Finance Minister Nirmala Sitharaman presented the Union Budget 2024 on Tuesday, focusing on four key groups: the poor, women, youth, and farmers. She also introduced the Prime Minister’s package of five schemes with a Rs 2 lakh crore budget aimed at employment, skills training, and other opportunities.
This budget is the first of the Modi 3.0 government following the 2024 Lok Sabha Elections and marks Sitharaman’s record seventh budget speech. Here are the main highlights of the Union Budget 2024:
Sitharaman emphasized that the budget aims to address nine priorities for a developed India:
- Productivity and resilience in agriculture
- Employment and skills training
- Manufacturing and services
- Urban development
- Infrastructure
- Innovation, research, and development
- Next-generation reforms
BIG PUSH FOR EMPLOYMENT:
The budget includes significant measures to generate employment and support first-time job seekers. Three employment-linked schemes were announced. The government will provide one month’s wages to all new entrants into the formal workforce. Additionally, to encourage job creation in manufacturing, the government will offer incentives to both employees and employers through EPFO contributions.
BENEFITS TO BIHAR AND ANDHRA PRADESH:
Sitharaman announced substantial allocations for Bihar and Andhra Pradesh, states governed by BJP allies JDU and TDP.
- Bihar: Rs 26,000 crore allocated for highways, expedited multilateral development requests, and Rs 15,000 crore for new airports, medical colleges, and sports infrastructure. Bihar also received an Rs 11,500 crore flood mitigation package.
- Andhra Pradesh: Rs 15,000 crore allocated for capital development, with additional grants for backward regions in line with the AP Reorganisation Act.
MSMEs:
The budget includes several initiatives for Micro, Small, and Medium Enterprises (MSMEs):
- A new MSME guarantee plan for loans up to Rs 100 crore
- PSU banks to develop an internal assessment model for MSME credit
- A credit guarantee scheme for collateral-free loans
- A new mechanism to facilitate bank credit to MSMEs in the SMA (special mention account) stage
- The limit for Mudra Loans increased from Rs 10 lakh to Rs 20 lakh
- Export hubs to be established under a regulatory body
OTHER KEY ANNOUNCEMENTS:
- Rs 10 lakh crore allocated for the Prime Minister’s urban housing plan
- Introduction of the PM Suryaghar Muft Bijli Yojana for 1 crore houses
- Encouragement for states to reduce stamp duties
Ahead of the budget presentation, Sitharaman tabled the Economic Survey 2023-24 in Parliament on Monday. The survey projected India’s GDP growth for FY25 at 6.5-7 per cent and inflation at 4.5 per cent. It also noted the need for India to create 7.85 million jobs annually in the non-farm sector until 2030.
Before presenting the budget, Sitharaman, wearing a white and magenta silk sari, arrived in Parliament with the traditional Bahi Khata. She met President Droupadi Murmu earlier in the day to seek approval for the budget. Murmu fed her curd and sugar, a traditional gesture for good luck before undertaking an important task.