Union Budget 2024-2025 PDF

Union Budget Report Errors in the PDF - [email protected] Copyright 2014-2024 @ AffairsCloud.com 1  Union Budget This PAID PDF is provided by AffairsCloud’s dedicated team that works diligently to provide aspi...

Union Budget Report Errors in the PDF - [email protected] Copyright 2014-2024 @ AffairsCloud.com 1  Union Budget This PAID PDF is provided by AffairsCloud’s dedicated team that works diligently to provide aspirants with high-quality content. We recommend you to purchase this PDF subscription and seize the opportunity to learn efficiently. Help Us to Grow & Provide Quality Service Click here to Download the CareersCloud APP Click here to Join the Telegram Channel Current Affairs Channel AffairsCloud Hindu Vocabs Suggestions & Feedback are welcomed [email protected] Report Errors in the PDF - [email protected] Copyright 2014-2024 @ AffairsCloud.com 2  Union Budget Report Errors in the PDF - [email protected] Copyright 2014-2024 @ AffairsCloud.com 3  Union Budget 94th Union Budget 2024-25 JULY What is the Budget? It is an Annual Financial statement of the estimated receipts and expenditure of the Government in a Financial Year (which begins on 1st April of the current year and ends on 31st March of the following year). Every year, the Finance Minister of India presents the Union Budget. Two parts of the Union Budget : The Annual Financial Statement and the Demand for Grants. Annual Financial Statement provides a summary of the government's revenue for the upcoming year. Demand for Grants includes an estimated expenditure from the Consolidated Fund that needs to be submitted. ‘Bahi Khata’ - Until 2018, as a part of tradition, finance ministers carried the budget in a leather briefcase ‘Bahi Khata’ (a ledger wrapped in red cloth) and now it is replaced with a Made in India tablet (paperless budget). Article 112 - Union Budget of India also referred to as the Annual Financial Statement in Article 112 of the Constitution of India.It will be on the first day of February. Until 2016 it was presented on the last working day of February by the finance minister in Parliament. Union Budget 2024-25 On July 23, 2024, the Budget session was held in Parliament under the chairmanship of Lok Sabha Speaker Om Birla, in which the Union Minister for Finance and Corporate Affairs Smt. Nirmala Sitharaman presented the 94 Union Budget of India for the upcoming fiscal (FY25) from April 1, 2024 to March 31, 2025. th It was presented with the mantra of ‘Sabka Saath, Sabka Vikas, and Sabka Vishwas’ and the whole of nation approach of “Sabka Prayas”.She has outlined the Modi 3.0 roadmap. Budget goal - The 2024 Union Budget goal was “Viksit Bharat” by 2047 (Developed India @2047) Vision: Prosperous Bharat in harmony with nature, modern infrastructure and opportunities for all. i.5 Paperless Budget - This said to be India’s 5 paperless budget, it replaced the traditional ‘Bahi-Khata’ with th th a Made-in-India tablet wrapped in a red-coloured cover with a national emblem emblazoned on it. ii.The Narendra Modi-led National Democratic Alliance (NDA) government presents its 13th consecutive Union Budget since 2014, and the 7th consecutive for Finance Minister Nirmala Sitharaman. iii.President Droupadi Murmu performed the 'dahi-cheeni' ritual with Finance Minister Nirmala Sitharaman, a traditional Indian custom to bestow good luck. The 2024 Union Budget has document submissions:- A. Annual Financial Statement (AFS) B. Demands for Grants (DG) C. Finance Bill D. Fiscal Policy Statements mandated under Fiscal Responsibility and Budget Management (FRBM) Act, 2023: i. Macro-Economic Framework Statement ii. Medium-Term Fiscal Policy cum Fiscal Policy Strategy Statement E. Expenditure Budget F. Receipt Budget G. Expenditure Profile H. Budget at a Glance I. Memorandum Explaining the Provisions in the Finance Bill J. Output Outcome Monitoring Framework K. Key Features of Budget 2024-25 Finance Minister Nirmala Sitharaman Record Breaks 83 Minutes Budget Speech - On July 23,2024 Nirmala Sitharaman presented the Budget 2024 for 1 hour 23 minutes in Parliament. Her interim budget speech in February 2024 was her shortest budget speech, taking just around 58 minutes. India’s first full-time woman finance minister - In 2019, Nirmala Sitharaman made history as India’s first full-time woman finance minister with her Budget presentation. Report Errors in the PDF - [email protected] Copyright 2014-2024 @ AffairsCloud.com 4  Union Budget India's First Finance Minister with Seven Consecutive Budgets - Nirmala Sitharaman became the first finance minister in India to present seven consecutive Budgets, surpassing former Prime Minister Morarji Desai's record of six consecutive Budgets from 1959 to 1964. Desai holds the record for presenting the most budgets, with a total of ten. Nirmala Sitharaman created a new record by suppressing the achievement of her predecessors, including Manmohan Singh, Arun Jaitley, P Chidambaram, and Yashwant Sinha, who had presented five consecutive budgets. Longest Speeches by Duration and Word Count - In 2020, Nirmala Sitharaman set a record with the longest Budget speech in India, lasting 2 hours and 42 minutes. In 1991,then former Finance and Prime Minister Manmohan Singh had the longest budget speech with 18,700 words. In 1977,Former Finance Minister Hirubhai Mulljibhai Patel held the record for the shortest Budget speech, with just 800 words. Global and Indian Economic Growth Projections The World Economy, as per the July 2024 World Economic Outlook (WEO) of the International Monetary Fund (IMF), achieved a growth of 3.3 per cent in 2023 compared to 3.5 per cent in 2022 and is projected to grow at 3.2 per cent in 2024. FY 2024-25, the RBI has projected the Indian Economy to grow at 7.2 percent. GDP: The government has estimated a nominal GDP growth rate of 10.5% in 2024-25 (i.e., real growth plus inflation.India’s real GDP growth is projected at 8.2% for FY2024-25 and nominal GDP growth at 9.6% for FY 2023-24. Budget Highlights India’s Fiscal Position - In the Interim Budget, Finance Minister Nirmala Sitharaman reduced the fiscal gap to 5.8% from the previous 5.9% and set the fiscal deficit target at 5.1% for the next year. Fiscal deficit is an indicator of borrowings by the government for financing its expenditure.For the year 2024- 25,The fiscal deficit is estimated at 4.9 percent of GDP. The fiscal deficit stood at 5.6 percent of GDP in FY24, below the revised estimate of 5.8 percent. In RE 2023-24, the Government had revised its Fiscal Deficit target lower to 5.8 per cent. The government plans to stick to its financial strategy, as mentioned in the budget for 2021-22. The goal is to decrease the fiscal deficit to less than 4.5 percent by the fiscal year 2025-26. Revenue deficit is the excess of revenue expenditure over revenue receipts. The estimated revenue deficit for 2024-25 is 1.8% of GDP. This is lower than the actuals of 2023-24 (2.6%). In 2024-25, revenue receipts are estimated to register a growth of 14.7% which is higher than the 6.2% growth in revenue expenditure. Primary deficit is fiscal deficit less interest payments. It is estimated to be 1.4% of GDP in 2024-25. Budget 2024-25 (Rs crore) Item Revised Actuals BE 2024-25 (Rs % change (2023- Estimates 2023- 2023-24 crore) 24 2024 (Rs crore) Actuals to 2024- (Rs crore) 25 BE Total Receipts 27,55,713 27,88,872 32,07,200 +15.0% (other than borrowings) Revenue Receipts 26,99,713 27,28,412 31,29,200 +14.7% Capital Receipts 56,000 60,461 78,000 29.0% Report Errors in the PDF - [email protected] Copyright 2014-2024 @ AffairsCloud.com 5  Union Budget Total Receipts 44,90,486 44,42,542 48,20,512 +6.1% (including borrowings) Total Expenditure 44,90,485 44,42,542 48,20,512 +8.5% Revenue 35,40,239 34,94,036 37,09,401 +6.2% Expenditure Capital 9,50,246 9,48,506 11,11,111 +17.1% Expenditure Fiscal Deficit (as % 5.8% (17,34,773) 5.6% 4.9% (16,13,312) (-2.4%) of GDP) (16,53,670) Revenue Deficit 2.8 % 2.6% 1.8% (5,80,201) (as % of GDP) (8,40,527 ) (7,65,624) (-24.2%) Primary Deficit (as 2.3% 2.0% 1.4% (4,50,372) (-23.6%) % of GDP) (6,79,346) (5,89,799) Total Expenditure: The government is estimated to spend Rs 48,20,512 crore in 2024-25. It is expected to grow by 7.3 p er cent over RE 2023-24 and 8.5 percent over the actuals of 2023-24. Interest payments account for 24% of the total expenditure, and 37% of revenue receipts. In 2024-25, capital expenditure is expected to increase by about 17% over the actuals of 2023-24. Capital Expenditure (CapEx) outlay for 2024-25 is being increased by 11.1 per cent to Rs11,11,111 crore.This amounts to 3.4 per cent of GDP. Revenue expenditure is expected to increase by 6.2% over the actuals of 2023-24. Receipts: Receipts (other than borrowings) for 2024-25 are estimated at Rs 32,07,200 crore, a 15% increase from 2023-24, with tax revenue expected to increase by 11%. Disinvestment is the government selling its stakes in Public Sector Undertakings (PSUs). In 2023-24, the government is estimated to meet 54.3% of its disinvestment target. For 2024-25, the disinvestment target is set at Rs 50,000 crore, up from the 2023-24 actuals of Rs 33,123 crore. Budgetary Allocations to Ministries: Highest Allocation - In 2024-25, the Ministry of Defence had the highest allocation in 2024-25, at Rs 6,21,941 crore. It accounts for 13% of the total budgeted expenditure of the central government. Other ministries with high allocation include: (i) Road Transport and Highways (5.8% of total expenditure), (ii) Railways (5.3%), and (iii) Consumer Affairs, Food and Public Distribution (4.6%). Department of Economic Affairs (Ministry of Finance): Rs 62,593 crore has been allocated to a new item of expenditure ‘New Schemes’ (details not available). This accounts for about 78% of the Department’s total allocation. The entire allocation is for capital expenditure. Lowest Allocation -The Ministry of Parliamentary Affairs has the lowest budget allocation, receiving only Rs 64 crore from the government. Report Errors in the PDF - [email protected] Copyright 2014-2024 @ AffairsCloud.com 6  Union Budget Top Allocations for Schemes(In ₹ Crore): https://prsindia.org/files/budget/budget_parliament/2024/Union_Budget_Analysis_2024-25.pdf Budgetary Allocations to Schemes: Highest Allocation - Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) has the highest allocation in 2024-25 at Rs 86,000 crore. This amount is the same as the revised estimate for 2023-24. In 2023-24, allocation on the scheme is estimated to increase by 43% over the budget estimate. The Pradhan Mantri Awas Yojana (PMAY) has the second highest allocation in 2024-25 at Rs 84,671 crore, an increase of 56.5% over the revised estimate of 2023-24. The Jal Jeevan Mission(JJM) has the third highest allocation in 2024-25 at Rs 70,163 crore, an increase of 0.2% over the revised estimate of 2023-24. PM KISAN has been allocated Rs 60,000 crore in 2024-25. Top scheme allocation: https://prsindia.org/files/budget/budget_parliament/2024/Union_Budget_Analysis_2024-25.pdf Subsidies in 2024-25 (Rs crore) In 2024-25, the total expenditure on subsidies is estimated to be Rs 4,38,423 crore, a decrease of 0.5% from the actual expenditure in 2023-24 Report Errors in the PDF - [email protected] Copyright 2014-2024 @ AffairsCloud.com 7  Union Budget Part A Roadmap to Viksit Bharat” by 2047 (Developed India @2047) As mentioned in the interim budget released in February 2024,the focus is on 4 major castes, namely ‘Garib’ (Poor), ‘Mahilayen’ (Women), ‘Yuva’ (Youth) and ‘Annadata’ (Farmer). Budget Theme - The Budget 2024 focus based on four themes 1. Employment, 2. Skilling, 3. MSMEs, 4. and the Middle Class. Nine Budget Priorities The Budget 2024 focuses on 9 key priorities to achieve ‘Viksit Bharat.’ 1)Productivity and resilience in Agriculture 2)Employment & Skilling 3)Inclusive Human Resource Development and Social Justice 4)Manufacturing & Services 5)Urban Development Report Errors in the PDF - [email protected] Copyright 2014-2024 @ AffairsCloud.com 8  Union Budget 6)Energy Security 7)Infrastructure 8)Innovation, Research & Development and 9)Next Generation Reforms Priority 1: Productivity and resilience in Agriculture New 109 high-yielding and climate-resilient varieties of 32 field and horticulture crops will be released for cultivation by farmers. Natural Farming - 1 crore farmers across the country will be initiated into natural farming in next two years. Digital Public Infrastructure (DPI) for coverage of farmers and their lands in 3 years. Digital crop survey in 400 districts , Issuance of Jan Samarth based Kisan Credit Cards. Shrimp Production & Export - Financing for shrimp farming, processing and export will be facilitated through National Bank For Agriculture And Rural Development(NABARD). National Cooperation Policy for the systematic, orderly, and comprehensive development of the cooperative sector. Priority 2: Employment & Skilling Employment Linked Incentive - As part of the Prime Minister’s package, 3 schemes for ‘Employment Linked Incentive’ will be implemented based on enrolment in the EPFO, and focus on recognition of first-time employees, and support to employees and employers. 1. Scheme A: First Timers - One-month wage to new entrants in all formal sectors in 3 instalments up to ₹15,000,as registered in Employees' Provident Fund Organisation(EPFO). The eligibility limit salary is 1 lakh per month. The outlay of this scheme is Rs.23000 crore. Scheme will be for 2 years. 2. Scheme B: Job Creation in manufacturing - Linked to first time employees and incentive offers to both employee & employer for EPFO contributions in the specified scales for the first 4 years. The outlay of the scheme is Rs.52000 crore. Employers must hire at least the following number of previously non EPFO enrolled workers: 50 or 25% of the baseline (previous year’s number of EPFO employees). Scheme will be for 2 years. Incentive will be paid for four years partly to the employee and partly to the employer as follows: Year Incentive (as % of wage / salary, shared equally between employer & employee) 1 24 2 24 3 16 4 8 3. Scheme C: Support to employers - Government will reimburse EPFO contributions of employers up to ₹3000 per month for 2 years for all new hires. For employees whose salary does not exceed `1,00,000/month. Scheme will be for 2 years. The outlay of the scheme is Rs.32000 crore. 4. Skilling programme - 20 lakh youth will be skilled over a 5-year period. 1,000 Industrial Training Institutes will be upgraded in hub and spoke arrangements with outcome orientation. Total outlay of `Rs.60,000 crore over five years Government of India - Rs.30,000 crore Report Errors in the PDF - [email protected] Copyright 2014-2024 @ AffairsCloud.com 9  Union Budget State Governments - Rs.20,000 crore Industry - Rs.10,000 crore (including CSR funding). Skilling and Education Loans - Model Skill Loan Scheme will be revised to facilitate loans up to Rs.7.5 lakh with a guarantee from a government promoted Fund. Financial support for loans upto ₹10 lakh for higher education in domestic institutions. Priority 3: Inclusive Human Resource Development and Social Justice PM Vishwakarma, PM SVANidhi, National Livelihood Missions, and Stand-Up India schemes will be enhanced to support craftsmen, artisans, self-help groups, SC/ST and women entrepreneurs, and street vendors. Purvodaya - Purvodaya, for the all-round development of the eastern region of the country covering Bihar, Jharkhand, West Bengal, Odisha and Andhra Pradesh for generation of economic opportunities to attain Viksit Bharat. Amritsar Kolkata Industrial Corridor with development of an industrial node at Gaya ,Bihar.This model shall showcase “Vikas bhi Virasat bhi” in our growth trajectory. Benefits for women - Allocation of more than ₹3 lakh crore for schemes benefitting women and girls. Road connectivity projects in Bihar, including the Patna-Purnea Expressway, Buxar-Bhagalpur Expressway, spurs at Bodhgaya, Rajgir, Vaishali, and Darbhanga, and a new 2-lane bridge over the Ganga at Buxar, will cost ₹26,000 crore. Additionally, a new 2400 MW power plant at Pirpainti will be developed for ₹21,400 crore. Andhra Pradesh Reorganization Act - Financial support of ₹15,000 crores will be arranged in FY 24- 25. Polavaram Irrigation Project- Financing for early completion of the Polavaram Irrigation Project, which is the lifeline for Andhra Pradesh and its farmers. Essential infrastructure such as water, power, railways and roads in Kopparthy node on the Vishakhapatnam-Chennai Industrial Corridor and Orvakal node on Hyderabad-Bengaluru Industrial Corridor. PM Awas Yojana - Three crore additional houses under the PM Awas Yojana in rural and urban areas. Pradhan Mantri Janjatiya Unnat Gram Abhiyan - Improving the socio-economic condition of tribal communities covering 63,000 villages benefitting 5 crore tribal people. Post Bank branches in North-Eastern Region - More than 100 branches of India Post Payment Bank will be set up in the NorthEast region. Government has made a provision of 2.66 lakh crore for rural development including rural infrastructure. Priority 4: Manufacturing & Services Credit Guarantee Scheme for MSMEs in the Manufacturing Sector - It will be introduced For facilitating term loans to MSMEs for purchase of machinery and equipment. Self-financing guarantee fund will provide, to each applicant, guarantee cover up to 100 crore, while the loan amount may be larger. New assessment model for MSME credit - Public sector banks will develop in-house MSME credit assessment models based on digital footprints, replacing external assessments. Credit Support to MSMEs during Stress Period - A new mechanism for facilitating continuation of bank credit to MSMEs during their stress period. Mudra Loans - The Mudra loan limit for entrepreneurs under the 'Tarun' category will be increased from ₹10 lakh to ₹20 lakh. Onboarding in TReDS - The turnover threshold for mandatory onboarding on the Trade Receivables electronic Discounting System (TReDS) platform will be reduced from ₹500 crore to ₹250 crore. SIDBI branches in MSME clusters - Small Industries Development Bank of India (SIDBI) will open new branches to expand its reach to serve all major MSME clusters within 3 years. 24 SIDBI branches will open in 2024, expanding service coverage to 168 out of 242 major MSME clusters. MSME Units for Food Irradiation, Quality & Safety Testing -Financial support will be given for 50 food irradiation units in MSMEs, and 100 NABL-accredited food testing labs will be established. Report Errors in the PDF - [email protected] Copyright 2014-2024 @ AffairsCloud.com 10  Union Budget Internship Opportunities - Scheme for providing internships in 500 top companies to 1 crore youth in 5 years. Allowance of ₹5,000 per month along with a one-time assistance of ₹6,000 through the Corporate Social Responsibility (CSR) funds. Internship Programme (Phase-1) for 2years with outlay of 19,000 crores. Internship Programme (Phase-2) for 3years with outlay of 44,000 crores. Upgradation of ITIs with outlay of Rs.30,000 crores. Industrial Parks - Development of investment-ready “plug and play” industrial parks with complete infrastructure in or near 100 cities. Twelve industrial parks under the National Industrial Corridor Development Programme. Rental housing with dormitory type accommodation for industrial workers will be facilitated in PPP mode with VGF support. Critical Mineral Mission will be set up for domestic mineral production. Digital Public Infrastructure Applications(APP) - Developing DPI app in the areas of credit, e-commerce, education, health, law and justice, logistics, MSME, services delivery, and urban governance to boost productivity and opportunities in service sector. An Integrated Technology Platform will be set up for improving the outcomes under the Insolvency and Bankruptcy Code (IBC). Voluntary closure of LLPs -The services of the Centre for Processing Accelerated Corporate Exit (C-PACE) will be extended for voluntary closure of Limited Liability Partnership(LLP)s to reduce the closure time. The Insolvency and Bankruptcy Code (IBC) has resolved over 1,000 companies, recovering ₹3.3 lakh crore, and settled 28,000 cases involving ₹10 lakh crore before admission. The IBC will be reformed, tribunals strengthened, and new tribunals established, some for Companies Act cases. Priority 5: Urban Development Water Management - partner with State Governments and Multilateral Development Banks to advance water supply, sewage treatment, and solid waste management projects in 100 large cities. Street Markets - Building on the success of PM SVANidhi scheme, the government plans to develop 100 weekly ‘haats’ or street food hubs annually in select cities over the next five years. Stamp Duty - Encouraging states to lower stamp duties for properties purchased by women. Priority 6: Energy Security PM Surya Ghar Muft Bijli Yojana - PM Surya Ghar Muft Bijli Yojana has been launched to install rooftop solar plants to enable 1 crore households obtain free electricity up to 300 units every month. Initiatives with private sector in Nuclear Energy - Setting up Bharat Small Reactors R&D of Bharat Small Modular Reactor and newer technologies for nuclear energy. Advanced Ultra Super Critical Thermal Power Plants. AUSC technology - A joint venture between NTPC and Bharat Heavy Electricals Ltd (BHEL) will set up a full scale 800 MW commercial plant. Advanced Ultra Super Critical (AUSC) technology. Roadmap for ‘hard to abate’ industries- A roadmap will be created to transition ‘hard-to-abate’ industries from energy efficiency to emission targets, with regulations moving them from ‘Perform, Achieve and Trade’ to the ‘Indian Carbon Market.’ Support to traditional micro and small industries -Energy audits and support for cleaner energy will be provided to 60 industry clusters, with the scheme expanding to 100 more clusters in the next phase. Priority 7: Infrastructure Infrastructure investment - Provision of Rs.11,11,111 crore for infrastructure (3.4% of GDP). Long-term interest free loans -A provision of 1.5 lakh crore for long-term interest free loans has been made this year to support the states in their resource allocation. Report Errors in the PDF - [email protected] Copyright 2014-2024 @ AffairsCloud.com 11  Union Budget Phase IV of Pradhan Mantri Gram Sadak Yojana (PMGSY) will be launched to provide all-weather connectivity to 25,000 rural habitations. Irrigation and Flood Mitigation - Financial support for projects with estimated cost of ₹11,500 crore such as the Kosi-Mechi intra-state link and 20 other ongoing and new schemes. Holy Development in Bihar- Vishnupad Temple Corridor and Mahabodhi Temple Corridor at Gaya, Bihar will be developed after the Kashi Vishwanath Temple Corridor's success. Comprehensive development initiative for Rajgir in Bihar will be undertaken which holds religious significance for Hindus, Buddhists and Jains.20th Tirthankara Munisuvrata temple is located in Rajgir. Priority 8: Innovation, Research & Development Operationalization of the Anusandhan National Research Fund for basic research and prototype development. Private sector-driven research and innovation at commercial scale with a financing pool of ₹1 lakh crore. Space Economy: A venture capital fund of ₹1,000 crore is to be set up. Priority 9: Next Generation Reforms Rural & Urban land related actions- Rural land related actions will include assignment of Unique Land Parcel Identification Number (ULPIN) or Bhu-Aadhaar for all lands, digitization of cadastral maps, survey of map sub-divisions as per current ownership, establishment of land registry, and linking to the farmers registry. Land records in urban areas will be digitized with GIS mapping. Shram Suvidha and Samadhan portals will be revamped to enhance ease of compliance for industry and trade. Rules for Foreign Direct Investment(FDI), and Overseas Investments will be simplified to facilitate foreign investments, prioritize projects, and promote the use of Indian Rupees for overseas investments. NPS-Vatsalya, a plan for contribution by parents and guardians for minors will be started. To enhance ‘Ease of Doing Business,’ the Jan Vishwas Bill 2.0 is being advanced, and states will be incentivized for implementing Business Reforms Action Plans and digitalization. Report Errors in the PDF - [email protected] Copyright 2014-2024 @ AffairsCloud.com 12  Union Budget PART B Indirect taxes Indirect taxes in India are levied on goods and services and collected by the government indirectly through intermediaries like manufacturers, retailers, and service providers. Unlike direct taxes, which are imposed on income or profits, indirect taxes are included in the price of goods and services, making consumers bear the tax burden. The key types of indirect taxes in India are: 1. Goods and Services Tax (GST): A comprehensive tax on the supply of goods and services, replacing many previous indirect taxes. 2. Customs Duty: Tax on imports and exports, protecting domestic industries and regulating trade. 3. Excise Duty: Tax on the manufacture of certain goods, still applicable to products like petroleum and alcohol. 4. Cesses and Surcharges: Additional taxes for specific purposes, such as education and cleanliness. Report Errors in the PDF - [email protected] Copyright 2014-2024 @ AffairsCloud.com 13  Union Budget Medicines and Medical Equipment- To provide relief to cancer patients, fully exempt three more medicines for cancer from customs duties. Changes in the Basic Customs Duty (BCD) on x-ray tubes & flat panel detectors for use in medical x- ray machines under the Phased Manufacturing Programme Mobile Phone and Related Parts - Reduce Basic Customs Duty (BCD) to 15% on Mobile phone, Mobile Printed Circuit Board Assembly (PCBA) and charger. Precious Metal - Reduce custom duty on gold and silver to 6% and platinum to 6.4%. Other Metal - To remove the BCD on ferro nickel and blister copper to reduce steel and copper cost of production. Marine products - Reduce BCD on shrimp and fish feed to 5%. Critical Minerals - Fully exempt custom duties on 25 critical minerals and reduce BCD on two of them. Minerals such as lithium, copper, cobalt and rare earth elements are critical minerals. Solar Energy - Exempted more capital goods for manufacturing of solar cells & panels. Leather and Textile - To enhance exports in the leather and textile sectors: The Basic Customs Duty (BCD) on real down filling material from duck or goose will be reduced. More goods will be added to the list of items exempted from customs duties, specifically for manufacturing leather and textile garments, footwear, and other leather products for export. Additionally, BCD on methylene diphenyl diisocyanate (MDI) for spandex yarn production will be lowered from 7.5% to 5% to correct duty inversion. Electronics - BCD on oxygen-free copper for resistor manufacturing will be removed, and certain parts for manufacturing connectors will be exempted. Chemicals and Petrochemicals - BCD on ammonium nitrate increased from 7.5 to 10 per cent to support existing and new capacities in the pipeline. Plastics - To curb imports of non-biodegradable and hazardous PVC flex banners, the Basic Customs Duty (BCD) will be raised from 10% to 25%. Telecommunication Equipment - BCD from 10 to 15 per cent on PCBA of specified telecom equipment. Trade facilitation - To promote domestic aviation and boat & ship MRO, the export period for goods imported for repairs will be extended from six months to one year. Direct taxes Direct taxes are taxes that are paid directly to the government by individuals or organizations.It was anaged by the Income Tax Department under the Ministry of Finance, responsible for assessing, collecting, and enforcing tax laws. Income Tax: Tax on an individual's or business's income. Corporate Tax: Tax levied on the profits of corporations and companies. Wealth Tax(Abolished): Although abolished in 2015, it was previously a tax on the net wealth of individuals, Hindu Undivided Families (HUFs), and companies. Securities Transaction Tax (STT): Tax on transactions in the securities market, applied to the purchase and sale of stocks and securities. Dividend Distribution Tax (DDT): Tax on dividends distributed by companies to their shareholders. (Note: DDT was abolished in the 2020 Union Budget and replaced with a tax on dividends in the hands of shareholders.) Gift Tax: Previously applicable to gifts exceeding a certain value, though it has been largely replaced by provisions under the Income Tax Act for taxing gifts. Direct Tax in Budget 2024 Simplified Taxation Measures Simplified tax regimes introduced for corporate and personal income tax, without exemptions and deductions. 58% of corporate tax revenue in FY 2022-23 came from the simplified tax regime. Simplification for Charities and of TDS Merge two tax exemption regimes for charities into one. Section 11 and 12 Regime (Trusts and Institutions), and Section 10(23C) Regime (Educational and Medical Institutions) Report Errors in the PDF - [email protected] Copyright 2014-2024 @ AffairsCloud.com 14  Union Budget Merge 5% Tax Deduction at source(TDS) rate into 2% for many payments. Current TDS Rates:Under the existing system, different types of payments attract different TDS rates. For example, certain payments might be subject to a 5% TDS rate, while others are subject to a 2% rate. Tax Deducted at Source (TDS) is a tax deducted at the source of income, typically by an employer from an employee's salary. Withdraw 20% TDS on mutual fund or Unit Trust of India (UTI) repurchases. Reduce TDS on e-commerce operators from 1% to 0.1%. Allow Tax collected at source (TCS) credit in TDS deducted on salary. Tax Collected at Source (TCS) is a tax collected by the seller from the buyer at the time of sale of specified goods. It is governed under Section 206C of the Income Tax Act, 1961. Examples of transactions subject to TCS include the sale of alcohol, scrap, and minerals. Simplification of Reassessment Reopening Timeframe: Assessments can be reopened beyond three years only if the escaped income is ₹50 lakh or more. Maximum Period: Reopening is allowed up to five years from the end of the assessment year. Search Cases: For search cases, the time limit for reopening is six years before the year of search, reduced from the existing ten years. Simplification and Rationalisation of Capital Gains short-term capital gains (STCG) tax on financial assets to attract a 20% tax rate. long term capital gains (LTCG) tax on all financial and non-financial assets to attract a tax rate of 12.5%. Increase in limit of exemption of capital gains on financial assets to Rs.1.25 lakh per year. Vivad Se Vishwas Scheme, 2024, is proposed to resolve specific income tax disputes that are pending in appeal. Monetary Limits increases for filing appeals related to direct taxes, excise and service tax in the Tax Tribunals, High Courts and Supreme Court to Rs.60 lakh, Rs.2 crore and Rs.5 crore respectively. Abolish Angel Tax - "Angel tax" for all investor classes has been abolished in this Budget to strengthen the Indian start-up ecosystem and support innovation. About Angel Tax in India - The "angel tax" refers to a tax introduced in India in 2012, aimed at monitoring investments in startups.It is applied when startups issue shares at a price higher than their fair market value.The difference is treated as income. Tax Section: Governed by Section 56(2)(viib) of the Income Tax Act. Simpler tax rules for foreign shipping companies operating domestic cruises in India to improve the employment sector in tourism industry. Diamond Sector - India is a world leader in the diamond cutting and polishing industry.Safe harbour rates will be provided for foreign mining companies to encourage the development of the diamond sector in India. Corporate Tax - Reducing the corporate tax rate for foreign companies from 40% to 35% to attract foreign capital for our development needs. Proposals for Deepening the Tax Base - Security Transactions Tax(STT) on futures of securities is proposed to be increased to 0.02 per cent,and STT options of securities will be increased to 0.1 per cent. Tax on Buyback Income: Current Situation - When a company buys back its own shares from the market, the income or gains realized by shareholders from the buyback are often not taxed directly. Proposed Change - The income or gains received by shareholders from the buyback of shares will now be taxed in their hands. Increase in Employer Deduction for NPS: Current Rule: Employers can currently deduct 10% of an employee’s salary for contributions to the National Pension System (NPS). Proposed Change: This deduction limit will be increased to 14% of the employee's salary. Simplification of Foreign Asset Reporting Employee stock ownership plan (ESOP)s and Investments: Indian professionals in multinationals receive ESOPs and invest abroad. Penalties for Non-Reporting: The Black Money Act penalizes non-reporting of small foreign assets. De-Penalization Proposal: Non-reporting of foreign movable assets up to ₹20 lakh is proposed to be de-penalized. Report Errors in the PDF - [email protected] Copyright 2014-2024 @ AffairsCloud.com 15  Union Budget Key Finance Bill Proposals Withdrawal of the 2% equalization levy. Increased tax benefits for certain funds and entities operating in International Financial Services Centres (IFSCs). Benamidars who fully disclose will be immune from penalties and prosecution under the Benami Transactions (Prohibition) Act, 1988. Personal Income Tax The standard deduction amount for salaried employees was increased to Rs.75000 from 50000. The deduction for family pension received by pensioners will increased to Rs.25,000 from ₹15,000. New personal tax rate structure as follows: Income Slab Tax Rate Up to Rs3 lakh Nil Rs3 lakh - Rs6 lakh 5% above Rs 3,00,000 Rs6 lakh - Rs9 lakh Rs 15,000 + 10% above Rs 600000 Rs9 lakh - Rs12 lakh Rs 45,000 + 15% above Rs900000 Rs12 lakh - Rs15 lakh Rs 90,000 + 20% above Rs1200000 Above Rs15 lakh Rs 1,50,000 + 30% above Rs1500000 As a result of these changes, a salaried employee in the new tax regime stands to save up to ₹ 17,500/- in income tax. Tax rebate up to Rs.25,000 is applicable for resident individuals if the total income does not exceed Rs 7,00,000 (not applicable for NRIs). The rate of Health & Education cess remains same in both the regimes. The changes will result in a total revenue loss of ₹37,000 crore, with ₹29,000 crore from direct taxes and ₹8,000 crore from indirect taxes. However, an additional ₹30,000 crore in revenue is expected to be generated, leading to a net annual revenue loss of ₹7,000 crore. Facts About Union Budget: Under Article 112 of the Constitution of India, Union Budget is an Annual financial statement that encompasses the receipt and expenditure of the Indian government, the information on the Consolidated Fund of India, Contingency Fund of India and Public Accounts. Every year it is presented on the last working day of February by the Finance Minister of India in Parliament. But in 2017 Arun Jaitley (FM IN 2014) started presenting the Union Budget on February 1 departing from the colonial-era tradition of using the last working day of February. The budget is presented by means of the financial bill and Appropriation bill which has to be passed by the houses. The budget division of the department of economic affairs (DEA) in the finance ministry is the nodal body responsible for producing the budget. Note- Article 267 of the Constitution authorizes the existence of a Contingency Fund of India. ii.The list of Budget documents presented to the Parliament: A. Annual Financial Statement (AFS) B. Demands for Grants (DG) C. Finance Bill D. Fiscal Policy Statements mandated under Fiscal Responsibility and Budget Management Act(FRBM Act), Act: i. Macro-Economic Framework Statement ii. Medium-Term Fiscal Policy cum Fiscal Policy Strategy Statement E. Expenditure Budget F. Receipt Budget G. Expenditure Profile H. Budget at a Glance I. Memorandum Explaining the Provisions in the Finance Bill Report Errors in the PDF - [email protected] Copyright 2014-2024 @ AffairsCloud.com 16  Union Budget J. Output Outcome Monitoring Framework K. Key Features of Budget 2024-25 L. Implementation of Budget Announcements, 2023-2024 The documents shown at Serial Nos. A, B, and C are mandated by Article 112,113 and 110 (a) of the Constitution of India respectively, while the documents at Serial No. D (i) and (ii) are presented as per the provisions of the Fiscal Responsibility and Budget Management Act, 2003. iii.History of Budget: The Budget was first introduced in India on April 7, 1860, when Scottish economist and politician James Wilson from the East India Company presented it to the British Crown. First Union budget of independent India was presented by India’s first finance minister R. K. Shanmukham Chetty in 1947. First Indian governor of RBI who presented the Interim Budget In 1951-52 was C D Deshmukh First PM who presented the Union Budget Pandit was Jawaharlal Nehru in 1958-59. iv.Black Budget – Union Budget 1973-74 is known as Black Budget of India as the budget deficit rose to Rs 550 crore. v.Until 2016, every year it is presented on the last working day of February by the Finance Minister of India in Parliament.But after 2016 govt presents it on the first day of February. vi.In 1959, Morarji Desai, the finance minister of India, presented the maximum number of budgets so far i.e. 10. vii.In 2017, Rail Budget was merged with the Union Budget. viii.Nirmala Sitharaman in her first budget in 2019 replaced the leather briefcase carrying budget documents with a traditional red cloth ‘bahi-khata’. Union Budget of 2021-22 was delivered in paperless form for the first time. A ‘Union Budget Mobile App’ was also launched for hassle-free access of Budget documents by Members of Parliament (MPs) and the general public. Every year, the government follows the annual tradition of organising a Halwa ceremony, days before the Budget is presented in the Parliament. There is an occasion observed by the Ministry of Finance, called Halwa ceremony, which marks the commencement of the Budget printing process. Key Terminologies: i.Fiscal Deficit (FD): It is the adverse fiscal balance which is a difference between the Revenue Receipts Plus Non-Debt Capital Receipts (NDCR) i.e., total of the non-debt receipts and the total expenditure. FD is reflective of the total borrowing requirement of govt. ii.Revenue Deficit (RD): It refers to the excess of revenue expenditure over revenue receipts. iii.Effective Revenue Deficit (ERD): It is the difference between Revenue Deficit and Grant-in-Aid for Creation of Capital Assets. iv.Primary Deficit: It is measured as Fiscal Deficit less interest payments. Effective Capital Expenditure (Eff- Capex) refers to the sum of Capital Expenditure and Grants-in-Aid for the Creation of Capital Assets. Report Errors in the PDF - [email protected] Copyright 2014-2024 @ AffairsCloud.com 17  Union Budget Quiz For Budget 2024-25 JULY 1.What article of the Constitution of India refers to the Annual Financial Statement(AFS)? 1)Article 110 2)Article 111 3)Article 112 4)Article 113 5)Article 114 Answer: 3) Article 112 Explanation:- Article 112 - Union Budget of India also referred to as the Annual Financial Statement in Article 112 of the Constitution of India.It will be on the first day of February. Until 2016 it was presented on the last working day of February by the finance minister in Parliament. 2.Who chaired the Budget session in Parliament for the presentation of the 94th Union Budget of India on 23rd July 2024? 1)Prime Minister Narendra Modi 2)President Droupadi Murmu 3)Lok Sabha Speaker Om Birla 4)Vice President Jagdeep Dhankhar 5)Finance Minister Smt. Nirmala Sitharaman Answer: 3)Lok Sabha Speaker Om Birla Explanation:- Budget session was held in Parliament under the chairmanship of Lok Sabha Speaker Om Birla, in which the Union Minister for Finance and Corporate Affairs Smt. Nirmala Sitharaman presented the 94 Union Budget of India for the upcoming fiscal (FY25) from April 1, 2024 to March 31, 2025. th 3.By which year does the 2024 Union Budget aim to achieve "Viksit Bharat"? 1)2035 2)2040 3)2047 4)2050 5)2055 Answer: 3)2047 Explanation :- Budget goal - The 2024 Union Budget goal was “Viksit Bharat” by 2047 (Developed India @2047) Vision: Prosperous Bharat in harmony with nature, modern infrastructure and opportunities for all. 4.How many consecutive Union Budgets has the Narendra Modi-led National Democratic Alliance (NDA) government presented since 2014? 1)10 2)11 Report Errors in the PDF - [email protected] Copyright 2014-2024 @ AffairsCloud.com 18  Union Budget 3)12 4)13 5)14 Answer: 4)13 Explanation - The Narendra Modi-led National Democratic Alliance (NDA) government presents its 13th consecutive Union Budget since 2014, and the 7th consecutive for Finance Minister Nirmala Sitharaman. 5.Which of the following is NOT a document submission in the 2024 Union Budget? 1)Annual Financial Statement (AFS) 2)Demands for Grants (DG) 3)Finance Bill 4)Trade and Commerce Bill 5)Fiscal Policy Statements Answer: 4)Trade and Commerce Bill Explanation - The 2024 Union Budget has document submissions:- A. Annual Financial Statement (AFS) B. Demands for Grants (DG) C. Finance Bill D. Fiscal Policy Statements mandated under Fiscal Responsibility and Budget Management (FRBM) Act, 2023: i. Macro-Economic Framework Statement ii. Medium-Term Fiscal Policy cum Fiscal Policy Strategy Statement E. Expenditure Budget F. Receipt Budget G. Expenditure Profile H. Budget at a Glance I. Memorandum Explaining the Provisions in the Finance Bill J. Output Outcome Monitoring Framework K. Key Features of Budget 2024-25. 6.Which record did Nirmala Sitharaman surpass by breaking the previous record held by former Prime Minister Morarji Desai? 1)Most total Budgets presented by a Finance Minister 2)Most consecutive Budgets held by a Finance Minister 3)Highest Budget allocation in history 4)Most frequent Budget changes 5)Most reforms introduced in a single Budget Answer: 2)Most consecutive Budgets held by a Finance Minister Explanation India's First Finance Minister with Seven Consecutive Budgets - Nirmala Sitharaman became the first finance minister in India to present seven consecutive Budgets, surpassing former Prime Minister Morarji Desai's record of six consecutive Budgets from 1959 to 1964. Report Errors in the PDF - [email protected] Copyright 2014-2024 @ AffairsCloud.com 19  Union Budget Desai holds the record for presenting the most budgets, with a total of ten. 7.a.What is the estimated nominal GDP growth rate for India in 2024-25? and b.The nominal GDP growth rate for 2024-25 includes which two components? 1)a.7.2% and b.Real growth and fiscal deficit 2)a.8.5% and b.Inflation and export duties 3)a.9.6% and b.Real growth and fiscal deficit 4)a.10.5% and b.Real growth and inflation 5)a.11.8% and b.Real growth and interest rates Answer: 4)a.10.5% and b.Real growth and inflation Explanation: GDP: The government has estimated a nominal GDP growth rate of 10.5% in 2024-25 (i.e., real growth plus inflation.India’s real GDP growth is projected at 8.2% for FY2024-25 and nominal GDP growth at 9.6% for FY 2023-24. 8.What is the estimated Fiscal Deficit (FD) for the Budget Estimate of 2024-25 (FY25) as a percentage of GDP? 1) 4.9% 2) 5.1% 3) 4.5% 4) 5.5% 5) 6.0% Answer - 1) 4.9% Explanation: For the year 2024-25,The fiscal deficit is estimated at 4.9 percent of GDP.The fiscal deficit stood at 5.6 percent of GDP in FY24, below the revised estimate of 5.8 percent. In RE 2023-24, the Government had revised its Fiscal Deficit target lower to 5.8 per cent. 9.What does the fiscal deficit specifically measure? 1)The gap between total revenue and total expenditure of the government, including borrowings. 2)The difference between the government's income from taxes and its expenditure on public services. 3)The total amount of public debt accumulated by the government over time. 4)The difference between the government's total expenditure and its total revenue, excluding borrowings. 5)The net worth of the government after accounting for all assets and liabilities. Answer: 4) The difference between the government's total expenditure and its total revenue, excluding borrowings Explanation: Fiscal Deficit (FD): It is the adverse fiscal balance which is a difference between the Revenue Receipts Plus Non-Debt Capital Receipts (NDCR) i.e., total of the non-debt receipts and the total expenditure. FD is reflective of the total borrowing requirement of govt. Report Errors in the PDF - [email protected] Copyright 2014-2024 @ AffairsCloud.com 20  Union Budget 10. What is the target set by the government regarding the Fiscal Deficit (FD) by the fiscal year 2025-26? 1) Decrease to 4.5% 2) Maintain at 5.1% 3) Increase to 5.8% 4) Increased to 4.8% 5) No specific goal mentioned Answer - 1) Decrease to 4.5% Explanation – The Fiscal Deficit (FD) for Budget Estimate (BE) of 2024-25(FY25) is estimated to be 5.1% of GDP (Gross Domestic Product) against 5.8% in the Revised Estimates (RE) for 2023-24. · The government plans to stick to its financial strategy, as mentioned in the budget for 2021-22. The goal is to decrease the fiscal deficit to less than 4.5 percent by the fiscal year 2025-26. 11.What are the Total Receipts (other than borrowings) for BE 2024-25? 1)Rs 25,60,872 crore 2)Rs 27,88,872 crore 3)Rs 30,00,000 crore 4)Rs 32,07,200 crore 5)Rs 28,50,000 crore Answer: 4) Rs 32,07,200 crore Explanation: The Total Receipts (other than borrowings) for BE 2024-25 are explicitly mentioned as Rs 32,07,200 crore. 12.Answer the below questions i. By what percentage is the Capital Expenditure (CapEx) outlay increased in the Budget 2024- 25? and ii. What is the CapEx outlay as a percentage of GDP for 2024-25? 1) 9.8% and 4.6 % 2) 10.1% and 3.6 % 3) 11.1% and 3.4 % 4) 12.5% and 2.6 % 5) 8.7% and 4.3 % Answer: 3) 11.1% and 3.4 % Explanation :- Capital Expenditure (CapEx) outlay for 2024-25 is being increased by 11.1 per cent to eleven lakh, eleven thousand, one hundred and eleven crore rupees (₹ 11,11,111 crore).This amounts to 3.4 percent of GDP. 13.Which ministry has received the highest allocation in Budget 2024-25? 1) Ministry of Finance 2) Ministry of Defence 3) Ministry of Agriculture 4) Ministry of Health 5) Ministry of Education Report Errors in the PDF - [email protected] Copyright 2014-2024 @ AffairsCloud.com 21  Union Budget Answer - 2) Ministry of Defence Explanation:- In 2024-25, the Ministry of Defence had the highest allocation in 2024-25, at Rs 6,21,941 crore. It accounts for 13% of the total budgeted expenditure of the central government. Other ministries with high allocation include: (i) Road Transport and Highways (5.8% of total expenditure), (ii) Railways (5.3%), and (iii) Consumer Affairs, Food and Public Distribution (4.6%). 14. What percentage of the total budgeted expenditure does the Ministry of Defence account for in 2024-25? 1) 10% 2) 20% 3) 15% 4) 8% 5) 13% Answer- 5) 13% Explanation: - In 2024-25, the Ministry of Defence had the highest allocation in 2024-25, at Rs 6,21,941 crore. It accounts for 13% of the total budgeted expenditure of the central government. 15.Which scheme has the highest allocation in the budget of 2024-25? 1) PM-KISAN (Pradhan Mantri Kisan Samman Nidhi) 2) Jal Jeevan Mission(JJM) 3) Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) 4) Pradhan Mantri Fasal Bima Yojana (PMFBY) 5) Pradhan Mantri Awas Yojana (PMAY) Answer - 3) Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) Explanation - Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) has the highest allocation in 2024-25 at Rs 86,000 crore. This amount is the same as the revised estimate for 2023-24. In 2023-24, allocation on the scheme is estimated to increase by 43% over the budget estimate. The Pradhan Mantri Awas Yojana (PMAY) has the second highest allocation in 2024-25 at Rs 84,671 crore, an increase of 56.5% over the revised estimate of 2023-24. The Jal Jeevan Mission(JJM) has the third highest allocation in 2024-25 at Rs 70,163 crore, an increase of 0.2% over the revised estimate of 2023-24. PM KISAN has been allocated Rs 60,000 crore in 2024-25. 16.Which of the following is one of the primary themes of the Budget 2024? 1)Healthcare 2)Infrastructure 3)Education 4)Employment 5)Agriculture Answer: 4) Employment Report Errors in the PDF - [email protected] Copyright 2014-2024 @ AffairsCloud.com 22  Union Budget Explanation - Budget Theme - The Budget 2024 focus based on four themes 1. Employment, 2. Skilling, 3. MSMEs, 4. and the Middle Class. 17.Which of the following is one of the key priorities of the Budget 2024? 1)Healthcare 2)Defence 3)Productivity and resilience in Agriculture 4)Tourism 5)Environmental Protection Answer: 3)Productivity and resilience in Agriculture Explanation - Nine Budget Priorities The Budget 2024 focuses on 9 key priorities to achieve ‘Viksit Bharat.’ 1)Productivity and resilience in Agriculture 2)Employment & Skilling 3)Inclusive Human Resource Development and Social Justice 4)Manufacturing & Services 5)Urban Development 6)Energy Security 7)Infrastructure 8)Innovation, Research & Development and 9)Next Generation Reforms 18. What is the percentage change in Total Receipts (other than borrowings) from Revised Estimates (RE) 2023-24 to Budget Estimate(BE) 2024-25? 1) -10.8% 2) +11.8% 3) +15.0% 4) -5.5% 5) +8.2% Answer- 3) +15% Explanation :- Item RE 2023-24 (Rs BE 2024-25 (Rs % change (RE 2023-24 to crore) crore) BE 2024-25) Total Receipts (other than 27,88,872 32,07,200 +15.0% borrowings) Report Errors in the PDF - [email protected] Copyright 2014-2024 @ AffairsCloud.com 23  Union Budget 19.Which institution will facilitate the financial support for the new initiative of shrimp farming and processing as per the 2024 Budget? 1)State Bank of India (SBI) 2)Reserve Bank of India (RBI) 3)National Bank for Agriculture and Rural Development (NABARD) 4)Indian Overseas Bank (IOB) 5)Small Industries Development Bank of India (SIDBI) Answer - 3)National Bank for Agriculture and Rural Development (NABARD) Explanation - As per the Budget 2024 under the enhancement of Shrimp Production & Export ,Financing for shrimp farming, processing and export will be facilitated through National Bank For Agriculture And Rural Development(NABARD). 20.What is the percentage of the baseline (previous year’s number of EPFO employees) that employers must hire under Scheme B: Job Creation in manufacturing? 1)10% 2)15% 3)20% 4)25% 5)30% Answer: 4) 25% Explanation- Scheme B: Job Creation in manufacturing - Linked to first time employees and incentive offers to both employee & employer for EPFO contributions in the specified scales for the first 4 years. The outlay of the scheme is Rs.52000 crore. Employers must hire at least the following number of previously non EPFO enrolled workers: 50 or 25% of the baseline (previous year’s number of EPFO employees). Scheme will be for 2 years. Incentive will be paid for four years partly to the employee and partly to the employer as follows: Year Incentive (as % of wage / salary, shared equally between employer & employee) 1 24 2 24 3 16 4 8 21.What is the maximum amount the government will reimburse per month for EPFO contributions under Scheme C? 1)Rs.1000 2)Rs.2000 3)Rs.3000 4)Rs.4000 5)Rs.5000 Answer - 3)Rs.3000 Report Errors in the PDF - [email protected] Copyright 2014-2024 @ AffairsCloud.com 24  Union Budget Explanation- Scheme C: Support to employers - Government will reimburse EPFO contributions of employers up to ₹3000 per month for 2 years for all new hires. For employees whose salary does not exceed `1,00,000/month. Scheme will be for 2 years. The outlay of the scheme is Rs.32000 crore. 22.How many youth will be skilled under the Skilling Programme over a 5-year period? 1)10 lakh 2)15 lakh 3)20 lakh 4)25 lakh 5)30 lakh Answer: 3)20 lakh Explanation- Skilling programme - 20 lakh youth will be skilled over a 5-year period. 1,000 Industrial Training Institutes will be upgraded in hub and spoke arrangements with outcome orientation. Total outlay of `Rs.60,000 crore over five years Government of India - Rs.30,000 crore State Governments - Rs.20,000 crore Industry - Rs.10,000 crore (including CSR funding). 23.In which state will new projects such as road connectivity projects with an outlay of ₹26,000 crore and a new 2400 MW power plant at Pirpainti be developed as per the Budget 2024? 1)Uttar Pradesh 2)Bihar 3)Andhra Pradesh 4)Gujarat 5)West Bengal Answer: 2)Bihar Explanation - Road connectivity projects in Bihar, including the Patna-Purnea Expressway, Buxar- Bhagalpur Expressway, spurs at Bodhgaya, Rajgir, Vaishali, and Darbhanga, and a new 2-lane bridge over the Ganga at Buxar, will cost ₹26,000 crore. Additionally, a new 2400 MW power plant at Pirpainti will be developed for ₹21,400 crore. 24.Which industrial corridor includes the Orvakal node for infrastructure development? 1)Delhi-Mumbai Industrial Corridor 2)Chennai-Bengaluru Industrial Corridor 3)Hyderabad-Bengaluru Industrial Corridor 4)Mumbai-Pune Industrial Corridor 5)Kolkata-Patna Industrial Corridor Answer: 3) Hyderabad-Bengaluru Industrial Corridor Report Errors in the PDF - [email protected] Copyright 2014-2024 @ AffairsCloud.com 25  Union Budget Explanation- Essential infrastructure such as water, power, railways and roads in Kopparthy node on the Vishakhapatnam-Chennai Industrial Corridor and Orvakal node on Hyderabad-Bengaluru Industrial Corridor. 25.Which irrigation project is highlighted in 2024 Budget for early completion in Andhra Pradesh? 1)Nagarjuna Sagar Project 2)Srisailam Project 3)Polavaram Irrigation Project 4)Prakasam Barrage 5)Pochampadu Project Answer: 3)Polavaram Irrigation Project Explanation - Polavaram Irrigation Project- Financing for early completion of the Polavaram Irrigation Project, which is the lifeline for Andhra Pradesh and its farmers. 26.Which of the following statements is true/correct as per the latest Budget 2024? i.The new mechanism facilitates the continuation of bank credit to MSMEs during their stress period. ii.The turnover threshold for mandatory onboarding on the TReDS platform will be reduced from ₹250 crore to ₹100 crore. iii.The Mudra loan limit has been reduced from ₹15 lakh to ₹10 lakh. 1)Only i 2)Only ii 3)Only iii 4)Only ii and iii 5)Only i and iii Answer-1) Only i Explanation - Credit Support to MSMEs during Stress Period - A new mechanism for facilitating continuation of bank credit to MSMEs during their stress period. Mudra Loans - The Mudra loan limit for entrepreneurs under the 'Tarun' category will be increased from ₹10 lakh to ₹20 lakh. Onboarding in TReDS - The turnover threshold for mandatory onboarding on the TReDS platform will be reduced from ₹500 crore to ₹250 crore. 27.How many youth are targeted to be provided internships in the new scheme over five years as per the Budget 2024? 1)50 lakh 2)75 lakh 3)1 crore 4.)2 crore 5)3 crore Answer: 3)1 crore Report Errors in the PDF - [email protected] Copyright 2014-2024 @ AffairsCloud.com 26  Union Budget Explanation - Internship Opportunities - Scheme for providing internships in 500 top companies to 1 crore youth in 5 years. 28.Which of the following is NOT related to the new internship scheme announced in Budget 2024? 1)Allowance of ₹5,000 per month for interns 2)One-time assistance of ₹6,000 through CSR funds 3)Internship Programme (Phase-2) with an outlay of ₹44,000 crore 4)Upgradation of ITIs with an outlay of ₹19,000 crore 5)Internship Programme (Phase-1) with an outlay of ₹19,000 crore Answer - 4)Upgradation of ITIs with an outlay of ₹19,000 crore Explanation Internship Opportunities - Scheme for providing internships in 500 top companies to 1 crore youth in 5 years. Allowance of ₹5,000 per month along with a one-time assistance of ₹6,000 through the Corporate Social Responsibility (CSR) funds. Internship Programme (Phase-1) for 2years with outlay of 19,000 crores. Internship Programme (Phase-2) for 3years with outlay of 44,000 crores. Upgradation of ITIs with outlay of Rs.30,000 crores. 29.What is the total amount recovered through the Insolvency and Bankruptcy Code (IBC) as highlighted in the Budget 2024? 1)Rs.2.5 lakh crore 2)Rs.3.0 lakh crore 3)Rs.3.3 lakh crore 4)Rs.3.5 lakh crore 5)Rs.4.0 lakh crore Answer: 3)Rs.3.3 lakh crore Explanation- The Insolvency and Bankruptcy Code (IBC) has resolved over 1,000 companies, recovering ₹3.3 lakh crore, and settled 28,000 cases involving ₹10 lakh crore before admission. The IBC will be reformed, tribunals strengthened, and new tribunals established, some for Companies Act cases. 30.What is the maximum amount of electricity provided free of charge under the PM Surya Ghar Muft Bijli Yojana? 1)100 units 2)150 units 3)200 units 4)250 units 5)300 units Answer: 5) 300 units Report Errors in the PDF - [email protected] Copyright 2014-2024 @ AffairsCloud.com 27  Union Budget Explanation - PM Surya Ghar Muft Bijli Yojana - PM Surya Ghar Muft Bijli Yojana has been launched to install rooftop solar plants to enable 1 crore households obtain free electricity up to 300 units every month. 31.Which two organizations are collaborating to set up the 800 MW commercial thermal power plant with Advanced Ultra Super Critical (AUSC) technology? 1)NTPC and Bharat Heavy Electricals Ltd (BHEL) 2)NTPC and Hindustan Aeronautics Ltd (HAL) 3)NTPC and Oil and Natural Gas Corporation (ONGC) 4)NTPC and Steel Authority of India Ltd (SAIL) 5)NTPC and National Aluminium Company Ltd (NALCO) Answer: 1) NTPC and Bharat Heavy Electricals Ltd (BHEL) Explanation - AUSC technology - A joint venture between National Thermal Power Corporation (NTPC) NTPC and Bharat Heavy Electricals Ltd (BHEL) will set up a full scale 800 MW commercial plant,Advanced Ultra Super Critical (AUSC) technology. 32.According to Budget 2024,how much provision has been made this year for long-term interest-free loans to support states in their resource allocation? 1)Rs. 50,000 crore 2)Rs. 75,000 crore 3)Rs. 1 lakh crore 4)Rs. 1.5 lakh crore 5)Rs. 2 lakh crore Answer: 4) Rs. 1.5 lakh crore Explanation- Long-term interest free loans -A provision of 1.5 lakh crore for long-term interest free loans has been made this year to support the states in their resource allocation. 33.Which government scheme is launching Phase IV to provide all-weather connectivity to 25,000 rural habitations.? 1)Pradhan Mantri Gram Sadak Yojana (PMGSY) 2)Swachh Bharat Mission 3)Pradhan Mantri Awas Yojana 4)National Rural Employment Guarantee Scheme 5)Deen Dayal Upadhyaya Grameen Kaushalya Yojana Answer: 1) Pradhan Mantri Gram Sadak Yojana (PMGSY) Explanation- Phase IV of Pradhan Mantri Gram Sadak Yojana (PMGSY) will be launched to provide all-weather connectivity to 25,000 rural habitations. 34.Which of the following is NOT a focus area under Priority 8: Innovation, Research & Development? 1)Operationalization of the Anusandhan National Research Fund 2)Establishment of a venture capital fund for space economy Report Errors in the PDF - [email protected] Copyright 2014-2024 @ AffairsCloud.com 28  Union Budget 3)Financing for commercial-scale private sector-driven research 4)Promotion of international research collaborations 5)Creation of a financing pool of Rs. 1 lakh crore for innovation Answer: 4)Promotion of international research collaborations Explanation - Priority 8: Innovation, Research & Development Operationalization of the Anusandhan National Research Fund for basic research and prototype development. Private sector-driven research and innovation at commercial scale with a financing pool of ₹1 lakh crore. Space Economy: A venture capital fund of ₹1,000 crore is to be set up. 35.Which of the following is incorrect according to Budget 2024? i)Reduce Basic Customs Duty (BCD) to 15% on Mobile phone, Mobile Printed Circuit Board Assembly (PCBA) and charger. ii)Reduce BCD on shrimp and fish feed to 10%. iii)50% exemption of custom duties on 25 critical minerals 1)Only i 2)Only ii 3)Only iii 4)Only i and ii 5)Only ii and iii Answer - 5)both ii and iii Explanation - Mobile Phone and Related Parts - Reduce Basic Customs Duty (BCD) to 15% on Mobile phone, Mobile Printed Circuit Board Assembly (PCBA) and charger. Precious Metal - Reduce custom duty on gold and silver to 6% and platinum to 6.4%. Other Metal - To remove the BCD on ferro nickel and blister copper to reduce steel and copper cost of production. Marine products - Reduce BCD on shrimp and fish feed to 5%. Critical Minerals - Fully exempt custom duties on 25 critical minerals and reduce BCD on two of them. Minerals such as lithium, copper, cobalt and rare earth elements are critical minerals. Solar Energy - Exempted more capital goods for manufacturing of solar cells & panels. 36.What is the primary purpose of merging Section 11 and 12 regime with Section 10(23C) regime? 1)To increase tax revenue 2)To simplify the tax exemption process for charities 3)To eliminate tax exemptions for all charities 4)To introduce new tax exemptions 5)To focus only on educational institutions Answer: 2) To simplify the tax exemption process for charities Explanation - Merge two tax exemption regimes for charities into one. Section 11 and 12 Regime (Trusts and Institutions), and Report Errors in the PDF - [email protected] Copyright 2014-2024 @ AffairsCloud.com 29  Union Budget Section 10(23C) Regime (Educational and Medical Institutions) 37.What is the proposed new TDS rate for many payments that were previously subject to a 5% rate? 1)1% 2)2% 3)3% 4)4% 5)5% Answer: 2) 2% Explanation Merge 5% Tax Deduction at source(TDS) rate into 2% for many payments. Current TDS Rates:Under the existing system, different types of payments attract different TDS rates. For example, certain payments might be subject to a 5% TDS rate, while others are subject to a 2% rate. 38.What action is being proposed regarding the TDS on mutual fund or Unit Trust of India (UTI) repurchases in Budget 2024? 1)Increase to 25% 2)Reduce to 10% 3)Maintain at 20% 4)Withdraw the 20% TDS 5)Increase to 30% Answer: 4) Withdraw the 20% TDS Explanation - Withdraw 20% TDS on mutual fund or Unit Trust of India (UTI) repurchases. 39.What is the proposed new TDS rate on e-commerce operators? 1)0.1% 2)0.2% 3)0.5% 4)0.75% 5)1% Answer: 1) 0.1% Explanation- Reduce TDS on e-commerce operators from 1% to 0.1%. 40.What is the proposed change regarding TCS and TDS on salary? 1)Abolish TCS altogether 2)Increase TCS rates 3)Allow TCS credit in TDS deducted on salary 4)Reduce TDS rates on salary 5)Introduce a new TCS rate for salaries Answer: 3) Allow TCS credit in TDS deducted on salary Report Errors in the PDF - [email protected] Copyright 2014-2024 @ AffairsCloud.com 30  Union Budget Explanation - Allow Tax collected at source (TCS) credit in TDS deducted on salary. Tax Collected at Source (TCS) is a tax collected by the seller from the buyer at the time of sale of specified goods. It is governed under Section 206C of the Income Tax Act, 1961. Examples of transactions subject to TCS include the sale of alcohol, scrap, and minerals. 41.Which of the following is correct according to the latest Budget 2024? i.Short term gains of financial assets to attract a 20% tax rate. ii.Long term gains on all financial and non-financial assets to attract a tax rate of 12.5%. iii.Increase in limit of exemption of capital gains on financial assets to Rs.1.25 lakh per year. 1)Only i 2)Only ii 3)Only iii 4)Only ii and iii 5)All are correct (i,ii and iii) Answer - 5)All are correct (i,ii and iii) Explanation - Simplification and Rationalisation of Capital Gains Short term gains of financial assets to attract 20% tax rate. Long term gains on all financial and non-financial assets to attract a tax rate of 12.5%. Increase in limit of exemption of capital gains on financial assets to Rs.1.25 lakh per year. 42.Which tax has been abolished in Budget 2024 for all investor classes to strengthen the Indian start-up ecosystem? 1)Securities Transaction Tax 2)Capital Gains Tax 3)Angel Tax 4)Dividend Distribution Tax 5)Wealth Tax Answer - 3)Angel Tax Explanation - Abolish Angel Tax - "Angel tax" for all investor classes has been abolished in this Budget to strengthen the Indian start-up ecosystem and support innovation. About Angel Tax in India - The "angel tax" refers to a tax introduced in India in 2012, aimed at monitoring investments in startups.It is applied when startups issue shares at a price higher than their fair market value.The difference is treated as income. Tax Section: Governed by Section 56(2)(viib) of the Income Tax Act. 43.What will the new employer deduction limit for contributions to the National Pension System (NPS) be after the proposed change? 1)12% 2)13% 3)14% 4)15% Report Errors in the PDF - [email protected] Copyright 2014-2024 @ AffairsCloud.com 31  Union Budget 5)16% Answer: 3) 14% Explanation - Increase in Employer Deduction for NPS: Current Rule: Employers can currently deduct 10% of an employee’s salary for contributions to the National Pension System (NPS). Proposed Change: This deduction limit will be increased to 14% of the employee's salary. 44.Which of the following correctly represents the change in the standard deduction and family pension deduction amounts? 1)Standard deduction increased to Rs. 70,000 and family pension deduction increased to Rs. 20,000 2)Standard deduction increased to Rs. 75,000 and family pension deduction increased to Rs. 25,000 3)Standard deduction increased to Rs. 60,000 and family pension deduction increased to Rs. 30,000 4)Standard deduction increased to Rs. 50,000 and family pension deduction increased to Rs. 15,000 5)Standard deduction increased to Rs. 80,000 and family pension deduction increased to Rs. 22,000 Answer: 2) Standard deduction increased to Rs. 75,000 and family pension deduction increased to Rs. 25,000 Explanation- The standard deduction amount for salaried employees was increased to Rs.75000 from 50000. The deduction for family pension received by pensioners will increased to Rs.25,000 from ₹15,000. 45.What is the tax payable on an income of Rs. 13 lakh? 1)Rs. 90,000 + 20% of income above Rs. 12 lakh 2)Rs. 1,50,000 + 30% of income above Rs. 15 lakh 3)Rs. 45,000 + 15% of income above Rs. 9 lakh 4)Rs. 15,000 + 10% of income above Rs. 6 lakh 5)Rs. 90,000 + 20% of income above Rs. 13 lakh Answer: 1) Rs. 90,000 + 20% of income above Rs. 12 lakh Explanation- New personal tax rate structure as follows: Income Slab Tax Rate Up to Rs3 lakh Nil Rs3 lakh - Rs6 lakh 5% above Rs 3,00,000 Rs6 lakh - Rs9 lakh Rs 15,000 + 10% above Rs 600000 Rs9 lakh - Rs12 lakh Rs 45,000 + 15% above Rs900000 Rs12 lakh - Rs15 lakh Rs 90,000 + 20% above Rs1200000 Above Rs15 lakh Rs 1,50,000 + 30% above Rs1500000 As a result of these changes, a salaried employee in the new tax regime stands to save up to ₹ 17,500/- in income tax. 46.Which of the following statements about the tax rebate for resident individuals is correct? 1)The rebate is available up to Rs. 10,000 for incomes up to Rs. 7 lakh. 2)The rebate is available up to Rs. 25,000 for incomes up to Rs. 7 lakh. 3)The rebate is available for non-resident individuals. 4)The rebate is available for all income levels. 5)The rebate is available up to Rs. 25,000 for incomes above Rs. 7 lakh. Report Errors in the PDF - [email protected] Copyright 2014-2024 @ AffairsCloud.com 32  Union Budget Answer: 2) The rebate is available up to Rs. 25,000 for incomes up to Rs.7 lakh Explanation Tax rebate up to Rs.25,000 is applicable for resident individuals if the total income does not exceed Rs 7,00,000 (not applicable for NRIs). 47.How many installments is the one-month wage paid in under Scheme A: First Timers? 1)1 installment 2)2 installments 3)3 installments 4)4 installments 5)No of the above Answer: 3) 3 installments Explanation - Scheme A: First Timers - One-month wage to new entrants in all formal sectors in 3 installments up to ₹15,000,as registered in Employees' Provident Fund Organisation(EPFO). 48.Which group is primarily recognized under the new Employment Linked Incentive schemes as per the Budget 2024? 1)Retired employees 2)First-time employees 3)Contractual employees 4)Government employees 5)Self-employed individuals Answer: 2) First-time employees Explanation - Employment Linked Incentive - As part of the Prime Minister’s package, 3 schemes for ‘Employment Linked Incentive’ will be implemented based on enrolment in the EPFO, and focus on recognition of first-time employees, and support to employees and employers. 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