• Focus Sectors/Groups: ‘Poor’, ‘Women’, ‘Youth’ and ‘Farmers’
• Key Themes: The Union Budget 2024-25 focuses on employment, skilling, MSMEs and support for the middle class. A significant allocation of Rs 1.48 lakh crore has been made for education, employment and skilling.

Budget Priorities (9)

Tax Provisions

Direct Taxes:

• Angel tax will be abolished for all classes of investors.
• More simplified tax regime for domestic cruises.
• Safe harbour rates are to be provided for foreign mining companies (selling rough diamonds).
• The corporate tax rate on foreign companies reduced from 40% to 35%.
• Short-term gains on financial assets will be taxed at 20%.
• Long term gains on all financial and non-financial assets will be taxed at 12.5%.
• The capital gains exemption limit on financial assets will be increased to ₹1.25 lakh per annum.

Indirect Taxes: 

• Full exemption from customs duty on cancer drugs
• Basic customs duty (BCD) on mobile phones and chargers reduced to 15%
• Customs duty on gold and silver reduced to 6% and platinum to 6.4%
• BCD on shrimp and fish feed reduced to 5%
• Exemption on more capital goods for manufacturing solar cells and panels
• Full exemption from customs duty on 25 critical minerals

Rupee comes from

Rupee goes to

Budget Estimate 2024-25

Other Facts

• New Pension Scheme (NPS): A committee has been constituted to review NPS to address relevant issues while maintaining fiscal prudence to protect the common man.
• NPS Vatsalya: The NPS-Vatsalya scheme will be launched for contributions by parents and guardians for minor children.
• Shram Suvidha and Samadhan Portal: Shram Suvidha and Samadhan Portal will be revamped to enhance ease of compliance for industry and trade.

 Other important facts related to the budget -

• The word budget is derived from the French word 'Bougette'.
• Budget: - Statement of estimated receipts and expenditures of the government
• Article 112 of the Indian Constitution: - The Union Budget for a year is called the "Annual Financial Statement".
• Vote on Account (Article 117): Advance grant to meet necessary government expenditure for a limited period until the budget is approved
• In 1924, the 'Acworth Committee' recommended separating the railway budget from the general budget.
• The word ‘budget’ is not mentioned in the Indian Constitution.
• First budget of independent India: - In the year 1947 (by the first Finance Minister R.K. Shanmukham Chetty)
• Central body responsible for preparing the budget: - ‘Budget Division’ of the Department of Economic Affairs under the Ministry of Finance
• Since the year 2017, the Railway Budget is presented along with the General Budget (on the recommendation of Bibek Debroy Committee).
• First budget before Indian independence: - By James Wilson (1860)
• “Fiscal Deficit”: - The difference between the total income and expenditure of the government
• Interim Budget: - Presented by a government that is going through a transition period or is in the last year of its term before the general election.

Funds related to budget:

• Consolidated Fund of India - Article 266 (1)
• Public Account of India - Article 266 (2)
• Contingency Fund of India - Article 267 (1)