For the year 2024-25, the total receipts other than borrowings and the total expenditure are estimated at 4821000cr respectively. Union Finance Minister Nirmala Sitharaman allocated 622000cr for the defence sector in 2024-25 which is almost the same as in the interim Budget presented in February. India’s 2024-25 budget, presented by Finance Minister Nirmala Sitharaman, includes a record capital expenditure of Rs 2,62,200 crore for Indian Railways. While major new announcements were sparse, the budget focuses on enhancing infrastructure, safety, and services, particularly for low-income travelers. The Union Budget 2024, presented by Finance Minister Nirmala Sitharaman, focused on making cancer medicines more affordable and adjusting customs duties for medical equipment. The health sector allocation rose to 90958.63cr. The first Union budget of the Modi 3.0 government saw a concerted effort at women-led development, with the Finance Minister announcing more than 300000cr for schemes benefiting women and girls, and promised a look at further lowering duties for properties purchased by women.
we particularly focus on employment, skilling, MSMEs, and the middle class. I am happy to announce the Prime Minister’s package of 5 schemes and initiatives to facilitate employment, skilling and other opportunities for 4.1 crore youth over a 5-year period with a central outlay of 200000cr. I will speak about them shortly, while more details may be seen in the annexure. This year, I have made a provision of 148000cr for education, employment and skilling.
we promised to present a detailed roadmap for our pursuit of ‘Viksit Bharat’. In line with the strategy set out in the interim
budget, this budget envisages sustained efforts on the following 9 priorities for generating ample opportunities for all.
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
In the next two years, 1 crore farmers across the country will be initiated into natural farming supported by certification and branding. Implementation will be through scientific institutions and willing gram panchayats. 10,000 need-based bio-input resource centres will be established.
For achieving self-sufficiency in pulses and oilseeds, we will strengthen their production, storage and marketing. As announced in the interim budget, a strategy is being put in place to achieve ‘atmanirbharta’ for oil seeds such as mustard, groundnut, sesame, soybean, and sunflower.
Our government will implement following 3 schemes for ‘Employment Linked Incentive’, as part of the Prime Minister’s package. These will be based on enrolment in the EPFO, and focus on recognition of first-time employees, and support to employees and employers.
Scheme A: First Timers
This scheme will provide one-month wage to all persons newly entering the workforce in all formal sectors. The direct benefit transfer of one-month salary in 3 instalments to first-time employees, as registered in the EPFO, will be up to 15,000. The eligibility limit will be a salary of 1 lakh per month. The scheme is expected to benefit 210 lakh youth.
Scheme B: Job Creation in Manufacturing
This scheme will incentivize additional employment in the manufacturing sector, linked to the employment of first-time employees. An incentive will be provided at specified scale directly both to the employee and the employer with respect to their EPFO contribution in the first 4 years of employment. The scheme is expected to benefit 30 lakh youth entering employment, and their employers.
Scheme C: Support to Employers
This employer-focussed scheme will cover additional employment in all sectors. All additional employment within a salary of 1 lakh per month will be counted. The government will reimburse to employers up to 3,000 per month for 2 years towards their EPFO contribution for each additional employee. The scheme is expected to incentivize additional employment of 50 lakh persons.
The Model Skill Loan Scheme will be revised to facilitate loans up to 7.5 lakh with a guarantee from a government promoted Fund. This measure is expected to help 25,000 students every year.
For helping our youth who have not been eligible for any benefit under government schemes and policies, I am happy to announce a financial support for loans upto 10 lakh for higher education in domestic institutions. E-vouchers for this purpose will be given directly to 1 lakh students every year for annual interest subvention of 3 percent of the loan amount.
The states in the Eastern part of the country are rich in endowments and have strong cultural traditions. We will formulate a plan, Purvodaya, for the all-round development of the eastern region of the country covering Bihar, Jharkhand, West Bengal, Odisha and Andhra Pradesh. This will cover human resource development, infrastructure, and generation of economic opportunities to make the region an engine to attain Viksit Bharat.
On the Amritsar Kolkata Industrial Corridor, we will support development of an industrial node at Gaya. This corridor will catalyze industrial development of the eastern region. The industrial node at Gaya will also be a good model for developing our ancient centres of cultural importance into future centres of modern economy. This model shall showcase “Vikas bhi Virasat bhi” in our growth trajectory.
We will also support development of road connectivity projects, namely (1) Patna-Purnea Expressway, (2) Buxar-Bhagalpur Expressway, (3) Bodhgaya, Rajgir, Vaishali and Darbhanga spurs, and (4) additional 2-lane bridge over river Ganga at Buxar at a total cost of 26,000 crore. Power projects, including setting up of a new 2400 MW power plant at Pirpainti, will be taken up at a cost of 21,400 crore. New airports, medical colleges and sports infrastructure in Bihar will be constructed.
Our government has made concerted efforts to fulfil the commitments in the Andhra Pradesh Reorganization Act. Recognizing the state’s need for a capital, we will facilitate special financial support through multilateral development agencies. In the current financial year 15,000 crore will be arranged, with additional amounts in future years.
Under the Act, for promoting industrial development, funds will be provided for 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. An additional allocation will be provided this year towards capital investment for economic growth.
Personal Income Tax
Coming to Personal Income Tax Rates, I have two announcements to make for those opting for the new tax regime. First, the standard deduction for salaried employees is proposed to be increased from ₹50,000/- to ₹75,000/-. Similarly, deduction on family pension for pensioners is proposed to be enhanced from 15,000/- to 25,000/-. This will provide relief to about four crore salaried individuals and pensioners.
Second, in the new tax regime, the tax rate structure is proposed to be revised, as follows:
0-3 lakh rupees Nil
3-7 lakh rupees 5 percent
7-10 lakh rupees 10 percent
10-12 lakh rupees 15 percent
12-15 lakh rupees 20 percent
Above 15 lakh rupees 30 percent
As a result of these changes, a salaried employee in the new tax regime stands to save up to 17,500/- in income tax.
