The Union Budget 2024-25, announced on 23rd July 2024, is a regular budget for the financial year 2024-25. It, being the first budget of the newly elected Central Government, holds particular significance and offers a crucial glimpse into the government’s focus areas and spending plans. This article aims to provide insights into the key facts and highlights of the Union Budget 2024-25.
Union Budget 2024-25: Key Facts
| Announced on | 23rd July, 2024 |
| Presented by | Smt. Nirmala Sitaraman (Hon’ble Union Finance Minister of India) |
| Nature of Budget | Regular Budget* |
| Key Priority Areas | 9 Key Priority Areas – Agriculture, Employment, Inclusive Development, Manufacturing and Services, Urban Development, Energy, Infrastructure, Innovation and R&D, and Next Generation Reforms. |
*Note: Because of the General Elections 2024, an Interim Budget was presented on 1st February 2024. The Union Budget 2024-25 presented on 23rd July 2024 is a Regular Budget.
Union Budget 2024-25: Interesting Facts
- With the announcement of Budget 2024-25, Smt. Nirmala Sitaraman has become the first Union Finance Minister to present 7 Union Budgets consecutively.
- Till now, she shared the record of presenting the maximum number of consecutive Union Budgets with Shree Morarji Desai, who had presented 6 consecutive Union Budgets (5 Regular Budgets + 1 Interim Budget).
- This 2024 Budget is the first budget of Modi 3.0.
What is Budget?
- The Budget is a statement of the estimated receipts and proposed expenditures of the Government for an upcoming financial year i.e. a period that runs from 1st April to 31st March of the ensuing year.
- It serves as a comprehensive financial plan that reflects the economic strategy and policy priorities of the Government.
Key Concepts of Budget
The key concepts related to Budget, its formulation, presentation, and enactment can be learned through the following articles:
Union Budget 2024-25: Major Highlights
Some of the major highlights of the Union Budget 2024-25 are mentioned in the sections that follow.
Nine Priority Areas of Union Budget 2024-25
The Union Budget 2024-25 is focused on the following 9 priority areas:
- Agriculture
- Employment
- Inclusive Development
- Manufacturing and Services
- Urban Development
- Energy
- Infrastructure
- Innovation and R&D, and
- Next Generation Reforms
Union Budget 2024-25: Key Announcements
- Agriculture and Rural Development
- Initiation of farmers into natural farming, achieving self-sufficiency in pulses and oilseeds, and development of digital public infrastructure.
- Transformation of agricultural research to focus on productivity and climate-resilient crop varieties.
- Initiative to introduce 1 crore farmers to natural farming over 2 years.
- ₹2.66 lakh crore provision for ural development
- Employment and Skilling
- Five schemes to focus on 4.1 crore youth over 5 years with a central outlay of ₹2 lakh crore.
- Comprehensive internship scheme for one crore youth in top companies over five years.
- Employment-linked incentives, including one month’s wage support for first-time employees.
- Women-specific skilling programs and increased workforce participation.
- MSME and Manufacturing Support
- Special attention to MSMEs and the manufacturing sector.
- Credit guarantee scheme and term loans for machinery purchase.
- Technology support package for MSMEs.
- SIDBI to open 24 new branches to serve MSME clusters.
- Financial Initiatives
- Mudra loan limit increased from ₹10 lakh to ₹20 lakh for previous borrowers
- Financial support for higher education loans up to ₹10 lakhs in domestic institutions
- Integrated technology system for Insolvency and Bankruptcy Code (IBC)
- Infrastructure and Regional Development
- Rental housing in PPP mode for industrial workers
- Special financial support of ₹15,000 crore for Andhra Pradesh.
- New airports, medical facilities, and sports infrastructure for Bihar.
Economic Outlook as per Budget 2024
- Inflation moving towards the 4% target.
- India’s economic growth is described as a “shining exception”.
- Focus on job creation and boosting consumption, potentially benefiting consumer goods, real estate, and auto sectors.
Conclusion
Overall, the Union Budget 2024-25 is focused on bolstering India’s economy through targeted growth and stability measures. The measures announced aim to align economic strategies with evolving demands amidst global uncertainties. This forward-looking budget will cater to India’s long-term growth objectives.
Difference between Regular Budget and Interim Budget
Major differences between Regular Budget and Interim Budget can be seen as follows:
| Regular Budget | Interim Budget |
|---|---|
| Presented during the normal circumstances. | Usually, presented when presenting a Regular Budget is not feasible due to special circumstances, such as the announcement of elections or disruption of the budget cycle. |
Contains a comprehensive financial statement of the government’s finances, including detailed receipts and expenditures for the upcoming fiscal year, as well as the government’s economic policies and priorities. | This is more of a ‘Vote-on-Account’ or a provisional arrangement that allows the government to meet its expenses for a part of the year and usually does not include major policy announcements. |
FAQs on Union Budget 2024-25
When was Budget 2024-25 presented?
The Union Budget Announcement 2024 was held on 23rd July 2024.
What is the theme of the Union Budget 2024-25?
As per the Budget Speech of the Union Finance Minister, the Union Budget 2024-25 particularly focuses on Employment, Skilling, MSMEs and Middle Class.
What is the focus of Budget 2024?
There are 9 key focus areas of Union Budget 2024-25, including – Agriculture, Employment, Inclusive Development, Manufacturing and Services, Urban Development, Energy, Infrastructure, Innovation and R&D, and Next Generation Reforms.
What do you mean by Union Budget?
The Union Budget refers to the annual financial statement of the Union Government which provides details about the estimated receipts and expenditures of the government for a particular fiscal year.
What is Budget Speech?
The Union Finance Minister presents the Union Budget to the Lok Sabha with a speech, known as the ‘Budget Speech’. The Budget Speech summarizes the key points of the budget.
What are the 3 types of budgets?
There are 3 types of government budget – Balanced Budget, Surplus Budget, and Deficit Budget.
What is Economic Survey?
The Economic Survey is an annual document prepared and presented by the Union Ministry of Finance, which provides an outline of the current state as well as prospects of the various sectors of the Indian economy.
What is the difference between the Economic Survey and the Union Budget?
The Economic Survey provides a review of how the economy has performed in the past year. The Union Budget, on the other hand, is an outline of the government’s focus areas and expenditure plans for the upcoming fiscal year.
What is Government Budgeting?
Government Budgeting refers to the process by which governments (whether the central government or the state government) create, manage, and implement their financial plans. It involves estimating government revenues (such as taxes, fees, and grants) and allocating financial resources to different public sectors and activities.
