2024-25 Budget Overview and Highlights

Aug 25, 2024

Budget Presentation and Key Highlights

Introduction

  • The 2024-25 budget was presented by Finance Minister Nirmala Sitharaman.
  • The February budget was an interim one due to upcoming Lok Sabha elections.
  • Traditional customs before presenting the budget include Finance Minister meeting the President.
  • The budget is now presented digitally instead of a traditional suitcase.

Budget Approval Process

  • Budget copies are distributed to parliament before presentation.
  • The Union Cabinet must approve the budget before presentation.

Key Points of Budget Presentation

  • The term 'budget' is not used in the Constitution; instead, it's called 'Annual Financial Statement'.
  • Articles 112-117 of the Constitution relate to budget.
  • Government cannot withdraw money from the Consolidated Fund of India without Parliament's approval.

Importance of Budget

  • Important for citizens and democracy to know government plans, taxes, and expenditures.
  • Interim budget precedes elections; full budget is presented by the newly elected government.

Preparation and Presentation

  • Budget preparation responsibility lies with the Department of Economic Affairs.
  • Process starts in October of the previous year.

Historical Insights

  • Longest budget speech in words by Manmohan Singh during 1991 LPG reforms.
  • Morarji Desai presented the most budgets (10), followed by P. Chidambaram.
  • Nirmala Sitharaman has presented 7 budgets so far.

Budget Secrecy and Printing

  • Budget prepared in high secrecy to prevent leaks.
  • Printing now done at North Block, previously at Minto Road press in Delhi.

Key Focus Areas

  • Focus areas include employment, skills, MSMEs, and middle class.
  • Nine priorities: productivity, agriculture, employment, human development, social justice, manufacturing, urban development, energy, and next-gen reforms.

Specific State Support

  • Bihar: Special package announced for roads, airports, medical colleges.
  • Andhra Pradesh: Financial support for capital development.

Agriculture

  • Transformation in agriculture research and cooperation sector.
  • Focus on climate-resistant crops and natural farming.

Employment and Skills

  • Five PM Package schemes announced.
  • Support for first-time job seekers, manufacturing sector, and skill development.

Social Justice

  • Focus on women, youth, and farmers.
  • Priority on integrated development and social justice.

Infrastructure and Urban Development

  • Encouragement for property ownership by women through reduced stamp duty.
  • Development of urban infrastructure like water management and housing.

Energy and Innovation

  • Development of small nuclear reactors with private sector involvement.
  • Push for innovation, research, and development.

Fiscal Details

  • Fiscal deficit targeted at 4.9% of GDP for 2024-25.
  • Expenditure and revenue details including capital and revenue receipts.

Tax Proposals

  • Long-term capital gains tax increased to 12.5%.
  • Direct tax proposals include changes in income tax slabs.

Conclusion

  • The budget aims at overall economic growth and addressing key issues in agriculture, employment, infrastructure, and social justice.