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Finance Minister Nirmala Sitharaman laid out nine priorities for the government in Union Budget 2024, saying they are necessary to realise the dream of a Viksit Bharat. These priorities are: productivity in agriculture, employment, social justice, manufacturing, urban development, energy security, infrastructure, innovation and next-generation reforms read more
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People watch the live telecast of Union Budget 2024-25, being presented in the Lok Sabha by Union Finance Minister Nirmala Sitharaman, at a television showroom, in Kolkata. PTI
The much-awaited moment is here. Finance Minister Nirmala Sitharaman is presenting the Union Budget — a record seventh consecutive time. This is the first budget during Prime Minister Narendra Modi-led government’s third term in office.
Standing up in Parliament, Finance Minister Nirmala Sitharaman began her budget presentation by saying: “People of India have reinforced their faith in the government led by Modi and re-elected it for the third term. India’s economic growth continues to shine while the global economy is still in the grip of policy uncertainty. The country’s inflation continues to be stable and is moving towards four per cent, and core inflation stands at 3.1 per cent.”
The finance minister also added that this budget will make sustained efforts on nine priorities that will ensure a Viksit Bharat (developed India). Here’s what we know about each of these priorities.
Productivity and resilience in agriculture
Agricultural development is one of the biggest priorities for the country, said Finance Minister Nirmala Sitharaman. She has said that the Centre has allocated Rs 1.52 lakh crore for agriculture and allied sectors for the financial year.
She added that for this agricultural research will be transformed to focus on raising productivity and climate resilient varieties.
Moreover, one crore farmers will be initiated into natural farming over two years, said Nirmala Sitharaman.
Catch all the live updates from the Union Budget 2024 here
Employment and skilling
The finance minister said that this will be one of the main priorities of the budget and it will focus on employment, skilling, MSMEs and the middle class. For this, the Union Budget for 2024-25 will provide Rs 1.48 lakh crore for education, employment and skilling in the country.
The finance minister has announced employment-linked skilling through schemes as part of the prime minister’s package. These schemes will be based on enrolment in the EPFO, focusing on recognising first-time employees. First-timers will receive one month’s wage upon entering the workforce in all formal sectors. A direct benefit transfer (DBT) of one month’s salary, up to Rs 15,000, will be provided in three instalments. The eligibility limit for this benefit will be a salary of Rs 1 lakh per month, and it is expected to benefit 2.1 lakh youths.
E-vouchers for education loans purpose will be given to one lakh students on three per cent interest.
Inclusive human resource Development and social justice
This is the third priority of the budget, said Finance Minister Nirmala Sitharaman. Under this, the government will provide financial support for loans up to Rs 10 lakh for higher education in domestic institutions.
Sitharaman also stressed that increasing participation of women in the workforce will be a priority. And in order to do so, the government will set up hostels and create partnerships to organise women-specific skilling programs.
In order to extend support to tribals, the government has announced the Pradhan Mantri Janjatiya Unnat Gram Abhiyan to improve the social-economic conditions of tribal communities. The programme aims at achieving saturation coverage for tribal families in tribal-majority villages and aspirational districts, Union Finance Minister Nirmala Sitharaman said during her budget speech. The programme will cover 63,000 tribal villages, benefitting five crore tribals, she said.
As per this budget, the government will also formulate plan Purvodaya for all round development of Bihar, Jharkhand, West Bengal, Odisha, and Andhra Pradesh. Moreover, a financial support of Rs 15,000 crore in FY25 will be made for the new Andhra capital.
The finance minister has also announced an ambitious plan to build an additional three crore houses under the PM Awas Yojana. These houses will be constructed in both rural and urban areas, providing affordable housing solutions to a large number of people.
Manufacturing and services
Under this priority, greater attention has been given to MSMEs. She said, “For facilitating term loans to MSMEs, a credit guarantee scheme will be introduced. The scheme will operate on the cooling of credit risks of such MSMEs. A self-financing guarantee fund will provide to each applicant cover of up to Rs 100 crore while loan amount may be larger.”
The finance minister announced that the MUDRA loan limit will be increased from the current Rs 10 lakh to Rs 20 lakh for those who have taken and successfully repaid loans under the TARUN category.
She has also announced that Small Industries Development Bank of India (SIDBI) will open 24 new branches to serve MSMEs clusters.
Nirmala Sitharaman has also announced a scheme to provide internship in top 500 companies to one crore youth in five years. They will gain exposure to real life business. Interns will be given Rs5,000 per month along with one-time assistance of Rs 6,000.
Additionally, rental housing with dorm like accommodation for industrial workers will be facilitated in PPP mode.
The finance minister has announced the establishment of an integrated tech platform to enhance outcomes under the Insolvency and Bankruptcy Code (IBC). This platform is designed to provide greater consistency, transparency, and improved oversight for all stakeholders, including the National Company Law Tribunal (NCLT).
Urban Development
The finance minister has announced that under PMAY Urban Housing 2.0, the housing needs of people will be addressed with a budget of Rs 10 lakh crore. The central government will provide aid amounting to Rs 2 lakh crore, and subsidised rates will be offered for these housing projects.
Finance Minister Nirmala Sitharaman also said that she encourages states to charge high stamp duty to moderate the rates for all. Slashing of duties for women.
Energy Security
To encourage energy security in the country, Finance Minister Nirmala Sitharaman has announced the PM Suryaghar Muft Bijli Yojana which will install rooftop solar plants to enable one crore households to obtain free electricity for 300 units every month.
She has also announced newer technology for nuclear technology. “Research and development of small and modular nuclear reactors — nuclear energy is expected to form a very significant part of the energy mix for ‘Viksit Bharat’. Towards that pursuit, our government will partner with private sector for: a) setting up Bharat Small reactors; b) research and development of Bharat Small Modular reactor; c) research and development of newer technologies for nuclear energy. The R&D funding announced the in the interim Budget will be made available for this sector also.”
Infrastructure
The Union Budget 2024-2025 has strong fiscal support towards infrastructure over the next five years.
The Union Budget has also announced for PMGSY 4.0 under which 25,000 new rural habitations will be constructed. Moreover, there are plans to build flood control structure through financial support of Rs 11,500 crore. Kosi related flood mitigation will be taken.
The states of Assam, Uttarakhand, Himachal Pradesh and Sikkim will be provided with assistance after being ravaged by floods.
The Union Budget has also seen an allocation to tourism. Under this, the Vishnupath temple at Gaya and Mahabodhi temple in Bodhgaya will be constructed like Kashi Vishwanath corridor. The State will also undersee the development of Nalanda.
Innovation, Research & Development
The government will operationalise the Anusandhan National Research Fund for basic research and prototype development. Further, a mechanism will be set up to spur private sector-driven research and innovation at commercial scale with a financing pool of Rs 1 lakh crore in line with the announcement in the Interim Budget.
Next generation reforms
Finance Minister Nirmala Sitharaman also has announced that the government will initiate and incentivise reforms for (1) improving productivity of factors of production, and (2) facilitating markets and sectors to become more efficient. These reforms will cover all factors of production, namely land, labour, capital and entrepreneurship, and technology as an enabler of improving total factor productivity and bridging inequality.
The budget has also announced NPS Vatsalya, a plan for contribution by parents and guardians for minors.
With inputs from agencies
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