Budget Presentation 2024-25 Notes

1. Introduction

• The Indian government led by PM Narendra Modi is grateful for the people's trust supporting a historic third term.
• Aim: Ensure all Indians, regardless of demographics, achieve life goals and aspirations.

2. Global Context

• Global economy: Improvement but facing policy uncertainties, political issues, and shipping disruptions.
• India's economy remains a shining exception with low inflation (currently 3.1%).

3. Interim Budget Highlights

• Focus on four major classes: Garib (poor), Mahil (women), Yua (youth), and Anadata (farmers).
• Higher Minimum Support Prices (MSP) announced for major crops.
• Pradhan Mantri Garib Kalyan Anna Yojana extended for five years.
• Administrative actions for scheme implementation are underway.
• Total provision of 1.48 lakh crore for education, employment, and skilling.

4. Budget Theme

• Focus on long-term priorities for employment, skilling, & middle-class support:
  • Productivity and resilience in agriculture.
  • Employment and skilling initiatives.
  • Inclusive human resource development and social justice.
  • Manufacturing and services growth.
  • Urban development and energy security.
  • Infrastructure enhancement.
  • Innovation and research.
  • Next-generation reforms.

5. Key Budget Priorities

5.1 Productivity and Resilience in Agriculture

• Review of agricultural research for productivity and climate resilience.
• Release of new climate-resilient crop varieties: 32 crops.
• 1 crore farmers to be introduced to natural farming over 2 years.
• Establishment of 10,000 bio-input resource centers.
• Initiatives for self-sufficiency in pulses and oilseeds.

5.2 Employment and Skilling Initiatives

• Three new employment-linked schemes:
  1. Scheme A: Direct benefit to first-time employees.
  2. Scheme B: Incentives for additional employment in manufacturing.
  3. Scheme C: Support for employers hiring additional employees.
• 20 lakh youth to be skilled in 5 years under a new skilling program.
• Financial support for higher education loans announced.

5.3 Inclusive Human Resource Development

• Aiming for comprehensive development for farmers, youth, women, and the poor.
• Pradhan Mantri Janjati Unat Yojana to enhance socio-economic conditions for tribal communities.

5.4 Focus on Manufacturing and Services

• Financial support and regulatory changes for MSMEs to promote labor-intensive manufacturing.
• New credit guarantee schemes for MSMEs.
• Setting up of eCommerce export hubs for traditional artisans.

5.5 Urban Development Initiatives

• Urban housing plans with an investment of 10 lakh crore for 1 crore urban poor families.
• Development of water supply and sanitation projects in partnership with states.

5.6 Energy Security Initiatives

• Policy announced for energy transition, focusing on availability, accessibility, and affordability.
• Launch of PM Suar M B Y for free electricity for 1 crore households.

5.7 Infrastructure Investment

• 11 lakh crore allocated for infrastructure capital expenditure.
• Support for states' infrastructure projects with 1.5 lakh crore interest-free loans.

6. Taxation Proposals

6.1 Indirect Taxes

• GST simplification and expansion proposed to further reduce compliance burdens.
• Specific customs duties reviewed and adjusted for key sectors: medicine, electronics, textiles, and critical minerals.

6.2 Direct Taxes

• Comprehensive review of the Income Tax Act for simplification and clarity.
• Changes to personal and corporate tax rates;
  • Standard deduction raised to 75,000 for salaried employees.
  • New tax rates proposed based on income brackets.
  • Angel tax abolished for all classes of investors.

7. Conclusion

• Commitment to fiscal responsibility and continued support for India's growth trajectory.