Live Update: Nirmala Sitharaman presents Modi Government 3.0 Union Budget 2024-25

23 Jul, 2024

Finance Minister, Nirmala Sitaraman presented the Union Budget for the fiscal year 2024-25 in the Lok Sabha today. She started her budget speech at 11 AM and made some major announcements on the government’s future initiatives for the development of farmers, youth, the poor, and women of the nation. 

The underlying theme of the Union Budget for FY 2025 was ’Sabaka Saath Sabaka Vikaas' and it offered schemes and funds to promote women's employment, export, farming, skill building, infrastructure, and employment of youth. 

Easy Funding, More Crop Varieties, and Digital Growth for Farmers of India 

In the Union Budget 2024, the government gave undivided attention to the overall development of the farming landscape of India. The allocation of ₹60,000 crore to the Pradhan Mantri Kisan Samman Nidhi remained unchanged. In addition, the government allotted 11,500 crore rupees for the irrigation schemes. 

For the overall development of the agricultural sector of India, the central government alloted ₹1.52 lakh crore. 

Here are a few agricultural schemes that the finance minister announced from the Lok Sabha. 

• More focus on natural farming- The government will educate over one crore farmers in India on natural farming in the coming two years. This initiative will be supported through certification to maintain authenticity. 

• Increase production of oilseeds and pulses- The government aims to improve the production, storage, and marketing infrastructure for the oilseed and pulses in the coming years. India aims to become self-sufficient in the production of edible oils. 

• Better Support- Through the means like extension of PM Garib Kalyan Yojana for 5 years and promoting agriculture and FPO and start-ups, the government will continue providing substantial support to the farmers of the nation. 

• Developed digital public infrastructure for agriculture- For FY 2025, the governments will promote the digital public infrastructure of farming along with the state government. This is to promote the modernization of farming and increase production. 

• More vegetable production- To promote vegetable production, the central government plans to establish large-scale clusters for organized vegetable farming. In addition, the supply chain for vegetables is also improved and streamlined. 

• More varieties of crops- The central government will release nine new varieties of 32 crops that can adapt to harsh climatic conditions. In addition, more focus will be on increasing the production of 109 high-yielding crops. 

• Easy funding- The central government has introduced a new Kisan Credit Card, based on the Jan Samarth platform. This card will be introduced in five states and aims to streamline the credit facility. 

• Development of shrimp farming- The government will provide more support to the farmers involved in shrimp farming as this is a high-potential sector. 

• Digital Survey- The central government will be conducting digital surveys for Kharif crops in 400 districts in 2024 and aims to integrate the demographic details of over six crore farmers and their owned farmlands. .

Laudable Initiatives for Women Empowerments 

The central government has given due attention to the skill-building and employment of women through different means. The finance minister announced that the Modi 3.0 government will invest ₹3 lakh crore for women and girl-focused schemes. 

This investment will be made to creating women-specific skill-building programs and constructing hostels for working women to increase the women's percentage in the workforce. She revealed that the female workforce remained at 24% in Q2FY24. 

Schemes for Employment Generation 

The central government announced various schemes and initiatives to increase the employment opportunities for the youth of the nation. For instance, they allotted a 1000 crore budget for employment and skills development. It plans to create 4 crore new jobs in the coming 5 years. 

• The manufacturing sector will create 30 lakh jobs for the youth. ₹1.48 lakh crore rupees were allotted for education, employment, and skill development this year. 

• The government will provide more job opportunities to the youth of the nation under EPFO programs. To promote education, the central government kept the education loan interest at only 3%. The finance minister proposed to make necessary amends to the model skill loan schemes to help 25,000 students every year. 

• With the revision of the Model Skill Loan Scheme, the government is now offering loans up to Rs 7.5 lakh to 25,000 students annually. 

• As a new initiative, the central government aims to provide internship opportunities for 1 crore youth across 500 leading companies over the next five years. This internship scheme will grant a monthly allowance of Rs 5,000 for interns and a one-time fund of Rs 6,000.

More Focus on Rural Development 

For Union Budget 2024, the central government made sure that it wanted to invest in rural development. This is why many schemes and initiatives are offered. 

• ₹26000 crore are allotted for road connectivity programs exclusively for Bihar. This will fund, projects such as the Patna-Purnea expressway, Buxar-Bhagalpur highway, Bodhgaya-Rajgir-Vaishali-Darbhanga corridor, and a new two-lane bridge over the Ganga in Buxar. 

• In addition, the central government will invest in building infrastructure to prevent floods in Bihar.

• The central government ensured that the Vishwakarma Yojana program will gain momentum and the Tribal Advanced Village Campaign will be started this year. 

• For the development of rural areas and villages in India, the central government allotted ₹2 Lakh 66 Thousand crore. 

• This year, 25,000 villages in India will have proper road infrastructure.

Investments in Infrastructure Development 

To improve the infrastructure landscape of India, this budget has a lot more to offer. 

• The government will invest Rs 10 lakh crore through the PM Awas Yojana-Urban 2.0 scheme to provide housing to 1 crore poor and middle-class families. 12 cities of the country will have industrial parks. 

• With the help of PM Suryaghar Muft Bijli Yojana, the central government will provide free rooftop solar panels to 1 crore households. 

• Every household, covered under PM Suryaghar Muft Bijli Yojana, will receive free 300 units of electricity each month.

• The government will build cheap houses for laborers and will launch new housing schemes. In addition, efforts will be made to ensure a continuous water supply. 

New Tax Slabs and Relaxations in Taxes 

The finance minister hasn’t forgotten the taxation sector and has announced the revised tax slabs, along with some relaxations in a few taxes. Here is a quick review. 

• There is no tax on the annual income up to INR 3 lakh. As per the new tax slab, there is a 5% tax on income between 3-7 lakh, a 10% tax on income between 7-10 lakh, and a 15% tax on income between 10-12 lakh. 

• The GST rate is reduced, bringing some relief to middle-class families. In addition, the government has enforced huge exemptions in TDS to e-commerce operators in India. 

• Angel tax and AR corporate tax are reduced to promote the growth of start-ups and foreign investment.

• The standard deduction for salaried employees increased to Rs 75,000 whereas the standard deduction on family pension is increased by Rs 25,000.

• The government aims to review the Income Tax Act 1961 in 6 months and is trying to make provisions to simplify the Capital Gain Tax. 

Other Key Announcements 

Along with these sector-specific nnocuements, the finance minister made some announcements for the betterment of the Indian citizens. 

• The government aims to invest more in the development and promotion of tourism.

• 14 new cities in India will have new transport schemes. 

• Export policies will be simplified to strengthen the export landscape of the nation.

• Vishnupad Temple and Mahabodhi Temple will be developed on the lines of Kashi Vishwanath Temple.

• Custom duty will be reduced on 3 more cancer medicines. 

• Custom duty on mobile phones and mobile chargers is reduced by 15%. 

Industry Experts’ Viewpoints on Union Budget 2024

Mr. Narinder Mittal, Country Manager & Managing Director – Agriculture Business, CNH India & SAARC

“With its focus on farmers, this forward-thinking budget is set to enhance the livelihoods by promoting sustainable practices, boosting productivity, and developing digital and financial infrastructure. By introducing 10 million farmers to natural farming techniques and emphasizing on agricultural research will help develop climate resilience for a more secure future. Furthermore, the three-year plan and framework for digital infrastructure will benefit farmers with access to vital information, such as weather forecasts, crop advisory services, and market prices. This will enable informed decision-making, better crop management, and increased financial resources for investing in advanced farm equipment and precision technology, driving growth, productivity, and crop quality.”