16 September, 2024
Union Budget 2024-2025
Wed 24 Jul, 2024
- 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)
1. Productivity and resilience in Agriculture |
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2. Employment & Skilling |
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3. Inclusive Human Resource Development and Social Justice |
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4. Manufacturing & Services |
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5. Urban Development |
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6. Energy Security |
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7. Infrastructure |
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8: Innovation, Research & Development |
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9: Next Generation Reforms |
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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
Total receipts | ₹32.07 lakh crore |
Total expenditure | ₹48.21 lakh crore |
Net Tax Receipts | ₹48.21 lakh crore |
Capital expenditure | ₹11,11,111 crore (3.4 per cent of GDP) |
Fiscal deficit | 4.9 per cent of GDP |
Fiscal consolidation | To be reduced to less than 4.5 per cent by 2025-26. |
Gross and Net Market Borrowings | ₹14.01 lakh crore and ₹11.63 lakh crore respectively |
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)