Union Budget 2025 presented, having previously appeared in an interim form.
Interim budget is common in election years, allowing for temporary provisions until a new government is formed.
Understanding the Budget
Constitutional Basis: Budget not mentioned explicitly; referred to as Annual Financial Statement under Article 112.
Economic Survey: Presented prior to the budget to reflect the previous financial year's performance.
Financial Year: Runs from April 1 to March 31.
Presentation of Budgets
Most recurring budget presentations:
Morarji Desai: 10 budgets (6 continuously).
Nirmala Sitharaman: 7th budget as first full-time female Finance Minister.
Previously, General and Railway Budgets were presented separately until 2016 when merged.
Stages of Budget Presentation
Budget presented to Parliament.
Discussion and scrutiny by departmental standing committees.
Demand for grants voting by Lok Sabha, focusing on ministry fund requests.
Halwa Ceremony
Traditional event before budget session to prevent leakage of budget information; guests treated to halwa.
Key Features of Union Budget 2024-25
Focus Areas: Farmers, poor, women, and youth.
Thematic emphases: Employment creation and skilling, with emphasis on MSMEs (Micro, Small and Medium Enterprises).
Agricultural initiatives include:
Introduction of 109 high-yielding, climate-resilient crop varieties.
Promotion of Farmer Producer Organizations (FPOs).
One crore farmers to be certified and branded in natural farming over the next 2 years.
Employment and Skill Development Initiatives
Incentives for First-Time Job Seekers: One-month wage for first-time job holders up to Rs. 15,000.
Manufacturing Efforts: Schemes in manufacturing and services sectors to create jobs.
EPF Contributions: The government will reimburse EPFO contributions up to Rs. 3,000/month for new hires.
Key Support for Women and Students
Financial support for higher education loans up to Rs. 10 lakh.
Emphasis on higher participation of women in the workforce.
Regional Development Focus
Purvodaya Mission: Focused on regions in Eastern India (Bihar, Jharkhand, West Bengal, Odisha, Andhra Pradesh).
Infrastructure Development: Projects to enhance urban and rural infrastructure, targeting 25,000 rural habitations.
Infrastructure Allocations
Major infrastructure allocation of Rs. 11 lakh crore (~3.4% of GDP).
Transportation Projects: Improvement of railways and roads, including new corridors and inter-state linkages.
Energy Security Initiatives
Development of Bharat Small Modular Reactor and promotion of nuclear technology for cleaner energy.
Subsidies and programs for solar energy schemes, specifically PM Surya Ghar.
Revenue and Expenditure Makeup
Major Revenue Sources: Primarily from income tax, corporate tax, and GST collections.
Expenditures: Defense, rural development, and major welfare schemes.
Fiscal Deficit Insights
Fiscal deficit target for 2024-25 set at 4.9% of GDP, lower than anticipated.
Concepts: Understanding revenue and capital expenditures, and the difference between fiscal deficit and primary deficit is crucial for budget comprehension.
Important Terminology
Direct tax vs. Indirect tax: How taxes affect government revenue.
Explanation of various schemes related to MSMEs, including the Mudra loan program.
Concluding Notes
Importance of understanding the budget and its impact on different sectors.
The achievement of fiscal targets, job creation, and emphasis on sustainability and regional development underlined throughout the presentation.