Unacademy IAS Union Budget Discussion 24-25

Introduction

Global economic challenges: elevated asset and commodity prices, supply chain disruptions, Ukraine war, Gaza war, and US political chaos.
Focus areas: Garib (poor), Mahila (women), Yuva Shakti (youth), Annadata (farmers).
Specific targets for youth employment, women empowerment, and agricultural development.

Income Tax Slabs: Revised for the new tax regime to boost consumer spending.
Angel Tax: Abolished to aid startups.
Standard Deduction: Increased from ₹50,000 to ₹75,000.
Capital Gains Tax: Increased; short-term from 15% to 20%, long-term from 10% to 12.5%.
IT Act Review: Income Tax Act of 1961 to be reviewed for simplification.
Foreign Companies Tax: Reduced to 35% from 40% for branch offices.
Vivad se Vishwas Scheme: New round to address tax disputes.
Customs Duty on Gold and Silver: Reduced to 6% from 10%.

PURA Initiative: Focus on Eastern India with infrastructure and tourism projects in Bihar and Odisha.
Andhra Pradesh: Special allocations for Amaravati, Poondam irrigation, and industrial nodes.
Tribal Development: Focus on flood assistance and welfare schemes for Scheduled Tribes.
Women Empowerment: ₹3 lakh crore for women and girl child welfare, employment initiatives, and safety measures.
Financial Inclusion: 100 new India Post branches in Northeast to promote financial inclusion.

Mudra Yojana: Loan limit under Tarun category increased to ₹20 lakh for prompt payers.
TReDS Platform: Lowered turnover requirement to ₹250 crore for participation, benefiting MSMEs.
Food Irradiation Units: 50 units to be set up in MSMEs.
Credit Guarantee Scheme: Enhanced access to credit for MSMEs in manufacturing.
Support Mechanism: For MSMEs under financial stress.
IBC Technology Platform: To streamline insolvency processes.

Thermal Power Plants: Focus on ultra-supercritical technology for efficiency.
Small Nuclear Reactors: Promotion of modular reactors with private sector involvement.
Pumped Storage Policy: To enhance energy storage for renewable sources.
Critical Minerals Mission: Domestic production, recycling, and overseas acquisition of strategic minerals.
Offshore Mining Policy: To explore and utilize ocean resources.

Employment Linked Incentive: Three schemes (A, B, C) to incentivize job creation.
Youth Skilling: 20 lakh youth to be skilled over 5 years, aligning courses with industry needs.
Apprenticeship Program: 1 crore apprenticeships in top 500 companies, funded through CSR.

Transit-Oriented Development: 14 large cities for improved urban mobility.
Peri-Urban Development: Focus on developing satellite towns.
Affordable Housing: For urban poor and rental housing for industrial workers.
Street Vendor Support: 100 weekly haats to be organized.
Urban Services: Enhanced waste management, clean water, and environmental initiatives.

Digital Public Infrastructure: Use DPI for records management and AI services.
Research and Development: Introduction of climate-resilient crops and natural farming.
Self-Sufficiency: Mission to achieve self-sufficiency in pulses and oilseeds.
Vegetable Production Clusters: Development to control inflation and enhance supply.

Capital Expenditure: Increased to ₹11 lakh crore, with additional ₹1.5 lakh crore loan to states.
Pradhan Mantri Gram Sadak Yojana: Phase IV to cover 25,000 villages.
AIBP: Assisted irrigation projects for flood-prone states.

Anusandhan National Research Fund: ₹1 lakh crore to boost R&D and private sector involvement.
Space Economy: VC fund for space startups, target to grow space economy fivefold.
Critical Technologies: Focus on AI, cyber security, and other emerging technologies.

Fiscal Deficit: Targeted at 4.9% for current year, 4.5% for next year.
Revenue Sources: Income tax (19%), GST (18%), Corporate tax (17.7%), Others.
Expenditure: Central sector schemes, state transfers, interest payments (19%).
Borrowings: Estimated at ₹16 lakh crore.

Overall, it’s a balanced, inclusive, and realistic budget with a focus on fiscal prudence.
Emphasis on innovation, energy security, employment, and urban development.
Importance of monitoring the actual implementation and outcomes.

Note: This summary covers important points from the detailed discussion on the Union Budget 24-25 by Unacademy IAS.