Budget 2024: Union Finance Minister Nirmala Sitharaman, on Tuesday, July 23, 2024, presented the first budget of the Modi government 3.0, after it was re-elected to power for the third consecutive time, in the 2024 Lok Sabha elections. Let's look at key announcements by the Finance Minister to ace India's economic progress and the government's aim to become the world's third-largest economy.
- Finance Minister Nirmala Sitharaman said that India's economic growth continues to be the shining exception and will remain so in years ahead. India's inflation continues to be low and stable moving towards the 4 per cent target.
- Union Finance Minister Nirmala Sitharaman said, "As mentioned in the interim Budget, we need to focus on 4 different castes, the poor, women, youth and the farmer/ For farmers, we announced higher Minimum Support Prices for all major crops delivering on the promise for at least a 50 per cent margin over cost. PM Garib Kalyan Anna Yojana was extended for 5 years benefitting more than 80 crore people."
- Govt will undertake a comprehensive review of research to develop climate-resilient seeds, the Finance Minister announced.
- The Budget's 9 priorities include productivity, jobs, social justice, urban development, energy security, infrastructure, and reforms, Nirmala Sitharaman said.
- New 109 high-yielding and climate-resilient varieties of 32 field and horticulture crops will be released for cultivation by farmers. In the next two years, 1 crore farmers will be initiated into natural farming supported by certification and branding.
- In the next two years, one crore farmers will be initiated in natural farming.
- The Finance Minister announced Rs 1.48 lakh crore for jobs and skills education.
- The Government proposes Rs 2.66 lakh crore for rural development.
- Govt to launch scheme to provide internship opportunities to 1 crore youth in 500 top companies over 5 years.
- The government will reduce turnover threshold of MSME buyers for mandatory onboarding on TReds platform from Rs 500 crore to Rs 250 crore
Employment-linked incentive
Our government will implement schemes for employment-linked incentive as part of the Prime Minister's package. These will be based on enrollment 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 sector.
Job creation in manufacturing: This scheme will incentivize additional employment in the manufacturing sector, linked to the employment of first-time employees, and incentive will be provided at a specified scale, directly both to the employee and employer, with respect to the EPFO contribution in the first four years of employment. The scheme is expected to benefit 30 lakh youth entering employment and their employers.
- We will formulate a plan 'Poorvodaya' for all-round development of the Eastern region of the country, covering Bihar, Jharkhand, West Bengal, Odisha and Andhra Pradesh.
- 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.
Major announcements for Bihar
- The government will support the development of road connectivity projects, namely, the Patna -Purnea expressway, Buxar- Bhagalpur highway, Bodhgaya- Rajgir-Vaishali- Darbhanga and an additional two-lane bridge over river Ganga in Buxar for Rs 26,000 crore.
- New airports, medical colleges, and sports infrastructure in Bihar will be constructed. An additional allocation to support capital investments will be provided. The request of the Bihar government for external assistance from multi-lateral development banks will be expedited.
Overall the Finance Minister divided the budget into nine different priorities
Priority One | Productivity and Resilience in Agri
- Raising Productivity and Climate Resilient Varieties
- Thrust on Natural Farming: 2 crore farmers to be supported in next 2 years(certificates)
- Atma Nirbharta in Oil Seeds
- Vegetable Production: Large-Scale Clusters
- DPI in Agri Infrastructure: Coverage of Farmers and their Land in three years. Digital Crop Survey in 400 districts this year only. Issuance of Jan Samarth-based certificates.
- Shrimp Brood Stocks. Shrimp Farming.
- National Co-operation Policy for Co-operative Sector.
Priority Two | Skilling
- First Timers Scheme - 1 month wage to all persons newly entering the workforce in all formal sectors will be provided by the government in 3 installments. Direct benefit transfer to employees upto Rs 15,000 will be done. This will be applicable to those getting salary upto Rs 1 lakh per month. 2.1 crore youth to be benefitted.
- Manufacturing Jobs Assistance - Incentive of specified scale directly to employee and employer in first 4 years of employment will be provided to employees entering manufacturing jobs. This will benefit 30 lakh youth and employers.
- Support to employers- Additional employment in all sectors within a salary of 1 lakh/month will be provided Rs 3,000 per month for 2 years to cover EPFO charges. This will incentivise additional employment of upto 50 lakh persons.
- 20 lakh youth will be skilled over 5 years.
- Education Loans: Financial Support up to 10 lakhs for higher education in domestic institutions. Annual Interest Subvention for 3 per cent.
Priority 3 | Inclusive Development
- Towards achieving saturation of Social Justice
- PM Vishwakarma, Swanidhi, NRLM.
- Purvodaya: A plan for all-round development for the eastern region of the country covering Bihar, Jharkhand, Odisha, and Andhra Pradesh. This will cover human resource development.
- Amritsar-Kolkata Corridor. It will catalyze industrial development for the eastern region, particularly Gaya. Vikas Bhi Virasat Bhi
- Patna Purniya , Buxar Bhagalpur, Bodhygaya-Rajgir-Dharbhnaga Expressways to be Developed and the Bridge over Ganga in Buxar at Rs.2600 crore.
- New Medical Colleges and Sports Infra in Bihar will be constructed.
- Multilateral Bank Support to Bihar.
- AP Reorganisation act: Recoginizing state’s need for capital a financial support will be provided through multilateral agencies. Rs.15,000 crore will be arranged in future years.
- PMAY: 3 crore additional houses in rural and urban areas in the country
- Women-Led Development: The budget carries an allocation of more than Rs.3 lakh crore.
- PM Jan Jatiya Unnat Gram Abhiyan: Adopting saturation coverage in tribal families and aspirational districts.
Priority 4 | Budget Manufacturing and Services
- Will make MSME to compete globally
- Credit Guarantee for MSME.
- Build In House capability for MSMEs.
- Paradigm change in New Credit assessment model for MSME for credit eligibility.
- SMA Accounts for MSME in Stress.
- MUDRA Loans: limit enhanced to 20 lakhs from 10 lakhs in the Tarun category.
- Converting trade receivables to cash: turnover brought down from Rs.500 to Rs.250 crore
- SIDBI branches in MSME Cluster: new branches to be opened in 3 years in MSME clusters over 3 years
- E-commerce export hubs: to enable traditional artisans and MSMEs to launch their products in international markets
- A scheme to provide internship in top 500 companies to 1 crore youth in 5 years. They will gain exposure to real-life business. Interns will be given Rs.5,000 per month along with one-time assistance of Rs.6,000.
- 12 industrial parks under the National Industrial Corridor Program will be Sanctioned.
- Rental housing for industrial workers will be facilitated in PPP Mode.
- Shipping: Ownership leasing and flagging reforms will be initiated.
- Critical Minerals Mission: The mandate will include tech development, skilled workforce and suitable financing mechanism.
- DPI Applications: Development of DPI applications.
- Integrated tech platform for IBC services: consistency, transparency and better oversight.
- Voluntary closure for LLPS.
- IBC has resolved more than 1, 000 companies- giving Rs.3.3 lakh crore to creditors
- Debt Recovery: Additional tribunals to be established
Priority 5 | Urban Development
- Urban Housing: Urban 2.0. one crore houses for urban poor, allocation of ten lakh crore rupees.
- Enabling policies and regulations for transparent renting house markets
- Services for 100 large cities for urban development
- Street Markets: Svanidhi has transformed lives of street vendors. Support for urban haats
- Stamp Duty: Encourage states to charge high stamp duty to moderate the rates for all. Slashing of duties for women
Priority 6 | Energy Security
- A policy document for energy pathways
- PM Suryaghar Muft Bijli Yojana: launched to install rooftop solar plants to enable one crore households to obtain free electricity for 300 units every month. Remarkable response from the public.
- Pump Storage Policy
- Newer tech for nuclear technology.
- Advanced ultra-supercritical thermal power plants. 800 MW plants will be set up.
- Dev of indigenous capacity
- Support to micro and small industries.
Priority 7 | Infrastructure
- Strong fiscal support to Infra over the next 5 years
- This Year’s CAPEX allocation: Rs. Eleven Lakh Eleven Thousand One Hundred and Eleven Crore Rupees. 3.4 percent of GDP.
- Private Investment in INFRA: Have to be Promoted through VGF
- PMGSY 4.0 will be launched: 25,000 new rural habitations.
- Irrigation and Flood: Plans to build flood control structure through financial support of Rs.11,500 crore. Kosi-related flood mitigation will be taken
- ASSAM: Assistance to Assam for flood management.
- HP: Assistance to state for reconstruction ravaged with floods
- Uttarakhand: Assistance to states
- Sikkim: Assistance to state
- Tourism: Vishnupath temple at Gaya and Mahabodhi temple in Bodhgaya will be constructed like Kashi Vishwanath corridor. Rajgir: preservation of hot springs. Development of NALANDA.
- Support for the development of Odisha’s temples, scenic beauties, natural landscapes and pristine beaches.
Priority 8 | Innovation, R&D
- A mechanism will be established to spur private-driven research at a commercial scale, supported by a financial pool of Rs 1 lakh crore.
- The govt will partner with the private sector for setting up Bharat small reactors, research and development of Bharat small modular reactors & research and development of newer technologies for nuclear energy.
Priority 9 | Next Generation Reforms
- States will be incentivized for Land-related reforms and actions within the next 3 years through appropriate fiscal support.
- Land-related reforms and actions in Rural areas to cover land administration & planning. In Urban areas, it will cover urban planning, usage and building bylaws.
- Rural land-related actions will include ULPIN or Bhu-Aadhaar for all lands, digitization of cadastral maps, survey of map sub-divisions as per current ownership, establishment of land registry, and linking to the farmers registry. These actions will facilitate credit flow & other agri services.
- Land records in urban areas will be digitized with GIS mapping. An IT based system for property record and tax administration will be established. It will improve the financial position of Urban local Bodies.
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