Finance minister Nirmala Sitharaman delivered the Union Budget 2024-2025, laying out how the government is going to manage its finances in the financial year going forward. The budget, anticipated strongly across domains, strives to spur economic growth, build infrastructure, and enunciate social welfare measures.
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Herein are key highlights of her speech:
1. Economic Growth and Fiscal Deficit:
Sitharaman emphasized that the government was committed to ensuring a strong economic growth path. The budget estimates a GDP growth rate, touching 6.5%, through fiscal 2024-25. In this count, she set the target for fiscal deficit at 5.9 per cent of GDP, indicating that the government is geared towards fiscal discipline while also guaranteeing suitable expenditure on necessary sectors.
2. Infrastructure Development:
A substantial amount the budget is going into this infrastructure development. The outlay of 10 lakh crore of rupees for all categories of infrastructure, working on highways, railways, and urban infrastructure, has been laid down by the government. This investment is an expected job creator which will propel economic activity and raise the activity level of connectivity within the country.
It has given strong emphasis to agriculture and rural development. Sitharaman announced an outlay of Rs 2.5 lakh crore for the farm sector and has placeboated measures to raise farm productivity, provide better irrigation facilities, and encourage sustainable farming practices. Also, 10,000 FPOs will be formed to make the farmers powerful and increase their income.
4. Health and Education:
Post-COVID-19, Rs 1.5 lakh crore has been earmarked for the health sector, including funds going to National Health Mission, the building of new medical colleges, and ramping up rural healthcare infrastructure. The education sector has been boosted with an allocation of Rs 1 lakh crore to be used for improving the quality of education, promoting digital learning, and enhancing vocational training in schools.
5. Social Welfare Initiatives:
The budget has introduced quite a few steps forward to social welfare for the vulnerable sections of the society. Sitharaman announced a new scheme of social security for the unorganized workers in gig and platform areas, which would ensure coverage of health insurance and other benefits. Making budget provisions of Rs 50,000 crore to complete the Pradhan Mantri Awas Yojana through which affordable housing is made available to the urban poor.
6. Tax Reforms:
The budget has entrenched several tax reforms, including measures to rationalize the tax structure and bring relief to taxpayers. In her speech, Sitharaman proposed increasing the basic exemption limit for individual taxpayers from Rs 2.5 lakh to Rs 3 lakh. Also, the government has introduced a new regime of lower taxes and fewer exemptions, but taxpayers can choose between the old regime and the new one.
More about it in: Union Budget 2024-25 (Part 2): Tax Reforms and Capital Gains
7. Digital Economy and Innovation:
It has also put aside Rs 1 lakh crore for the promotion of digital infrastructure and innovation. This would include funding for the development of 5G, promotion of Digital Hubs, and promoting Start-ups and Entrepreneurship. The government also proposed to bring a scheme to support the Research and Development of Emerging Technologies like Artificial Intelligence and Block-Chain.
8. Climate Change and Sustainability:
The budget spells out the commitment of the government towards capitalizing on climate change and sustainable environmental development. Sitharaman said that a new green energy scheme would be launched with an outlay of Rs 1.5 lakh crore. It will help in pushing renewable sources of energy, improve energy system efficiency, and reduce carbon emissions into the space. Besides, the budget made provisions for forest and wildlife conservation and for the promotion of sustainable agriculture practices.
9. MSME Sector:
Equally important is the attention paid to the budget for the micro, small, and medium enterprises (MSME) sector, which has been ravaged by the pandemic. Sitharaman noted a Rs 1.5 lakh cr package helping MSMEs to improve their access to credit, improve market linkage, and create skill development. Further, the government proposes the setting up of a new MSME Development Bank so that financial aid and backing can be given to small businesses.
10. Women Empowerment:
There are many measures in the budget related to the empowerment of women and gender equality. The finance minister announced a new women entrepreneurship scheme pegged at an amount of Rs 10,000 crore. This will help incline financial assistance, mentorship, and training to women startups. A further Rs 50,000 crore has been allotted for the development of infrastructure for women, like health and wellness centers, hostels, as well as working women’s hostels with day-care facilities.
Finance Minister Nirmala Sitharaman presented the Union Budget 2024-25 to parliament. It pegs an overall plan for the revival of growth, augmentation of infrastructure, and boosting social welfare initiatives. A budget reflecting not only the commitment the government has toward fiscal prudence but also adequate spending on key areas. The country, in its post-pandemic recovery phase, aspires to bring a resilient and all-inclusive economy that will cover benefits for different sections of society.
