Finance Minister Nirmala Sitharaman Presents Union Budget 2024-25
On Tuesday, Finance Minister Nirmala Sitharaman presented the Union Budget 2024-25, focusing on jobs, MSMEs, agriculture, startups, and economic growth amid global uncertainties. She emphasized the budget’s focus on the poor, women, youth, and farmers.
Key Highlights
Economic Measures
India’s inflation remains low and stable, progressing towards a 4% target. Measures are being taken to ensure adequate market supply of perishable goods.
Prime Minister’s Package
The package includes five schemes aimed at providing employment, skills, and opportunities for 41 million youth over the next five years, with a central allocation of Rs 2 lakh crore. This year, Rs 1.48 lakh crore is earmarked for education, employment, and skill development.
Agriculture and Rural Development
The budget supports farmers with 109 high-yielding, climate-resilient crop varieties. Over the next two years, 10 million farmers will be introduced to natural farming. An allocation of Rs 1.52 lakh crore is set aside for agriculture and allied sectors this year.
Employment and Skill Development
Three ‘Employment Linked Incentive’ schemes will be introduced, targeting EPFO enrolment and first-time employee recognition. Over the next five years, 2 million youth will be skilled, and 1,000 Industrial Training Institutes will be upgraded.
Infrastructure and Urban Development
Rs 2.66 lakh crore is allocated for rural development, including infrastructure. The Surya Ghar Muft Bijli Yojana will install rooftop solar panels to provide free electricity up to 300 units per month for 10 million households.
Tax Reforms
The standard deduction for salaried employees opting for the new tax regime has been increased from Rs 50,000 to Rs 75,000. The deduction for family pensions has been raised from Rs 15,000 to Rs 25,000. The new tax regime offers potential savings of up to Rs 17,500 in income tax for salaried employees.
Support for Startups and MSMEs
The Mudra loan limit will be increased to Rs 20 lakh for successful borrowers. E-Commerce Export Hubs will be created to help MSMEs and traditional artisans access international markets.
Customs and Duties
Custom duties have been revised to ease trade and reduce disputes. Exemptions are proposed for capital goods used in solar panel manufacturing, and duties on seafood exports have been lowered.
Vivad se Vishwas Scheme
The scheme aims to address specific income tax disputes currently under appeal, with raised financial thresholds for filing appeals involving direct taxes, excise, and service tax.
Doubts Revealed
Finance Minister -: The Finance Minister is a person in the government who is responsible for managing the country’s money and finances. In India, this person helps decide how the government will spend money and collect taxes.
Nirmala Sitharaman -: Nirmala Sitharaman is the current Finance Minister of India. She is the person who presented the Union Budget for the year 2024-25.
Union Budget -: The Union Budget is a plan made by the government about how it will earn and spend money in the coming year. It includes details on taxes, spending on public services, and other financial plans.
MSMEs -: MSMEs stands for Micro, Small, and Medium Enterprises. These are small businesses that play a big role in the economy by providing jobs and producing goods and services.
startups -: Startups are new businesses that are just beginning to develop. They often focus on innovative ideas and technologies.
inflation -: Inflation is when the prices of goods and services go up over time. Low and stable inflation means that prices are not increasing too quickly, which is good for the economy.
employment schemes -: Employment schemes are programs created by the government to help people find jobs. These schemes can provide training, support, and job opportunities.
41 million youth -: 41 million youth refers to 41 million young people in India. The government is planning to help these young people find jobs through various programs.
allocations -: Allocations are amounts of money set aside for specific purposes. In the budget, the government decides how much money will be spent on things like education, health, and infrastructure.
tax reforms -: Tax reforms are changes made to the tax system to make it better. These changes can help people save money and make it easier to pay taxes.
customs duties -: Customs duties are taxes on goods that are brought into the country from other countries. Changing these taxes can make it easier or harder to trade with other countries.
Vivad se Vishwas Scheme -: The Vivad se Vishwas Scheme is a government program aimed at resolving disputes related to income tax. It helps people and businesses settle their tax issues without going to court.
