2024-25 Budget Highlights and Key Points

Aug 5, 2024

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2024-25 Budget Presentation

Introduction to the Budget

  • Budget 2024-25 presented by Finance Minister Nirmala Sitharaman.
  • Full budget presented after interim budget shown in February.
  • Budget presentation process:
    • At 10 AM, the hard copy of the budget is delivered to the parliament.
    • Information about the budget is given to the President.
    • Traditionally, the President offers sweets.
    • The Union Cabinet approves the budget.
    • The budget is presented in digital format.

Importance of the Budget

  • The budget is important for every citizen.
  • Provides information on government expenditure, income, and various schemes.
  • Indicates which sector the government is focusing on more through the budget.

Structure of the Budget

  • The word 'budget' is not used in the constitution, instead, the term "annual financial statement" is used.
  • Articles 112 to 117 in the constitution contain information regarding the budget.
  • No money can be withdrawn from the Consolidated Fund of India without the budget.

Responsibility of the Finance Ministry

  • The Department of Economic Affairs in the Finance Ministry is responsible for preparing the budget.
  • The budget preparation process starts in October.

Key Points of the Budget

  • The budget mainly focuses on 4 categories:
    1. Poor
    2. Women
    3. Youth
    4. Farmers
  • Four major areas: Employment, Skilling, MSMEs, and the middle class.

Major Priorities in the Budget

  • Nine priorities:
    1. Productivity and Agriculture
    2. Employment and Skilling
    3. Inclusive Human Development
    4. Resource Development
    5. Social Justice
    6. Manufacturing and Services
    7. Urban Development
    8. Energy Security
    9. Infrastructure

Special State Package

  • Announcement of a special package for Bihar.
  • Special financial assistance for Andhra Pradesh.

Agricultural Sector

  • Improvements in agricultural research.
  • 1 crore farmers will be trained to promote natural farming.

Employment and Skilling

  • Five Prime Ministerial Packages:
    • Incentives for first jobs.
    • Employment growth in manufacturing.
    • Skill development and training.
    • Women and hostels.

Financial Status

  • Total revenue receipts in 2024-25: 31.3 lakh crore.
  • Total capital receipts: 16.9 lakh crore.
  • Total expenditure: 48.2 lakh crore.
  • Revenue expenditure: 37.1 lakh crore.

Tax System

  • Changes in income tax:
    • New slabs: 5%, 10%, 15%, 20%, 30%.
    • 5% tax on 3-7 lakh.
    • 10% tax on 7-10 lakh.

Investment and Market Response

  • Reason for stock market decline: Increase in long-term capital gains tax.
  • Relief for small investors: No tax on capital gains up to 1.25 lakh.

Conclusion

  • The budget focused on various sectors.
  • Significant steps have been taken towards the development of government schemes and assets.

Additional Information

  • Various courses and batches are available through Study IQ.
  • Potential career options and exam materials for students.