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UNION BUDGET 2024-2025

• Union Finance Minister Nirmala Sitharaman on 23 July, 2024 presented the Union Budget 2024-25 worth Rs
48,20,512 crore.
• Finance Minister Nirmala Sitharaman presented the budget for 2024-25 for the seventh time in a row and the
first budget of the third term of the National Democratic Alliance (NDA) government led by Prime Minister Narendra
Modi.
• Nirmala Sitharaman will surpass the record of former Prime Minister Morarji Desai. Morarji Desai presented five
consecutive full budgets and one interim budget from 1959 to 1964. Earlier, Morarji Desai had presented the Union
Budget six times in a row. Morarji Desai presented the budget a record 10 times, while former Finance Minister P.
Chidambaram presented the budget 9 times.
• The total expenditure in Budget Estimates (BE) 2024-25 is estimated at `48,20,512 crore of which total capital
expenditure is `11,11,111 crore. Compared to RE 2023-24, the capital expenditure in BE 2024-25 reflects an increase of
16.9 per cent. Effective capital expenditure, at `15,01,889 crore in BE 2024-25 shows an increase of 18.2 per cent over
RE 2023-24.
• The Government will continue to work towards achieving the objective of reducing the fiscal deficit to 4.5 per cent of
GDP by FY 2025-26.
• India’s Real growth at 8.2 percent and Nominal growth at 9.6 percent in FY 2023-24. The private consumption
expenditure registered a growth of 4.0 per cent in FY 2023-24, driven by resilient urban demand conditions and
recovery in rural demand.
• The Reserve Bank of India projects a growth of 7.2 per cent for India in FY 2024-25.
• Average retail inflation eases to 5.4 per cent in 2023-24 compared to 6.7 per cent in FY 2022-23. The Headline inflation
stood at 5.1 per cent in June 2024, with much lower core inflation of 3.1 per cent. The overall retail inflation is within
the notified tolerance band of 2 to 6 per cent of RBI.
• For the year 2024-25, the total receipts other than borrowings and the total expenditure are estimated at ₹32.07 lakh
crore and ₹48.21 lakh crore respectively. The net tax receipts are estimated at ₹25.83 lakh crore. The fiscal deficit is
estimated at 4.9 per cent of GDP.
• The gross and net market borrowings through dated securities during 2024-25 are estimated at ₹14.01 lakh crore and
₹11.63 lakh crore respectively. Both will be less than that in 2023-24.
• The capital expenditure is pegged at ₹11,11,111 crore (3.4 per cent of GDP). It includes ₹1,50,000 crore of financial
assistance to the States for capital expenditure. The budgeted capital expenditure is almost 3.3 times of the capital
expenditure in FY 2019-20 and 23.0 percent of total expenditure in BE 2024-25.
• The fiscal deficit of the Union Government declines to 5.6 per cent of GDP as per 3 Provisional Actuals (PA) published
by the Controller General of Accounts (CGA), while the revenue deficit declined to 2.6 per cent of GDP in FY 2023-24.
The major fiscal indicators of the Central Government with respect to the Budget Estimates (BE) of FY 2024-25, as
a per cent of GDP, are summarized in the table below.
Fiscal Indicators Budget Estimates 2024-25 Fiscal Indicators Budget Estimates 2024-25
(Percent of GDP) (Percent of GDP)

1. Fiscal Deficit 4.9 4.Tax Revenue (Gross) 11.8

2. Revenue Deficit 1.8 5.Non-Tax Revenue 1.7

3. Primary Deficit 1.4 6.Central Government 56.8

Debt

• Gross non-performing assets (GNPA) ratio of Scheduled Commercial Banks’s reduces to 2.8 per cent at the end of
March 2024 from its peak of 11.2 per cent in FY 2017-18. The SCBs bolstered their capital base by capitalizing reserves
from higher profits and raising fresh capital, their capital-to-riskweighted assets ratio (CRAR) became 16.8 per cent in
March 2024, well above the regulatory minimum.
• For BE 2024-25, Gross Tax Revenue (GTR) is projected to grow at 11.7 percent over RE 2023-24 and 10.8 percent over
PA 2023-24. GTR is estimated at ₹38.40 lakh crore (11.8 per cent of GDP).The Direct and Indirect taxes are estimated

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to contribute 57.5 per cent and 42.5 per cent, respectively, to GTR. In BE 2024- 25, after tax devolution to States, the
Tax Revenue (Net to Centre) is projected at ₹25.83 lakh crore. Non Tax Revenue is projected to be at ₹5.46 lakh crore
which is 45.2 per cent more than the RE 2023–24 of ₹3.76 lakh crore, mainly on account of better dividend receipts.
• The major subsidies as percent of GDP are expected to decline from 1.4 percent in RE of 2023-24 to 1.2 percent in BE of
2024- 25. Major subsidies, at ₹3.81 lakh crore, would constitute about 10.3 per cent of revenue expenditure in BE
2024-25.
• To achieve a balance between Revenue receipts and Revenue expenditure, in BE 2024-25, revenue receipts and revenue
expenditure of the Central Government are estimated at ₹31.29 lakh crore and ₹37.09 lakh crore, respectively.
• The GST receipts are estimated at ₹10.62 lakh crore in BE 2024-25, registering a growth of 11.0 per cent over RE and PE
for FY 2023-24. Buoyant GST collections in FY 2023-24 sets a new milestone with total gross GST collection of ₹20.18
lakh crore, reflecting an 11.7 per cent increase over FY 2022-23.
• The gross tax revenue increases by 13.4 per cent and tax-net to Centre increases by 10.9 percent. The total expenditure
of the Union Government registers a growth of 5.9 per cent in FY 2023-24 (PA).
• Smt. Nirmala Sitharaman said that Vishnupad Temple at Gaya and Mahabodhi Temple at Bodh Gaya in Bihar have
immense spiritual significance. “Support will be provided for holistic development of Vishnupad Temple Corridor and
Mahabodhi Temple Corridor on the lines of the successful Kashi Vishwanath Temple Corridor model to develop them as
world-class pilgrimage and tourist destinations.”
• With our continued emphasis on expanding the space economy by 5 times in the next 10 years, a venture capital fund of
₹1,000 crore will be set up.
• Basic Customs Duty on mobile phones, Printed Circuit Board Assembly (PCBA) and mobile chargers reduced to 15 per
cent.
• Proposal to increase customs duty on PCBA of certain telecom equipment from 10 to 15 per cent in Budget 2024-25.
• Pm’s package of 5 schemes and initiatives with an outlay of ₹ 2 lakh crore to facilitate employment, skilling and other
opportunities for 4.1 crore youth in 5 years.
• For pursuit of ‘viksit bharat’, the budget envisages sustained efforts on 9 priorities for generating ample opportunities
for all.
• Budget 2024-25 focuses on employment, skilling, msme’s and middle class.
• For promoting women-led development, the budget carries an allocation of more than ` 3 lakh crore for schemes
benefitting women and girls.
• A provision of ₹ 2.66 lakh crore for rural development including rural infrastructure made for the financial year 2024-
25.
• The limit of mudra loans will be enhanced to ₹ 20 lakh from the current ₹ 10 lakh.
• Government to launch a comprehensive scheme for providing internship opportunities in 500 top companies to 1 crore
youth in 5 years.
• Phase iv of pmgsy will be launched to provide all-weather connectivity to 25,000 rural habitations.
• Rs 1.48 lakh crore has been allocated for education, employment and skill training in Budget 2024-25.
• While maintaining the allocation made to the Ministry of Defence (MoD) during the interim budget presented on 1
February 2024, the Government has made an additional allocation to the tune of ₹400 crores on innovation in defence
through the Acing Development of Innovative Technologies with iDEX (ADITI) scheme.

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• Top 3 taxes estimated in Budget 2024-25 = 1. Income Tax (Rs 1187000 crore) 2. Goods & Services Tax (Rs 1061899
crore) > Corporate Tax (Rs 1020000 crore)
• Net receipts of the Centre in Budget Estimates 2024-25 – 1. Net-Centre’s Tax Revenue (25.8%) > 2. Non-Tax
Revenue (5.5%) > 3. Non-Debt Capital Receipt (0.8%)
• Indirect taxes are 5.0% of GDP, direct taxes are • Trend in Capital Expenditure in Budget Estimates 2024-
6.8% of GDP and gross tax receipts are 11.8% of 25 – 1. Effective Capital Expenditure (Rs 15 lakh crore) > 2.
GDP in Budget Estimates 2024-25. Capital Expenditure (Rs 11.1 lakh crore)> 3. Grant in Aid for
creation of capital assets (Rs 3.9 lakh crore)

• Composition of Expenditure in Budget Estimates 2024-25 – 1. Central Sector Schemes (Rs 15.16 lakh crore) > 2.
Other Central Sector Expenditure (Rs 14.91 lakh crore) > 3. Establishment Expenditure of Centre (Rs 7.84 lakh crore) >
4. Centrally sponsored scheme (Rs 5.06 lakh crore) > 5. Other Grants/Loans (Rs 3.92 lakh crore)> 6. Finance
Commission Grants (Rs 1.32 lakh crore)
• Total transfers to States and Union Territories in Budget Estimates 2024-25 = Rs 23.49 lakh crore
• COMPOSITION OF TRANSFERS TO STATES AND UTs in Budget Estimates 2024-25 = Devolution>Scheme
related & other transfers>Finance commission grants

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• Sources of Financing Fiscal Deficit – Market Borrowings>Securities against small savings

• Rupee comes from – top 5 sources =1. Borrowings and other liabilities (27%) > 2. Income Tax (19%) > 3. GST and
Other taxes (18%) 4. Corporation Tax (17%) > 5. Non-Tax Receipts (9%)
• Rupee goes to – top 5 sources = 1. State’ Share of Taxes & Duties (21%) > 2. Interest Payments (19%) > 3. Central
Sector Schemes (16%) > 4. Finance Commission and others transfers (9%) > 5. Other Expenditure (9%)

Union Budget Speech 2024-25

Global Context
• Elevated asset prices, political uncertainties and shipping disruptions continue to pose significant downside risks for
growth and upside risks to inflation.
• India’s inflation continues to be low, stable and moving towards the 4 per cent target. Core inflation (nonfood, non-
fuel) currently is 3.1 per cent. Steps are being taken to ensure supplies of perishable goods reach market adequately.

Interim Budget Budget Theme

• As mentioned in the interim budget, • The Union Budget 2024-25 will focus specifically on employment,
government need to focus on 4 major skill training, MSMEs and the middle class for the next full year and
castes, namely ‘Garib’ (Poor), ‘Mahilayen’ beyond.
(Women), ‘Yuva’ (Youth) and ‘Annadata’ • Announcement, the Prime Minister’s package of 5 schemes and
(Farmer). initiatives to facilitate employment, skilling and other opportunities
• Pradhan Mantri Garib Kalyan Anna for 4.1 crore youth over a 5-year period with a central outlay of ` 2
Yojana was extended for five years, lakh crore.
benefitting more than 80 crore people. • Rs 1.48 lakh crore has been allocated for education, employment and
skill training in the Union Budget 2024-25.

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Budget Priorities
• The Finance Minister said, for pursuit of ‘Viksit Bharat’, the budget envisages sustained efforts on the following 9
priorities for generating ample opportunities for all.
Productivity and resilience in Agriculture
1. Employment & Skilling
2. Inclusive Human Resource Development and
Social Justice
3. Manufacturing & Services
4. Urban Development
5. Energy Security
6. Infrastructure
7. Innovation, Research & Development and
8. Next Generation Reforms

Priority 1: Productivity and resilience in Agriculture

• New 109 high-yielding and climate-resilient varieties of 32 field and horticulture crops will be released for cultivation by
farmers.
• In the next two years, 1 crore farmers across the country will be initiated into natural farming supported by certification
and branding. The implementation will be done through scientific institutions and willing Gram Panchayats.
• 10,000 need-based bio-input resource centres will be established.
• For achieving self-sufficiency in pulses and oilseeds, we will strengthen their production, storage and marketing. As
announced in the interim budget, a strategy is being put in place to achieve ‘atmanirbharta’ for oil seeds such as
mustard, groundnut, sesame, soybean, and sunflower.
• Government, in partnership with the states, will facilitate the implementation of the Digital Public Infrastructure (DPI)
in agriculture for coverage of farmers and their lands in 3 years. In Financial year 2024-25, digital crop survey for
Kharif using the DPI will be taken up in 400 districts. The issuance of Jan Samarth based Kisan Credit Cards will be
enabled in 5 states.
• Rs 1.52 lakh crore allocated to agriculture and allied sectors for FY 2024-25.
• Financing for Shrimp farming, processing and export will be facilitated through NABARD.
• National Cooperation Policy – Government will bring out a National Cooperation Policy for systematic, orderly and
all-round development of the cooperative sector. Fast-tracking growth of rural economy and generation of
employment opportunities on a large scale will be the policy goal.
Priority 2: Employment & Skilling
• The government will implement 3 schemes for ‘Employment Linked Incentive’, as part of the Prime Minister’s package.
These will be based on enrolment in the EPFO, and focus on recognition of first-time employees, and support to
employees and employers.
• A new centrally sponsored scheme, as the 4th scheme under the Prime Minister’s package, for skilling in collaboration
with state governments and Industry.
• 20 lakh youth will be skilled over a 5-year period and 1,000 Industrial Training Institutes will be upgraded in hub and
spoke arrangements with outcome orientation.
• The Model Skill Loan Scheme will be revised to facilitate loans up to 7.5 lakh with a guarantee from a government
promoted Fund. This measure is expected to help 25,000 students every year
• For helping the youth, who have not been eligible for any benefit under government schemes and policies, she
announced a financial support for loans upto ₹10 lakh for higher education in domestic institutions. E-vouchers for this
purpose will be given directly to 1 lakh students every year for annual interest subvention of 3 per cent of the loan
amount.
• Government will facilitate higher participation of women in the workforce through setting up of working women hostels
in collaboration with industry, and establishing creches.

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Priority 3: Inclusive Human Resource Development and Social Justice

• Implementation of schemes meant for supporting economic activities by craftsmen, artisans, self-help groups,
scheduled caste, schedule tribe and women entrepreneurs, and street vendors, such as PM Vishwakarma, PM
SVANidhi, National Livelihood Missions, and Stand-Up India will be stepped up
• A provision of ₹2.66 lakh crore for rural development including rural infrastructure was made for financial year 2024-
25.
• More than 100 branches of India Post Payment Bank will be set up in the North East region to expand the banking
services.
• Three crore additional houses under the PM Awas Yojana in rural and urban areas in the country have been announced,
for which the necessary allocations are being made.
• On the Amritsar Kolkata Industrial Corridor, government will support development of an industrial node at Gaya. This
corridor will catalyze industrial development of the eastern region. The industrial node at Gaya will also be a good
model for developing our ancient centres of cultural importance into future centres of modern economy. This model
shall showcase “Vikas bhi Virasat bhi” in our growth trajectory
• Government will also support development of road connectivity projects, namely (1) Patna-Purnea Expressway, (2)
Buxar-Bhagalpur Expressway, (3) Bodhgaya, Rajgir, Vaishali and Darbhanga spurs, and (4) additional 2-lane bridge
over river Ganga at Buxar at a total cost of ` 26,000 crore. Power projects, including setting up of a new 2400 MW
power plant at Pirpainti, will be taken up at a cost of ` 21,400 crore. New airports, medical colleges and sports
infrastructure in Bihar will be constructed.
• More than 100 branches of India Post Payment Bank will be set up in the North East region to expand the banking
services.
Andhra Pradesh Reorganization Act:
• Recognizing the state’s need for a capital, we will facilitate special financial support through multilateral development
agencies. In the current financial year ` 15,000 crore will be arranged, with additional amounts in future years.
• Government is fully committed to financing and early completion of the Polavaram Irrigation Project, which is the
lifeline for Andhra Pradesh and its farmers. This will facilitate our country’s food security as well.
• Under the Act, for promoting industrial development, funds will be provided for essential infrastructure such as water,
power, railways and roads in Kopparthy node on the Vishakhapatnam-Chennai Industrial Corridor and Orvakal node on
Hyderabad-Bengaluru Industrial Corridor.
• Grants for backward regions of Rayalaseema, Prakasam and North Coastal Andhra, as stated in the Act, will also be
provided.
Priority 4: Manufacturing & Services
• For facilitating term loans to MSMEs for purchase of machinery and equipment without collateral or third-party
guarantee, a credit guarantee scheme will be introduced. The scheme will operate on pooling of credit risks of such
MSMEs. A separately constituted self-financing guarantee fund will provide, to each applicant, guarantee cover up to `
100 crore, while the loan amount may be larger. The borrower will have to provide an upfront guarantee fee and an
annual guarantee fee on the reducing loan balance.
• The limit of Mudra loans will be enhanced to ₹ 20 lakh from the current ₹ 10 lakh for those entrepreneurs who have
availed and successfully repaid previous loans under the ‘Tarun’ category.

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• Financial support for setting up of 50 multi-product food irradiation units in the MSME sector will be provided.
Setting up of 100 food quality and safety testing labs with NABL accreditation will also be facilitated.
• To enable MSMEs and traditional artisans to sell their products in international markets, E-Commerce Export Hubs
will be set up in public-private-partnership (PPP) mode.
• The government will facilitate development of investment-ready “plug and play” industrial parks with complete
infrastructure in or near 100 cities, in partnership with the states and private sector, by better using town planning
schemes.
• Twelve industrial parks under the National Industrial Corridor Development Programme also will be sanctioned.
• Government will set up a Critical Mineral Mission for domestic production, recycling of critical minerals, and overseas
acquisition of critical mineral assets. Its mandate will include technology development, skilled workforce, extended
producer responsibility framework, and a suitable financing mechanism
• An Integrated Technology Platform will be set up for improving the outcomes under the Insolvency and Bankruptcy
Code (IBC) for achieving consistency, transparency, timely processing and better oversight for all stakeholders.
• The IBC has resolved more than 1,000 companies, resulting in direct recovery of over `3.3 lakh crore to creditors. In
addition, 28,000 cases involving over ` 10 lakh crore have been disposed of, even prior to admission.
• SIDBI will open new branches to expand its reach to serve all major MSME clusters within 3 years, and provide direct
credit to them. With the opening of 24 such branches this year, the service coverage will expand to 168 out of 242
major clusters.
• Ownership, leasing and flagging reforms will be implemented to improve the share of the Indian shipping industry and
generate more employment
• For facilitating MSMEs to unlock their working capital by converting their trade receivables into cash, government
propose to reduce the turnover threshold of buyers for mandatory onboarding on the TReDS platform from ` 500 crore
to ` 250 crore.
Priority 5: Urban Development
• Working with states, our government will facilitate development of ‘Cities as Growth Hubs’. This will be achieved
through economic and transit planning, and orderly development of peri-urban areas utilising town planning schemes.
• Transit Oriented Development plans for 14 large cities with a population above 30 lakh will be formulated, along with an
implementation and financing strategy.
• 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 5 years.
• In partnership with the State Governments and Multilateral Development Banks, government will promote water
supply, sewage treatment and solid waste management projects and services for 100 large cities through bankable
projects. These projects will also envisage use of treated water for irrigation and filling up of tanks in nearby areas.
• Building on the success of PM SVANidhi Scheme in transforming the lives of street vendors, our Government envisions
a scheme to support each year, over the next five years, the development of 100 weekly ‘haats’ or street food hubs in
select cities
• Rental houses for industrial workers will be constructed in Public-Private Partnership (PPP) mode.
Priority 6: Energy Security
• In line with the announcement in the interim budget, PM Surya Ghar Muft Bijli Yojana has been launched to install
rooftop solar plants to enable 1 crore households obtain free electricity up to 300 units every month. The scheme has
generated remarkable response with more than 1.28 crore registrations and 14 lakh applications.
• The programme, PM Surya Ghar Muft Bijli Yojana, launched on 15 February, 2024 by Prime Minister Narendra Modi is
actually a government scheme which aims to provide free electricity to households in India. it will set a roadmap to
achieve the goals of Surya Ghar Scheme in states including Uttar Pradesh and Assam, which are already boosting such
efforts with additional subsidies.
• Nuclear energy is expected to form a very significant part of the energy mix for Viksit Bharat.
• Pumped Storage Policy - A policy for promoting pumped storage projects will be brought out for electricity storage
and facilitating smooth integration of the growing share of renewable energy with its variable & intermittent nature in
the overall energy mix
• Roadmap for ‘hard to abate’ industries - 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.

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• The development of indigenous technology for Advanced Ultra Super Critical (AUSC) thermal power plants with much
higher efficiency has been completed. A joint venture between NTPC and BHEL will set up a full scale 800 MW
commercial plant using AUSC technology. The government will provide the required fiscal support. Moving forward,
development of indigenous capacity for the production of high-grade steel and other advanced metallurgy materials for
these plants will result in strong spin-off benefits for the economy.
Priority 7: Infrastructure
• The substantial investments made by the Central Government to build and improve infrastructure over the years have
had a very positive impact on the economy. Strong fiscal support for infrastructure will be maintained over the next 5
years, in line with other priorities and the requirements of fiscal consolidation.
• A provision of Rs 11,11,111 crore has been made for capital expenditure in the Union Budget 2024-25. This is 3.4 per cent
of GDP.
• Provision has been made to provide Rs 1.5 lakh crore as long term interest free loan to the states to support resource
allocation.
• Phase IV of Pradhan Mantri Gram SadakYojana (PMGSY) will be launched to provide all-weather connectivity to
25,000 rural habitations which have become eligible in view of their population increase.
• For Irrigation and Flood Mitigation in Bihar, through the Accelerated Irrigation Benefit Programme and other sources,
government will provide financial support for projects with estimated cost of ₹11,500 crore such as the Kosi-Mechi
intra-state link and 20 other ongoing and new schemes including barrages, river pollution abatement and irrigation
projects. Government will also provide assistance to Assam, Himachal Pradesh, Uttarakhand and Sikkim for flood
management, landslides and related projects.
• Development of Vishnupad Temple Corridor and Mahabodhi Temple Corridor modelled on Kashi Vishwanath Temple
Corridor.
• 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 development of Odisha’s scenic beauty, temples, monuments, craftsmanship, wildlife sanctuaries, natural
landscapes and pristine beaches making it an ultimate tourism destination.
Priority 8: Innovation, Research & Development
• Government will operationalize the Anusandhan National Research Fund for basic research and prototype development
and set up a mechanism for spurring private sector-driven research and innovation at commercial scale with a
financing pool of ₹1 lakh crore in line with the announcement in the interim budget.
• With our continued emphasis on expanding the space economy by 5 times in the next 10 years, a venture capital fund of
₹1,000 crore will be set up.
Priority 9: Next Generation Reforms
• The government will formulate an Economic Policy Framework to delineate the overarching approach to economic
development and set the scope of the next generation of reforms for facilitating employment opportunities and
sustaining high growth.
• Government will initiate and incentivize reforms for (1) improving productivity of factors of production, and (2)
facilitating markets and sectors to become more efficient. These reforms will cover all factors of production namely
land, labour, capital and entrepreneurship, and technology as an enabler of improving total factor productivity and
bridging inequality.
• Government will facilitate the provision of a wide array of services to labour, including those for employment and
skilling. A comprehensive integration of e-shram portal with other portals will facilitate such one-stop solution. Shram
Suvidha and Samadhan portals will be revamped to enhance ease of compliance for industry and trade.
• Government will develop a taxonomy for climate finance for enhancing the availability of capital for climate adaptation
and mitigation.
• The rules and regulations for Foreign Direct Investment and Overseas Investments will be simplified to (1) facilitate
foreign direct investments, (2) nudge prioritization, and (3) promote opportunities for using Indian Rupee as a
currency for overseas investments.
• The Committee to review the New Pension Scheme (NPS) has made considerable progress in its work and a solution
will be evolved which addresses the relevant issues while maintaining fiscal prudence to protect the common citizens.

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• For enhancing ‘Ease of Doing Business’, government already working on the Jan Vishwas Bill 2.0. Further, states will
be incentivized for implementation of their Business Reforms Action Plans and digitalization
Direct Tax Proposals
• Budget 2024-25 increased standard deduction of salaried employees from ₹ 50,000/- to ₹ 75,000/- for those opting
for new tax regime. Similarly, deduction on family pension for pensioners enhanced from ₹ 15,000/- to ₹ 25,000/-.
Assessments now, can be reopened beyond three years up to 5 years from end of year of assessment, only if, the
escaped income is more than ₹ 50 Lakh. The new tax regime rate structure is also revised to give a salaried employee
benefits up to ₹ 17,500/- in income tax.
• 4 crore salaried employees and pensioners have got a big relief in income tax. More than 58 percent of corporate tax
receipts have been collected under the new system. Two-thirds of the individual taxpayers have adopted the new
income tax system.

• 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%.
• In order to promote startups and investments, Angel Tax has been abolished for all categories of investors.
• To attract investments, tax on foreign companies has been reduced from 40% to 35%.
• 5% TDS on various payments has been merged into 2% TDS.
• The exemption limit on capital gains for low and middle income groups has been increased to Rs 1.25 lakh per annum.
• Customs duty on gold and silver has been reduced by 6% and on platinum by 6.4%, making precious items cheaper.
• To promote processing and refining of critical minerals, 25 rare earth minerals like lithium have been completely
exempted from customs duty in the budget, out of which BCD has been reduced on 2.
• Securities transaction tax (STT) rates: It is proposed to increase the rates of STT on sale of an option in securities
from 0.0625 per cent to 0.1 per cent of the option premium, and on sale of a futures in securities from 0.0125 per cent
to 0.02 per cent of the price at which such futures are traded.
• To improve social security benefits, deduction of expenditure by employers towards NPS is proposed to be increased
from 10 to 14 per cent of the employee’s salary.
• BCD on broodstock, polychaete worms, shrimp and fish feed is proposed to be reduced to 5%.
• Government propose to reduce BCD on certain broodstock, polychaete worms, shrimp and fish feed to 5 per cent.
• BCD on Methylene Diphenyl Diisocyanate (MDI) for manufacture of Spandex yarn is proposed to be reduced from 7.5%
to 5%.
• To provide relief to cancer patients, customs duty on three more medicines will be completely removed.
• It is proposed to exempt 25 essential minerals from customs duty and reduce the basic customs duty on two of these.

Ministry-wise expenditure in Union Budget 2024-25

Sr.No. Name of Ministry Allocation Sr.No. Name of Ministry Allocation
1 Defence Rs 621941 crore 5 Home Affairs Rs 219643 crore
2 Road Transport and Highways Rs 278000 crore 6 Rural Development Rs 180233 crore
3 Railways Rs 255393 crore 7 Chemicals and Fertilisers Rs 168500 crore
4 Consumer Affairs, Food and Rs 223323 crore 8 Communications Rs 137294 crore
Public Distribution

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• In the Regular Union Budget of Financial Year (FY) 2024-25, Ministry of Defence (MoD) has been allocated Rs
6,21,940.85 crore (approx. US $75 Billion), the highest among the Ministries. The allocation for the Defence Ministry is
about 12.90 per cent of the total budget estimates 2024-25.
• The allocation to MoD for FY 2024-25 is higher by approx. Rs one lakh crore (18.43%) over the allocation for FY 2022-
23 and 4.79% more than allocation of FY 2023-24.
• Total budgetary allocation on account of defence pensions is Rs 1,41,205 crore which is 2.17% higher than the allocation
made during 2023-24.
• In absolute terms, budgetary allocation under capital head to the Defence Forces for FY 2024-25 is Rs 1.72 lakh crore,
which is 20.33% higher than the actual expenditure of FY 2022-23 and 9.40% more than the Revised Allocation of FY
2023-24.
• Other ministries with high allocation include: (i) Road Transport and Highways (5.8% of total expenditure), (ii)
Railways (5.3%), and (iii) Consumer Affairs, Food and Public Distribution (4.6%).
• Rs 6,500 crore allocated for border roads development; Rs 7,651 crore for coastal security.

Top 10 schemes with the highest allocations in the Union Budget 2024-2025 -
Sr.No. Schemes Allocation Sr.No. Schemes Allocation
1 Pradhan Mantri Garib Kalyan Rs 2,05,250 6 Jal Jeevan Mission (JJM)/ National Rs 70,163
Anna Yojana (PMGKAY) crore Rural Drinking Water Mission crore
2 National Highways Authority of Rs 1,68,464 7 Pradhan Mantri Kisan Samman Nidhi Rs 60,000
India (NHAI) crore (PM-Kisan) crore
3 Urea Subsidy Rs 1,19,000 8 Pradhan Mantri Awas Yojna (PMAY) - Rs 54,500
crore Rural crore
4 Road Works (MoRTH) Rs 1,15,093 9 Nutrient Based Subsidy Rs 45,000
crore crore
5 MNREGA Rs 86,000 crore 10 Aircraft and Aero Engines Rs 40,278
crore

Allocation to some other Major Schemes (in ₹ crore)

Scheme Allocation Scheme Allocation
Solar Power (Grid) 10000 crore rupees Nuclear Power Projects 2228 crore rupees
Development of 6903 crore rupees PLI for Pharmaceutical Industry 2143 crore rupees
Semiconductors and
Display Manufacturing
Lines of Credit under IDEA 3849 crore rupees Direct Benefit Transfer- LPG 1500 crore rupees
Scheme
Research and Development Projects 1200 crore rupees

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New Schemes of Union Budget 2024-25

Prime Minister’s package of 5 schemes and initiatives

• Government announced the Prime Minister’s package of 5 schemes and initiatives to facilitate employment, skilling and
other opportunities for 4.1 crore youth over a 5-year period with a central outlay of 2 lakh crore.
• Government will implement following 3 schemes for ‘Employment Linked Incentive’, as part of the Prime Minister’s
package. These will be based on enrolment in the EPFO, and focus on recognition of first-time employees, and support
to employees and employers.
• Employment Linked Incentive Scheme A: First Timers (One-month wage to new entrants in all formal sectors in 3
instalments up to ₹15,000. Expected to benefit 210 lakh youth. Scheme will be for 2 years. Eligibility limit will be a
salary of 1 lakh per month. Applicable to all sectors.
• Employment linked Incentive Scheme B: Job creation in manufacturing (Applicable for substantial hiring of first
time employees in the manufacturing sector; Incentive to both employee & employer for EPFO contributions in the
specified scales for the first 4 years; Expected to benefit 30 Lakh youth. Scheme will be for 2 years. eligibility limit will
be a salary of 1 lakh per month.
• Employment Linked Incentive Scheme C: Support to employers (Government will reimburse EPFO contributions
of employers up to ₹3000 per month for 2 years for all new hires. Expected to generate 50 lakh jobs). Applicable to
an employer who Increases employment above the baseline (previous year’s number of EPFO employees) by at least
two employees (for those with less than 50 employees) or 5 employees (for those with 50 or more employees) and
sustains the higher level. Not applicable for those Employees covered under Part-B. This subsidy will be in addition to
benefit under Part-A. Scheme will be for 2 years. eligibility limit will be a salary of 1 lakh per month.
• 4th scheme -Skilling Programme - Skilling Programme and Upgradation of Industrial Training Institutes (20 lakh
youth will be skilled over a 5-year period. 1,000 Industrial Training Institutes will be upgraded in hub and spoke
arrangements with outcome orientation. 200 hubs and 800 spoke ITIs –all with industry collaboration. Course
content & design aligned as per skill needs of industry. New Centrally Sponsored Scheme in collaboration with
states and industry. Focus on outcome and quality of skilling. Total outlay of ` 60,000 crore over five years
{Government of India—` 30,000 crore + State Governments—` 20,000 crore + Industry—` 10,000 crore (including
CSR funding)}
• 5th scheme - Internship Opportunities - Scheme for providing internship opportunities in 500 top companies to 1
crore youth in 5 years. Allowance of ₹5,000 per month along with a one-time assistance of ₹6,000 through the CSR
funds. Internship in Top Companies (One crore youth to be skilled by India’s top companies in five years. Twelve
months Prime Minister’s Internship with monthly allowance of 5,000. Applicable to those who are not employed and
not engaged in full time education. Youth aged between 21 and 24 will be eligible to apply. Participation of companies is
voluntary. Will be co-ordinated with State Government initiatives wherever applicable. Phase 1 of the scheme will be
for 2 years followed by Phase 2 for 3 years.
Purvodaya Plan
❑ ‘Purvodaya’ concept was publically announced by Prime Minister Narendra Modi in 2015, during a meeting Paradip,
Odisha after dedicating an oil refinery to the Indian Oil Corporation Limited back then. Additionally, he said that for
India to become a developed nation, the eastern parts of the country need to develop.
❑ Finance Minister Nirmala Sitharaman during her Budget speech 2024 (23 July 2024) unveiled 'Purvodaya' plan.
❑ Focus - on human resource development, infrastructure, and economic opportunities in the eastern region.
❑ For the all-round development of five states in the eastern region, including Bihar, Odisha, Jharkhand, West
Bengal and Andhra Pradesh. The states in the Eastern part of the country are rich in endowments have strong
cultural traditions
❑ Of the five states, the government laid special emphasis on Bihar, proposing Rs 26,000 crore for various road projects.
The Finance Minister also said that the government will set up airports, medical colleges and sports infrastructure in
the state.
❑ Prime Minister Modi said that the development of the country’s eastern region will get new momentum and energy
through the ‘Purvodaya’ plan.
❑ Union Home Minister Amit Shah said that the scheme will provide a new boost to the development of the eastern
region. “This scheme will give new energy to infrastructure, human resources, employment and economic development
opportunities in these regions and these regions will play an important role in building a developed and self-reliant
India,”

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NPS Vatsalya
❑ NPS-Vatsalya, a plan for contribution by parents and guardians for minors will be started to improve social
security benefit
❑ On attaining the age of majority, the plan can be converted seamlessly into a normal NPS account.
❑ The introduction of NPS Vatsalya and the increased contribution limits under NPS are significant steps towards
enhancing financial security for both children and employees.
❑ These changes aim to provide better tax benefits and encourage long-term financial planning, contributing to
overall financial stability.

Pradhan Mantri Janjatiya Unnat Gram Abhiyan

❑ For improving the socio-economic condition of tribal communities Government will launch the Pradhan Mantri
Janjatiya Unnat Gram Abhiyan by adopting saturation coverage (100% coverage of beneficiaries such as bank
accounts for the poor, health cover under Ayushman Bharat and Ujjwala) for tribal families in tribal-majority
villages and aspirational districts.
❑ This will cover 63,000 villages benefitting 5 crore tribal people.
❑ Budget Outlay of Ministry of Tribal Affairs Increased by 73.60% to about Rs. 13,000 Crore Compared to RE 2023-24.
❑ Budget allocation for the Ministry has seen a substantial increase from Rs. 4,497.96 crore in 2014-15 to Rs. 13,000
crore in 2024-25, an increase of approximately 189.02%
❑ The Ministry of Tribal Affairs serves as the nodal Ministry for the overall policy, planning, and coordination of programs
for the development of Scheduled Tribes.
❑ Under the Tribal Sub-Plan (TSP), now known as the Development Action Plan for Scheduled Tribes (DAPST),
42 Ministries/Departments allocate funds ranging from 4.3 to 17.5 percent of their total scheme allocation each year
for tribal development projects in areas such as education, health, agriculture, irrigation, roads, housing, electrification,
employment generation, and skill development.
❑ The DAPST fund allocation has increased about 5.8 times since 2013-14, from Rs. 21,525.36 crore (Actual
Expenditure) in 2013-14 to Rs. 1,24,908.00 crore in BE 2024-25.
❑ To provide quality education to tribal students in remote areas, funds worth ₹6,399 crore have been allocated to
establish Eklavya model residential schools or EMRS.

PM Surya Ghar Muft Bijli Yojana

❑ The programme, PM Surya Ghar Muft Bijli Yojana, launched on 15 February, 2024 by Prime Minister Narendra Modi is
actually a government scheme which aims to provide free electricity to households in India.
❑ it will set a roadmap to achieve the goals of Surya Ghar Scheme in states including Uttar Pradesh and Assam, which are
already boosting such efforts with additional subsidies.
❑ In line with the announcement in the interim budget, PM Surya Ghar Muft Bijli Yojana has been launched to install
rooftop solar plants to enable 1 crore households obtain free electricity up to 300 units every month.
❑ The scheme has generated remarkable response with more than 1.28 crore registrations and 14 lakh applications,
and we will further encourage it.

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