Budget 2024 Simplified

A budget is not just a collection of numbers, but an expression of our values and aspirations. - Jacob Lew

The FY25 Full Budget has arrived, following February’s Interim Budget. Now, with the government in place, the budget outlines a clear financial strategy. With inflation under control, India aims for a 4% target. The Prime Minister’s package, totaling ?2 lakh crore, will support 4.1 crore youth with opportunities for employment and skill development over five years. Focused on nine key priorities, the budget emphasizes employment, MSMEs, and the middle class. It also introduces 109 new, climate-resilient crop varieties, ensuring sustainable agriculture.This budget sets the stage for a brighter, more inclusive future for India.

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Inflation and Economic Growth

• Inflation: Continues to be low and stable, moving towards a 4% target.
• Core Inflation: Currently at 3.1%.

Employment and Skilling Initiatives

• PM's Package: 5 schemes and initiatives with an outlay of ?2 lakh crore aimed at providing employment, skilling, and opportunities for 4.1 crore youth over 5 years.
• Internship Opportunities: Comprehensive scheme for 1 crore youth in 500 top companies over 5 years.
• Skilling Programme: New centrally sponsored scheme to skill 20 lakh youth over 5 years; 1,000 Industrial Training Institutes to be upgraded.
• Model Skill Loan Scheme: Revised to facilitate loans up to ?7.5 lakh, aiding 25,000 students annually.
• Financial Support for Higher Education Loans: Loans up to ?10 lakh for higher education with e-vouchers for interest subvention.

Agriculture and Rural Development

• New Crop Varieties: 109 high-yielding and climate-resilient varieties of 32 field and horticulture crops to be released.
• Natural Farming: 1 crore farmers to be initiated into natural farming in the next two years.
• Agriculture and Allied Sector: Allocation of ?1.52 lakh crore.
• Rural Development: Provision of ?2.66 lakh crore for rural development, including infrastructure.

Women and Social Justice

• Women-led Development: Allocation of over ?3 lakh crore for schemes benefiting women and girls.
• Purvodaya Plan: For the development of Bihar, Jharkhand, West Bengal, Odisha, and Andhra Pradesh.

Urban Development and Housing

• PM Awas Yojana Urban 2.0: Investment of ?10 lakh crore to address housing needs of 1 crore urban poor and middle-class families.
• PMGSY Phase IV: To provide all-weather connectivity to 25,000 rural habitations.

Energy Security and Infrastructure

• PM Surya Ghar Muft Bijli Yojana: Rooftop solar plants to provide free electricity up to 300 units monthly to 1 crore households.
• Infrastructure Investment: ?11.11 lakh crore allocated for capital expenditure.

Tax Reforms and Reliefs

• Income Tax Relief: Standard deduction increased from ?50,000 to ?75,000 in the new tax regime.
• Capital Gains Exemption: Limit increased to ?1.25 lakh per year.
• Angel Tax Abolished: For all classes of investors to boost startups and investments.
• Corporate Tax Reduction: For foreign companies from 40% to 35%.
• TDS Rates Simplified: Merged 5% TDS on various payments to 2%.

Key Financial Figures

• Total Receipts (2024-25): ?32.07 lakh crore (excluding borrowings).
• Total Expenditure (2024-25): ?48.21 lakh crore.
• Net Tax Receipts: ?25.83 lakh crore.
• Fiscal Deficit: Estimated at 4.9% of GDP.

Custom Duties and GST Reforms

• Custom Duty Reductions: On x-ray panels, mobile phones, precious metals including gold and silver.
• Cancer Medicines: Fully exempted from customs duties.
• GST Rationalization: Comprehensive review to support domestic manufacturing and improve the tax base.

Conclusion

The Full Budget for FY25 is not just a financial statement; it is a vision for a prosperous and inclusive future. It reflects the government's commitment to fostering economic growth, creating opportunities for all citizens, and ensuring sustainable development. As India continues its journey towards becoming a global economic powerhouse, this budget lays a strong foundation for achieving the nation's aspirations. With strategic priorities focused on key areas of development, the budget promises to usher in a new era of growth, innovation, and prosperity for India.