Union Budget 2024-25, the Finance Minister said that under the PM Awas Yojana Urban 2.0, housing needs of 1 crore urban poor and middle-class families will be addressed with an investment of ₹10 lakh crore. This will include the Central assistance of ₹2.2 lakh crore in the next five years.

The Department of Space received an 18% hike over its expenses in 2023-2024 in the 2024-2025 Union Budget presented by Finance Minister Nirmala Sitharaman on Tuesday. The bulk of the hike goes towards the development of space technologies. The allocation increased marginally for space applications, decreased for space sciences, and almost halved for INSAT satellite systems over the budgeted amount in 2023-2024. 

Since successfully concluding the Chandrayaan-3 mission in August 2023, the future road map of the Indian Space Research Organisation (ISRO) has expanded to include a new ‘next generation’ launch vehicle, more ambitious missions to the moon, and an Indian space station. ISRO is also working on its ambitious human spaceflight programme, Gaganyaan. 

The Union government has continued its emphasis on tackling non-communicable diseases, and allocating funds for research in the healthcare sector, with Finance Minister Nirmala Sitharaman on July 23 announcing customs duty exemptions on three cancer treatment drugs — Trastuzumab Deruxtecan, Osimertinib, and Durvalumab.

“To provide relief to cancer patients, I propose to fully exempt three more medicines from customs duties. I also propose changes in the BCD (basic customs duty) on X-ray tubes and flat panel detectors for use in medical X-ray machines under the phased manufacturing programme,” the Finance Minister said.

Finance Minister Nirmala Sitharaman proposed legislative support to provide financing for leasing aircraft and ships in India in a bid to protect airlines from foreign exchange risks.

“We will seek the required legislative approval for providing an efficient and flexible mode for financing leasing of aircrafts and ships,” the Minister said in her Budget speech on July 23. She said legislative backing for “pooled funds of private equity through a variable company structure” would also be explored. 

Railways has been allocated ₹2.62 lakh crore in the Budget 2024-25, which Union Minister for Railways Ashwini Vaishnaw has termed as ‘historic’ and highest ever allocation.

Mr. Vaishnaw said that even as the Kavach roll out has been low (merely 2.14% of the entire railway network), after the approvals for Kavach 4.0 work on deployment of Kavach will be rapid. He also focused on creation of up to 40,000 new railway jobs.

“Recruitments are in progress, railways focus will be on new projects, connectivity with Kashmir and capitals of Northeastern States,” Mr. Vaishnaw said.

The Budget for Ministry of Minority Affairs saw a menial hike of 2.7% but the coaching and allied schemes for minorities was slashed from the allocated ₹30 crore to ₹10 crore this year.

The interest subsidy on educational loans for overseas education for minorities was also reduced. The budget for education scheme for Madrasas and Minorities has gone down from ₹10 crore to ₹2 crore in the budget of 2024-25.

The government has proposed the allocation of ₹1.28 lakh crore for telecom projects and public sector firms under the Telecom Ministry with a majority of funds earmarked for State-owned BSNL.

Of the total proposed allocation, over ₹1 lakh crore is meant for BSNL and MTNL-related expenses, including ₹82,916 crore infusion in BSNL for technology upgradation and restructuring at BSNL.

“The total net allocation for this demand in BE (Budget Estimate) 2024-25 is ₹1,28,915.43 crore (₹1,11,915.43 crore plus ₹17,000 crore). The additional provision of ₹17,000 crore is met from the balances available under Universal Service Obligation Fund and will be utilised for schemes viz., Compensation to Telecom Service Providers, Bharatnet and Research and Development,” the Budget document said.

Kerala’s much-anticipated and decades-long dream of having an All India Institutes of Medical Sciences (AIIMS)-like institution on its soil was dashed yet again when the proposal found no mention in the Union Budget 2024-25 presented by Finance Minister Nirmala Sitharaman on July 23.

Unlike in the previous years, the anticipation this year that the project might finally come through was intense, particularly because of the presence of two Union Ministers of State from Kerala at the Centre, one of whom is the BJP’s first-ever elected MP from the State.

West Bengal Chief Minister Mamata Banerjee on July 23 dubbed the Union Budget 2024-25 as “politically biased and anti-poor” and slammed the Centre for “depriving” the State. The Chief Minister wondered what wrong West Bengal committed that it had been “deprived” by the Centre.

“Bengal has been completely deprived in this Union budget. This doesn’t look into the interest of the poor. The Budget is politically biased. This is directionless and has no vision. It is only to serve a political mission,” she told reporters on the State Assembly premises.

Khelo India, which is the government’s flagship project to promote sports at the grassroots level, was once again the biggest beneficiary in the union budget for the sports ministry as it was assigned ₹900 crore from the overall allocation of ₹3,442.32 crore on July 23.

Khelo India’s share, announced in the budget presented by Finance Minister Nirmala Sitharaman in New Delhi, is ₹20 crore more than the revised allocation of ₹880 crore during the previous financial year.

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The Budget 2024-24 on July 23 allocated ₹1,309.46 crore for census, a significant reduction from 2021-22 when ₹3,768 crore was allocated for the decadal exercise, an indication that it may not be carried out even after a significant delay.

A meeting of the Union cabinet on December 24, 2019 had approved the proposal for conducting census of India 2021 at a cost of ₹8,754.23 crore and updating the National Population Register (NPR) at a cost of ₹3,941.35 crore.

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On Rahul Gandhi’s allegation that that generosity shown towards States like Bihar and Andhra Pradesh is a way to save ‘ kursi’, FM Nirmala Sitharaman said that the INDIA alliance members couldn’t cross 230 votes but BJP alone reached 240 votes, and with the pre-election alliance, could form the government for the third term. 

“PM Modi is leading free India for the third time. Something that has not happened in the last 60 years has happened now. Party’s that are talking about saving his ‘ kursi’ should maybe think. Their alliance of almost 37 party’s could not make even 230 (seats) and they are saying that he is doing it to save his ‘ kursi’. When Mr. Modi became PM for the third time and has been ‘announcing’ to the world about India, putting us at the forefront of the world, helping in development. This time in the Budget, we have allotted ₹1.50 lakh crore for States without any interest for the next 50 years for free. Finance commission did not mention this at all, but we are,” she said.

On TMC’s allegation that the Union Budget reflects the political bankruptcy of Modi Government, FM Sitharaman said if the name of the State is not mentioned in the Budget it doesn’t mean they don’t get anything at all. “As per the proposals, schemes, different projects in different States, every State will get what they have proposed for,” she said.

In a social media post, TMC dismissed the term ‘Union Budget 2024’, renaming it as the ‘Andhra-Bihar Budget’. TMC national general secretary Abhishek Banerjee told reporters in New Delhi that “the net result is zero because Bengal has been constantly tortured and deprived.” “You have seen how Bengal has been consistently deprived by this BJP Government. Has there been a positive outcome of 12 BJP MPs elected from Bengal?,” Ms. Banerjee said outside the Parliament complex.

Bihar Chief Minister Nitish Kumar said the “special help” announced in the Union Budget addressed the State’s concerns, which had previously led to demands for special category status.

Finance Minister Nirmala Sitharaman skipped any mention of MNREGA, which is one of the biggest rural employment schemes. The allocated budget once again, falls short of the actual expenditure on the scheme in the last financial year. In 2024-25 FY, government has allocated ₹86,000 crore, while in 2023-24, the expenditure including the pending dues to the States, as per the Rural Development Ministry’s website was ₹1.2 lakh crore.

In a first, Home Ministry sets aside a budget of ₹56 crore to establish Bharatiya Bhasha Anubhag for development of a platform to facilitate the translation of various languages into Hindi and vice-versa. Around ₹88 crore allocated for holistic development of Islands in Union Territories. ₹700 crore has been set aside for the first time for Modernisation of Forensic Capacity, which is a crucial element of the newly implemented criminal laws. The budget for rehabilitation and Relief for migrants, which includes Sri Lankan refugees and Tibetans has been slashed. SPG which only protects the Prime Minister has seen an increase of ₹73 crore in budget allocation.

Over ₹200 crore have been earmarked for expenditure on “examination and selection” of the civil servants by the Union Public Service Commission (UPSC) in the 2024-25 Budget announced.

The Commission conducts the civil services examination annually in three stages -- preliminary, main and interview -- to select officers of Indian Administrative Service (IAS), Indian Foreign Service (IFS) and Indian Police Service (IPS), among others.

The UPSC has been given ₹425.71 crore for the ongoing fiscal in the Budget presented by Finance Minister Nirmala Sitharaman.

PTI

The 2024-25 Union Budget has allocated ₹1,248.91 for expenses incurred by the Council of Ministers, the Cabinet Secretariat and the Prime Minister’s Office, and for hospitality and entertainment of State guests.

The allocated amount is substantially lower than the ₹1,803.01 crore earmarked in 2023-24. A total of ₹828.36 crore has been given for the expenses of the Council of Ministers. It was ₹1,289.28 crore in 2023-24.

PTI

The allocation for defence in the Union Budget was ₹6.2 lakh crore for 2024-25, the same as the allocation in the interim budget presented in February and is just a marginal increase from last year. “The capital outlay of ₹1,72,000 crore will further strengthen the capabilities of armed forces. Earmarking of ₹1,05,518.43 crore for domestic capital procurement will provide further impetus to Atmanibharta,” Defence Minister Rajnath Singh said on social media.

Benchmark Sensex and Nifty settled marginally lower in volatile trade as the government proposed to hike securities transaction tax on futures & options in the Budget for 2024-25.

Recovering most of its intra-day losses of over 1,200 points, the 30-share BSE Sensex settled lower by 73.04 points or 0.09% 80,429.04.

The index gyrated between highs and lows during the day as Finance Minister Nirmala Sitharaman announced Budget proposals for 2024-25.

The barometer tanked 1,277.76 points or 1.58% to hit a low of 79,224.32 as the Minister announced a hike in STT on F&O trade and an increase in long-term capital gains tax on equities. However, tax exemptions and customs duty cuts helped boost consumer durables and FMCG shares, aiding stocks to recover from the day’s lows.

PTI

When asked whether the Budget has specified anything about Railways, Dr. T.V. Somanathan said, “The expenditure budget for railways for the coming year is ₹2,55,393 crore, which is the highest ever and is a very substantial increase in recent years.”

After Union Finance Nirmala Sitharaman proposed new tax structures for charities, foreign shipping companies, rationalisation of capital gains, she said the tax has been brought down because the govt wants more investments. She also reduced corporate tax on foreign companies from 40 to 35%.

After FM Sitharaman announced the review of the Income Tax Act, she said the govt is working towards a simpler taxing regime and she can’t say right now if the old tax regime will be removed. “Working towards the goal of a simpler taxing regime, we came up with the new tax regime. We need to review about the sunset of the old tax regime and come to a decision,” she said.

FM Sitharaman clarified that ₹15,000 crore for Andhra Pradesh is coming through the multi-lateral development assistance which we borrow from the multi-lateral banks. She added that further assistance will also be extended, however, there is no definitive amount.

The angel tax was introduced under the UPA Government in 2012, Finance Minister Nirmala Sitharaman said. “Money laundering issue was being tackled through a tax measure... there is also PMLA act which will tackle the issue,” Revenue secretary Sanjay Malhotra said stressing that angel tax is not required to keep money laundering in check.

India’s tax net will have to be widened, whether it is direct taxation or indirect. There are also now PSU divisions which have been improving because the valuations have gone up and their performance has also substantially increased, the Finance Minister said addressing the press conference. 

She added that revenue mobilisation is not just tax-based, non-tax revenue mobilisations are also coming up. She stressed on asset monetisation -- optimum utilisation of those assets which are lying in the form of unutilised stadiums or lands with PSUs which can be used for better purposes. She added that govt is also looking at generating resources from newer areas and as a result, the revenue forgone will be made up for.

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In her seventh budget presentation, Finance Minister Nirmala Sitharaman announced allocating ₹11,11,111 crore towards capital expenditure. This would account for 3.4% of the GDP. Enumerating it as among the policy prerogatives towards investment in infrastructure by central government, she told the house that the significant investments made in previous years have triggered a multiplier effect. 

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For every rupee in the government coffer, the biggest pie of 63 paise will come from direct and indirect taxes, according to the Union Budget 2024-25 documents. The remaining 27 paise will come from borrowings and other liabilities, 9 paise from non-tax revenue like disinvestment, and 1 paise from non-debt capital receipts, the Budget documents said. In all, 36 paise will come from direct taxes, including corporate and individual income tax. Income tax will yield 19 paise, while corporate tax will account for 17 paise, it said. 

Among indirect taxes, goods and services tax (GST) will contribute the maximum 18 paise in every rupee of revenue. Besides, the government is looking to earn 5 paise out of every rupee from excise duty and 4 paise from customs levy. The collection from “borrowings and other liabilities” will be 27 paise per rupee, as per the Union Budget 2024-25 presented in Parliament by Finance Minister Nirmala Sitharaman. The Budget documents provide a fractional break-up for ₹1 that comes in and gets spent. 

On the expenditure side, the outlay for interest payments and States’ share of taxes and duties, respectively, stood at 19 paise and 21 paise for every rupee. Allocation for defence stands at 8 paise per rupee. Expenditure on central sector schemes will be 16 paise out of every rupee, while the allocation for centrally-sponsored schemes is 8 paise. The expenditure on ‘Finance Commission and other transfers’ is pegged at 9 paise. Subsidies and pension will account for 6 paise and 4 paise, respectively. The government will spend 9 paise out of every rupee on ‘other expenditures’. 

PTI

Shares of telecom infrastructure companies on July 23 declined more than 4% after Finance Minister Nirmala Sitharaman said the government will increase the basic customs duty on specified telecom equipment from 10% to 15%.

On the BSE, shares of HFCL tumbled 4.60% to ₹112.10 apiece, Vodafone Idea plunged 4.15% to ₹15.23, Tejas Networks slumped 2.69% to ₹1,278.95, and ITI declined 2.58% to ₹295.10.

The scrip of Bharti Airtel fell 1.50% to trade at ₹1,442.70 per piece, ADC India Communications slipped 2.14% to ₹1,771.95, and Tata Communications dipped 0.97% to trade at ₹1,768.95 on the bourse.

PTI

In the last 10 years, the NDA Government has ensured that the poor and the middle class continue to get tax relief. In this Budget also, a big decision has been taken to reduce income tax and increase standard deduction. TDS rules have also been simplified. These steps will result in additional savings for every taxpayer, Prime Minister Narendra Modi said.

This Budget will give a new scale to education and skill. This is a Budget that will give new strength to the middle class. It has come up with strong plans to empower the tribal society, Dalits and backward classes. It will help in ensuring the economic participation of women, Mr. Modi said.

This Budget will provide a new path of progress for small traders and MSMES. There is a lot of focus on manufacturing and infrastructure in the Budget. This will give new impetus to economic development, the Prime Minister said.

This Budget puts emphasis on manufacturing as well as infrastructure; will speed up growth, Prime Minister Narendra Modi said after Finance Minister Nirmala Sitharaman presented the Union Budget 2024-25 in the Lok Sabha on July 23. He cited Budget’s stress on youth and said its measures will open many new opportunities for youngsters.

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Finance Minister Nirmala Sitharaman on July 23 announced to fully exempt 25 critical minerals from custom duties, and reduce basic custom duties (BCD) on two of them. “This will provide a major fillip to the processing and refining of such minerals and help secure their availability for these strategic and important sectors,” Ms. Sitharaman said.

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Simplifying the tax regime for corporate industries, Union Finance Nirmala Sitharaman on Tuesday, proposed new tax structures for charities, foreign shipping companies, rationalisation of capital gains in her 2024 Budget speech. She also reduced corporate tax on foreign companies from 40 to 35%. Ms. Sitharaman’s speech lasted just shy of ninety minutes

“58% of corporate tax came from the simplified tax regime in 2022-23 and more than 2/3rd of taxpayers have used the new personal tax regime last year,” announced Ms. Sitharaman.

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Seeking to attract more funds into the country, Finance Minister Nirmala Sitharaman on July 23 said rules for Foreign Direct Investment (FDI) will be simplified. Presenting the Union Budget 2024-25, the Minister said the government will bring out a five-year vision document for meeting financial needs of the economy.

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Finance Minister Nirmala Sitharaman proposed a reduction in basic customs duty on gold and silver to 6% and platinum to 6.4%. In her budget speech in Lok Sabha, she also proposed reduction of basic customs duty on mobile phones, mobile charger to 15%.

PTI

The Congress on said Finance Minister Nirmala Sitharaman has taken a leaf out of its 2024 Lok Sabha polls manifesto by announcing an internship programme but “in their trademark style”, the scheme has been designed to “grab headlines with arbitrary targets” rather than a programmatic guarantee.

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In an episode of Budget Focus series from The Hindu, we discussed the Budget projections for the Indian Railways. However, there is no mention of the Railways in the Union Budget 2024-25.

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The Finance Minister introduced the Finance Bill in the Lok Sabha. The Budget Session has been adjourned till July 24, 11 a.m.

Stock markets turned highly volatile amid the Union Budget presentation. Sensex tanked 1,266.17 points to 79,235.91 after FM hikes STT on F&O; Nifty tumbles 435.05 points to 24,074.20.

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In the new tax regime, the tax rate structure is to be revised, the FM announced. For zero to ₹3 lakh - tax rate is zero. For ₹3 lakh to ₹7 lakh - 5%; For ₹7 lakh to ₹10 lakh - 10%; ₹10 lakh to ₹12 lakh - 15%; For ₹12 lakh to ₹15 lakh - 20%; For ₹15 lakh and higher - 30%. With this, a salaried employee stands to save upto ₹17,500 a year in income tax, the FM said.

The government announced the withdrawal of the 2% equalisation levy. Presenting the Budget for 2024-25 in the Lok Sabha, Finance Minister Nirmala Sitharaman said the standard deduction for salaried employees will be hiked to ₹75,000, from ₹50,000 under new income tax regime in FY25. The government raised the deduction limit to 14% from 10% for employers’ contribution for the National Pension System (NPS). 

For those opting for the new tax regime, the standard deduction for salaried employees to be increased from ₹50,000 to ₹75,000. Similarly, deduction for family pension for pensioners to be enhanced from ₹15,000 to ₹25,000. This will provide relief to about 4 crore salaried and pensioner individuals, the FM said. 

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Other major proposals in the Finance Bill relate to withdrawal of an equalisation levy of 2%, expansion of tax benefits to certain funds and entities in the IFSC, and changes to the Benami Transaction Act enforcement.

Securities Transaction Tax on Futures and Options contracts is to be increased to 0.2% and 0.1%, respectively, the FM said. Income received on buyback of shares to be taxed in the hands of the recipient. Tax deduction on NPS contributions to be raised from 10% of salary to 14% of salary. This will cover government employees as well as private companies in the NPS.

The FM said that capital gains taxation is proposed to be hugely simplified. Short-term gains on some financial assets will now attract 20%, while those on all other assets will continue to attract the current rates. “For benefiting lower and middle income classes, I propose to increase the limit of exemption on some financial instruments for capital gains to ₹1.25 lakh a year. Unlisted bonds and debentures, debt mutual funds and market-linked debentures, will attract tax on capital gains irrespective of holding period,” she said.

The TDS rate on e-commerce operators is to be reduced from 1% to 0.1%. I propose to decriminalise delays in payments of TDS upto their filing due date. Simplification of reassessment and reopening of returns. From now, this can be done after three years only if the income involved is ₹50 lakh or more, with a time limit of six years, the FM said. 

The government announced that it will undertake a comprehensive review of the Income Tax Act to make it easy to read. Presenting the Union Budget for 2024-25, Ms. Sitharaman also said the government will come out with SoP (standard operating procedure) for TDS defaults and simplify and rationalise compounding of such offences.

She added that two tax exemption regimes for charitable trusts will be merged into one. Also, 58% of corporate tax have come from simplified tax regime in FY23. More than two-thirds of individuals availed of the new income tax regime, Ms. Sitharaman said in the Lok Sabha. The FM further announced that DPI apps will be developed for credit, e-commerce, education, health, law, MSME service delivery, and urban governance.

To bolster the Indian startup ecosystem, I propose to abolish the so-called Angel Tax for all classes of investors, the FM announced.

For customs, we reduced the number of customs duty rates in 2022-23. I propose to rationalise them after a review over next six months, the FM said. She announced that to provide relief to cancer patients, three more medicines will be fully exempted from customs duty. I propose changes in the basic customs duty on X-ray tubes and flat panel detectors for domestic X-ray machines’ production.

The net tax receipts are estimated at ₹25.83 lakh crore, and the fiscal deficit is estimated at 4.9% of GDP for this year. The gross and net market borrowings through dated securities are estimated at ₹14.01 lakh crore and the ₹11.63 lakh crore, respectively, lower than last year. The government is committed to stay the course on fiscal consolidation, with deficit at below 4.5% of GDP in 2025-26, and with sustained reductions thereafter, the FM said.

She added that GST has reduced compliance burden and logistics costs for trade and industry and enhanced revenues. To multiply its benefits, we will strive to simplify and rationalise the tax structure and expand it to cover more goods, she said.

Union Finance Minister Nirmala Sitharaman in her Budget speech proposed creation of employment of about 4.1 crore youth over the next five years. Towards it, the Finance Minister has made an allocation of ₹2 lakh crore.

Similarly, for skilling the citizens so as to generate job opportunities, she proposed ₹1.48 crore. 20 lakh youth will be skilled over a five-year period. A total of 1,000 industrial training institutes will be upgraded, she announced.

She proposed in her speech that a one-time wage would be provided to all first time employees in all sectors. The incentive for first-timers would be provided through Direct Benefit Transfer (DBT) 

The Finance Minister said that the government will launch internship opportunities in 500 companies to one crore youth in five years. 

Interns will get exposure to real-life environment and an allowance of ₹5000 per month, she said. The companies will bear training and 10% of training cost from CSR funds. Ms. Sitharaman said employment, skilling, MSME, and middle class are among key focus areas of this Budget. 

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The Budget proposes to earmark a significant part of the 50-year interest-free loan, to work with the States on following reforms - Land related reforms in both urban and rural areas, that cover land administration, planning and urban planning and building bye-laws. “Rural land-related actions will include assignment of a unique Aadhaar for all lands, digitisation of terrestrial maps, survey of lands, and establishment of land registry. On labour related reforms, our govt. will facilitate a range of services for labour, including employment and skilling.”

She added that open architecture databases for the widely changing job market, and connecting potential employees with industry will be covered. Shram Suvidha and Samadhan portal will be revamped to enhance ease of compliance for industry and trade.

The FM announced that for space economy, with the govt’s continued emphasis on expanding it by 5 times in the next ten years, a venture capital fund of ₹1,000 crore will be set up. “We will formulate an economic policy framework to delineate the strategy for sustaining high growth with next generation reforms. These reforms will cover all factors of production, including land, labour and capital. This will require collaboration of the Centre and States,” she said.

“Tourism has always been a part of our civilisation. Our efforts to position India as a global destination will also create jobs and unlock opportunities in other sectors. I propose Vishnupath temple at Gaya, and Mahabodhi temple in Bodhgaya, are of immense spiritual importance. We will develop corridors there on the model of the successful Kashi Vishwanath corridor to make them a world-class tourist destination,” the FM said.

She added that a comprehensive development initiative for Rajgir and Nalanda (in Bihar) will be pursued. “We will support tourism in Odisha that has scenic beauty, temples, craftsmanship, natural landscapes, wildlife sanctuaries and pristine beaches,” she said.

Finance Minister Nirmala Sitharaman announced that ₹2.66 lakh crore has been allocated for rural development, including rural infrastructure. She also said that three crore additional houses will be constructed under the PM Awas Yojana in rural and urban areas. Presenting the Budget for 2024-25 in the Lok Sabha, she said, “This year I have made a provision of ₹2.66 lakh crore for rural development, including rural infrastructure”.

The FM noted that Bihar has frequently suffered from floods, many of them originating outside the country. “Plans to solve these problems in Nepal have not progressed. We will provide support of ₹11,500 crore for flood mitigation projects. Assam grapples with floods every year from the Brahmaputra river and its tributaries that originate outside India. We will provide support to them. Uttarakhand, Sikkim and Himachal Pradesh, that suffered due to landslides and floods, will be provided assistance,” she said.

The Finance Minister announced that the Phase 4 of the PM Gram Sadak Yojana will be launched to provide all-weather roads to 25,000 rural habitats.

FM said the Centre has made significant infrastructure investments in years, triggering a multiplier effect. “This will continue over the next five years. This year, I provided ₹11,11,111 crore for capex, which is 3.4% of GDP. We will encourage States to provide support of similar scale for infrastructure development based on their priorities,” she said.

Private investment in infrastructure will be promoted through Viability Gap Funding and a market-based financing framework would be brought out, she added.

Electricity storage solutions will be worked out for renewable energy. Research and Development on smaller nuclear reactors. Our govt. will partner with the private sector for setting up Bharat Small Reactors, and research and development of new technologies for nuclear energy. Advanced Ultra-Super Critical Thermal Power Plants, with much higher efficiency, have been developed indigenously. An 800 MW commercial plant will be set up, with the government providing the required fiscal support, the FM said.

She added that a roadmap for hard-to-abate industries, from energy efficiency targets to emission targets, will be formulated.

We will bring out a document on appropriate energy transition pathways, that balances the needs of employment and development. In line with the Interim Budget announcement, the Rooftop Solar scheme has been launched to enable 1 crore households to get upto 300 units of free electricity every month. The scheme has seen 1.8 crore registrations and 14 lakh applicants.

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“High Stamp Duty may be lowered, especially for women. This reform will be made essential condition for urban development schemes,” she said.

Building on the PM Swanidhi scheme for street vendors, we plan a scheme over the next 5 years to promote 100 weekly haats in select cities, the FM announced. 

In partnership with States, and MDBs, the Modi-led NDA Government will promote water supply, sewage treatment and solid waste management projects for 100 large cities, the FM announced.

Under the PM Awas Yojana-Urban, the housing needs of one crore poor and middle class families will be addressed with an investment of ₹10 lakh crore. This will include the central assistance of ₹2.2 lakh crore in the next five years.

“For facilitating term loans to MSMEs, a credit guarantee scheme will be introduced. The scheme will operate on the cooling of credit risks of such MSMEs. A self-financing guarantee fund will provide to each applicant cover of up to ₹100 crore while loan amount may be larger...” she said.

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Backward region grant will be provided to 3 districts of Andhra Pradesh, the Finance Minister announced. In her Budget for 2024-25, Finance Minister Nirmala Sitharaman said the Union Government will arrange financial assistance to Bihar through aid from multilateral development agencies.

The government will also set up airports, medical colleges and sports infrastructure in Bihar, she said. The Centre will also formulate plan ‘Purvodaya’ for all-round development of Bihar, Jharkhand, West Bengal, Odisha, and Andhra Pradesh.

Ms. Sitharaman further said the government will support industrial corridor for development in the eastern region. The Finance Minister also said the government will provide e-vouchers directly to 1 lakh students every year with interest subvention of 3% of loan amount.

The government said it will launch three employment-linked schemes. While presenting the Union Budget for 2024-25, Finance Minister Nirmala Sitharaman said the government will provide incentives to 30 lakh youth entering the job market by providing one month’s PF (provident fund) contribution.

She announced that working women hostels will be set up in the country to promote women’s participation in the workforce. She added that the government will provide funds to the private sector, domain experts and others for developing climate-resilient seeds.

An already existing scheme -- MGNREGA (Mahatma Gandhi National Rural Employment Guarantee) -- aims to provide 100 days of wage employment in a particular fiscal year to at least one member of every household whose adult members seek manual work.

Read the whole story here

The government will bring a National Cooperation Policy for the overall development of the country, Finance Minister Nirmamala Sitharaman said. Presenting the Budget for 2024-25, she said the Centre will promote digital public infrastructure for agriculture in partnership with states, while Jan Samarth-based Kisan Credit Card will be introduced in five States. Also, the government will provide finance for shrimp farming and marketing, she added.

PTI

The FM said that large-scale vegetable production will be developed closer to major consumption centres. “We will promote farmer producer organisations, coops and startups for vegetable supply chains...,” she said.

For achieving self-sufficiency in pulses and oil seeds, the govt will strengthen their production, storage and marketing. A strategy is being put in place to achieve aatanibharta for oil seeds such as mustard, groundnut, sesame, soybean and sunflower, the Finance Minister said in the Lok Sabha, presenting the Union Budget 2024-2025.

Ms. Sitharaman said that in the next two years, one crore farmers across the country will be initiated into natural farming supported by certification and branding. Implementation will be through scientific institutions and willing Gram Panchayats. 10,000 need-based bio input resource centres will be established.

“Transforming agricultural research, our govt will undertake a comprehensive review of the agricultural research setup to bring the focus on raising productivity and developing climate-resilient varieties. Funding will be provided in challenge mode including to the pvt sector, domain experts both from the govt and outside and will oversee the conduct of such research,” Ms. Sitharaman said.

She added that 109 new high-yielding and climate-resilient varieties of 32 field and horticultural crops will be released for cultivation by farmers.

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The Finance Minister said that the Budget will focus on employment, skilling, MSME and middle class. “Budget for FY25 to provide ₹1.48 lakh crore for education and employment and skill... Implementation of various schemes announced in Interim Budget in February are still underway,” the Finance Minister said. People of India have reinforced their faith in the government led by Mr. Modi and re-elected it for the third term, she said, while presenting the Budget in Lok Sabha.

India’s economic growth continues to shine while the global economy is still in the grip of policy uncertainty, Ms. Sitharaman added. The country’s inflation continues to be stable and is moving towards 4%, and core inflation stands at 3.1%.

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On Budget priorities, the Finance Minister said that in the interim Budget the govt promised to present a detailed roadmap for the pursuit of Viksit Bharat. “In line with the strategy set in the interim Budget, this Budget envisages sustained efforts on the following nine priorities for generating ample opportunities for all -- productivity and resilience in agriculture, employment and skilling, inclusive human resource development and social justice, manufacturing and services, urban development, emergency security, infrastructure, innovation R&D, next-gen reforms. Subsequent Budgets will build on these and more priorities and actions,” she said.

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Finance Minister Nirmala Sitharaman is presenting the Union Budget 2024-2025 in Lok Sabha. India’s inflation continues to be low, stable and moving towards the 4% target, the Finance Minister said.

The Budget Session of the Parliament began at 11 a.m. on July 23. Finance Minister Nirmala Sitharaman will present her seventh budget in the Lok Sabha today.

Finance Minister Nirmala Sitharaman opted for an off-white checkered handloom saree with a contrasting purple and pink-hued blouse for the presentation of the first Budget on July 23 of the third term of the NDA Government led by PM Narendra Modi.

Indian shares reversed early gains to drop marginally in morning trade on Tuesday, with volatility rising ahead of the union budget, due at 11 a.m. IST, which could have a huge bearing on the trajectory of markets.

The NSE Nifty 50 and S&P BSE Sensex opened about 0.3% higher but were trading about 0.2% lower as of 10:22 a.m. IST. Volatility rose to a six-week-high of 15.79.

“Volatility will remain elevated today as budget announcements will decide the direction of markets in intraday trade,” said ICICI Securities analysts led by Dharmesh Shah.

A market correction cannot be ruled out, given the high valuations, they added.

The Nifty has hit multiple all-time highs through its roughly 13% rally this year, despite a near 6% slide on June 4 when Prime Minister Narendra Modi’s party returned to power but by unexpectedly having to rely on allies. Still, the index has risen in each of the seven weeks since.

-Reuters

The Union Cabinet headed by Prime Minister Narendra Modi approved the full Budget for 2024-25. Following this, Finance Minister Nirmala Sitharaman will present her seventh budget in the Lok Sabha.

Ms. Sitharaman, the first full-time woman Finance Minister of the country, has presented five full Budgets since July 2019 and an interim budget on February 1, 2024. This is the first Budget of the BJP-led NDA Government in its third term in office.

-PTI

“I think the problem is that the government is not recognising the real concerns. The real concerns are inflation, especially food inflation, and rampant unemployment and inadequate job creation,” says Economist Jayati Ghosh.

“If you look at the economic survey, the country has achieved, even post covid, a very stable growth pattern in GDP numbers. There is an uptick in manufacturing, agriculture, there is a bit of subsiding in the consumption patterns in country because of lower middle income people getting hurt due to inflation and having lost wealth during COVID,” ASSOCHAM President Sanjay Nayar said in an interview to PTI. 

“The govt has done a tremendous job, looking at the geopolitical, geographic scenario. India looks like a fantastic place to attract investments. The expectation would be to keep catalysing the infrastructure spending. I have told this to PTI that another couple of years of heightened spending on infrastructure is a good idea,” he added.

Emphasising the need for measures to address inflation, particularly the soaring prices of essential commodities and life-saving drugs, Uttar Pradesh Congress President Ajay Rai has voiced the expectations of the middle class for the Union Budget 2024-25.

Expressing his expectations from the budget, Congress leader Ajay Rai said on Tuesday, “In this budget, inflation should be controlled. The price of garlic is ₹500 per kg, and the prices of vegetables and medicines have gone up. The price of life-saving drugs has increased.

Employment opportunities also need to be generated. All these factors need to be worked upon.”

Shiv Sena Uddhav Balasaheb Thackeray’s (UBT) faction leader, Priyanka Chaturvedi, echoed similar expectations, stating that the finance minister should concentrate on tackling unemployment and inflation.

-ANI

More tax benefits for health insurance under the new tax regime, relaxation in payment norms for MSMEs and incentives for the agri-tech sector are among the expectations of stakeholders from the first budget of the Modi 3.0 government.

Finance Minister Nirmala Sitharaman is scheduled to present the full Budget for fiscal 2024-25 on July 23, which will be the first major policy document of the new government.

Anup Rau, Managing Director and Chief Executive Officer of Future Generali India Insurance Company, said the deduction limit on health insurance premiums under Section 80D of the Income Tax Act has remained unchanged for the past nine years despite the fact that there has been a significant rise in healthcare costs across the country.

Watch what women can expect from Budget here

Union Cabinet headed by Prime Minister Narendra Modi met in Parliament on Tuesday to approve the Union Budget ahead of its presentation by Finance Minister Nirmala Sitharaman.

Prime Minister Narendra Modi arrived in Parliament this morning to attend the cabinet meeting.On Monday, Prime Minister said the Economic Survey highlighted the prevailing strengths of the economy and identifies areas for further growth and progress as the government “moves towards building a Viksit Bharat”.

Union Ministers Amit Shah, Rajnath Singh and Pralhad Joshi were also seen arriving in the Parliament earlier for the Cabinet meeting today.

-ANI

Union Finance Minister Nirmala Sitharaman met President Droupadi Murmu ahead of presenting the Union Budget 2024 in Parliament, as per tradition.

The Finance Minister and her team briefed the President about the provisions of the Budget.

President Murmu then fed the Finance Minister ‘Curd and Sugar’ which is a symbol of wishes for good luck.

All eyes will be on whether Sitharaman provides the much-expected tax relief for the middle class, leaving more money in their hands, as there is tax buoyancy. Besides, the market also expects staying on the fiscal glide path to lower the fiscal deficit to 4.5 per cent of GDP by 2025-26.

Fiscal Deficit: The budgeted fiscal deficit, which is the difference between the government expenditure and income, for the current fiscal is 5.1 per cent as projected in the Interim Budget in February, against 5.8 per cent in the last fiscal year. The full Budget is expected to provide better-than-earlier projections as there has been tax buoyancy.

Capital Expenditure: The government’s planned capital expenditure for this fiscal year is budgeted at ₹11.1 lakh crore, higher than ₹9.5 lakh crore in the last fiscal year. The government has been pushing infrastructure creation and also incentivising states to step up capex.

Tax Revenue: The Interim Budget had pegged gross tax revenue at ₹38.31 lakh crore for 2024-25, an 11.46 per cent growth over the last fiscal. This includes ₹21.99 lakh crore estimated to come from direct taxes (personal income tax + corporate tax), and ₹16.22 lakh crore from indirect taxes (customs + excise duty + GST).

GST: Goods and Services Tax (GST) collection in 2024-25 is estimated to rise to ₹10.68 lakh crore, an increase of 11.6 per cent. The tax revenue figures will have to be watched out for in the final Budget for the 2024-25 fiscal year.

-PTI

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Finance Minister Nirmala Sitharaman is set to create history when she presents her seventh straight budget on Tuesday for 2024-25, surpassing the record of former prime minister Morarji Desai.

Setting the tone for the third term of the Modi government, its focus areas may be boosting consumption by giving tax benefits to the middle class. Other priority areas may include agriculture, capex and infra spending and manufacturing push..

With India emerging as the biggest sweet spot in global growth, the budget is expected to address three major trends: global offshoring, digitalization, and energy transition.

Sitharaman, who will turn 65 next month, was in 2019 appointed as India’s first full-time woman finance minister when Prime Minister Narendra Modi won a decisive second term. Since then, she has presented six straight budgets, including an interim one in February this year.

-PTI

A total of 39 shipyards have registered, and 18 shipyards utilised the benefits under the Centre’s scheme to provide financial support to Indian shipyards for shipbuilding contracts signed between April 1, 2016, and March 31, 2026, according to the Economic Survey. 

“India’s Maritime Vision 2030 outlines over 150 initiatives to improve ports, shipping, and inland waterways and envisions investments of ₹3-3.5 lakh crore. The Maritime Amrit Kaal Vision 2047 outlines over 300 initiatives across 11 key areas to drive growth and development in India’s coastal regions,” according to the Economic Survey 2023-24 tabled in the Parliament on Monday.

“Its vision aims to reduce the average vessel turnaround time (containers) from 25 hours in 2020 to less than 20 hours in 2030. Likewise, it also aims to increase the average ship daily output (gross tonnage) from 16,000 in 2020 to more than 30,000 in 2030.”

Union Finance Minister Nirmala Sitharaman will present the estimated receipts and expenditure (2024-25) of the Union Territory of Jammu and Kashmir (with legislature) in Parliament today.

“I hope that the Budget will face the country’s economic realities. The biggest economic reality is that unemployment rate in 9.2% in the country, inflation is at all time high. Food inflation is particularly very high. Private sector investment is falling. I hope that the government and the Budget will project ways to improve this situation,” TMC MP Saugata Roy.

-PTI

Indian shares opened higher on July 23, led by financials and public sector companies, as investors brace for policy announcements in the Union Budget due at 11 a.m., which could have a huge bearing on the trajectory of markets.

The NSE Nifty 50 rose 0.24% to 24,568.9, while the S&P BSE Sensex added 0.28% to 80,724.3, as of 9:15 a.m. IST.

The Nifty has hit multiple all-time highs through its roughly 13% rally this year, despite a near 6% slide on June 4 when Prime Minister Narendra Modi’s party returned to power but by unexpectedly having to rely on allies. Still, the index has risen in each of the seven weeks since.

Finance Minister Nirmala Sitharaman on Tuesday again took a digital tablet wrapped in a traditional ‘bahi-khata’ style pouch as she headed for Parliament to present the full Budget 2024-25 in a paperless format just like the previous years.

Draped in a white silk saree with magenta border, she posed for the traditional ‘briefcase’ picture outside her office, along with her team of officials, before heading to meet the President.

With the tablet carefully kept inside a red cover with a golden-coloured national emblem embossed on it instead of the briefcase, Parliament will be her next destination after the call on President Droupadi Murmu at Rashtrapati Bhawan.

Sitharaman, India’s first full-time woman Finance Minister, had in July 2019 ditched the colonial legacy of a Budget briefcase for the traditional ‘bahi-khata’ to carry Union Budget papers. She used the same in the following year, and in a pandemic-hit 2021, she swapped traditional papers with a digital tablet for carrying her speech and other Budget documents.

“There is no direction in the Budgets presented in the last 10 years. Inflation is skyrocketing, unemployment is high, the growth rate is declining fundamentally. This indicates that the economy isn’t in a healthy situation,” says AAP MP Sandeep Pathak says. 

The government’s steps such as mandatory quality norms and increase in customs duties have significantly helped the domestic toy players to boost exports and reduce dependence on Chinese imports, Economic Survey said on July 22.

It said that India’s emergence as a toy exporting nation can also be attributed to its integration into the global value chain and zero-duty market access for domestically manufactured toys in critical countries such as the UAE and Australia.

The industry has long faced challenges in the global trade landscape, consistently being a net importer of toys for many years.

“Rising exports, coupled with declining imports, transformed India from a deficit to a surplus nation in the trade of toys,” it said.

Finance Minister Nirmala Sitharaman arrived at the Ministry of Finance ahead of the Union Budget presentation on Tuesday.

The Finance Minister was pictured wearing a white saree with a violet border as she arrived at the Ministry.

Nirmala Sitharaman is set to present the Union Budget 2024 in Parliament today, marking her seventh consecutive budget and eclipsing the late Moraji Desai’s record of six consecutive budgets, which is likely to focus on changes in the income tax structure and improving the ease of doing business in India.

Sitharaman tabled the Economic Survey 2023-24 along with the statistical appendix on Monday.

Minister of State for Finance Pankaj Chaudhary said that the first Union Budget of the third Modi government will be based on his mantra of “Sabka Saath Sabka Vikas”.

“This budget is based on PM Modi’s mantra of Sabka Saath Sabka Vikas,” MoS Chaudhary said.

Chaudhary was among the first from FM Nirmala Sitharaman’s team to reach the North Block offices of the Finance Ministry ahead of the Budget Presentation. Vivek Joshi, Secretary, of the Department of Financial Services and Chief Economic Advisor V. Anantha Nageswaran have also reached the ministry ahead of FM Sitharaman.

-ANI

Extreme weather, lower reservoir levels and crop damage have affected farm output and led to higher food prices over the past two years, the Economic Survey 2023-24 said on July 22.

Unfavourable weather conditions particularly impacted the production prospects of vegetables and pulses, it said.

“In FY23 and FY24, the agriculture sector was affected by extreme weather events, lower reservoir levels, and damaged crops that adversely affected farm output and food prices. So, food inflation based on the Consumer Food Price Index (CFPI) increased from 3.8% in FY22 to 6.6% in FY23 and further to 7.5% in FY24,” read the consolidated report on the state of the economy in the previous year.

The fiscal deficit for FY 2023-24 was 5.63% of GDP with a target of 5.1% for FY 2024-25. Given the significant share of personal tax in overall direct-tax collections, the government is unlikely to introduce measures that would greatly reduce tax revenue. Here are key expectations from individual taxpayers and potential government changes to minimise fiscal deficit impact:

Changes in simplified tax regime

• Standard deduction
• NPS employee contribution deduction
• Reintroduction of deduction for investment in infrastructure bonds

Changes in old tax regime

• Affordable housing deduction for interest paid on loan
• Metro cities for HRA

Union Finance Minister Nirmala Sitharaman tabled the Economic Survey 2023-24 in both Houses of Parliament on July 22. The Economic Survey is a comprehensive review or annual report of Indian economy during the closed financial year, prepared by the Economics Division of the Department of Economic Affairs of the Finance Ministry under the guidance of the India’s Chief Economic Advisor (CEA).

Here are the charts that show key numbers from the Economic Survey 2023-24:

Union Finance Minister Nirmala Sitharaman is scheduled to present the Budget for 2024-25 in the Lok Sabha on July 23. Parliament Session begins on July 22 and will conclude with the passage of the Finance Bill on August 12.

In this series, experts from various fields suggest what the focus of Narendra Modi-led NDA government’s third term should be. Read what the experts have told The Hindu.

Union Finance Minister Nirmala Sitharaman tabled the Economic Survey of India 2023-24, along with a statistical appendix, in both Houses of Parliament on July 22. 

The survey said that the outlook for India’s financial sector appears bright, but it needs to brace for likely vulnerabilities. The Indian financial sector is at a “turnpike moment”, it said, adding that the dominance of banking support to credit is being reduced, and the role of capital markets is rising. 

According to the report, India’s GDP is likely to grow at 6.5 to 7% in the current fiscal year amid global challenges which may impact exports. The growth projected for 2024-25 is lower than the economic growth rate of 8.2% estimated for the previous financial year.

India saw 92 lakh foreign tourist arrivals in 2023, signifying a positive post-pandemic revival, the Chief Economic Advisor has said in the Economic Survey released on July 22.

The survey, which was tabled in Parliament, said India’s tourism industry showed positive signs of revival post-pandemic with an year-on-year increase of 43.5%. The hospitality industry has also met the needs of the increasing numbers of tourists successfully. “In 2023, the highest amount of new supply was created with the addition of 14,000 rooms, bringing the total inventory of chain-affiliated rooms to 183,000 in India,” the survey said.

Finance Minister Nirmala Sitharaman will present the Union Budget 2024 on July 23 at 11 a.m. It will be a record seventh consecutive Budget presentation for Ms. Sitharaman.

The Budget 2024 presentation will be streamed on various platforms. Viewers can watch the Budget 2024 speech by Nirmala Sitharaman live at The Hindu. Follow our liveblog for all the latest news, reactions, and analysis of Budget 2024. The Finance Minister’s address will also be available to stream live via the Sansad TV.