Union Budget 2024-25 PDF

UNION BUDGET 2024-25 (Posted On: 23 JUL 2024 by PIB ) Theme of the budget The overarching theme of Budget was '**EMPLOYMENT'**. Used as an acronym, the theme was spelt out --- Employment and Education; Micro, Small and Medium Enterprises (MSMEs); Productivity; Land; Opportunities; Youth; Middle Cl...

UNION BUDGET 2024-25 (Posted On: 23 JUL 2024 by PIB ) Theme of the budget The overarching theme of Budget was '**EMPLOYMENT'**. Used as an acronym, the theme was spelt out --- Employment and Education; Micro, Small and Medium Enterprises (MSMEs); Productivity; Land; Opportunities; Youth; Middle Class; Energy Security; New Generation Reforms; and Technology. She also vowed to spend Rs.**2 lakh crore** over **5 years** on **5 schemes** which are part of what she called "the **Prime Minister's package**", aimed at spurring jobs and imparting skills to 4.1 crore youth **[Part-A]** **Budget Estimates 2024-25:** - - - - - - Government aims to reach a deficit below **4.5** % next year. - Inflation continues to be low, stable and moving towards the **4%** target; Core inflation (non-food, non-fuel) at **3.1%.** - **Focus** of budget : **EMPLOYMENT, SKILLING, MSMEs, and MIDDLE CLASS**. **[Nine Budget Priorities in pursuit of 'Viksit Bharat':]** - **Productivity and resilience in Agriculture** - **Employment & Skilling** - **Inclusive Human Resource Development and Social Justice** - **Manufacturing & Services** - **Urban Development  ** - **Energy Security** - **Infrastructure** - **Innovation, Research & Development and** - **Next Generation Reforms** Prime Minister's Package of **5 Schemes** and Initiatives for employment, skilling and other opportunities for **4.1 crore** youth over a 5-year period. **Employment Linked Incentive** 1. 2. 3. 4. - **20 lakh** youth to be skilled over **a 5-year** period. - **1,000** Industrial Training Institutes to be upgraded in hub and spoke arrangements. 5. ***[Priority 1: Productivity and resilience in Agriculture]*** - Allocation of  Rs. **1.52 lakh** crore for agriculture and allied sectors. - New **109 high-yielding and climate-resilient varieties** of **32** field and horticulture crops to be released for cultivation by farmers. - **1 crore** farmers across the country to be initiated into **natural farming**, with certification and branding in next 2 years. - **10,000** need-based **bio-input resource centres** to be established for natural farming. - Digital Public Infrastructure (DPI) for Agriculture to be implemented for coverage of farmers and their lands in 3 years. ***[Priority 2: Employment & Skilling]*** - As part of the Prime Minister's package, 3 schemes for 'Employment Linked Incentive' to be implemented -- Scheme A - **First Timers**; Scheme B - **Job Creation in manufacturing**; Scheme C - **Support to employers**. - To facilitate higher participation of women in the workforce, - - - **Skill Development** - - - ***[Priority 3: Inclusive Human Resource Development and Social Justice]*** **Purvodaya** - - - - **100 branches** of India Post Payment Bank to be set up in the North East region. **Andhra Pradesh Reorganization Act** - Special financial support through multilateral development agencies of Rs.**15,000 crore**. - Industrial node at Kopparthy along **Vishakhapatnam-Chennai** Industrial Corridor and at Orvakal along **Hyderabad-Bengaluru** Industrial Corridor. - **Women-led development**: Total allocation of more than Rs.**3 lakh** crore for schemes benefitting women and girls. - PM ***Janjatiya Unnat Gram Abhiyan***: Socio-economic development of tribal families in tribal-majority villages and aspirational districts, covering **63,000 villages** benefitting **5 crore tribal people.** ***[Priority 4: Manufacturing & Services]*** - **Credit Guarantee Scheme for MSMEs in the Manufacturing Sector** without collateral or third-party guarantee in term loans to MSMEs for purchase of machinery and equipment. - **Credit Support to MSMEs during Stress Period**: New mechanism to facilitate continuation of bank credit to MSMEs during their stress period. - **Mudra Loans**: The limit of Mudra loans under 'Tarun' category to be enhanced to Rs.**20 lakh** from Rs.10 lakh for those who have successfully repaid previous loans. - **Enhanced scope for mandatory onboarding in TReDS**:  Turnover threshold of buyers for mandatory onboarding on the **TReDS** (Trade Receivables Discounting System) platform to be reduced from Rs.500 crore to Rs**.250** crore.. - **MSME Units for Food Irradiation, Quality & Safety Testing**: Financial support to set up **50 multi-product food irradiation units** in the MSME sector. - **E-Commerce Export Hubs**: E-Commerce Export Hubs to be set up under public-private-partnership (PPP) mode for MSMEs and traditional artisans to sell their products in international markets. - **Critical Mineral Mission**: Critical Mineral Mission to be set up for domestic production, recycling of critical minerals, and overseas acquisition of critical mineral assets. - **Offshore mining of minerals**: Auction of the first tranche of offshore blocks for mining, building on the exploration already carried out. - **Digital Public Infrastructure (DPI) Applications** in the areas of credit, e-commerce, education, health, law and justice, logistics, MSME, services delivery, and urban governance. ***[Priority 5: Urban Development]*** - **Urban Housing**: Investment of  Rs.10 lakh crore, including the central assistance of Rs.2.2 lakh crore in next 5 years,  under **PM Awas Yojana Urban 2.0** proposed to address the housing needs of **1 crore** urban poor and middle-class families. - **Transit Oriented Development:** Formulation of Transit Oriented Development plans and strategies to implement and finance **14 large cities** above 30 lakh population. - **Street Markets**: New scheme to support the development of **100 weekly 'haats'** or **street food hubs** every year for the next 5 years in select cities. ***[Priority 6: Energy Security]*** - **Energy Transition**: Policy document on 'Energy Transition Pathways' - **Pumped Storage Policy**: Policy for promoting pumped storage projects for electricity storage to be brought out. - **Research and development of small and modular nuclear reactors**: partnership with private sector for R&D of Bharat Small Modular Reactor and newer technologies for nuclear energy, and to set up **Bharat Small Reactors**. - **Advanced Ultra Super Critical Thermal Power Plants**: Joint venture proposed between NTPC and BHEL to set up a full scale 800 MW commercial plant using Advanced Ultra Super Critical (AUSC) technology. - **Roadmap for 'hard to abate' industries**: Appropriate regulations for transition of 'hard to abate' industries from the current 'Perform, Achieve and Trade' mode to 'Indian Carbon Market' mode to be put in place.   ***[Priority 7: Infrastructure]*** - **Infrastructure investment by Central Government**: Rs.11,11,111 crore (3.4 % of GDP) to be provided for capital expenditure. - **Infrastructure investment by state governments**: Rs.**1.5 lakh** crore for long-term **interest free loans** to support states in infrastructure investment. - **Pradhan Mantri Gram SadakYojana (PMGSY) 4.0**: Launch of phase IV of PMGSY to provide all-weather connectivity to **25,000** rural habitations. **Irrigation and Flood Mitigation** - Rs.11,500 crore to projects such as the Kosi-Mechi intra-state link and other schemes in Bihar. - Assistance to Assam, Himachal Pradesh, Uttarakhand and Sikkim for floods, landslides and other related projects. ** Tourism** - Development of **Vishnupad Temple Corridor** (Gaya), **Mahabodhi Temple Corridor** (Bodh gaya) and **Rajgir**. - Assistance for development of monuments, craftsmanship, wildlife sanctuaries, natural landscapes and pristine beaches of **Odisha**. ***[Priority 8: Innovation, Research & Development]*** - **Anusandhan National Research Fund** for basic research and prototype development to be operationalised. - Financing pool of  Rs.**1 lakh** crore for spurring private sector-driven research and innovation at commercial scale. - **Space Economy**: Venture capital fund of  Rs.1,000 crore to be set up for expanding the space economy by 5 times in the next 10 years.( for space technology start-ups) ***[Priority 9: Next Generation Reforms]***  **Economic Policy Framework and Key Reforms**:The framework will address all factors of production, including land, labour, capital, and entrepreneurship, with technology playing a critical role in improving total factor productivity and reducing inequality. **Land-Related Reforms by state government :** - - - - - - - **Labour-Related Reforms** - Integration of the e-Shram portal with other platforms - Revamping of the Shram Suvidha and Samadhan portals to ease compliance for industries. - **Open architecture databases** for the rapidly changing labour market, skill requirements and available job roles **Financial Sector Vision and Strategy** The government plans to release a strategy document outlining the future vision for the financial sector, addressing its size, capacity, and skills. **Taxonomy for Climate Finance**: Development of a taxonomy for climate finance to facilitate capital availability for climate adaptation and mitigation, supporting India\'s green transition and climate commitments. **Variable Capital Company Structure:** Legislative approval will be sought for a Variable Capital Company structure, providing a flexible financing mode for leasing aircraft and ships and supporting private equity pooled funds. **Foreign Direct Investment and Overseas Investment: **Simplification of rules and regulations for Foreign Direct Investment (FDI) and Overseas Investments to facilitate foreign investments, prioritize key sectors, and promote the use of the Indian Rupee for overseas investments. **Use of Technology and Digitalization** **Ease of Doing Business** : Jan Vishwas Bill 2.0 and incentives for states to implement Business Reforms Action Plans and digitalization measures. **NPS Vatsalya** : NPS-Vatsalya as a plan for contribution by parents and guardians for minors. **PART B** ***Indirect Taxes*** **[GST]**: Buoyed by GST's success, tax structure to be simplified and rationalised to expand GST to remaining sectors. **[Sector specific customs duty proposals]** **Medicines and Medical Equipment** - - **Mobile Phone and Related Parts**:BCD on mobile phone, mobile Printed Circuit Board Assembly (PCBA) and mobile charger reduced to 15 %. **Precious Metals**: Customs duties on gold and silver reduced to 6 % and that on platinum to 6.4 %. **Other Metals** - **Electronics**: BCD removed, subject to conditions, on oxygen free copper for manufacture of resistors. **Chemicals and Petrochemicals**: BCD on ammonium nitrate increased from 7.5 to 10 %. **Plastics**: BCD on PVC flex banners increased from 10 to 25 %. **Telecommunication Equipment**: BCD increased from 10 to 15 % on PCBA of specified telecom equipment. **Trade facilitation** - - **Critical Minerals25 **critical minerals fully exempted from customs duties. - **Solar Energy**: Capital goods for use in manufacture of solar cells and panels exempted from customs duty. **Marine products** - - **Leather and Textile**: BCD reduced on real down filling material from duck or goose. BCD reduced, subject to conditions, on methylene diphenyl diisocyanate (MDI) for manufacture of spandex yarn from 7.5 to 5 %. ***Direct Taxes*** - - - **[Simplification for Charities and of TDS]** - - - - - **[Simplification of Reassessment]** - - **[Simplification and Rationalisation of Capital Gains]** - - - **[Tax Payer Services]** - **[Litigation and Appeals]** - - - **[Employment and Investment]** - - - - **[Deepening tax base]** - - **[Social Security Benefits.]** - - **[Other major proposal in Finance Bill]** - **[Changes in Personal Income Tax under new tax regime]** - - Rs. 0-3 lakh Nil ------------------- ------ Rs. 3-7 lakh 5 % Rs. 7-10 lakh 10 % Rs. 10-12 lakh 15 % Rs. 12-15 lakh 20 % Above Rs. 15 lakh 30 % - - - -