UNION BUDGET 2024-25 IAS PCS Pathshala

UNION BUDGET 2024-25

Budget At Glance

 Article 112 of the Constitution - Annual Financial Statement

 Budget is not mentioned in the Constitution
 Department of Economic Affairs (DEA) in the Ministry of Finance is
responsible for preparing the Union Budget.
 2024 was General Election Year - Government had presented Interim Budget
on 1st of February, 2024 - There is no constitutional provision for an interim
budget.
 Finance Minister Sitharaman presented her 7th straight budget (6 full & 1
interim) on July 23rd 2024 for FY 2024-25. Before her, it was Morarji Desai -
total 10time (6 times n a row)

MAJOR BUDGET DOCUMENTS

1. Annual Financial Statement (under Article 112)

2. Demands for Grants (under Article 113)
3. Finance Bill (under article 110)
4. Fiscal Policy Statements mandated underFRBM Act 2003:
 Macro-Economic Framework Statement.
 Medium-Term Fiscal Policy cum Fiscal Policy Strategy Statement.

Budget History - James Wilson (1st Finance Mininster, 1860) => India’s first
Finance Minister Shri R.K. Shanmukham Chetty (26th Nov, 1947)

Budget 2024- 25 Focus

r~• BUDGET THEME

'Annadata'
(Farmer)
~ i2l
Employment Skilling

~
~
'Vuva'
'Mahilayen' (Youth) 8E8
(Women) MSMEs Middle Class

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Budget Priorities

9 key areas to achieve the vision of a "Developed India" (Viksit Bharat)

•
Budget
Pr10rities
Path ofstrong
development
and
all-roundprosperity

Productivity and Inclusive Human

Employment
&
Resilience in Resource and Social
Agriculture Skilling Justice

Manufacturing &
Urban
Development Energy Security
Services

Infrastructure
Innovation,
Research Next Generation
&Development Reforms

BUDGET NUMBERS FOR EXAM

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UNION BUDGET 2024-25 IAS PCS Pathshala

 Total Expenditure: 8.5% higher than the actual expenditure in 2023-24

Deficit Numbers in Budget 2024-24

1. Fiscal Deficit - 4.9% (Government target to have deficit below 4.5 per cent next
year)
2. Revenue Deficit - 1.8%
3. Effective Revenue Deficit - 0.6%
4. Primary Deficit - 1.4%

Fiscal Deficit
6.4
5.9
5.8
4.9
4.0
Revenue Deficit
2.9 2.8
3.0
Primar~
2.3 2.3 1.8
Effective
Revenue Deficit 1.4
1.7 1.8 CL
0.6 Q
C)
2022-23 2023-24 2023-24 2024-25 0
(Actuals) (Budget Estimates) (Revised Estimates) (Budget Estimates) ~

Budget Allocation

Rupee Comes From

Income Tax
(19%)

Union Excise
Duties (5%)

GST & other on-Debt Capital Receipts

taxes (18%)

17%

Corporation tax (17%)

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Rupee Goes To
Pensions (4%)
Other Expenditure
(9%)
Interest Payments (19%)

Centrally
Sponsored
Scheme (8%)

Finance Commission Central Sector

and other transfers Scheme
(9%) (excluding capital
outlay on Defence
and Subsidy)
(16%)

\ 6%

8% Subsidies (6%)
States' share of Taxes
and Duties (21%)
Defence (8%)

 Expenditure on Major Items:

Defence: > Rural Development > Agri GDPGrowth
& Allied activities > Home Affairs > 9.7 6.5-
Education >>>>>> Commerce and 7.0 8.2 7.0
Industry (Lowest)

 2024-25 Disinvestment Target: has been

2021
! ! !
2022 2023 2024
22 23,. 24"' 2511
set at ₹50,000 crore (higher than the -5.8
actual disinvestment achieved in 2023-24 2020 Tlsr Revised Estimates (RE)
••Prov1s1onal Est1maces (PE)
(₹33,123 crore). 21 If rorecast

Tax Reform Proposal and Tax Slabs

Tax Proposals
Simplification in Taxes

Re, ien of Simplification

Litigation and Deepening the
Income Tax of charities and
Appeal tax base
Act 1961 TDS

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Tax Rate Current Income Slab (~) Proposed Income Slab (~)
Nil Up to 3 lakh Up to 3 lakh
5% 3 lakh to 6 lakh 3 lakh to 7 lakh
10% 6 lakh to 9 lakh 7 lakh to 10 lakh
15% 9 lakh to 12 lakh 10 lakh to 12 lakh
20% 12 lakh to 15 lakh 12 lakh to 15 lakh
30% ["Above 15 lakh Above 15 lakh

 The standard deduction for salaried individuals and pensioners has been
increased from ₹50,000 to ₹75,000 under the new tax regime.

Budget Expenditure

 Subsidy Expenditure in 2024-25:

The government's total expenditure on subsidies in 2024-25 is estimated to
be ₹4,38,423 crore, a slight decrease of 0.5% from the previous year.

1. Food Subsidy: Allocated ₹2,05,250 crore, a 3.1% decrease. This decrease is

mainly due to the discontinuation of the PM Garib Kalyan Anna Yojana
(PMGKAY.

2. Fertilizer Subsidy: Estimated at ₹1,64,000 crore, a significant decrease of 13.5%.

Subsidies

%change(2023-
Actuals Budgeted Actuals Budgeted
24Actualst.o
2022-23 2023-24 2023-24 2024-25
2024-25BE
Food 2,72,802 1,97,350 2,11,814 2.05,2:Al -31%
F'erti r 2,51,339 1,75,100 1,89,487 1,64.000 -135%
Interest' 41.676 27,565 23,980 29,550 23.2%
LPGSub&dy 6,817 2,257 12,240 11,925 -2.6%
Others" 5,281 812 3,000 17,698 4n.s%
of which88ocalion
lo PriceSlablfsabonFund 0 0 0 I 10,000
Total s,n,916 4,03,084 4,40,s12I 4,38,423 ~.5%

Expenditure on Major Schemes

Actuals Budgeted Revised Budgeled % change(2023-24

2022-23 2023-24 2023-24 2024-2S REto 2024-2SBE
MGNREGS !Ml.are 60,000 86,000 86,000 ' 0%
hghrst
Pradhan Manri AwasYojana 73,615 79,590 54,103 84,671 rc:J"e.llSe
56.5%
JalJeevanMisSIOabonalRuralDnnking WaterMission 54,700 70,000 70,000 70,163 0.2%
PM-KISAN 58,254 60.000 60.000 60,000 0%
Sama!JllShiksha 32.515 37,453 33,000 37,500 13.6%
NabooalHeallhM.iSSKlll 31,279 29,085 31,S51 36,000 14.1%
ModifiedInterestSubvenba,Scheme 17,998 23,000 18,500 22,600 22.2%
Saksham Anganwacl andPO~AN 20 19,876 20,554 21,523 21.200 -1.5%
Pradhan Man.lri
GramSadakYllJ8na 18,783 19.000 17,000 19,000 11.8%
NabooalLiveliioodMlssion-Ajeevika 11.536 14.129 14,129 15,047 6.5%
Pradhan ManlriFasalBimaYOf8na 10.296 13.625 15.000 14.600 tliaht!stda::raua -2.7%
Reform!.in ed Distribubon
Scheme 2.738 12,072 10.400 12..585 21.0%
Pradhan ManlriPoshanShak~ ma, (PMPOSHAN) 12.681 11.600 10,000 12..467 24.7%
Swachh BharatMissioo 6,851 12,192 9,SSO 12.,192 27.7%
Pradhan Manri KnshlSinchalYo' na 6.380 10,787 8.781 11,840 34.8%

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 Top Ministries with total budgeted expenditure: Ministry of Defence (13%) >
MoRTH (5.8%)> Railways (5.3%)> Consumer Affairs, Food and Public
Distribution (4.6%)

1. In Budget 2024-25, government has announced to abolish the angel tax.

2. Corporate tax rate applicable on foreign companies from 40 per cent to 35 per
cent.
3. Short Term Gain Tax - 20%
4. Long Term Gain Tax - 12.5%

Details of Budget Priorities

IBudget Priorities
I Details
I I

PRIORITY 1:  Towards Agriculture Research: 109 new high-

PRODUCTIVITY AND yielding and climate resilient varieties of 32
RESILIENCE IN field and horticulture crops.
AGRICULTURE SECTOR  Natural Farming: 1 crore farmers across the
country will be initiated into natural farming
+ 10,000 need-based bio-input resource
centres.
 Missions for pulses and oilseeds: achieve
‘atmanirbharta’ for oil seeds such as mustard,
groundnut, sesame, soybean, and sunflower.
 Vegetable production: Large scale clusters for
vegetable production >> closer to major
consumption centres
 Digital Public Infrastructure for
Agriculture(DPI): Digital crop survey for
Kharif in 400 districts + 6 crore farmers and
their lands will be brought into the farmer
and land registries + Issuance of Jan
Samarth based Kisan Credit Cards .
 Shrimp Production: Nucleus Breeding
Centres for Shrimp Broodstocks
 National Cooperation Policy: for development
of the cooperative sector
PRIORITY 2:  Employment Linked Incentives: one-month
EMPLOYMENT & wage to all persons newly entering the
SKILLING workforce in all formal sectors (upto 15k in 3
installment) + Incentive to both employee &
employer for EPFO contributions (reimburse
3k)
 Skilling Development: Skilling 20 lakh youth
over a 5-year period by upgrading 1,000

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Industrial Training Institutes (ITIs) + 12-

month Prime Minister's Internship with
monthly allowance of Rs 5000
 Model Skill Loan Scheme: Revised to facilitate
loans up to Rs.7.5 lakh
 Upto Rs.10 lakh for higher education in
domestic institutions
PRIORITY 3:  Purvodaya: Vikas bhi Virasat bhi - Develop
INCLUSIVE HUMAN Economic Opportunity in Eastern Part of
RESOURCE Ciuntry Bihar, Jharkhand, West Bengal,
DEVELOPMENT AND Odisha and Andhra Pradesh.
SOCIAL JUSTICE  Amritsar Kolkata Industrial Corridor >>
Industrial Node @ Gaya
 Andhra Pradesh Reorganization Act: Rs 15k
cr financial support + Completion of
Polavaram Irrigation Project
 PM Awas Yojana: Three crore additional
houses.
 Women-led development: allocation of more
than Rs. 3 lakh crore
 Pradhan Mantri Janjatiya Unnat Gram
Abhiyan: Improving socio-economic
condition of tribal communities covering
63,000 villages >>> benefit 5cr tribal
 Bank Branch in North East: 100 branches of
India Post Payment Bank
PRIORITY 4:  Support for promotion of MSMEs: Credit
MANUFACTURING & Guarantee Scheme for MSMEs for purchase
SERVICES of machinery and equipment without
collateral + Mudra Loans of Rs. 20 lakh
from the current Rs. 10 lakh under Tarun
Category + Financial support to set up 50
multi-product food irradiation units
 Promotion of Manufacturing & Services:
Twelve industrial parks under the National
Industrial Corridor Development Programme
+ Rental housing: Dormitory type
accommodation for industrial workers in PPP
with Viability Gap Funding (VGF) + Set up
for domestic production, recycling of critical
minerals + Digital Public Infrastructure
Applications in credit, e-commerce,
education, health, law and justice, logistics,
MSME, services delivery, and urban

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governance + Integrated Technology

Platform for IBC eco-system.
PRIORITY 5:  Cities as Growth Hubs
URBAN DEVELOPMENT  Brownfield redevelopment of existing cities
 Transit Oriented Development - 14 large
cities above 30 lakh population.
 PM Awas Yojana Urban 2.0 - 1 crore urban
poor with investment of Rs. 10 lakh crore.
 Water Supply and Sanitation: Project for 100
large cities through bankable projects.
 Building on the success of PM SVANidhi
Scheme - development of 100 weekly ‘haats’
or street food hubs every year for the next 5
years in select cities
 Lower Stamp Duty (esp for Women)
PRIORITY 6:  PM Surya Ghar Muft Bijli Yojana: install
ENERGY SECURITY rooftop solar plants to enable 1 crore
households obtain free electricity up to 300
units every month.
 R & D of small and modular nuclear reactors:
government will partner with the private
sector


PRIORITY 7:  Infrastructure investment by Central
INFRASTRUCTURE Government: 3.4 % of GDP to be provided
for capital expenditure.
 Infrastructure investment by state
governments: Provision of Rs.1.5 lakh crore
for long-term interest free loans to support
states in infrastructure.
 Private investment in infrastructure: through
viability gap funding.
 Pradhan Mantri Gram SadakYojana
(PMGSY) Phase 4: provide all-weather
connectivity to 25,000 rural habitations.
 Irrigation and Flood Mitigation: Rs. 11,500
crore to Bihar for Kosi-Mechi intra-state link.
 Assistance to Assam, Himachal Pradesh,
Uttarakhand and Sikkim for floods, landslides
 Tourism: development of Vishnupad Temple
Corridor, Mahabodhi Temple Corridor and
Rajgir + development of Nalanda

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PRIORITY 8:  Anusandhan National Research Fund: For

INNOVATION, RESEARCH basic research and prototype development.
& DEVELOPMENT  Rs. 1 lakh crore for private sector-driven
research and innovation at commercial scale.
 Venture capital fund of Rs.1,000 crore for
expanding the space economy by 5 times in
the next 10 years.
PRIORITY 9:  Unique Land Parcel Identification Number
NEXT GENERATION (ULPIN) or Bhu-Aadhaar for all lands.
REFORMS  Digitization of cadastral maps.
 Establishment of land registry.
 Integration of e-shram portal with other
portals as one-stop solution.
 NPS-Vatsalya - pension scheme for minors
 Jan Vishwas Bill 2.0 - for Ease of Doing
Business
 Vivad Se Vishwas Scheme, 2024 for resolution
of income tax disputes

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