Key Budget Highlights 2024-2025 PDF

ºÉiªÉàÉä´É VɪÉiÉä Key Features of Budget 2024-2025 July, 2024 Roadmap for our pursuit of ‘Viksit Bharat’ Focus on 4 major castes ‘Garib’ ‘Annadata’ (Farmer) (Poor)...

ºÉiªÉàÉä´É VɪÉiÉä Key Features of Budget 2024-2025 July, 2024 Roadmap for our pursuit of ‘Viksit Bharat’ Focus on 4 major castes ‘Garib’ ‘Annadata’ (Farmer) (Poor) ‘Mahilayen’ (Women) ‘Yuva’ (Youth) Budget Theme 01 Employment 02 Skilling 03 MSMEs 04 Middle Class 1  Priorities for Viksit Bharat Productivity and resilience in Agriculture 01 Transforming Agriculture Research Comprehensive review of the agriculture research setup to bring focus on raising productivity and developing climate resilient varieties. National Cooperation Policy For systematic, orderly Atmanirbharta and all-round For oil seeds such as mustard, development of the groundnut, sesame, soyabean cooperative sector and sunflower Vegetable production & supply chain Release of new varieties 109 new high-yielding and climate- Promotion of FPOs, cooperatives & resilient varieties of 32 field and start-ups for vegetable supply chains horticulture crops will be released for collection, storage, and for cultivation by farmers marketing. Natural Farming 1 crore farmers across the country will be initiated into natural farming, supported by certification and branding in next 2 years. 10,000 need-based bio-input resource centres to be established. Shrimp Production & Export Financing for Shrimp farming, processing and export will be facilitated through NABARD. Digital Public Infrastructure (DPI) DPI for coverage of farmers and their lands in 3 years. Digital crop survey in 400 districts 2 Issuance of Jan Samarth based Kisan Credit Cards 2  Priorities for Viksit Bharat Employment & Skilling 02 PM’s Package (3 schemes for Employment Linked Incentive) - One-month wage to new - Government will reimburse entrants in all formal sectors in EPFO contributions of employers 3 instalments up to ₹15,000. up to ₹3000 per month for 2 years for all new hires. - Expected to benefit 210 lakh Scheme B - Expected to generate 50 lakh youth Job Creation in jobs Manufacturing Scheme A Scheme C - Linked to first time employees First Timers Support to Employers - Incentive to both employee & employer for EPFO contributions in the specified scales for the first 4 years - Expected to benefit 30 lakh youth - Facilitate higher participation of women in the workforce through Skilling Programme setting up of working women hostels in collaboration with 20 lakh youth will be industry, and establishing creches. PM’s Package (4th scheme) skilled over a 5-year period. - Loans up to ₹7.5 lakh with a 1,000 Industrial guarantee from a government promoted Fund. Training Institutes will - Expected to help 25,000 students be upgraded in hub every year. and spoke arrangements with - Financial support for loans upto outcome orientation. ₹10 lakh for higher education in domestic institutions. Course content & - Direct E-vouchers to 1 lakh design aligned as per students every year. skill needs of industry. - Annual interest subvention of 3% 3 3  Priorities for Viksit Bharat Inclusive Human Resource Development and Social Justice 03 Purvodaya: Vikas bhi Virasat bhi Plan for endowment rich states in the Eastern parts 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. Allocation of more than ₹3 lakh crore for schemes benefitting women and girls. Pradhan Mantri Janjatiya Unnat Gram Abhiyan: Improving the socio-economic condition of tribal communities covering 63,000 villages benefitting 5 crore tribal people. More than 100 branches of India Post Payment Bank will be set up in the North East region. Andhra Pradesh Reorganization Act: Financial support of ₹15,000 crores will be arranged in FY 24- 25. Completion of Polavaram Irrigation Project ensuring food security of the nation. 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. 4 4  Priorities for Viksit Bharat Manufacturing & Services 04 New assessment model Credit Guarantee Scheme for MSME credit for MSMEs in the Manufacturing Sector Mudra Loans: The limit enhanced to ₹ 20 lakh from Enhanced scope for the current ₹ 10 lakh under mandatory onboarding in the ‘Tarun’ category. TReDS Credit Support to MSMEs during MSME Units for Food Stress Period Irradiation, Quality & Safety Testing Twelve industrial parks under the National Industrial Corridor Internship Opportunities Development Programme Scheme for providing PM’s Package (5th scheme) Rental housing with dormitory type internship accommodation for industrial workers in PPP mode with VGF opportunities in 500 support. top companies to 1 crore youth in 5 years. Allowance of Critical Minerals Mission for domestic production, recycling and ₹5,000 per month overseas acquisition. along with a one-time assistance of ₹6,000 Strengthening of the tribunal and through the CSR appellate tribunals to speed up funds. insolvency resolution and additional tribunals to be established 5 5  Priorities for Viksit Bharat Urban Development 05 Transit Stamp Street Oriented Water Duty Markets Development Management Encouraging Envisioning Promote water states to a scheme to Transit Oriented supply, sewage lower stamp develop 100 Development treatment and solid duties for weekly plans for 14 waste management properties ‘haats’ or large cities with projects and purchased by street food a population services for 100 women. hubs in above 30 lakh large cities through select cities bankable projects. Housing Needs PM Awas Yojana Urban 2.0 Enabling policies and Needs of 1 crore urban poor and regulations for efficient middle-class families will be and transparent rental addressed with an investment of housing markets with ₹10 lakh crore enhanced availability will also be put in place. 6 6  Priorities for Viksit Bharat Energy Security 06 Initiatives with private sector in Nuclear Energy Pumped Storage Policy Setting up Bharat Small For electricity storage and Reactors facilitation of smooth R&D of Bharat Small integration of the growing Modular Reactor and share of renewable energy newer technologies for nuclear energy AUSC Thermal Power Plants A joint venture between NTPC and BHEL will Energy Audit set up a full scale 800 Financial support for shifting of MW commercial plant. micro and small industries to cleaner forms of energy Facilitate investment grade energy audit in 60 clusters, next phase expands to 100 clusters. 1 crore Households obtain free electricity Up to 300 Muft Bijli Yojana PM Surya Ghar Units every month 1.28 crore Registrations and 14 lakh applications so far 7  Priorities for Viksit Bharat Infrastructure 07 Phase IV of PMGSY will be Provision of ₹1.5 lakh crore ₹11,11,111 to states as long- launched to crore for term interest free provide all- infrastructure loans to support weather (3.4% of GDP). resource connectivity to allocation. 25,000 rural habitations. Irrigation and Flood Mitigation 01 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 Assistance for flood management and related projects in Assam, Sikkim & Uttarakhand Assistance for reconstruction and rehabilitation in Himachal Pradesh 8 05  Priorities for Viksit Bharat Infrastructure 07 Tourism Development of Vishnupad Temple Corridor and Mahabodhi Temple Corridor modelled on Kashi Vishwanath Temple Corridor Comprehensive development initiative for Rajgir will be undertaken which holds religious significance for Hindus, Buddhists and Jains. The development of Nalanda as a tourist centre besides reviving Nalanda University to its glorious stature. Assistance to development of Odisha’s scenic beauty, temples, monuments, craftsmanship, wildlife sanctuaries, natural landscapes and pristine beaches making it an ultimate tourism destination. Innovation, Research & Development 08 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 9 9  Priorities for Viksit Bharat Next Generation Reforms 09 Rural & Urban land related actions Land records in urban Unique Land Parcel areas will be digitized Identification Number with GIS mapping or Bhu-Aadhaar for all lands. Digitization of cadastral maps Survey of map sub-divisions as per current ownership Establishment of land registry Linkages to the farmers’ registries Taxonomy for climate finance: Enhancing the availability of capital for climate adaptation and mitigation related investments FDI and Overseas Investments: Simplified to facilitate FDIs and promote opportunities for using Indian Rupee as a currency for overseas investments. NPS Vatsalya: A plan for contribution by parents and guardians for minors. Improvement of data governance, collection, processing and management of data and statistics. New Pension Scheme (NPS): A solution that address the relevant issues, protects the common citizen and maintains fiscal prudence will be formed. 10  Robust Economic Foundations Improvement in Current Account Deficit India grew at 8.2 per cent in FY 2024 200 15 1.5 1.0 150 10 0.5 ₹lakh crore 5 per cent 100 0.0 0 Per cent -0.5 50 -5 -1.0 -1.5 0 -10 2023-24 (PE) 2022-23 (RE) 2019-20 2020-21 2021-22 -2.0 -2.5 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 Real GDP Real GDP growth (RHS) Expansionary PMI Index Decline in Gross NPAs of SCBs 70 12 60 10 8 50 Per cent 6 40 4 2 30 0 Jan 22 Jan 23 Jan 24 Jul 21 Oct 21 Jul 22 Oct 22 Jul 23 Oct 23 Apr 21 Apr 22 Apr 23 Apr 24 Mar-15 Mar-16 Mar-17 Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 Mar-24 Services Manufacturing Decreasing Fiscal Deficit as % of GDP Taming Inflation 10 9.2 9 7 8 6.7 6.7 6.4 7 6.2 FD as % of GDP 6 5.6 6 Per cent 5 5.5 4 5.4 3 5 2 1 0 4 FY21 FY22 FY23 FY24 2020 2021 2022 2023 11  Tax Proposals Simplification in Taxes Review of Simplification Litigation and Deepening the Income Tax of charities and Appeal tax base Act 1961 TDS Sector Specific Customs Duty Proposals Comprehensive review of the rate structure for ease of trade, removal of duty inversion and reduction of disputes Changes in Custom Duty Beneficiaries Fully exempt 3 more cancer medicines Affordable medicines from custom duties Reduce BCD to 15% on Mobile phone, Mobile industry Mobile PCBA and charger Reduce custom duty on gold and silver to Domestic value addition 6% and platinum to 6.4% Enhance competitiveness Reduce BCD on shrimp and fish feed to 5% in marine exports Exempted more capital goods for Support energy manufacturing of solar cells & panels transition Fully exempt custom duties on 25 critical Boost to strategic sectors minerals 12  Direct Tax Proposals To reduce the compliance burden, promote entrepreneurial spirit and provide tax relief to citizens Rationalisation Short term gains of financial assets to attract 20% tax of capital gains rate Long term gains on all financial an non-financial assets to attract a tax rate of 12.5% Increase in limit of exemption of capital gains on financial assets to ₹1.25 lakh per year Abolish ANGEL tax for all classes of investors. Employment Investment Simpler tax regime to operate domestic cruise Provide for safe harbour rates for foreign mining and companies (Selling raw diamonds) Corporate tax rate on foreign companies reduced from 40% to 35% Simplifying New Tax Regime Savings 30% upto 20% ₹17,500 15% 10% 5% Nil ₹0- ₹3 lakh ₹3- ₹7 lakh ₹7- ₹10 lakh ₹10- ₹12 lakh ₹12- ₹15 lakh > ₹15 lakh Standard Deduction for salaried employees increased from ₹50,000 to ₹75,000 Deduction on family pension for pensioners increased from ₹15,000 to ₹25,000 13  Rupee Comes From Income Tax (19%) 19% Borrowing and Other Liabilities (27%) 27% ₹ Union Excise Duties (5%) 5% 9% 18% Non-Tax Receipts (9%) 1% GST & other 4% Non-Debt Capital Receipts taxes (18%) Customs (4%) 17% Corporation tax (17%) Rupee Goes To Pensions (4%) Other Expenditure (9%) 4% Interest Payments (19%) 9% 19% Centrally Sponsored Scheme (8%) 8% Finance Commission and other transfers (9%) 9% ₹ 16% Central Sector Scheme (excluding capital outlay on Defence and Subsidy) (16%) 21% 6% 8% Subsidies (6%) States' share of Taxes 14 and Duties (21%) Defence (8%) Expenditure of Major Items in ₹ Crore Defence 4,54,773 Ministry of Road Transport and Rural Development Highways 2,65,808 Agriculture and Allied Activities 1,51,851 Home Affairs 1,50,983 Education 1,25,638 IT and Telecom 1,16,342 Health 89,287 Energy 68,769 Social Welfare 56,501 Commerce & Industry 47,559 15  Allocation to Major Schemes (in ₹ crore) MGNREGA Research and Development Projects 86,000 1,200 60,000 840 2023-24(BE) 2024-25(BE) 2023-24(BE) 2024-25(BE) Nuclear Power Projects PLI for Pharmaceutical Industry 2,228 2,143 1,200 442 2023-24(BE) 2024-25(BE) 2023-24(BE) 2024-25(BE) Development of Semiconductors and Solar Power (Grid) Display Manufacturing 10,000 6,903 3,000 4,970 2023-24(BE) 2024-25(BE) 2023-24(BE) 2024-25(BE) Direct Benefit Transfer- LPG Lines of Credit under IDEA Scheme 1,500 3,849 1,300 180 2023-24(BE) 2024-25(BE) 2023-24(BE) 2024-25(BE) 16  Receipts Revenue Receipts Capital Receipts 35 19 18.7 31.3 30 26.3 27.0 23.8 18.1 25 18 17.9 16.9 ₹Lakh Crore ₹Lakh Crore 20 15 17 10 5 0 16 2022-23 2023-24 2023-24 2024-25 2022-23 2023-24 2023-24 2024-25 (Actuals) (BE) (RE) (BE) (Actuals) (BE) (RE) (BE) Expenditure Effective Capital Revenue Expenditure Expenditure 37 16 15.0 37.1 13.7 12.7 36 12 10.5 35.4 ₹Lakh Crore ₹Lakh Crore 35.0 35 8 34.5 34 4 33 0 2022-23 2023-24 2023-24 2024-25 2022-23 2023-24 2023-24 2024-25 (Actuals) (BE) (RE) (BE) (Actuals) (BE) (RE) (BE) 17  ºÉiªÉàÉä´É VɪÉiÉä £ÉÉ®iÉ ºÉ®BÉEÉ® ¤ÉVÉ] BÉEÉÒ àÉÖJªÉ ÉʴɶÉäKÉiÉÉAÆ 2024-2025 VÉÖãÉÉ