To understand the road map of the country that how the country will run, it is very important to know and ana Annalise out its economy because economy helps to know about the condition of the country and Union Budget is very important for the country because budget is the blue print of the economy it includes all the transactions, expenses and plans which are going to be done by the government in the next 5 years.
Before understanding Indian Union Budget 2024-25 it is very important to know where the money comes from in the economy and where the money is spent in Indian economy so firstly let’s understand the source of income of Indian economy. The sources are government borrowing, income tax, GST and corporate tax these are the sources from where Indian government gets money for expenses and the sources where Indian government spends money and the sources 19% is spent on interest which the government has borrowed and 21% of the money goes to the states and 16% central sector schemes and there are many more sectors where central government spends money and their expenditure. Before understanding Indian Union Budget 2024-25 it is very important to know where the money comes from in the economy and where the money is spent in Indian economy so firstly let’s understand the source of income of Indian economy. The sources are government borrowing, income tax, GST and corporate tax these are the sources from where Indian government gets money for expenses and the sources where Indian government spends money and the sources 19% is spent on interest which the government has borrowed and 21% of the money goes to the states and central sector schemes and there are many more sectors where central government spends money and their expenditure.
Here are some economic indicators released by the government, Current account deficit has seen some improvement, Current account deficit has seen a surplus and the union government has projected that the Indian economy will grow at a rate of 6.5% to 7% and last year the economy has grown at a rate of 8.2% in 2023 (no official data has been released) and the PMI index (Purchasing Managers Index has been released for only 2 sectors Manufacturing and Service sector) and according to government data the PMI index is well maintained and the next data is related to NPA (Non Performing Asset) it is decreasing since 2018 it seems good message for the economy and Indian financial sector the next indicator is Fiscal deficit it is also continuously decreasing and the government has set a target to maintain the fiscal deficit at 4%
INTRODUCTION OF THE UNION BUDGET 2024-25
The Indian government has focused the budget on youth, agriculture, poverty and women and all the schemes in the budget 2024-25 will be focused on those groups and in the budget 2024-25 the government has made themes and the themes are employment, skill development, MSMEs and middle class people and there are 9 pillars in the Union Budget 2024-25 .
PILLERS OF INDIAN UNION BUDGET 2024-25
- Productivity and adaptability in agriculture,
- Employment and Skill Training,
- Inclusive Human Resource Development and Social Justice,
- Manufacturing and services,
- urban development,
- Energy security,
- Infrastructure,
- Next-generation improvements,
- Innovation, Research and Development .
PRODUCTIVITY AND ADAPTABILITY IN AGRICULTURAL
In productivity and development in agriculture the government is focused on research and development in agriculture which will help to improve productivity in agriculture and the government will also introduce national cooperative policy which will help to develop cooperative organization and self help groups and the government wants to be independent on mustard, groundnut, sesame and soybean oil and also will start new startup’s for vegetable producers and the government has released 109 varieties of 32 crops which have high yielding varieties which will be more productive and the government said that organic farming will be improved and in this the government will provide certificates to the producers and will also help in branding and will also set up 10000 organic input resource centre’s and the government will finance shrimp production and export with the help of NABARD and the government said in the Union budget that the government will issue Kisan Credit Card.
EMPLOYMENT AND SKILL TRAINING
in union budget 2024-25 government has made 5 schemes for the employment first.
FORMAL SECTOR –
In the Union Budget 2024-25, the government has decided that when freshers join the formal sector, the government will give 15000 in 3 installments on their first salary. This is a very good decision taken by the government for the people working in the corporate sector.
MANUFACTURING SECTOR –
To improve employment in manufacturing sectors, the government has decided to help both the employee and the employer through EPFO. According to the data, about 30 lakh people will benefit from this scheme.
And the government has also said in scheme C that whatever employer contributes to EPFO contribution will be refunded for 2 years (amount will be refunded up to 3000) This scheme is expected to generate 50 lakh jobs.
SKILL DEVELOPMENT PROGRAM –
The government aims to run skill development programs and train more than 20 lakh people.
In the Union Budget 2024-25 the government will establish women hostels in different parts of the country to improve women empowerment and make them safe as well as provide loan up to Rs.10 lakh to the students for higher education and the government will reduce the interest on the loan by up to 3%, this scheme will help up to 1 lakh students every year.
INTERNSHIP OPPORTUNITIES –
The government has decided that they will provide internships to the youth in top 500 companies in next 5 years and around 1 crore youth will benefit from this scheme and each intern will get 5000 per month and 6000 at one time and the government told the companies that they can add all these internship program in their CSR(Corporate Social Responsibilities) activity.
INCLUSIVE HUMAN DEVELOPMENT RESOURCES
In the Union Budget 2024-25, the government will launch PURVODAYA Development and Expansion Scheme, this scheme is mainly focused on the eastern region which will include Bihar, Jharkhand, West Bengal and Andhra Pradesh regions, there are enough resources in these areas but due to underdevelopment reasons, the resources are not being used as much as they should be, that is why the government has decided that it will invest more money and make these areas developed and also the government will build Kolkata Amritsar Industrial Corridor and for the empowerment of women and girls, the government has decided to allocate 3 lakh crores and give them more benefits and in the budget 2024, the government will launch Pradhan Mantri Tribal Unnati Abhiyan and will cover more than 63000 villages and improve the condition of tribals, according to government data, about 5 crore people will benefit from this scheme, the government will give Rs 15000 crore to Andhra Pradesh to give financial help and will also build an entrepreneurship corridor in Andhra Pradesh and for food security also the government will provide good irrigation resource system.
MANUFACTURING AND SERVICES
In the Union Budget 2024-25 the government has decided to provide credit guarantee schemes to the MSMEs and also said that in the Mudra schemes the government will increase the amount from 10 to 20 lakhs in the TARUN categories and will help the MSMEs which are in their last stage also the government talks about setting up 12 entrepreneurship parks in the country and will launch the Important Minerals Mission which will help in domestic production.
URBAN DEVELOPMENT
In the Union Budget 2024-25 the central government said that they will reduce the stamp duty when a woman buys a property then whatever the stamp duty will be charged, the central government will reduce the price of stamp duty, by talking with the state governments and the government will start street markets and the government made a target that they will start 100 weekly markets and develop street food hubs in cities and for this the government will start schemes and in those cities where the population is up to 30 lakhs, it will start transit oriented development and will start water management in 100 big cities of the country and will also start the 2.O version of Pradhan Mantri AWAS Yojana in which the government will invest 10 lakh crores and try to give houses to 1 crore urban poor people and will start rules to regulate rental houses.
ENERGY SECURITY
In the Union Budget 2024-25 the government has decided that the government will involve the private sector in the nuclear sector and aim to set up small reactors in the power sector and also the government will do energy audit and develop 60 clusters where energy audit service will be available and also will collaborate with BHEL and NTPC and set up hydro electric systems and the government also said that they will provide free electricity to the people .
INNOATION ,RESEARCH & DEVELOPMENT
In the Union Budget 2024-25 the government said that the National Research Fund will be improved to improve basic research and development of prototypes and at the private level also the government will improve research innovation with an investment of Rs one lakh crore and develop venture capital with an investment of Rs 1000 crore and give funding to companies which are working specifically in the space sector.
NEXT, GENERATION IMPROVEMENT
In the Union Budget 2024-25, a land identification number will be issued, which will be called Bhoomi Aadhaar and all land documents will be digitalized and land registry will be improved and green technology will come in it. The government will identify all development projects according to the environment and improve FDI and NPS treatment. And will improve its machinery to improve the condition of NPS.
TAX PROPOSAL
In Union budget 2024-25 the government will make some changes in the Income Tax Act 1961 so that it will be more understandable and also will reduce tariff on some products like in 3 cancer medicines the government reduced tariff and removed tariff from 25 minerals and some changes are made in capital gains from the government side like in short term 20% tax will be applicable on FNO transactions and long term capital gains tax will be applicable at 12.5% the limit of capital gains has increased to 1.25 lakh crore and also angle tax has been abolished from the Union budget and corporate tax for foreign companies has been reduced from 40% to 35% and standard deduction for salaried people has been increased from 50000 to 75000 and for pensioners it has been increased from 15000 to 25000.
CONCLUSION
In the Union Budget 2024-25 the government considered all the essential parts and things which are important for the development of the country and the economic condition of the country.
Thanks for visiting in welophost.com and thanks for reading the article