Union Budget 2024-25, Check Detailed Key Highlights

Union Budget 2024- 25: The Finance Minister Nirmala Sitharaman has released the Union Budget 2024-25 on 23rd July 2024 in the parliament. There are two types of budgets presented every year: an interim budget presented on February 1 and the Union Budget 2024-25 (full) presented on Tuesday, 23rd July 2024 as the budget of the newly elected government. The Union Budget is a roadmap of the government’s financial plan for the upcoming fiscal year. this year Union budget focused on nine priorities Productivity and resilience in Agriculture, Employment & Skilling, Inclusive Human Resource Development and Social Justice, Manufacturing & Services, Urban Development, Energy Security, Infrastructure, Innovation, Research & Development and Next Generation Reforms. The government has reduced customs duties while also implementing changes to capital gains taxes for the upcoming financial year. The “Taxation budget” will result in revised tax slabs under the new tax policy. Interested aspirants can check our article and know all the details about the union budget.

Union Budget 2024- 25 Highlights

The Union Budget is the Annual Financial Statement of the Indian Constitution in Article 112, prepared annually by the Department of Economic Affairs (DEA). Here we are providing the Union Budget 2024- 25 key highlights in the table below.

Union Budget 2024-25 Important Key Announcements

The Union Budget has announced by the Finance Minister Nirmala Sitharaman on 23rd July 2024. The Finance Minister Nirmala Sitharaman has announced nine priority.

Budget Theme

• Gareeb (Poor), Mahila (Women), Yuva (Youth) and Anndata (Farmer)
• Focus on employment, skilling, MSMEs, and the Middle class
• 5 scheme package with outlay of 2 lakh crore
• 1.48 lakh crore for education employment and skilling

Productivity Resilience in Agriculture

• ₹1.52 lakh crore for agriculture and allied
• 109 High-yielding climate varieties of 32 crops
• Natural Farming
  • 1 Crore farmers
  • Certification and Branding
• Mission for pulses and Oil seeds
• Improve vegetable supply chains
• Digital Public Infrastructure for Agriculture
• Shrimp production and export – Through NABARD

Employment & Skilling

EPFO has discussed three employment-related schemes in the Union Budget. The budget released by Finance Minister Sitharaman proposes to allocate Rs 2 lakh crore for employment generation over 5 years.

Inclusive Human Resource Development and Social Justice

Purvodaya Plan: 

• Plan for endowment-rich states in the Eastern parts covering Bihar, Jharkhand, West Bengal, Odisha and Andhra Pradesh for generation of economic opportunities to attain Viksit Bharat. 
• Amritsar Kolkata Industrial Corridor with the development of an industrial node at Gaya.

Allocation for Women Schemes : Allocation of more than ₹3 lakh crore for schemes benefitting women and girls.

Pradhan Mantri Janjatiya Unnat Gram Abhiyan: Improving the socio-economic condition of tribal communities covering 63,000 villages benefitting 5 crore tribal people.

Indian Post Payment Bank: More than 100 branches of India Post Payment Bank will be set up in the North East region.

Andhra Pradesh Reorganization Act: 

• Financial support of ₹15,000 crores will be arranged in FY 24- 25. 
• Completion of Polavaram Irrigation Project ensuring food security of the nation.
• Essential infrastructure such as water, power, railways and roads in the Kopparthy node on the Vishakhapatnam-Chennai Industrial Corridor and the Orvakal node on the Hyderabad-Bengaluru Industrial Corridor.

Manufacturing & Services

Scheme: Scheme for providing internship opportunities in 500 top companies to 1 crore youth in 5 years.

Allowances: Allowance of ₹5,000 per month along with a one-time assistance of ₹6,000 through the CSR funds.

Urban Development

PM Awas Yojana Urban 2.0: The needs of 1 crore urban poor and middle-class families will be addressed with an investment of ₹10 lakh crore.

Rental Housing Markets: Enabling policies and regulations for efficient and transparent rental housing markets with enhanced availability will also be put in place.

Energy Security

Initiatives with the private sector in Nuclear Energy:

• Setting up Bharat Small Reactors 
• R&D of Bharat Small Modular Reactor and newer technologies for nuclear energy

Pumped Storage Policy: For electricity storage and facilitation of smooth integration of the growing share of renewable energy.

AUSC Thermal Power Plants: A joint venture between NTPC and BHEL will set up a full-scale 800 MW commercial plant.

Energy Audit: 

• Financial support for shifting of micro and small industries to cleaner forms of energy.
• Facilitate investment-grade energy audit in 60 clusters, next phase expands to 100 clusters.

Infrastructure

Tourism:

•  Development of Vishnupad Temple Corridor and Mahabodhi Temple Corridor modelled on Kashi Vishwanath Temple Corridor 
• A comprehensive development initiative for Rajgir will be undertaken which holds religious significance for Hindus, Buddhists and Jains. 
• The development of Nalanda as a tourist centre besides reviving Nalanda University to its glorious stature. 
• Assistance to the development of Odisha’s scenic beauty, temples, monuments, craftsmanship, wildlife sanctuaries, natural landscapes and pristine beaches making it an ultimate tourism destination.

Innovation, Research & Development

• Operationalization of the Anusandhan National Research Fund for basic research and prototype development. 
• Private sector-driven research and innovation at a commercial scale with a financing pool of ₹1 lakh crore.
• Space Economy: A venture capital fund of ₹1,000 crore is to be set up.

Next Generation Reforms

Taxonomy for climate finance: Enhancing the availability of capital for climate adaptation and mitigation-related investments.

FDI and Overseas Investments: Simplified to facilitate FDIs and promote opportunities for using Indian Rupee as a currency for overseas investments.

NPS Vatsalya: A plan for contribution by parents and guardians for minors. 

Improvement of data governance, collection, processing and management of data and statistics.

New Pension Scheme (NPS): A solution that addresses the relevant issues, protects the common citizen and maintains fiscal prudence will be formed.

Sector-Specific Customs Duty Proposals

A comprehensive review of the rate structure for ease of trade, removal of duty inversion and reduction of disputes.

Direct Tax Proposals

To reduce the compliance burden, promote entrepreneurial spirit and provide tax relief to citizens.

Rationalisation of capital gains

• Short term gains of financial assets to attract 20% tax rate. 
• Long term gains on all financial an non-financial assets to attract a tax rate of 12.5%.
• Increase in limit of exemption of capital gains on financial assets to ₹1.25 lakh per year.

Employment and Investment

• Abolish ANGEL tax for all classes of investors. 
• Simpler tax regime to operate domestic cruises.
• Provide for safe harbour rates for foreign mining companies (Selling raw diamonds) 
• The corporate tax rate on foreign companies reduced from 40% to 35%

Union Budget 2024-25 FAQ

• Sign Up on Practicemock for Updated Current Affairs, Free Topic Tests and Free Mini Mocks
• Sign Up Here to Download Free Study Material